Wave Staff and Wire Services
LOS ANGELES — Los Angeles County has announced that a pre-litigation settlement of consumer protection claims against Walmart Inc. and Sam’s Club Inc. regarding the companies’ alleged disclosure of customers’ confidential personal and purchase information to third-party advertising companies without consent was reached.
The disclosures were allegedly conducted through third-party tracking devices such as Meta pixels that were embedded on Walmart’s website.
A Walmart representative issued a statement Aug. 3 that read, “We’re glad to have resolved this matter.”
County Supervisor Hilda Solis also commented on the accord.
“People’s personal information is not a product for corporations to exploit,” Solis said. “Companies that collect consumer data have a responsibility to protect it, not use it as a tool to increase profits without people’s knowledge or consent. Los Angeles County will continue to hold powerful corporations accountable and fight to ensure every resident’s privacy is respected.”
The settlement requires Walmart to pay about $908,815 in monetary relief for consumer restitution, civil penalties and attorneys’ fees and costs.
The resolution also includes an injunction preventing Walmart from sharing customers’ personal information and requiring it to comply with applicable consumer protection and privacy laws. Walmart must also create a $388,815 restitution fund for eligible Walmart customers who visited Walmart’s website between Jan. 1, 2020, and May 20, 2024, to buy products and had their confidential personal and private purchase information collected by third parties.
Any unclaimed consumer restitution monies will be distributed to the county’s Department of Consumer and Business Affairs.
“It is essential to protect consumers’ personal financial information from being shared with others without their consent,” Rafael Carbajal, director of the county Department of Consumer and Business Affairs, said in a statement. “The county is committed to holding businesses, however powerful, accountable for safeguarding this information. Protecting the privacy of consumers is critical in this digital age.”
The settlement was reached by County Counsel Dawyn R. Harrison and benefits consumers across California. County Counsel’s Affirmative Litigation and Consumer Protection Division investigated the alleged violations and negotiated the settlement.
“My office is committed to protecting consumers’ privacy and ensuring businesses comply with consumer protection laws,” Harrison said. “If we learn about a business that is not playing by the rules and harming consumers in the county, we can open an investigation into their business practices.”
