The Federal Trade Commission (FTC) has filed an amended complaint asserting that Walmart permitted its money transfer services to be exploited by scammers, resulting in significant financial losses for consumers.
Last June, the FTC sued Walmart, claiming the retail giant “turned a blind eye” while fraudsters misused its money transfer service. The lawsuit stated that for years, Walmart’s policy allowed employees to issue payouts, even when faced with suspicious money transfer transactions.
Earlier this year, a judge partially granted Walmart’s motion to dismiss the case, removing one of the two counts brought by the FTC.
In its amended complaint, the FTC has provided additional details regarding Walmart’s alleged violations of the Telemarketing Sales Rule, including the prohibition on cash-to-cash money transfers in telemarketing transactions. The FTC argues that “Walmart knew about the role money transfer services play in frauds and telemarketing schemes.”
A Walmart spokesperson responded to the situation by stating that the FTC is “trying to salvage flawed legal claims that they’ve already lost once,” and expressed anticipation for responding in court.