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Walmart's Marketplace boom: How lax vetting came with identity theft and fakes

1. Walmart's marketplace faces scrutiny over counterfeit products and lax seller vetting. 2. Recent investigations linked 43 fraudulent seller accounts to safety risks for consumers. 3. Walmart's U.S. digital sales have turned profitable but come at the cost of oversight. 4. Counterfeit health products raise brand trust issues, impacting Walmart's reputation. 5. New regulation may hold platforms liable, increasing pressure on Walmart's policies.

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FAQ

Why Bearish?

Walmart's reputation may suffer from counterfeit incidents, impacting long-term sales. Historical cases show trust issues can lead to significant stock price drops.

How important is it?

The article details significant issues with counterfeits that can erode consumer trust, essential for a retailer like Walmart.

Why Long Term?

Counterfeit risks and potential legal liabilities could affect Walmart's long-term sales and growth strategy, similar to Amazon's past struggles.

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