Squawk Pod CNBC Special Report: How Walmart Marketplace’s Rapid Growth Came With Fakes And Scams 9/19/25
Sep 19, 2025
Walmart's ambitious shift to a digital marketplace has uncovered a web of counterfeit products and fraudulent sellers. Companies like Demos Pizza and Thermo Fisher have had their identities hijacked to sell dangerous knockoffs. Rapid growth put intense pressure on seller vetting processes, leading to leniency and increased scams. Consumers are warned about counterfeit supplements, and experts describe the marketplace as a 'Wild West.' In response, Walmart is tightening its product vetting and collaborating on anti-counterfeit initiatives.
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Local Business Identity Stolen
- Demos Pizza discovered someone created a Walmart seller account using its business name and address to sell Lancôme cream at deep discounts.
- Lab testing confirmed the cream sold under Demos's identity was counterfeit, shocking the restaurant owner.
Big-Name Company Impersonated
- CNBC found a seller impersonating Thermo Fisher Scientific selling beauty products with many poor verified reviews.
- St. John's University lab testing confirmed at least some of those products were counterfeit.
Growth Pressure Weakened Vetting
- Former employees say Walmart relaxed vetting as it chased rapid marketplace growth to compete with Amazon.
- That growth push made the platform more permissive, creating openings for bad actors.