0 comments

---

After three infants suffocated to death due to faulty hardware on cribs, the CSPS has issued yet another recall for more than 500,000 cribs. Back in November, the CPSC recalled similar drop side cribs, and then, just a few weeks ago, the CPSC issued a second recall on cribs. That makes this the third major reacll on cribs in four months for a total of 3.2 million cribs. All the recalled cribs were sold at Walmart and other retailers.

As news of this recall hit, we read a few pretty gruesome stories that highlight how important this recall was. Here is a story from the Newark Advocate, for instance:

“On July 4, 2007, Isaac Grove was found dead after he had rolled in between the drop side of the crib and his mattress on the first block of Simms Avenue, said Dr. Jeff Lee, Licking County deputy coroner and chief forensic pathologist.

The crib had detached because of a broken plastic stop tab on the lower track, according to a U.S. Consumer Product Safety Commission news release.

Isaac Grove’s chest was squeezed and the infant suffocated within minutes, Lee said.”

This is clearly a major issue, and we think it’s simply disgraceful that any stores would allow products like this to be sold on their shelves.

Walmart, in particular has a history of dangerous products on their shelves. This is the 58th recall of Walmart products since the begining of 20008. Walmart can use its size and clout to push suppliers to produce at a lower cost, forcing them to cut corners to meet Walmart’s price demands and still make a profit. One of the areas that suppliers could cut corners is product safety. Walmart has repeatedly carried products that have been identified as unsafe or dangerous by reputable consumer safety organizations and the CPSC.

But just as Walmart uses its size and clout to push for lower prices from its suppliers, Walmart could instead push its suppliers to produce impeccably safe products. Just recently Walmart announced that it would penalize companies that delivered products to its warehouses too early or late. Imagine if Walmart threatened to penalize companies who manufactured unsafe products, or stop carrying the companies goods all together. Somehow I think the companies would take notice, and everyone would be better off.

0 comments

---

The Consumer Product Safety Commission has recalled two ‘Princess and the Frog’ charm necklaces today due to high levels of Cadmium, a dangerous heavy metal. The necklaces are sold exclusively at Walmart stores. It may sound like many other recall stories, but this is actually the first time the CPSC has recalled anything for containing Cadmium. The metal was spotlighted in a recent Associated Press investigation which discovered high levels of Cadmium in many pieces of children’s jewelry.

Cadmium, like lead and other heavy metals, is a known carcinogen and can cause stunted brain development in children.

The Associated Press found that Chinese factories had started using Cadmium in products after they stopped using lead due to scrutiny from the US government during the last product safety scare.

In our opinion, it is no coincidence that this first Cadmium recall happened at Walmart, either. First because the use of cadmium seems to be linked with Chinese factories, at least so far. More than 70% of Walmart’s goods come from China, making it likely that these toxic metal products could end up on Walmart’s shelves. Second, Walmart has a history of using its size and clout to push suppliers to produce at a lower cost, forcing them to cut corners to meet Walmart’s price demands and still make a profit. One of the areas that suppliers could cut corners is product safety.

We think it’s pretty irresponsible for Walmart to be selling cadmium laced children’s necklaces, or anything else with highly toxic chemicals, for that matter. That’s why we launched a campaign over the holiday shopping season demanding that Walmart remove dangerous products from its shelves. Obviously they haven’t listened.

You can read more about Walmart’s dangerous products and sign an open letter to Mike Duke demanding that he take responsibility for consumer protection here.

The official CPSC press release about the Disney ‘Princess and the Frog’ necklaces is here.

0 comments

---

After our national campaign over the holidays focusing on product safety, an Associated Press report about the use of Cadmium in Chinese made products, especially children’s jewelry, and a huge crib recall back in November comes news of a second crib recall.

The Associated Press reports that more than 600,000 cribs are being recalled today after an infant died because of faulty hardware. Twenty models of cribs are being recalled due to issues with drop-side hardware and with slats that can break. The cribs were manufactured in China and Vietnam and sold at Walmart as well as other retailers.

According to the AP, the Consumer Product Safety Commission (CPSC) and the company producing the cribs,

“have received 31 reports of incidents involving drop-side cribs, including six incidents of children being trapped between the mattress and the drop side. The agency and company have also received 36 reports of broken slats, including two reports of trapped children.”

This second recall highlights a disturbing trend of dangerous products on Walmart’s shelves. Walmart has a history of using its size and clout to push suppliers to produce at a lower cost, forcing them to cut corners to meet Walmart’s price demands and still make a profit. One of the areas that suppliers could cut corners is product safety. Walmart has repeatedly carried products that have been identified as unsafe or dangerous by reputable consumer safety organizations and the CPSC. It is truly sad that it took a death to bring attention to these cribs.

You can read the full article here and the full CPSC press release here for more information.

0 comments

---

“Smart Choices” is a food labeling program backed by industry heavyweights like Kellogg, Con-Agra, and (of course) Walmart.  The idea behind it is obvious: if you flag “healthy” foods with a uniform labeling system, consumers can easily identify them and make better snap decisions. 

Unfortunately, the program’s health criteria are riddled with holes.  Many products are rewarded merely for limiting sugar, fat, and salt, allowing questionable items like fudgcicles, microwave popcorn, and Lunchables to qualify for the “healthy” label.

When it comes to evaluating breakfast cereals, Smart Choices really puts on the kid gloves. Basically, a cereal containing a single encouraged nutrient and up to 12 grams of added sugar per serving earns the coveted green ribbon of health.  This has allowed ridiculously unhealthy products like Froot Loops and marshmallow-laden Lucky Charms to sport the Smart Choices Label. 

There is no news as to how extensively Walmart plans to implement the program, but the company remains on the Smart Choices Roundtable.  We can only encourage Walmart to do the right thing by using its clout to make Smart Choices a little less… dumb.

For more, check out the New York Times article: For Your Health, Froot Loops

0 comments

---

Bloomberg is reporting today that Wal-Mart and the U.S. Chamber of Commerce are among those opposing legislation that would allow the U.S. to cut off duty-free imports from factories in Pakistan and Afghanistan, if they fail to adhere to international labor standards on matters such as prohibiting forced labor and child labor. The bill, titled the Afghanistan-Pakistan Security and Prosperity Enhancement Act, is meant to help strengthen democracy in the two countries by creating “Reconstruction Opportunity Zones” and increasing their ability to export goods to the U.S. - and in return, it only requires that the countries make sure their factories are providing adequate working conditions.

Wal-Mart, however, is among those arguing that such labor restrictions would reduce any beneficial effect the legislation might otherwise have - and besides, if factories in Pakistan can’t export products to the U.S. because of labor and human rights abuses, Wal-Mart can’t then turn around and sell those products at their everyday low prices, right?

“Pakistan doesn’t have a good record in terms of child labor and the employment of women,” [Susan Aaronson, a professor at George Washington University in Washington who has written on trade and human rights] said. “This ensures the rule of law will be followed.”

The House bill states that each country “shall continue to receive duty-free treatment under this Act only if the President determines and certifies to Congress that Afghanistan or Pakistan, as the case may be has implemented the requirements set forth” - said requirements including insuring the following:

(A) compliance with core labor standards; and
(B) compliance with the labor laws of Afghanistan or Pakistan, as the case may be, that relate directly to core labor standards and to ensuring acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety.

We’ve already documented Wal-Mart’s sourcing issues in other international locales, so it shouldn’t be all that surprising that they would oppose such regulations here. Links to summaries of both the House version of the bill (with labor requirements) and the Senate version can be found after the jump.

Obama’s Bid to Boost Exports From Pakistan Hits Snag Over Labor [Bloomberg]

Read the rest of this story ...

0 comments

---

The U.S. International Trade Commission has made an announcement, and that announcement is one we shouldn’t be surprised by at this point. The ITC has ruled that U.S. tire companies are being harmed by cheap products from China, and as a result President Obama will have to decide whether to impose tariffs or quotas on the country that, thanks to Wal-Mart, is now America’s largest source of imports.

Of course, Wal-Mart’s tire business isn’t the only factor behind the ruling, but it certainly is one of the biggest. China sent 21 million tires to the U.S. in 2005, and that more than doubled to 46 million by last year. For its part, Modern Tire Dealer reports that Wal-Mart Stores Inc. has close to 3,200 outlets selling tires, although most of those sales are concentrated in its approximately 2,435-store Tire & Lube Service Centers nationwide.

The (United Steelworkers) union said China has more than tripled its tire exports to the U.S. between 2004 and 2008, ending jobs for 5,100 American workers. The union said another 3,000 workers would lose their jobs by the end of the year.

The next move for the ITC will be to come up with come up with recommendations on what the President should do to help U.S. companies, including a couple familiar names based in Ohio - Akron-based Goodyear Tire & Rubber Co. and Findlay-based Cooper Tire.

The case is the first test for Obama on trade with China, after he vowed during his presidential campaign last year to help unions or domestic industries seeking relief from foreign competition. Since the election, he also has pledged to avoid protectionism so as not to exacerbate the global recession.

U.S. agency rules for tire producers in China case [Bloomberg News]

Read the rest of this story ...

0 comments

---

A consumer fraud lawsuit was filed by Arizona Attorney General Terry Goddard back in 2006 after his office found that from 2001 to 2006, Wal-Mart consistently rang up the wrong prices on items scanned in at the cash registers. It also failed frequently to put prices on items on the shelves, leaving consumers in the dark about overcharges. Now, nearly three years after it was first filed, Wal-Mart’s pricing case in Arizona has concluded.

Wal-Mart Stores has agreed to pay $1 million and hire independent monitors to ensure price accuracy at its Arizona stores under terms of a settlement with the Arizona Attorney General’s Office…

Wal-Mart, which trumpets its low prices, racked up nearly a half-million dollars in fines for problems including discrepancies between posted prices and checkout prices and the lack of posted shelf prices on many products. Attorney General Terry Goddard said Wal-Mart never fixed the underlying problems, instead paying the fines as if they were the cost of doing business.

On top of the money Wal-Mart has already paid out, the $1 million fine will be used to pay for the independent monitoring, and a portion of it will go to the AG’s office to pay for consumer education. Goddard’s Office has maintained that while the pricing irregularities were bad, the biggest problem revolved around the consumer’s inability to tell the true cost of a product at the point of sale.

The Yuma Sun has more details on the settlement:

The deal requires Wal-Mart to hire and pay for an independent monitor to conduct random checks of compliance with state pricing laws at each of the company’s 93 stores in the state during the next three years. Any time compliance at any store dips below 98 percent - meaning more than two items out of 100 checked are not priced or improperly priced - the company will pay a $2,500 fine. Repeat failures each would result in $5,000 penalties.

Back in 2006, Wal-Mart entered into a $1.5 million settlement with the Michigan Attorney General for similar pricing errors.

Arizona AG reaches pricing lawsuit settlement with Wal-Mart [Yuma Sun]

Read the rest of this story ...

26 comments

---

For an appealing market with 1.4 billion people, a booming middle class and a fascination with Western products, Wal-Mart’s performance in China has been questionable.

According to some sources, the company hasn’t turned a profit there in 12 years. And yesterday the retailer announced that it is ‘restructuring’ about 1,400 people (read: ‘transfers’ at best, layoffs at worst). The retailer says eliminating one whole layer of management is necessary to remain competitive “as the market matures.”

What Wal-Mart spokespeople didn’t mention is that the Chinese retail market has been maturing and changing for over a decade, giving Wal-Mart ample opportunity to adapt. Wal-Mart has encountered numerous difficulties in China, especially in working with its government. It needs the approval of the Department of Trade to open new stores, and in provinces all over China it has been unable to get this approval. The retailer also has been trying to enter the Guangzhou market, one of China’s biggest, for over 12 years without success.

As we’ve seen in the U.S., community and government resistance to Wal-Mart often goes hand in hand with the company’s poor labor practices. In China, unlike in the U.S., Wal-Mart workers have successfully formed a union to fight for better pay and benefits. By September 16th of last year, all 108 Wal-Mart China stores had collective contracts.

Still, in spite of last year’s successful unionization, why did it take Wal-Mart two years to respond to an All China Federation of Trade Unions and National People’s Congress blacklisting of the retailer for not allowing its employees collective contracts? This blacklisting and delay raises questions as to Wal-Mart’s ability to address the concerns of China’s government and unions alike.

Under Mike Duke’s guidance, Wal-Mart is clearly banking on most of its growth coming from the international sector. China is the biggest prize of them all, and after a decade - Wal-Mart continues to struggle there. Will it make it?

Wal-Mart China to cut jobs in management rejig [Reuters]

Wal-Mart Stores Inc’s (WMT.N) China unit will eliminate one management layer of its stores in China to improve efficiency, affecting up to 1,400 people, the company said on Wednesday.

The U.S. retailer, which has 147 outlets in China and employs over 50,000, will offer affected employees the option to move to new stores or take other positions with lower salaries, said Jonathan Dong, a spokesman at Wal-Mart (China) Investment Co Ltd.

“As the market matures ... we have to adjust our productivity and efficiency,” Dong told Reuters.

The reduction will affect 140 “super centres” as the layer of assistant managers or deputy mangers is eliminated. That will involve between 840 and 1,400 staff, the company said. (Reporting by Fion Li; Editing by David Holmes)

16 comments

---

A federal judge in Nevada has halted a class action against Wal-Mart and dog food manufacturer Menu Foods before it even had a chance to begin. His ruling held that the need for individual factual inquiries made a class action untenable. This isn’t completely surprising - the lawsuit was filed based on deceptive trade practices and claimed Wal-Mart’s Ol’ Roy pet food products were misleading in their labeling in that they claimed to be made in the USA, when in fact many ingredients came from China. The Judge argued that this meant everyone in the class would have had to purchase the food based on the misleading labeling, something that would have to be determined on a case-by-case basis. You can read the entire court order here.

While the decision wasn’t surprising, the timing might have been:

The judge’s decision was unusual in that he denied class certification before any substantial discovery had been performed. Indeed, the court noted that so-called preemptive motions are generally disfavored, since “the shape and form of a class action evolves only through the process of discovery.” However, the court determined that the class was untenable as a matter of law, and “it would be a waste of the parties’ resources and judicial resources to conduct discovery on class certification.”

So, not only will the class action not move forward, but no discovery will be done unless individual cases are filed - which means many of the facts as to how we ended up with such a far-reaching pet food scare will remain a mystery until then.

The Ol’ Roy suit was originally filed in 2007 and eventually consolidated with a class action in New Jersey which alleged that tainted food distributed by Menu Foods and others led to the death of hundreds of pets. That action consisted of over 100 suits that grew out of the largest pet food recall in U.S. history, and settled in April of last year for $24 million. The Ol’ Roy suit, however, was severed from the Menu Foods action prior to the settlement.

Wal-Mart Cuts Class Off at the Pass in Pet Food Case [Law.com]

Read the rest of this story ...

15 comments

---

A push to get rid of wilted lettuce and rotten tomatoes is paying off for Wal-Mart, despite a grocery business that continues to score low in customer satisfaction. From Bloomberg:

Wal-Mart plans to advertise its produce in coming months to win over more customers after efforts to tidy displays, buy food locally and automate purchasing, executives said in interviews last month at the company’s headquarters in Bentonville, Arkansas. Groceries account for more than 40 percent of sales at Wal-Mart’s U.S. stores and have outpaced the growth of most other products in the past year.

Despite the fact that Wal-Mart has undoubtedly prospered during our country’s economic...ummm...struggles, the perception of the quality being sold there remains low. In fact, on the American Customer Satisfaction Index posted by the University of Michigan, Wal-Mart consistently ranks at the bottom.

Customer ratings on meat and produce have trailed the rest of the store, said Bill Simon, Wal-Mart’s chief operating officer for U.S. stores...In terms of customer satisfaction, Wal-Mart’s grocery business ranked worst in the fourth quarter compared with six major supermarket chains, according to the University of Michigan’s American Customer Satisfaction Index.

What this doesn’t bode well for is Wal-Mart maintaining its market share once the economy turns around. Indeed, Wal-Mart sits at a 68% satisfaction rate, 8 points behind the average supermarket score and over 4 points behind Wal-Mart’s own score from a year ago. If that continues, could an uptick in economic fortunes see shoppers returning to their old grocery shopping habits?

So, are we happy that Wal-Mart is trying to upgrade the quality of its produce? Or perhaps the better question to ask is, should we be concerned about the reasons why Wal-Mart needs to upgrade its produce in the first place? Couldn’t they have tried to avoid sub-standard produce right from the beginning? Beverly Crisp, a shopper interviewed by Bloomberg, was surprised on her most recent shopping trip that Wal-Mart’s grocery aisles weren’t “the mess” they had been previously - if that’s the general consensus among shoppers, Wal-Mart is going to need more than just new broccoli to fix its image.

Wal-Mart’s Push for Fresher Broccoli Boosts Revenue [Bloomberg]

Read the rest of this story ...

17 comments

---

Mike Duke is wasting no time putting his stamp on Wal-Mart.

In a time when workers everywhere are struggling through the recession while Wal-Mart eats market share and makes billions, and pro-Wal-Mart flakkery is printed every day in the media, the company has decided on a prescription: more PR.

The Wall Street Journal is reporting that Wal-Mart apparently no longer thinks Edelman can handle the full load, and is looking to bring on up to five additional public relations firms. The WSJ looked at internal Wal-Mart documents and found that the company feels it needs more spin in order to lock down the gains it has made during the recession.

It’s unclear as of yet how much of slap the move is to Edelman. Perhaps the company truly thinks it needssix PR firms hock its products and defend against bad press. But we do know that we need to be on guard - more than ever - against Wal-Mart spin. 

Wal-Mart Seeks to Hold Gains With Expanded Focus on PR [Wall Street Journal]:

In a sign that Wal-Mart Stores Inc. plans to capitalize on its sales strength in the recession, the retailer is in the process of hiring five public relations firms to better promote its products, according to documents reviewed by The Wall Street Journal.

The Bentonville, Ark.-based retailer plans to put the firms on retainer and then have them bid on individual projects, an effort by the notoriously frugal retailer to contain costs. This strategy is becoming more common in the advertising industry as businesses attempt to rein in marketing budgets amid falling revenues.

Read the rest of this story ...

1 comments

---

The Boss apparently WAS born to run…

Run far, far away from the exclusive sales deal his management team signed with Wal-Mart on a “Greatest Hits” album that hit store shelves earlier this month. The New York Times shares this:

On Jan. 13 a $10 collection of Bruce Springsteen and the E Street Band’s “Greatest Hits” — 11 songs from a 1995 hits anthology, as well as “Radio Nowhere” from “Magic” — went on sale exclusively at Wal-Mart. Since Wal-Mart has been accused of anti-union practices by Human Rights Watch, among others, and has paid large fines for violating labor laws, the announcement prompted online criticisms like the one from asroma on the fan site backstreets.com: “Bruce is doing biz with Wal-Mart? Kind of goes against everything he stands for.”

Springsteen certainly isn’t the first to sign such an exclusive sales deal - AC/DC released its new Black Ice album late last year exclusively through Wal-Mart, a decision that racked up huge number for the slightly aged rockers. In fact, Black Ice nearly went platinum in just one week.

Still, fans of The Boss understandably have a high opinion of the legend and those things that he stands for (hello..."Born in the U.S.A.” anyone?), so let’s give Mr. Springsteen some credit for acknowledging the fact that he went into business with the Devil - or a giant multi-national corporation rife with labor law violations, discrimination, an allergy to American-made products, etc., etc.

Mr. Springsteen said the decision was made too hastily. “We were in the middle of doing a lot of things, it kind of came down and, really, we didn’t vet it the way we usually do,” he said. “We just dropped the ball on it.” Instead of offering the exclusive collection to Wal-Mart, “given its labor history, it was something that if we’d thought about it a little longer, we’d have done something different.” He added, “It was a mistake. Our batting average is usually very good, but we missed that one. Fans will call you on that stuff, as it should be.”

So forgive him, check out his new album Working on a Dream (NOT a Wal-Mart exclusive), enjoy Bruce this Super Bowl Sunday, and go Cardinals.

The Rock Laureate [New York Times]

Read the rest of this story ...

6 comments

---

A pair of stories - infant formula in Texas and continuing tax issues in Connecticut.

First, from Texas. Texas Wal-Marts are asking customers to check the dates on any infant formula sold within the state, after the office of the Attorney General learned that the retail giant had been selling expired product. There doesn’t appear to be a lawsuit on the horizon...the AG’s office simply asked Wal-Mart to remove the expired formula from shelves, inform customers, and make restitution. That most likely means refunds, but state penalties are not out of the question either.

The second story comes from Connecticut, where the neverending double taxation story has gotten life breathed back into it yet again. Here is our most recent post on the subject. And this, from the Hartford Courant:

Sue Drobinski of New Britain says that despite Wal-Mart entering into an agreement to follow state laws on taxes involving even exchanges, its employees in New Britain are not following the law.

I sent her email to state Consumer Protection Commissioner Jerry Farrell Jr. this morning, who has responded that his legal department will contact Wal-Mart to bring up this and other similar complaints.

Read on for more on both stories…

Read the rest of this story ...

2 comments

---

No longer will your tootsies be kept tender by Wal-Mart’s “all man-made” Tender Tootsie slippers. The main problem, apparently, is that while Wal-Mart advertises that its slippers use 100% man-made materials, it turns out that in reality those slippers are lined with real rabbit fur.

So, either Wal-Mart is claiming to be the inventor and subsequent mass-producer of the bunny, or Wal-Mart’s packaging is inaccurate. I say it’s a coin-flip, but either way the mass retailer and uber rabbit farmer has pulled all of its Tender Tootsie slippers from store shelves in Canada after the Animal Defence League of Canada discovered the products were incorrectly labelled and contained real fur.

Marley Daviduk, a spokeswoman for the Vancouver branch of the national organization, found the slippers while shopping last week and the Ottawa and Vancouver branches of the Animal Defence League immediately contacted both Wal-Mart Canada and the product’s London, Ont.-based importer. “I knew right away it was real rabbit fur, but it said on the tag that there were no man-made materials,” she said.

The slippers, manufactured in China, apparently slipped past Wal-Mart’s quality control despite the fact that the company states it has a strict no-fur policy. Maybe next we should start checking the fur coats, to see if, ohhh, perhaps a real mink got slipped in there every so often?

Wal-Mart pulls slippers after animal-rights group complains [CanWest News Service]

Read the rest of this story ...

14 comments

---

One and a half years after Kelly Stiles reported being chemically burned by a pair of flip flops purchased at Wal-Mart, a Texas man is making a similar complaint about a pair of work boots. 

According to KTRK-TV in Texas, Jay Kowolski suffered chemical burns while working in the Bhrama boots, an in-house Wal-Mart brand, after the shoes got wet in the rain. Kowolski’s wife investigated and found similar experiences had happened to at least two other people. In 2007, Wal-Mart eventually pulled the flip flops from its shelves after receiving multiple complaints about chemical burns from customers, though the retailer never responded directly to Stiles’ complaint. In this case, Kowolski’s wife has sent a letter to Bentonville explaining about the Brahma boots, but just like last time, the company hasn’t responded.

How long until Brahma boots go the way of the flip flops?

Read the rest of this story ...

4 comments

---

Customers of Wal-Mart’s European retail front Asda, may want to take a closer look at the fruit they have purchased from the chain.  A woman in Wisbech, Cambs UK got more than she bargained for when she purchased an ordinary bunch of bananas: a little scorpion!  Laura Miller returned the bananas to the store and was met with laughter from the employees; not so funny when you take into consideration that Laura is the mother of a six-month-year-old who could have been seriously hurt by the then unidentified species of scorpion. 

Laura brought the scorpion to a pet shop to ascertain it’s species.  It was determined that the scorpion was of the Israeli Gold variety which while not poisonous, has a very painful sting.  The Sun (UK) reports that an Asda spokesman had this to say of the incident:

“We have rigorous inspection processes in place from the moment our bananas are picked right the way through to reaching our shelves, so we’re scratching our heads as to how this could’ve happened,” adding: “We sell 10million bananas on a weekly basis and this is the only reported incident.”

Not so fast, unnamed Asda spokesman, ABC News reported about eight months ago about a 12-year-old girl being stung by a scorpion in a South Carolina Wal-Mart, that was hiding in a Watermelon crate.  Perhaps Wal-Mart Stores Inc. needs to take a closer look at their rigorous produce-inspection processes. Perhaps shoppers should also look into buying local produce to avoid a foreign insect invasion in their own homes!

Scorpion Found in Bananas [The Sun (UK)]

Laura Miller, 20, found the dangerous critter – which had crawled out of her fruit bowl – inside a pair of jeans.

The shocked mother-of-one went back to Asda in Wisbech, Cambs, where she had bought the bananas from.

But Laura, who has a six-month-old tot, was confronted by giggling workers.

Read the rest of this story ...

1 comments

---

Mary Bach, a woman from Murrysville, Pennsylvania has won her fourth lawsuit against Wal-Mart after being over-charged for a dress.  Bach, nicknamed the ‘scanner-lady’ has gained a certain level of fame recently, as a champion of consumers for filing numerous small-claims suits against retailers for what she calls: “electronic shopper-lifting.” She has sued Kmart and Eckard after being over-charged for products.  Wal-Mart plead no-contest, having violated a consumer-protection law and had to pay Bach $164 including court fees. “Bach said it is not about the money” says WPXI-TV (Pa.), who also quoted her as saying:

“Here you have retailers who can reach into your wallet by overcharging you multiple times and they then shrug their shoulders and say, ‘oops it’s a mistake.’”

The Associated Press said that Bach was a key player in passing a law which requires the state to conduct inspections of price-scanners.

Wal-Mart is accustomed to being sued over pricing issues.  Just over a year ago, we posted a story from the Manitowoc Herald Times Reporter about how Wal-Mart was fined almost $90,000 from the Wisconsin State Legislature for over-charging for bulk food items.

Woman Sues Wal-Mart Over Price Problems [WPXI-TV (Pa.)]:

DELMONT, Pa.—A woman won a lawsuit against Wal-Mart after she claimed she was overcharged for purchases at the chain’s store in Delmont.

Wal-Mart pleaded no contest and will play Mary Bach $164, including $64 in court fees.

In an earlier version of this story, Channel 11 posted only a portion of Wal-Mart’s response to the litigation. The following is Wal-Mart’s response in its entirety:

Read the rest of this story ...

0 comments

---

According to The Christian Science Monitor: “In Britain, carbon footprinting – used initially to broadly measure environmental impact across a company’s entire operations – is morphing into an eco-labeling tool.” This after a British group reported that 80% of a product’s carbon footprint is laid before the consumer actually drives out and buys or uses it.

Unfortunately, carbon-labeling appears to be a tool Wal-Mart believes the American consumer isn’t ready for.

As for carbon-labeling, Wal-Mart’s senior vice president of sustainability, Matt Kistler, says that he doubted existing methodologies and the Wal-Mart customer’s ability to relate carbon with consumer merchandise. “I’m not sure the consumer will ever make a purchase based on the carbon footprint,” he says, “especially the mass consumer.”

Possible. But I think Mr. Kistler underestimates the public’s knowledge on the issue. Sure, many consumers may not know what exactly a carbon-footprint is, but the majority have probably at least heard the term and know it relates in some way to the environment. Carbon-labeling may not affect the buying habits of the majority, yet even if a small percentage of Wal-Mart shoppers were to see the labels and be moved to research the issue further, that can’t be a bad thing, right?

Those making efforts to examine their carbon footprints often do so without transparency – essential to generating both customer support and supply-chain innovation.

At Wal-Mart, consumer transparency is largely tied in to its corporate press releases, a growing assortment of eco-labeled products, and in-store awareness campaigns. A more robust effort is the company’s “Love, Earth” jewelry, which enables customers to use the Internet to map where the jewelry’s gold and silver were mined and manufactured, including information on how the mines manage cyanide and waste dumps.

Are you ready to go on a carbon diet? [The Christian Science Monitor]

Read the rest of this story ...

51 comments

---

Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.

This week’s issue begins on Wal-Mart and the economy, and whether Wal-Mart sales statistics can be used as a new barometer for the U.S. economy. You’ll also find stories on changes in shopper behavior, now that consumers are faced with less disposable income. And, you’ll find stories on Wal-Mart’s slowed growth, and the switch to smaller store formats by retailers across the country.

In addition to the economy, you’ll find stories related to next week’s election. Barack Obama highlighted the story of a 72-year-old man forced to go back to work for Wal-Mart in his half-hour special this past Wednesday night. Meanwhile, according to Reuters Wal-Mart vows to remain non-partisan in the 2008 election season, while the Financial Times reports on the candidates attempting to woo the so-called “Wal-Mart Moms.” Plus, there are suspicions that Wal-Mart is behind a new grassroots group recently set up to fight the Employee Free Choice Act, as reported in The National Journal.

Also: Find out whether a Wal-Mart case in Montana could lead to changes in that state’s campaign finance law.

And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. A California ballot measure could lead to increased demand for more humane animal products, while citizens in Virginia continue to fight Wal-Mart’s attempt to build near an historic Civil War battlefield.

Wal-Mart Watch Weekly Update for Elected Officials [October 31, 2008]

39 comments

---

The biggest oil company in the world and the biggest retailer in the world are loving life as the economy sinks.

Wal-Mart stock has risen 20% since the start of the fiscal year. Exxon Mobile just posted the largest quarterly earnings in American history- to the tune of 14.83 billion dollars.  The recession has done wonders for both companies; the volatile price of oil, puts Exxon Mobile in the position to capitalize on futures from supply-wary market analysts, while Wal-Mart continues to post double-digit profits because of the high number of price-conscious consumers who are forced to trade down - even if it’s against their will.

Many more-upscale retailers, such as Target, are not doing quite as well during the recession.  BusinessWeek reports that looking at the most recent quarter over the past year, Wal-Mart’s same store sales are up 5% while Target’s are down 0.4% and K-Mart’s are down 5.6%.

But these days are numbered. Wal-Mart knows that the recession won’t last forever. This week, they unveiled plans to focus more on renovating existing stores next year than opening new stores. Wal-Mart realizes that when the economy turns up again, many of its new customers will want to shop elsewhere - and they’re trying to stop it. The question is: will it work?

Wal-Mart Wins Big During Downturn [BusinessWeek]

These are heady times for Wal-Mart (WMT). The Bentonville (Ark.) retailer has been enjoying double-digit profit growth and strong sales as bargain hunters crowd its aisles. Its stock is up about 20% since the start of the year. And shoppers like Sal Garcia of Downey, Calif., are joining the growing ranks of loyal customers. “Look,” says Garcia, 52, putting the last of 10 shopping bags into the trunk of his Lexus, “all that for $54!”

Read the rest of this story ...