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For years, Amazon sellers have battled an endless war against counterfeiters, hijackers, and black-hat operators who exploit marketplace growth for quick profits. From fake reviews to product knockoffs, Amazon’s rapid expansion created opportunities for bad actors that the platform has spent billions trying to control.

Now, as Walmart aggressively scales its own marketplace to compete, history is repeating itself—but with a troubling twist: Walmart appears to be making the same mistakes Amazon made a decade ago, only faster.

Quick Answer

CNBC’s September 19, 2025 investigation exposed widespread fraud on Walmart Marketplace, revealing how rapid growth led to lax seller vetting that allowed counterfeit products and identity theft.

The best approach for sellers is implementing aggressive brand protection while leveraging Walmart’s existing growth opportunities and fee incentives.

How CNBC Uncovered This Story

CNBC’s investigation involved purchasing products from suspicious sellers, lab testing for authenticity, interviewing former Walmart employees, and documenting 43 fraudulent seller accounts using stolen business identities.

5 Critical Findings Every Walmart Seller Must Know

1. Widespread Identity Theft – The Hidden Crisis

CNBC discovered 43 third-party sellers using stolen business credentials, including major companies like Thermo Fisher Scientific and small businesses like Chicago’s Dimo’s Pizza. Former vetting employee Tammie Jones revealed management pressure to “approve, approve, approve” sellers.

2. Counterfeit Health Products – Consumer Safety Risk

All six products CNBC purchased from fraudulent sellers tested as counterfeits, including brain supplements with misspelled labels. These fake health products pose serious safety risks while undermining legitimate brands.

3. Lax Vetting Compared to Amazon – Competitive Disadvantage

Walmart requires less documentation than Amazon and doesn’t mandate video interviews. This “Wild West” approach, as described by anti-counterfeiting experts, makes the platform vulnerable to bad actors.

4. Delayed Response to Fraud Reports – Operational Gap

When legitimate businesses discovered their identities were stolen, some waited weeks for Walmart to remove fraudulent listings. This slow response time damages both consumer trust and brand reputation.

5. Recent Policy Changes – Walmart’s Response

Following CNBC’s investigation, Walmart tightened vetting for health and beauty sellers in July 2025, indicating the company recognizes the severity of these issues.

Walmart’s Growth Strategy vs. Fraud Prevention

Aspect	Growth Focus	Fraud Prevention Reality
Seller Onboarding	44,000 new sellers in 5 months (2025)	Reduced documentation requirements
Vetting Process	“Approve, approve, approve” directive	Former employee testimonials of pressure
Market Position	95% of products from 3rd parties	Increased fraud risk with scale
Response Time	Rapid marketplace expansion	Weeks to remove fraudulent listings

How Professional Multi-Platform Management Addresses These Challenges

The CNBC investigation reveals why individual sellers struggle to protect their brands in this environment. This is where a full-service Walmart agency like Canopy Management become essential partners rather than optional services.

The Scale Problem Individual Sellers Face

Managing brand protection across Amazon, Walmart, and TikTok Shop requires monitoring thousands of potential listings daily. Canopy Management’s systems track over $3.3 billion in managed revenue, giving them visibility into fraud patterns that individual sellers can’t detect alone.

Why This Matters: When CNBC found fraudulent listings offering products at 91% discounts, it highlighted how quickly counterfeit competition can destroy pricing power. Professional monitoring systems catch these threats before they damage your market position.

Platform-Specific Brand Protection Expertise

Each marketplace has different brand protection tools. Amazon’s Brand Registry operates differently from Walmart’s Enhanced Brand Portal, while TikTok Shop lacks comprehensive protection altogether. Professional agencies understand these nuances and can navigate them simultaneously.

Real Results: Canopy Management’s clients see an average 84% year-over-year profit increase, partly because professional monitoring prevents the revenue loss from counterfeit competition. Their 99.1% client retention rate reflects their ability to navigate these complex challenges while maintaining growth.

Rapid Response Capabilities

When the CNBC investigation showed some fraudulent listings took weeks to remove, it highlighted the importance of having dedicated resources for enforcement. Professional management teams have established relationships with platform representatives for faster resolution.

How to Protect Your Brand on Walmart Marketplace

Immediate Actions (This Week):

• Enroll in Walmart’s Enhanced Brand Portal immediately
• Set up automated monitoring for unauthorized sellers using your brand
• Verify your official seller account status and documentation

Brand Protection Strategy (Next 30 Days):

• Implement comprehensive trademark monitoring across Walmart’s platform
• Document all brand protection measures for potential legal action
• Establish direct communication channels with Walmart’s brand protection team

Long-Term Defense (Ongoing):

• Regular auditing of sellers offering your products
• Customer education about authorized sellers and authentic products
• Consider professional multi-platform management for comprehensive protection

Multi-Platform Strategy During Crisis

The fraud investigation shows why platform diversification matters—but it must be done correctly. Professional agencies help brands expand to Walmart and TikTok Shop while implementing proper safeguards from day one, rather than learning about protection needs after problems arise.

Canopy Management’s “human-led, AI-driven” approach combines automated monitoring with expert analysis—exactly what’s needed for fraud prevention across multiple platforms while capitalizing on growth opportunities.

Frequently Asked Questions

Is Walmart Marketplace safe for legitimate sellers?

Yes, but requires active brand protection. The platform’s growth creates opportunities, but sellers must implement monitoring systems to protect against counterfeits.

How does this compare to Amazon’s fraud issues?

Amazon faced similar problems during rapid growth but has since tightened controls. Walmart is currently where Amazon was several years ago in fraud prevention maturity.

Should I avoid selling on Walmart because of these issues?

No. The marketplace still offers significant growth opportunities, especially with the New-Seller Savings Program offering up to 75% fee reductions. Just implement proper safeguards.

What should I do if I find counterfeit versions of my products?

Document everything, report through Walmart’s brand protection channels, and consider working with specialized brand protection services for ongoing monitoring.

Will Walmart’s recent policy changes solve these problems?

The July 2025 tightening for health and beauty products is a positive step, but comprehensive fraud prevention will require ongoing platform-wide improvements.

How can I take advantage of Walmart’s growth while staying protected?

Use the New-Seller Savings Program for reduced fees, leverage Walmart Fulfillment Services for legitimacy, and maintain active brand monitoring from day one. For comprehensive protection, consider professional multi-platform management.

Bottom Line

CNBC’s investigation reveals serious fraud issues on Walmart Marketplace, but these problems stem from rapid growth rather than fundamental platform flaws. Sellers who implement robust brand protection while leveraging Walmart’s legitimate growth opportunities can succeed.

The key is approaching Walmart Marketplace with eyes wide open. Take advantage of the significant fee incentives and fulfillment benefits, but don’t rely on the platform alone for brand protection. Success requires combining Walmart’s tools with comprehensive monitoring and protection systems.

For sellers already on Amazon, Walmart represents crucial diversification despite the fraud risks. For new sellers, the platform offers genuine opportunities if you prioritize brand protection from launch. Given the complexity revealed by the CNBC investigation, professional multi-platform management has become an essential element of sustainable growth and protection.

The lesson from Amazon’s evolution is clear: the platforms that grow fastest often struggle most with fraud control. Walmart’s challenge now is learning from Amazon’s mistakes rather than repeating them. For sellers, the opportunity is capitalizing on growth while avoiding the pitfalls that inevitably come with marketplace expansion.

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Canopy Management is a full-service marketing agency for Amazon, Walmart, and TikTok sellers. Our team consists of multi-million dollar, omni-channel entrepreneurs, industry leaders, and award-winning experts.