The County of Los Angeles has reached a pre-litigation settlement of consumer protection claims against Walmart, Inc. and Sam’s Club, Inc. (collectively, Walmart). This settlement arose from Walmart’s disclosure of their customers’ confidential personal and purchase information to third-party advertising companies without customers’ consent through third-party tracking devices such as  Meta pixels embedded on Walmart’s website.

“People’s personal information is not a product for corporations to exploit,” said Los Angeles County Board Chair and First District Supervisor Hilda L. Solis. “Companies that collect consumer data have a responsibility to protect it, not use it as a tool to increase profits without people’s knowledge or consent. Los Angeles County will continue to hold powerful corporations accountable and fight to ensure every resident’s privacy is respected.”

The settlement includes permanent injunctive relief preventing Walmart from sharing customers’ personal information and requiring it to comply with applicable consumer protection and privacy laws.  The settlement requires Walmart to create a $388,817 restitution fund for eligible Walmart customers who visited Walmart’s website between January 1, 2020 and May 20, 2024, to buy products and had their confidential personal and private purchase information collected by third parties. Any unclaimed consumer restitution monies will be distributed to the County’s Department of Consumer and Business Affairs.

“It is essential to protect consumers’ personal financial information from being shared with others without their consent,” said Rafael Carbajal, Director of the County’s Department of Consumer and Business Affairs. “The County is committed to holding businesses, however powerful, accountable for safeguarding this information. Protecting the privacy of consumers is critical in this digital age.”

The settlement was reached by County Counsel Dawyn R. Harrison on behalf of the People of the State of California and benefits consumers across California. County Counsel’s Affirmative Litigation and Consumer Protection Division investigated the alleged violations and negotiated the settlement. The settlement requires Walmart to pay $908,817 in monetary relief for consumer restitution, civil penalties, and attorneys’ fees and costs.

“My office is committed to protecting consumers’ privacy and ensuring businesses comply with consumer protection laws,” County Counsel Harrison said. “If we learn about a business that is not playing by the rules and harming consumers in the County, we can open an investigation into their business practices.”

The Department of Consumer and Business Affairs (DCBA) encourages LA County residents to report unfair business practices to DCBA by emailing dcba@dcba.lacounty.gov, filing a complaint online at dcba.lacounty.gov, or calling 800-593-8222.

For more information, link to the Stipulated Settlement here and link to the Complaint here.