Walmart customers could be owed money after major privacy settlement

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Walmart and Sam’s Club have agreed to settle claims that they illegally shared customers’ personal and shopping information with third-party advertising companies without their consent, Los Angeles County officials announced Monday.

The agreement resolves the dispute before a lawsuit was filed and stems from allegations that Walmart used third-party tracking tools, including Meta pixels, on its website to collect and disclose customers’ confidential personal and purchase data.

Walmart said it was pleased to resolve the matter.

Los Angeles County announced today that a pre-litigation settlement of consumer protection claims against Walmart Inc. andSam’s Club Inc. (Getty/iStock)

“We’re glad to have resolved this matter,” a company spokesperson said.

Under the settlement, Walmart will pay about $908,815, covering customer restitution, civil penalties and attorneys’ fees.

The agreement also creates a $388,815 restitution fund for eligible customers who visited Walmart’s website between Jan. 1, 2020, and May 20, 2024, and whose personal and purchase information was allegedly collected by third parties. Any money left unclaimed will be transferred to Los Angeles County’s Department of Consumer and Business Affairs.

The disclosures were allegedly conducted through third-party trackingdevices such as Meta pixels that were embedded on Walmart's website — The disclosures were allegedly conducted through third-party trackingdevices such as Meta pixels that were embedded on Walmart’s website (Getty Images)

The settlement also bars Walmart from sharing customers’ personal information without their consent and requires the company to comply with state consumer protection and privacy laws.

Los Angeles County Supervisor Hilda Solis said companies should not treat consumers’ personal information as a source of profit.

“People’s personal information is not a product for corporations to exploit,” Solis said. “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.”

Rafael Carbajal, director of the county’s Department of Consumer and Business Affairs, said the agreement sends a clear message that businesses will be held accountable for protecting customer data.

“It is essential to protect consumers’ personal financial information from being shared with others without their consent,” Carbajal said. “Protecting the privacy of consumers is critical in this digital age.”

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