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Counterfeits in the Cart: What Walmart’s Marketplace Problem Teaches Us

23 September 2025

23 Sep 2025

 

Online marketplaces are booming, and Walmart.com has quickly become a serious challenger to Amazon. But with growth comes risk. A recent investigation revealed that counterfeit health and beauty products have slipped onto Walmart’s platform through third-party sellers posing as legitimate businesses. For shoppers, that means a trusted brand name doesn’t always guarantee a trusted purchase.

The problem highlights a bigger truth: counterfeiters thrive when vetting systems are weak. In Walmart’s rush to attract more sellers and expand its product range, some safeguards were loosened. That made it easier for bad actors to get approved — and harder for consumers to tell real from fake.

Why does this matter? Counterfeit products aren’t just cheap knockoffs; they can be unsafe. Supplements, creams, and personal-care items often carry health risks when they’re fake. And for brands, the fallout is just as serious: reputation damage, customer distrust, and costly battles to remove fraudulent listings.

So what’s the takeaway for businesses?

  • Don’t assume platforms will protect your brand.
  • Monitor marketplaces actively with test buys and reporting systems.
  • Invest in layered IP strategies (trade marks, design rights, patents, trade secrets) to create barriers against imitators.
  • Educate consumers to buy only from authorised sellers.

Online marketplaces aren’t going away — if anything, they’re growing faster. But trust is fragile. Brands that take a proactive approach to IP protection and counterfeit monitoring will be better positioned to keep their reputation — and their customers — safe.

Want to stay ahead of counterfeit risks? IP Solved helps businesses protect their brand online and off. Get in touch with us today.

 

 

23 September 2025
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