Los Angeles County, California — Walmart and Sam’s Club customers who shopped online during the past several years could be eligible for compensation after the retail giant agreed to settle allegations that it improperly shared customers’ personal and shopping information with third-party advertising companies.
The agreement, announced Monday by Los Angeles County officials, resolves the dispute before a lawsuit was filed and establishes a restitution fund for qualifying customers while requiring changes to the company’s privacy practices.
Settlement Centers on Customer Privacy Allegations
According to county officials, the dispute focused on allegations that Walmart used third-party tracking technologies, including Meta pixels, on its website to collect and share customers’ personal information and purchase history without obtaining proper consent.
Officials alleged that confidential customer data was disclosed to outside advertising companies, raising concerns about consumer privacy and compliance with California law.
The settlement resolves those allegations without the filing of a lawsuit. In a statement, Walmart said it was pleased to put the matter behind it.
“We’re glad to have resolved this matter,” a company spokesperson said.
The company has not admitted wrongdoing as part of the agreement.
Restitution Fund Created for Eligible Customers
As part of the settlement, Walmart will pay approximately $908,815, covering customer restitution, civil penalties, and attorneys’ fees.
Of that amount, $388,815 will be placed into a restitution fund for eligible consumers.
According to the agreement, the fund is intended for customers who visited Walmart’s website between Jan. 1, 2020, and May 20, 2024, and whose personal or purchase information was allegedly collected by third parties.
Any money remaining after eligible claims are processed will be transferred to the Los Angeles County Department of Consumer and Business Affairs.
Walmart Must Change How Customer Data Is Handled
Beyond the financial payment, the settlement also requires Walmart to make changes to its privacy practices.
Under the agreement, the company is prohibited from sharing customers’ personal information without their consent and must comply with California consumer protection and privacy laws moving forward.
The settlement is intended to strengthen safeguards around how customer information is collected, stored, and shared online.
County Officials Stress Consumer Privacy
Los Angeles County Supervisor Hilda Solis said businesses should not treat consumer data as a source of profit.
She emphasized that companies collecting personal information have a responsibility to protect it rather than use it for financial gain without customers’ knowledge or permission.
Rafael Carbajal, Director of the Los Angeles County Department of Consumer and Business Affairs, also praised the agreement.
He said the settlement sends a clear message that businesses will be held accountable for protecting customers’ financial and personal information, adding that safeguarding consumer privacy is increasingly important in today’s digital world.
What Customers Should Know
The settlement creates a potential opportunity for eligible Walmart shoppers, but county officials have not yet announced a claims process or payment timeline.
Customers who used Walmart’s website during the covered period may want to watch for future announcements regarding eligibility requirements and how restitution claims can be submitted.
For now, the agreement represents another high-profile case highlighting the growing scrutiny over how companies collect, use, and share consumer data online.
Do you think companies should face tougher penalties for sharing customer data without consent? Share your thoughts in the comments below.
