Former exec says Walmart cheated on e-commerce

Walmart’s former executive accuses the company of issuing misleading e-commerce results under pressure to compete with Amazon. Aleksandra Michalska reports.

(REUTERS, WALMART) – A former Walmart executive, Tri Huynh, is suing the company, accusing it of cutting corners and cheating to better compete with Amazon.

Huynh says Walmart did things like mislabeling products, charging sky-high sales commissions, and not properly processing customer returns.

All that, he says, to boost results and gain market share.

Walmart says it investigated Huynh’s claims and found nothing.

It also says Huynh is a disgruntled former employee who was let go when the business was restructured.

Retail analyst Mary Epner:


“Wal-Mart is known for being very ethical to their people and their partners, their vendors, and their manufacturers. In fact it, is so much so that the buyers who work for them are kept to very limited budgets, so that they don’t abuse their power, so to speak. So, it’s really interesting, because we got, on the one side, you have somebody who’s a seasoned pro at this kind of business this e-commerce business. And also you’ve got Wal-Mart, and they will not settle cases and they will take it on till the end. So, this is going to be a very interesting challenge to say the least.”

Walmart has spent billions of dollars to compete with Amazon. Last month, it said its quarterly online sales had risen 23 percent.

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