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Walmart Sued For Misleading E-Commerce Results In Fight Against Amazon

A former Walmart executive has sued the retailer for misleading e-commerce results, alleging information was falsely skewed to portray its “meteoric growth” against Amazon.

Former Director of Business Development, Tri Huynh, claims Walmart has betrayed its Founder’s commitment to integrity, and asserts the company fired him for complaining about it:

“Wal-Mart sacrificed and betrayed its Founder’s key principles of integrity and honesty, pushing those core values aside in its rush to win the E-commerce war at all costs”

“In doing this, it realized it must silence any whistleblower who spoke up”.

Huynh has accused the retailer of several wrongdoings including incorrect customer returns processing, and the mislabelling of products.

He states Walmart failed to process more than US$7 million of customer returns, which buoyed its results from September ’15 to March ’16.

The company is also accused of obtaining exorbitant sales commissions from sellers of its online marketplace – reportedly around 15% versus the normal 6% – 8%.

Mr Huynh claims the retailer’s internal controls failed to detect the problem, which resulted in overstated revenue.


In a complaint to San Francisco’s District Court, Huynh has accused Walmart of “cheating” as it aimed to regain ground against Amazon:

“Wal-Mart cut corners and cheated in a race to expand and gain market-share,” having been “desperate to gain the ground it had long lost to Amazon”.

According to Reuters, Walmart affirms Huynh’s claims are unsound and the remarks of a disgruntled employee:

“We take allegations like this seriously and looked into them when they were brought to our attention”

“The investigation found nothing to suggest that the company acted improperly”.

The retailer states it will defend all claims vigorously.

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