The Democratic Party continues to run with the narrative that giant corporations are intentionally raising prices to squeeze money out of struggling consumers.
This narrative persists despite corporations actually taking some financial hits of their own. Many large companies have been laying off their workers as a means of cutting back on overhead costs.
Democrats, however, persist in advancing the argument of price gouging because it helps them dodge accountability for inflation.
However, in the case of Walmart, Democrats are levying new accusations against the large company, along with a lawsuit.
What to Know About the Lawsuit Against Walmart
The civil litigation comes from the Federal Trade Commission (FTC) and accuses Walmart of letting scam artists abuse its money transfer service to steal millions of dollars from consumers.
Furthermore, the FTC claims defrauded customers should get their money back, along with accusing Walmart of gross negligence. The FTC contends that the corporation declined to give proper training to its employees and didn’t appropriately alert customers of issues.
#BREAKING: FTC sues Walmart for facilitating money transfer fraud that fleeced customers out of hundreds of millions of dollars. Lawsuit alleges Walmart turned a blind eye to fraud, seeks cash back for consumers: https://t.co/rFDR4Vzuhw /1
— FTC (@FTC) June 28, 2022
Therefore, it is the position of the FTC that Walmart should be on the hook for paying back the money that was allegedly scammed from consumers.
Meanwhile, former FTC official James Cooper warns the latest lawsuit against Walmart is questionable at best. Cooper says the FTC will be hard-pressed to prove that Walmart intentionally defrauded customers or allowed scammers to do so.
Since Lina Khan joined the FTC as its new chairwoman under Joe Biden, the agency has been criticized for trying to push various policies and manipulate the free market.
Pushback From Walmart
Of course, Walmart is strongly denying the claims from the FTC. In a public statement, the corporation said it’s actually saved consumers billions of dollars, along with providing money transfer services that come with minimal fees.
Finally, Walmart also declared that it has an anti-fraud initiative set in place to stop scammers and other criminals.
Complaint cites instances in which law enforcement investigations found that scammers relied on Walmart money transfers as a primary way to receive payments, including in telemarketing schemes like IRS impersonation schemes, “grandparent” scams, sweepstakes scams, and others /4
— FTC (@FTC) June 28, 2022
The weeks and months ahead will ultimately determine how this lawsuit against Walmart plays out and whether or not the FTC can provide proof to support its claims.
In the meantime, the actions of the Biden-appointed FTC chairwoman continue to remain under scrutiny.