Walmart Lawsuit: Nonprofit Claims Retailer Used Deceptive Marketing Practices To Sell Homeopathic Products

A lawsuit has been filed against Walmart (WMT), claiming that the mega-retailer used deceptive marketing practices to sell its homeopathic products. The lawsuit was filed by the Center for Inquiry (CFI) – a nonprofit educational organization.

In the lawsuit, CFI alleges that Walmart used “marketing, labeling, and product placement to falsely present homeopathic products as equivalent alternatives to science-based medicines, and to represent homeopathic products as effective treatments for specific diseases and symptoms."

The CFI contends that Walmart gave a false impression that its homeopathic products work as well as “science-based” products to treat a range of illnesses and conditions. The lawsuit also alleges that Walmart purposely placed its homeopathic products next to products that have been “tested” and approved by the FDA, which could make it difficult for a consumer to differentiate between the two products.

"Walmart sells homeopathics right alongside real medicines, in the same sections in its stores, under the same signs," Nick Little, vice president and general counsel at CFI, told Forbes. "Searches on its website for cold and flu remedies or teething products for infants yield pages full of homeopathic junk products. It’s an incredible betrayal of customers’ trust and an abuse of Walmart’s titanic retail power.”

According to Little, Walmart is taking advantage of consumer ignorance by passing off homeopathic products as medications that are proven. He went on to tell Forbes, "Walmart can’t claim it doesn’t know that homeopathy is snake oil, because it runs its own enormous pharmacy business and make its own homeopathic products.

“So whether it’s a scientifically proven remedy like aspirin or flatly denounced junk like homeopathic teething caplets for babies, Walmart sells all of it under its in-house ‘Equate’ branding. It’s all the same to Walmart."

Walmart responded to the lawsuit through a spokesperson that told the news outlet, "We want to be the most trusted retailer, and we look to our suppliers to provide products that meet all applicable laws, including labeling laws. Our Equate private label homeopathic products are designed to include information directly stating that the claims are not based on accepted medical evidence and have not been evaluated by the FDA."

CFI previously filed a similar lawsuit against CVS. Walmart was also recently sued for allegedly selling fake Egyptian cotten linens, along with Target and Bed Bath & Beyond.

Shares of Walmart stock were up 0.26 percent as of 2:08 p.m. ET on Tuesday.