Walmart has agreed to pay $1 million to settle allegations that it illegally sold rain gear at the company’s warehouses, a move the retailer said was necessary to protect its customers and comply with federal law.
Rain Gear, a subsidiary of Wal-Mart, was bought by Walmart in 2015 for $1 billion.
Walmart said it will pay a $10-million penalty to the Federal Trade Commission.
The FTC filed the complaint in 2016 against Walmart after the company paid $1,200 to a Rain Gear employee to avoid being identified.
The agency alleged that Rain Gear sold the gear at Walmart stores across the country without paying the required minimum shipping costs and was not subject to the Environmental Protection Agency’s (EPA) Fair Labor Standards Act.
The complaint also accused Rain Gear of failing to properly document its inventory and failed to disclose to its customers that the rain gear was not legal to sell.
Read more about the lawsuit here: Walmart bought Rain Gear in 2014 for $5 billion.
Rain Gear was the first product of the company to be recalled after a 2012 outbreak of the coronavirus.
It was recalled for use in hospitals after an outbreak in hospitals, and the company later recalled a third-party rain bag that contained the virus.