Facts

The Department of Justice, along with Merced, Ventura, and Yolo counties, conducted an investigation on illegal weapons, specifically metal (brass) knuckles, that were sold by Walmart and third-party sellers on Walmart's website: Walmart.com. Walmart's website allows retailers to sell products directly to consumers, serving as an e-commerce platform for third-party sellers. Brass knuckles are worn on the hand, over the knuckles, increasing a punch's impact while protecting the wearer's hand. The knuckles can cause serious injury and therefore are classified as deadly weapons. The Department of Justice, representing the state, filed a complaint for permanent injunction, civil penalties, restitution, and other relief pursuant to unfair competition laws.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that about 250 products capable of being classified as brass knuckles, were sold through Walmart's website. Specifically 60 percent were sold directly by Walmart with the remaining percentage sold by third-party sellers.

DEFENDANT'S CONTENTIONS: Defendant noted that it cooperated as soon as it was notified about the sales.

Result

The case settled with defendant agreeing to the following: pay civil penalties and costs totaling $500,000 ($125,000 to each of three district attorneys' offices); stop selling brass knuckles on its website; prevent third-party sellers from offering or exposing for sale or selling illegal weapons on its website; implement and maintain policies and procedures reasonably designed to prevent third-party sales of illegal weapons; provide a system on product pages allowing consumers to report the sale of illegal weapons; and provide compliance reports for five years.