Wal-Mart accused of 'organic fraud'

[Colin]

http://money.cnn.com/2007/01/17/news/companies/walmart_organic/index.htm?cnn=yes

Wal-Mart accused of 'organic fraud'

Advocacy group claims retailer is misleading its customers by labeling non-organic foods as 'organic.'

By Grace Wong (http://money.cnn.com/2007/01/17/news/companies/walmart_organic/mailto:grace.wong2@turner.com), CNNMoney.com staff writer
January 17 2007: 3:43 PM EST
NEW YORK (CNNMoney.com) -- A policy research group is accusing Wal-Mart of "organic fraud," the latest controversy to arise as the world's largest retailer pushes into the organic food industry.

The Cornucopia Institute, a Wisconsin-based advocacy group which promotes sustainable farming, claims Wal-Mart (http://money.cnn.com/quote/quote.html?symb=WMT) (Charts (http://money.cnn.com/quote/chart/chart.html?symb=WMT)) is defrauding its customers by mislabeling non-organic products as organic.

The policy group said it conducted checks of Wal-Mart stores in five states and discovered labeling violations in virtually all of the "dozens of stores" it visited.

Wal-Mart said any shelf labeling mistakes are isolated events and that it often mixes organic and conventional products on its shelves to make it easer for customers to find organic options.

"Although Wal-Mart has more than 2,000 locations that may offer up to 200 organic selections in addition to thousands of non-organic offerings, we believe it to be an isolated incident should a green organic identifying tag be inadvertently placed by or accidentally shift in front of the wrong item," the company said in an e-mailed statement.

But Cornucopia claims the retail behemoth isn't doing enough to address the problem. The advocacy group said it notified Wal-Mart of the labeling problems in September of last year, but claims that problems continued to exist at the stores when it made checks again early this year.

"It's very disturbing that the company has known about this for months and hasn't done anything about it," Mark Kastel, co-director of Cornucopia, said. "There's no excuse for this."

Wal-Mart said its stores are sent guidelines for placing identification tags and that it works with its stores to make sure the tags are accurate.

In addition to notifying Wal-Mart of the problem, Cornucopia filed a complaint in November with the U.S. Department of Agriculture, the federal agency which regulates the marketing of organic foods.

The complaint refers to violations, such as the labeling of all-natural yogurt as organic, by Wal-Mart.

Joan Shaffer, a spokeswoman for the agency, said the complaint has been received and is being reviewed. The agency is seeking more information and will determine whether an investigation is warranted after additional information is received, she said.

USDA regulations on the marketing of organic food are rigorous and carry stiff penalties - each violation of willful organic food misrepresentation can result in fines of up to $10,000.

Organic food regulations can be complex, and ignorance among food managers can result in labeling mistakes, said Samuel Fromartz, author of "Organic, Inc.," a book about the organic food industry.

But it's crucial for new players getting involved in the organic food industry - which is growing by 15 to 20 percent a year - to get the labeling regulations right, he said.

"Consumers are already confused about what organic food is so if they buy a product that they think is organic and it turns out to not be organic - it just adds to their confusion and adds to a sense of mistrust about what they're buying," Fromartz said.

Wal-Mart is the latest retailer to make a push into the approximately $15 billion organic food industry that has boosted the popularity of natural food stores like Whole Foods.

The company announced last year it would start selling more organic products, raising concerns among some organic farmers that the giant retailer would undercut prices.

[RowanC]

A good reason to boycott Walmart.

I found QFC in Oregon doing something similar.
They'd mark something a price per pound, then at the register, they'd charge more. I called them on it about 3 times, then threatened to report them. I then just stopped shopping there.

[eatyourbroccoli]

i refuse to shop at wal-mart..and stuff like this is why. they are not by any means a good, honest company, in my eyes.

[portiz]

OH MY GAWWWWWWWWWWWWD!!!!
I do all my shopping at Wal-mart. It's the only one for about 5 miles and when we need something at 2 am in the morning (we busted the water lines under the sink when we were doing our weekend remodeling), they actually had what we needed.
I was so happy when I started seeing the organic produce and meats being stocked (and plentiful at that), and had then began buying in bulk. I guess I have to start researching other grocery stores...or biting the bullet and buying online...at least they deliver. ;)

[FirstGarden]

What if it was the other way around?
I wonder what they'd find if they investigated how much ORGANIC food accidently went for regular price???

Walmart has long been known to put mom & pop stores out of business by undercutting their prices, only later to raise them. And if things don't pan out in a given locality, they shut down and leave the community without services.

They helped establish factories overseas which freely utilize child labor.

They have an in-house program that teaches their employees how to get Medicare, Medicaid, food stamps and so forth, so that they don't have to contribute to the cost of benefits. We pay out of our pockets for a high percentage of Walmart's employee benefits via taxation.

Walmart is said to have a larger economy than any third world nation.

Walmart's practices may be legal on the most part, but highly immoral. For that reason, I make them my last resort.

firstgarden
__________________________________________________ ______________

Bloomberg Columnists
Seattle Times:

Wal-Mart has been shifting its healthcare costs to taxpayers, said state Rep. Steve Conway, D-Tacoma. "I think taxpayers should be outraged."

"It's corporate welfare," said state Sen. Jeanne Kohl-Welles, D-Seattle.

http://www.wakeupwalmart.com/feature/holidays/childlabor.html

Tell Wal-Mart to Adopt a Zero-Tolerance Policy on Child Labor

Wal-Mart has repeatedly violated U.S. child labor laws and profited from overseas child labor abuses.

The Petition: Tell Wal-Mart to Adopt a Zero Tolerance Policy on Child Labor

Dear Lee Scott,

I am deeply disturbed to find out that Wal-Mart has repeatedly violated U.S. child labor laws and profited from overseas child labor abuses.

The following facts are unacceptable:
• In the United States, Wal-Mart's own internal audit found "extensive violations" of child-labor laws and state regulations.
• The audit of one week’s time clock records found 1,371 instances in which minors worked too late at night, during school hours, or too many hours in a day. It also found 60,767 instances of workers missing breaks and 15,705 instances where employees were forced to work and miss meal times.
• A recent investigation revealed children, some only 11 years old, were making Wal-Mart clothes in a Bangladesh factory. The children report being routinely slapped and beaten, forced to work 12 to 14 hours a day, often seven days a week, for wages as low as 6 and a half cents an hour.

How can Wal-Mart do this to children? As a Wal-Mart shopper, I demand that you adopt a zero tolerance policy on child labor.

Dec. 19, 2005 (Bloomberg) -- Walmart Chief Executive Officer Lee Scott said in a recent speech that if Walmart were a country it would be the 20th largest economy on earth.

Wal-Mart settles child labor cases
Company denies charges but agrees to pay penalty

WASHINGTON - Walmart Stores Inc., the world’s largest retailer, will pay $135,540 to settle federal charges that it broke child labor laws, the Labor Department said Saturday.

The 24 violations, which occurred at stores in Arkansas, Connecticut and New Hampshire, had to do with teenage workers who used hazardous equipment such as a chain saw, paper bailers and fork lifts.

Wal-Mart denied the allegations but agreed to pay the penalty.

Despite all of this, Wal-Mart refuses to adopt a zero tolerance policy on child labor! Our children deserve better from Wal-Mart this holiday season.

[mongomango]

Wal-Mart is awful and is ultimately responsible for practices that have weakened the US economy considerably. One of the reasons all the jobs are going overseas is how walmart conducts business and now others who have taken to emulating them in this conduct...mainly out of survival. The child labor, and actually adult labor that is very close to slave labor overseas, is a tricky subject. They are quite good at being disingenuous. They don't contract with the actual companies that provide the goods as a rule, they contract with independent firms who they give strict guidelines to and the independents contract with the actual company making the goods. In this way, Wal Mart says it's not me, it's the contractor.

I also refuse to shop there. I am so appreciative of the fact that I can afford not to do so because I know many people who rely on walmarts cheaper prices who believe they could not get by if they didn't shop there...and in a few of those cases, it may actually be true.

[FirstGarden]

I also refuse to shop there. I am so appreciative of the fact that I can afford not to do so because I know many people who rely on walmarts cheaper prices who believe they could not get by if they didn't shop there...and in a few of those cases, it may actually be true.

Mongo, I have found so many low-price alternatives to Walmart, such as Kroger-owned Food4Less and several, smaller independent markets. I do find some really great bargains. However, I live in a large metro area, so it's easy for me to find options. But you're right, others may find that more difficult, depending on where they live.

[mongomango]

Mongo, I have found so many low-price alternatives to Walmart, such as Kroger-owned Food4Less and several, smaller independent markets. I do find some really great bargains. However, I live in a large metro area, so it's easy for me to find options. But you're right, others may find that more difficult, depending on where they live.

Yep, that's why I said that in *some* cases it might be true. In the majority of cases I think people opt for convenience and the things listed above as reasons to not shop there are simply not an issue to them that they give more than lip service to. But it is very hard to stand on principle in our culture as well in these days of frantic lifestyles and not enough time. Heh, seems to be something folks get penalized for instead of applauded.

[carolg]

I'm glad they are getting exposed, but wonder how many others haven't gotten exposed with similar practices yet?
carolg

[Nectarine]

Yeah, I've often wondered that about the local fruit and veg outlets. Just because it's labelled organic does not necessarily make it so. How can one be sure they're getting what they pay for, and that produce isn't being labelled 'organic' just so the price can be bumped up? Hmmm.

[juliebove]

A good reason to boycott Walmart.

I found QFC in Oregon doing something similar.
They'd mark something a price per pound, then at the register, they'd charge more. I called them on it about 3 times, then threatened to report them. I then just stopped shopping there.

I never worked for Walmart but for a competitor. My job was POS/Price Maintenance. I was part of a team who made sure the price on the counter was the price the item actually scanned. I don't know how it works in OR but in WA we are accountable to the Dept. of weights and measures. In our store if there was a descrepancy it was not the store trying to rip anyone off. It was either human error or many times a computer glitch. Our system was notorious for doing weird things. We'd change a price, have a printout showing us where we made the change, then magically overnight it would change back to the old price.

[Stina]

Hey, try a Google seach on "Community Supported Agriculture." That way you can find an organic farm in your area that has local drop off spots in the growing season. Ours is not only organic, but biodynamic, just beautiful, the plants vibrate with energy. Sometimes I too am a little sketchy on "corporate organic" but I do it when there aren't local choices. But I'm pretty blessed in Oregon.

[trinity082482]

That's disgusting on Wal-Mart's part!
Imagine sick people who must eat organic because chemicals can make their medical conditions worse and these people shop at Wal-Mart because it's more affordable for them? Thats so sad. Make me want to cry. :(

[FirstGarden]

Hey Everyone

All ORGANIC produce is certified. (Pls correct me if I'm wrong, as this may vary from state to state.) Here in California, certificates are required for organic. I know of one Natural Food Store that requires the delivery agent to produce the certs. If it comes down to it, you have a right to know!

I think we can trust most markets.

But, if you feel you're being taken for a ride, as a consumer, you can get a look at those certs, or demand (in a nice way) that those certs be posted.

[MangoMommy]

I guess I'm wondering which products Walmart is claiming to be organic. I have shopped at Walmart and purchased organic products. Walmart, to my knowledge does not have their own organic label and everything I have purchased is prepackaged. Cascadian Farms, Newmans Own, Annies, etc. These really are organic, correct? So, what they're doing is placing an organic banner over the non organic items and people are buying them as organic even though the actual packaging doesn't say organic?
I always read the package even when it says "organic" because in smaller print sometimes it says "made with ORGANIC ingredients. This can make you believe something is 100% organic when actually it isn't. People really need to read the labels to know exactly what their getting. I especially hate products that claim to be zero trans fat and you look at the ingredients and the 2nd or 3rd ingredient is trans fat...I know if it has a small enough amount it doesn't count but it really isn't 0%

[Stina]

These days I can usually taste the difference anyway. Not only does organic produce taste better, but I can usually pick up a chemical taste to sprayed food, and I don't even think I have very sensitive taste buds

[Nimmanu]

I had to go to Wal-Mart the other day.

I suddenly realized it wasn't worth it, even though I really wanted the item badly. I suffered too much guilt for supporting them even with $19. :(

[RowanC]

[QUOTE=FirstGarden]Hey Everyone

All ORGANIC produce is certified. (Pls correct me if I'm wrong, as this may vary from state to state.) Here in California, certificates are required for organic. I know of one Natural Food Store that requires the delivery agent to produce the certs. If it comes down to it, you have a right to know!

I think we can trust most markets.
QUOTE]

Sorry... I don't believe in those certifications any more than I believe in the tooth fairy. Especially when the produce comes over the border from Mexico. It's pretty well-known that Mexico's government is even more corrrupt or at least AS corrupt as ours. And those tomatoes and peppers and apples they're selling as 'organic' are just TOO big and TOO perfect. I would like to see someone test them, because I just don't believe it.

I buy LOCAL, from farmers' markets, from people I KNOW and can TRUST. It's worth any extra money it costs me to support those local farmers trying to put GOOD healthy food on my table.

Trust Walmart or any big market chain? Trust the US Government?
Fat chance!

[trinity082482]

[QUOTE=FirstGarden]

Sorry... I don't believe in those certifications any more than I believe in the tooth fairy. Especially when the produce comes over the border from Mexico. It's pretty well-known that Mexico's government is even more corrrupt or at least AS corrupt as ours. And those tomatoes and peppers and apples they're selling as 'organic' are just TOO big and TOO perfect. I would like to see someone test them, because I just don't believe it.




I am the same way. No certification or any FDA approval gets past me. I have a hard time trusting much anymore. You know when something is supposed to be checked and accepted and its a bunch of hooie, you loose faith quickly. I do.

[SiennaInLondon]

Bastards. Honestly. This is why I need to get in the habit of going to local markets and not supermarket chains.

[Morn]

I feel guilty shopping at Walmart and try to avoid it like the plague! Everytime in the past that I have went there I feel like I am helping to eliminate jobs here in the United States. I only go there now if I absolutely have to (they are one of the few places open 24 hours in my area). I always shop meijer first cause they are 24 hours too). But I definately need to get to the point where I forget they exist cause they are a company that I really don't want to support. I would rather pay a little more for an item and have peace of mind.

[Firicia]

Just another example of profits before people. The more I come to look at this world the more I realise most products made for people are horrible for them, but the company looks the other way for the sake of profits. Wal-mart is a nightmare anyways, so much fun waiting 20 mins in line-ups cuz they are too cheap to have enough cashiers... not to mention the 30 mins when you come and try take a product back becuz it's crapola.
I couldn't imagine going into an American wal-mart though... I hear they sell guns in the store :eek: *runs away with her Canadian tail between her legs scared* Yes I have a fear of guns, don't mean to offend anyone, they just scare me.