Walmart’s online marketplace is key to its growth strategy, aiming to outperform sales and compete with Amazon. However, a CNBC investigation revealed issues with counterfeit and potentially dangerous products being sold. Walmart relaxed vetting controls to attract more sellers, leading to stolen identities and fake items.

The investigation found 43 sellers using other businesses’ identities on Walmart’s marketplace, with counterfeit products being a major concern. Walmart’s vetting policies were loosened over time, raising questions about the platform’s safety. Walmart responded by emphasizing its commitment to trust and safety, enforcing a zero-tolerance policy for noncompliant items.

Former employees revealed Walmart’s marketplace expansion during Covid led to looser vetting for sellers, increasing pressure to approve more applications. Differences in onboarding requirements between Walmart and Amazon were highlighted, with Walmart making changes to documentation and product vetting processes over time.

Following CNBC’s reporting, Walmart updated its vetting policies for beauty and personal-care products in late July, requiring additional documentation from sellers. The legal landscape for online marketplaces and counterfeit goods remains a challenge, with the Shop Safe Act aiming to hold platforms more accountable. Brands support the legislation, but it has faced opposition from major online marketplaces like Walmart and Amazon.

Read more at CNBC: 5 key takeaways from CNBC investigation