Walmart Must Compensate Customers, Establish DNA Tests Over Tainted Meat in China

by Christopher Freeburn | January 7, 2014 10:34 am

A media outlet is accusing Walmart (WMT[1]) of failing to protect customers in China[2] from tainted meat.

walmart store 300x180 Walmart Must Compensate Customers, Establish DNA Tests Over Tainted Meat in China[3]
Source: Flickr[4]

China National Radio says that Walmart has been ordered by Chinese food safety regulators to implement DNA testing of foods obtained through local Walmart supplies and pay restitution to customers who purchased tainted meat at its stores in China, Bloomberg notes.

Last week, Walmart recalled donkey meat products that had been found to contain traces of fox DNA[5]. Walmart said it was cooperating with regulators in China and that it would impose tighter oversight in food suppliers in China to avoid future incidents of tainted meat.

China has experienced a series of recent incidents involving tainted meat, including a scandal involving poultry suppliers[6] for Yum! Brands (YUM[7]) KFC restaurants.

A number of western companies operating in China have received scrutiny from Chinese state-run media over the past year, including Apple (AAPL[8]), which was criticized over its warranty policies in China[9].

Shares of WMT stock was flat in Tuesday morning trading.

Endnotes:
  1. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  2. failing to protect customers in China: http://www.bloomberg.com/news/2014-01-06/china-agency-says-wal-mart-improper-inspection-leads-to-fox-meat.html
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/06/walmart-store.jpg
  4. Flickr: http://www.flickr.com/photos/walmartcorporate/
  5. that had been found to contain traces of fox DNA: http://investorplace.com/2014/01/walmart-recalls-donkey-meat-containing-fox/
  6. a scandal involving poultry suppliers: http://investorplace.com/2013/02/how-kfc-plans-to-win-back-china-after-chicken-scandal/#.UswdKHm1Kf0
  7. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  8. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  9. criticized over its warranty policies in China: http://investorplace.com/2013/03/friday-apple-rumors-facebook-to-launch-iphone-rival/#.UswdlXm1Kf0

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