Wal-Mart Plans Upgrades For Vendor Compliance In China

Wal-Mart Stores Inc. said it plans to upgrade its vendor compliance process in China, after it was accused by state-owned China Central Television of violating the country’s vendor permit policies to jack up its profits. As part of its compliance efforts, Wal-Mart will expand its inspection of vendors’ fulfillment documents for products sold at its stores and will collect more documents to verify product labels, test results, and product claims. Wal-Mart defended its compliance practices, saying accelerated product approvals are only for current suppliers. The company has encountered various obstacles in China, an important growth market for the U.S. retailer.