At a Wal-Mart store in Turnersville, N.J. in 2010, a 16-year-old visitor got hold of the store’s public address system momentarily and announced to shoppers, “Attention Walmart customers: All black people must leave the store.” “A manager quickly made his own announcement, apologizing for the message. … The teenager was charged with harassment and bias intimidation, but now Donnell Battie, who is black, is suing Walmart claiming the store was negligent and reckless and showed deliberate indifference by not keeping the P.A. system safe from abuse.” [Gloucester County Times]
Tagged as:
New Jersey,
Wal-Mart
- Notwithstanding the tone of much coverage, companies are not legally required to disclose past FCPA violations to the government when they emerge: “It’s my understanding from in-house counsel that those who [voluntarily] disclose are in the distinct minority,” says one observer. Also, Prof. Koehler notes that even if Wal-Mart successfully defends the Mexican outlays as lawful “facilitating payments,” the company could still be accused of violating FCPA’s “books and records” and internal control provisions as well as Sarbanes-Oxley. [Sue Reisinger, Corporate Counsel]
- Coyote recalls the eyes-averted maneuvers with which his former employer put itself in a posture of formal FCPA compliance when operating in corrupt countries;
- Must-read Scott Greenfield post: “The Foreign Corrupt Practices Act is the corporate version of blue laws, a reflection of American idealism born of our Puritanical origins, our Pollyanna-ish denial of how the sausage of business is made, our jingoistic belief that we are so integral to the economic functioning of the world that we can dictate a cultural and moral code for everyone, and they can either comply with our great American will or suck eggs. It’s a fantasy of self-righteousness, and even Wal-Mart got caught in the reality that the business of business is business, and not puffy-chested Americans can bully Mexicans into succumbing to our moralistic ways.” Also suggests what Wal-Mart might say in response (at least if Wal-Mart were a character in an Ayn Rand novel) and notes “efforts to take this mutt of a law and attempt to reform it, at least to the extent that it not make American multinational corporations chose between being criminals or uncompetitive.”
- Speaking of which, some reforms sought by business: “Bringing Transparency to the Foreign Corrupt Practices Act” [Michael Mukasey and James Dunlop, Federalist Society "Engage"]
- Jeffrey Miron: prosecute Wal-Mart but repeal FCPA [CNN/Cato]
- While agreeing that the FCPA we have at present is pretty bad, Prof. Bainbridge thinks a case can be made for such a law in principle;
- Something to get Capitol Hill Democrats on board for reform? FCPA might menace Hollywood on China dealings [WSJ "Corruption Currents"]
Earlier here, here, here, and (at Cato) here.
Tagged as:
China,
Foreign Corrupt Practices Act,
Mexico,
Wal-Mart
I’ve got a new opinion piece up at the Daily Caller on some relevant angles of the unfolding Wal-Mart FCPA story, including the feds’ growing crackdown on low-level “facilitating payments” that had previously been considered lawful, the potentially confiscatory effects of something called the Alternative Fines Act, and the question of why FCPA fines and settlements should be going to the U.S. Treasury, “which was surely not the victim of the Mexican bribe-paying, if victims there were.” Earlier here, here and (at Cato) here; and link thanks to Scott Greenfield (a must-read), Point of Law, Chris Fountain, Steve Bainbridge, and Coyote.
Plus: Scoop! Must credit Washington Post! Wal-Mart (like much of the rest of American business) has backed FCPA reform! In above-the-fold coverage with no fewer than three reporters’ bylines — though it does little more than recycle a meme that bounced around left-wing websites all day Tuesday — the Washington Post darkly warns that the giant retailer has been a member of broad business coalitions pressing various FCPA reforms “that, some advocacy groups argue, would eviscerate the Watergate-era anti-corruption statute.” ”There is no evidence,” the paper is constrained to concede to the disappointment of Some Advocacy Groups, “that suggests Wal-Mart participated in the Chamber’s efforts because of its problems in Mexico.”
The Post notes that the campaign is led by what it bizarrely describes as the U.S. Chamber’s “little-known” Institute for Legal Reform. Yet the Post’s own index indicates that the “little-known” Institute has gotten seven mentions in the paper within the past 12 months, mostly for its advocacy on FCPA reform. Indeed, the Post itself has covered the FCPA debate in some depth over the past year, and its editorialists have ardently defended the law (perhaps “Watergate-era” should serve as some kind of tipoff phrasing.)
It would be one thing if Wal-Mart’s Washington reps had shown some sort of special dislike of FCPA not shared by other American firms that do business in developing countries. But the real story here is how broad and pervasive the discontent with the law is among American businesses with international operations. They consider it unrealistic, incapable of reliable compliance, punitive and constantly changing in its interpretations. Wouldn’t the Post do better to begin listening to them, rather than demonize their efforts to petition Washington for redress?
Tagged as:
Foreign Corrupt Practices Act,
lobbyists,
Wal-Mart
I’ll be writing at more length about the New York Times’s story on Wal-Mart de Mexico’s payments to local officials, and the apparent sense of some in Bentonville that the issue would rest quietly if only they didn’t investigate it too hard. In the mean time, I’ve got a new post up at Cato at Liberty pointing to some reactions to the case from observers like Mike Koehler, Peter Henning, Stephen Bainbridge and Paul MacAvoy (interviewed by Dan Fisher at Forbes).
P.S.: Discussions of Mexico’s lamentable national institution of la mordida — literally, “the bite” — here, here, and here.
Tagged as:
Foreign Corrupt Practices Act,
Wal-Mart
Wal-Mart’s expansion into Mexico, one of the great American business success stories of recent years, may also have led the giant retailer into extensive violations of the Foreign Corrupt Practices Act — in particular, if a New York Times investigation is to be believed, through efforts by U.S. management to sweep under the rug strong evidence that rogue management in Mexico had paid millions of dollars in bribes to facilitate the chain’s expansion. [NYT, AW, Business Insider] Last fall I described the law as “a feel-good piece of overcriminalization” that Congress should never have passed; more on FCPA here.
Tagged as:
Foreign Corrupt Practices Act,
Wal-Mart
- Illinois now requires showing of ID, signing of log to buy drain cleaner. So long as you’re not trying to vote! [Consumerist via @amyalkon]
- Tribute to no-longer-anonymous Ken White of Popehat and his work defending bloggers from legal threats [Scott Greenfield; earlier; Ken's defense in Maryland of blogger Aaron Worthing; new case of science blogger in Texas]
- Politicos mobilize against risk that Wal-Mart will bring fresh produce choices to Harlem [Greg Beato] India frets about whether to allow chain stores, recapitulating a debate U.S. once went through [Tabarrok, MR]
- Colorado legislators honored at a luncheon where I spoke [CCJL]
- HHS launches initiative to audit health providers for compliance with HIPAA data privacy law, and many are unprepared [American Medical News, Dana Thrasher, Dom Nicastro/HealthLeaders Media]
- New scholarship on effects of Twombly/Iqbal [Drug and Device Law series first, second, third, CL&P]
- Congratulations to the outstanding Abnormal Use for winning the ABA’s “Blawg 100” vote for best torts blog; we feel pretty good about placing third without mounting a campaign. While exploring that site, don’t miss its stellar coverage of the tendentious documentary “Hot Coffee”.
Tagged as:
bloggers and the law,
Colorado,
HIPAA,
hot coffee,
Illinois,
India,
legal blogs,
pleading,
Wal-Mart
The Washington Post offers an editorial caution to lawmakers in Montgomery County, the famously liberal slice of Maryland suburbia:
A bill before the Montgomery County Council would force big-box retailers such as Wal-Mart, Home Depot and Target to negotiate with neighborhood groups as a condition for getting their new stores approved. This is such a spectacularly bad idea, on so many levels, that it’s hard to imagine how it came to be taken seriously in the first place.
By contrast, the nearby District of Columbia, often seen as a challenging place to do business, seems to be making its peace with Wal-Mart, which has announced plans to open six new stores there.
Tagged as:
land use and zoning,
Maryland,
Wal-Mart,
Washington D.C.
At Paid Content, Jeff Roberts reports that Wal-Mart may have found a clever way to pitch its services at Netflix’s streaming subscribers, namely by settling a class action lawsuit to which they are party:
A federal court in California late last week approved a class-action settlement that requires Wal-Mart to pay out $27.5 million. But here’s the key element of the ruling: Wal-Mart will be allowed to pay the 40 million Netflix subscribers in the form of gift cards for Wal-Mart.com—where there is prominent advertising for Vudu, which rents and sells movies a la carte.
The court ruling is a blow to Netflix, which had earlier blasted the settlement as “the equivalent of a marketing campaign that costs Walmart only 68 cents per potential customer.”
Tagged as:
class action settlements,
movies film and videos,
Wal-Mart
I’ve got an instant analysis up at Cato at Liberty of the retailer’s big Supreme Court win today in Wal-Mart v. Dukes, the class action certification case. The Court ruled unanimously that the Ninth Circuit had jumped the gun in certifying the case as a class action, and 5-to-4 (Scalia writing) that plaintiffs had failed to assemble the evidence needed for certification. (& welcome Real Clear Politics “Best of the Blogs”, Atlantic Wire, Nicole Neily/Daily Caller, Jon Hyman, SCOTUSBlog)
More: Josh Blackman (with a comment on the Court’s recognition of the work of the late Richard Nagareda), Hans Bader, Jim Copland, John Steele Gordon. Spot-the-errors dept.: Dahlia Lithwick. Briefs and other resources on the case at SCOTUSBlog.
Tagged as:
class actions,
Ninth Circuit,
sex discrimination,
Supreme Court,
Wal-Mart,
Wal-Mart v. Dukes,
WO writings
- Law firm settles with employee who said required high heels led to back injury [ABA Journal]
- Stock listings fleeing U.S. for overseas, legal environment a factor [Ribstein, TotM]
- Partial solution to above? Ted Frank places a stock bet on the Wal-Mart case [PoL, more]
- Wider press coverage of hospital drug shortage [AP, Reuters, my March post]
- Trial judge up north supports certifying as class action unusual suit blaming Newfoundland for moose collisions [Canadian Press via Karlsgodt, earlier here and here]
- Academic revolt against copyright overreach [Chron of Higher Ed]
- Sues deceased grandmother over trampoline injury [Madison County Record]
Tagged as:
animals,
Canada,
colleges and universities,
copyright,
hospitals,
pharmaceuticals,
Securities and Exchange Commission,
Ted Frank,
Wal-Mart
“D.C. Mayor Vincent D. Gray delivered an ultimatum in a face-to-face meeting with Wal-Mart officials at a real estate convention Monday: If the chain wants to enter the District at all, it had better commit to opening at Skyland Shopping Center, the long-delayed redevelopment project in Gray’s home ward…. Gray indicated he would be willing to go so far as to nix the company’s requests for building permits on privately owned sites, even for neighborhoods where residents favored Wal-Mart’s opening.” [Washington Post, earlier]
Tagged as:
land use and zoning,
Wal-Mart,
Washington D.C.
Washington Business Journal brings word of the list of demands by a “community group” to drop its opposition to the opening of Wal-Mart stores in Washington, D.C. Given such a welcoming attitude, isn’t it strange that so many major retailers have opened stores in suburban Maryland and Virginia, but not in the District?
Tagged as:
Wal-Mart,
Washington D.C.
Don’t know whether to laugh or weep: why one local activist thinks Washington, D.C. would be better off without Wal-Mart [Mark Perry]
Tagged as:
Wal-Mart,
Washington D.C.
- Judge Ciavarella defiant after racketeering conviction in Pennsylvania cash-for-kids horror [TheLegalIntel, Sullum and more, WSJ Law Blog, Greenfield, earlier]
- Widener lawprof Lawrence Connell facing discipline over hypotheticals in class [Orin Kerr, NLJ, interview at NAS]
- “Do we even want to remain a child care center if we have to eliminate all the parts we love?” [Free-Range Kids] Lawsuit fears tame a Frederick, Md. ice playground [same]
- Marquette lawprof Rick Esenberg on Wisconsin showdown [first, second, third posts]
- A patent owner, the Chicago Tribune and Sen. Durbin: Anatomy of a pool drain scare story [Woldenberg, AmendTheCPSIA.com]
- Mayor Thomas Menino vows to save Boston from scourge of everyday low prices [Mark Perry]
- “Comp Hearing Scheduled ‘On the Sly’ for Texting Cop Who Caused Fatal Accident” [Debra Cassens Weiss, ABA Journal] “Paying for bad cops” [Balko]
- Demand for shaker abstinence: nosy, hectoring CSPI files suit asking that salt in food be subjected to FDA regulation [six years ago on Overlawyered]
Tagged as:
Boston,
Chicago,
law schools,
Luzerne County judicial scandal,
police,
pools,
Wal-Mart,
Wisconsin,
workers' compensation
I’ve got a food policy roundup at Cato that tries to answer such questions as:
* Has FDA’s regulatory zeal finally met its match in the foodie zeal of cheese-makers and -fanciers who are beginning to insist on their right to make and enjoy cheeses similar to those in France, even if they pose a nonzero though tiny bacterial risk?
* How annoying is it that Mark Bittman would stop writing a great food column in the NYT in order to start writing an inevitably wrongheaded politics-of-food column?
* Is Wal-Mart secretly smiling after First Lady Michelle Obama publicly twisted its arm to do various things it was probably considering anyway, along with some things it definitely wanted to do, such as opening more stores in poor urban neighborhoods?
Related: Led by past Overlawyered guest-blogger Baylen Linnekin, Keep Food Legal bills itself as “The first and only nationwide membership organization devoted to culinary freedom.” 11 Points has compiled a list of “11 Foods and Drinks Banned in the United States.” And GetReligion.org has more on the “shadowy community of outlaw Amish and Mennonite dairy farmers” portrayed in several recent press reports.
Tagged as:
FDA,
food safety,
France,
New York Times,
obesity,
small business,
Wal-Mart
It’s disturbing to think of the federal government’s pressuring and jawboning a private business to reformulate perfectly lawful products, cut prices on some lines of goods, and so forth. In this case, however, as I told the Washington Times, there’s reason to think the nation’s largest retailer might have wanted to proceed with a “healthy-eating” remake anyway, and this way it can get Michelle Obama’s valuable endorsement with all the attendant publicity. Bonus: Ms. Obama has now vocally backed the idea of opening Wal-Marts in more “underserved areas” such as urban neighborhoods without full-line supermarkets; in the past union and local-merchant opposition has often stymied Wal-Mart’s wish to enter such neighborhoods.
P.S. Coincident news story: creepy pro-union group pickets home of developer who hopes to bring Wal-Mart to the District of Columbia. And Ira Stoll has covered the sometimes-exaggerated extent of “food deserts”.
Tagged as:
obesity,
Wal-Mart
