October 2024
In a noteworthy case highlighting the potential business risks of failing to comply with environmental requirements, retail giant Walmart has agreed to pay $7.5 million in civil penalties and face injunctive relief to settle allegations of unlawfully disposing of hazardous waste and medical waste in California.
The Allegations
California’s Attorney General and district attorneys from 12 California counties filed a complaint against Walmart, alleging violations of the Hazardous Waste Control Law (HWCL) and Medical Waste Management Act (MWMA). The California Department of Justice claimed Walmart had illegally disposed of hazardous and medical waste from its stores and distribution centers in California’s municipal landfills. Over 70 waste audits conducted by various district attorneys’ offices and the California Department of Toxic Substances Control (DTSC) between 2015 and 2021 allegedly revealed that hazardous waste from Walmart facilities was improperly disposed of at local landfills that were not authorized to handle such waste. These alleged violations included the improper disposal of aerosols, batteries, electronic waste, cleaning supplies, pharmaceuticals, and other hazardous materials.
The Settlement
The $7.5 million settlement includes penalties for past alleged violations and measures to prevent future non-compliance. Walmart has agreed to pay $4,297,040 in civil penalties and $3,202,960 in costs, which will be split among the prosecuting agencies. Additionally, Walmart will submit to several injunctive provisions, including hiring a third-party auditor to conduct annual waste audits for the next four years. As part of the settlement, Walmart agreed to continue operating and maintaining its hazardous waste programs and make any necessary modifications to comply with changes in California law.
Implications
The settlement reminds the retail industry that California’s regulatory bodies are committed to vigorously enforcing the Hazardous Waste Control Law (HWCL). Violators of the law can expect to face significant penalties. For example, the HWCL allows for monetary penalties of up to $70,000 each day a violation continues. Before January 1, 2018, the HWCL allowed penalties of up to $25,000 per violation per day. The MWMA provides monetary penalties of up to $10,000 per violation daily. Walmart previously settled a similar lawsuit with the California Attorney General’s Office for over $25 million in 2010 and reached an $81 million agreement with California and Missouri in 2013.
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