Walmart agreed to pay a small fine and promised to ensure its third-party dealers can’t sell realistic toy guns to buyers in New York after state Attorney General Letitia James said Tuesday that the retail giant’s online store would ship them to the state.
The settlement comes nearly a decade after Walmart, Amazon, Sears and other retailers signed orders and sentences with the former New York Attorney General, who agreed to keep toy guns similar to actual lethal weapons in a statewide real lethal weapon, and they paid more than $300,000 in civil fines.
The 2015 order is part of the nationwide, which comes after the deadly shooting of Tamir Rice, a 12-year-old Cleveland boy who was killed by police in November 2014.
New York law prohibits retailers from selling or shipping toy guns of certain colors (black, dark blue, silver or aluminum) that look like real weapons.
Toy guns sold in the state must be "made of bright colors or completely made of transparent or translucent materials," according to James' office, with businesses fined $1,000 for every violation.
James said Tuesday that a survey by her office found that Walmart’s online store shipped at least nine realistic toy guns sold by third-party sellers to New York City, Westchester County and Western New York.
However, the investigation also found that between March 2020 and November 2023, consumers in the state purchased at least 46 imitation weapons that violated New York state laws through the Walmart.com platform.
"Realistic toy guns can put the community at serious risk, which is why it's banned in New York," James said in a statement.
"Walmart failed to prevent its third-party sellers from selling realistic-looking toy guns to a New York address, violating our laws and putting people at risk," she said.
“The ban on realistic toy guns is intended to keep New Yorkers safe and my office will not hesitate to take on any business that violates the law.”
The AG office said Walmart would have to pay a $14,000 fine and $2,000 settlement fee.
The total $16,000 is a fraction of Walmart's average net income per day revenue in the most recent financial quarter.
CNBC asked for Walmart's comment that neither acknowledged nor denied the findings of the James Office.
As part of the settlement, Walmart must prohibit third parties from selling or selling any imitation guns covered by state law to buyers in New York.
"Walmart will terminate the ability of third parties to list and sell toy guns and imitate weapons if it determines that the third party is engaged in the conduct," the settlement said.
"Walmart shall implement and maintain reasonably designed policies and procedures to prevent such third parties from selling, selling or selling prohibited items on Walmart (Walmart.com) for import, sale or distribution to New York," the settlement said.