The latest wave in Walmart and Amazon vs unauthorized sellers shows both platforms enforcing stricter brand controls, deactivating listings, and requiring direct brand authorization even for long-standing, previously approved sellers.
Nintendo allegedly pulled its products from Amazon after uncovering that third-party sellers were importing discounted stock from Southeast Asia and selling it below market value in the US.
The move highlighted ongoing concerns over unapproved sellers disrupting pricing and brand control.
Now, Amazon and Walmart are responding with tougher listing restrictions, brand registry enforcement, and documentation demands aimed at curbing unauthorized activity.
Walmart Gates Beauty Category, Demands Strict Seller Vetting
Walmart is rolling out major policy changes that will restrict who can sell in the Beauty and Personal Care categories. According to PPC Land, these changes mark a sharp pivot in seller governance, limiting product listings to brand owners and authorized distributors only.
The update was announced through direct seller communications and is expected to go live in the coming days. Many third-party sellers, particularly those using Walmart Fulfillment Services (WFS), reported sudden listing errors and compliance issues overnight.
Several sellers say they received COMP (compliance) errors with no prior warning. In one case, a seller found 1,766 listings flagged in a single morning, despite having active inventory in WFS.
Walmart plans to introduce an enhanced vetting process to determine eligibility for continued access to the affected categories. This vetting hinges on two key requirements:
- Seller maturity in the category, measured by past performance on Walmart, other platforms, and the seller’s own site
- Complete documentation for each item, proving chain of title, compliance with FDA regulations, and other safety standards
Acceptable documentation includes:
- Invoices tracing back to the brand owner or manufacturer
- FDA registration and listing documents
- MOCRA compliance documents
- NDC numbers (if applicable)
- Letters of authorization from the brand
- Third-party test reports or claims substantiation documentation
These new requirements reflect increased scrutiny over regulated products and are already causing operational issues for sellers. WFS sellers are now tasked with removing affected inventory following instructions in a dedicated guide from Marketplace Learn.
Sellers across various forums have expressed confusion and frustration at the timing and lack of warning. For some, even existing brand relationships and regular communication have not been enough to prevent listing removals.
AskJimmySmith"Walmart’s sudden removal of beauty listings with no sell-through period or warning has devastated thousands of resellers overnight, leaving inventory unsellable and businesses in limbo."
Amazon Deactivates LEGO Listings, Citing Brand Registry Policy
Meanwhile, a seller started a discussion in Amazon Seller Central seller forum about the deactivation of a large number of LEGO product listings. The popular toy products were shut down suddenly and simultaneously for all sellers who had active offers on the affected ASINs.
Amazon informed the sellers that their listings were removed due to a violation of the platform’s ASIN Creation Policy. The company reminded merchants that they are responsible for making sure all products they offer for sale comply with Amazon’s regulations and policies.
The official notice explained that to protect the customer shopping experience, Amazon limits the creation of new ASINs for brands enrolled in its Brand Registry program. This restriction applies to sellers who are not formally associated with the brand owner, especially for products the brand no longer offers.
This action caused significant confusion and frustration in the seller community, with many questioning the logic of removing discontinued items that are popular in the secondary market. Sellers voiced concerns that the policy would lead to a massive loss of revenue for both their own businesses and for Amazon itself.
Why Were The LEGO Listings Deactivated
Sellers who previously had approval to sell LEGO products, known as being “ungated”, were affected, with many losing listing privileges without warning. Even inventory that had been live and selling for years was removed due to the updated ASIN creation policy.
In a new episode of the weekly ecommerce news & updates from Bellavix, it was explained that sellers not directly connected to LEGO through brand registry can no longer create or relist discontinued products. This marks a departure from past policy, where historical approval allowed continued access to branded inventory.
Key takeaways from the enforcement update include:
- Ungating is no longer permanent; Amazon now reserves the right to revoke selling access at any time
- Discontinued sets require a verified brand connection, regardless of past sales history
- Sellers with collectible or legacy stock are especially impacted, as no appeal path has been provided
The move has fueled concern among toy resellers and those handling discontinued inventory. Many are now re-evaluating their sourcing strategies, with some seeking guidance from an experienced Amazon agency to better navigate the tightening enforcement around brand registry access.
Fraud Pressures Add Complexity to Walmart and Amazon vs Unauthorized Sellers Crackdown
As Amazon sellers continue raising concerns over sudden policy enforcement, such as the recent LEGO listing removals discussed in Seller Central forums, broader fraud risks are also shaping the landscape for online marketplaces. Unauthorized sellers are only one part of the issue; systemic fraud is creating mounting pressure on retailers to enforce tighter control across all seller activities.
According to Help Net Security, fraud in eCommerce is now growing faster than revenue. A recent report from PwC and Forter points to economic uncertainty, political shifts, and evolving cyber threats as key drivers of this trend.
Online retailers like Amazon and Walmart must now manage unauthorized seller enforcement alongside rising fraud threats across their platforms. New regulations, set to take effect on September 1, only increase the urgency for companies to act decisively.
The report highlights several fraud trends pushing retailers to strengthen their fraud detection and seller vetting efforts:
Remote access attacks are up 8%, especially during peak sales events
Card testing fraud continues to affect low-value digital and subscription transactions
Quick Service Restaurant (QSR) platforms saw a 45% surge in attacks
Loyalty program abuse targets accounts holding points or stored value, making them 4–7x more vulnerable
Fake accounts are often created by organized fraud rings, driving 90% of abuse cases on digital platforms
Supply chain vulnerabilities are also on the rise. These include procurement fraud, counterfeit goods, inventory manipulation, fake invoices, and cyberattacks that disrupt operations through phishing, ransomware, or data breaches.
To combat these challenges, the report outlines three critical actions for retailers:
- Fraud risk assessments must be dynamic and cover all operational areas, from checkout to supply chain
- Company-wide fraud awareness led by executive leadership helps reduce internal and external risk
- AI-powered fraud detection tools allow real-time monitoring and fast response to suspicious activity
As Amazon and Walmart continue to restrict unauthorized sellers, they must also adapt to this growing threat environment. Stricter seller policies, like requiring direct brand authorization and tighter ASIN controls, are part of a broader strategy to reduce risk and protect marketplace integrity.
LexisNexis Risk Solutions"Fraud impacts businesses beyond financial losses, creating operational challenges, straining customer retention and increasing compliance demands."
