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Feds investigate Wal-Mart’s hazmat transport practices

Feds investigate Wal-MartÆs hazmat transport practices

Wal-Mart disclosed that it is the target of a criminal investigation by the U.S. Attorney's Office in Los Angeles into whether the retailer used its truck fleet to improperly transport goods classified as hazardous material.

   Federal prosecutors have informed the company it shipped certain returned merchandise from stores in California to its Return Center in Las Vegas on its own vehicles instead of sending the material to a certified waste disposal facility using a certified hazardous waste carrier in violation of the Resource Conservation and Recovery Act, Wal-Mart said in a Dec. 19 filing with the Securities and Exchange Commission.

   The Bentonville, Ark.-based company said it normally consolidates returned merchandise at its Las Vegas facility before sending it to a waste site by approved hazmat carrier.

   Wal-Mart previously had indicated in its most recent quarterly report that it had received a grand jury subpoena from the U.S. Attorney's Office as well as administrative requests from the California Department of Toxic Substances Control for documents and information relating to the company's handling and transport of hazardous material.

   Under federal law, items such as paint, nail polish, batteries and hairspray are considered hazardous materials.

   The news comes on top of news this week that a California jury awarded $172 million to more than 100,000 workers who claimed they were denied state mandated lunch breaks.

   Wal-Mart, as part of a public relations campaign to counter negative publicity, recently set a series of goals to reduce pollution and show its commitment to the environment.

   The world's largest retailer has been cited for other environmental violations. Bloomberg News reported that Wal-Mart paid $3.1 million in May 2004 to settle a case that the company violated clean water laws by not controlling water runoff at construction sites. In August, the company agreed to pay $1.15 million to the state of Connecticut for excessive storm-water runoff from its properties.