Legal Update

Motion to Compel Arbitration Denied in Walmart Patient Privacy Class Action

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Overview

Judge Murillo denied Walmart’s motion to compel arbitration in R.C. v. Walmart Inc., Case No. 5:24-cv-02003-SRM-DTB alleging unauthorized disclosure of sensitive health-related purchase data through website tracking technologies. 

We’re pleased to share that the Honorable Serena R. Murillo of the United States District Court for the Central District of California has denied Walmart Inc.’s motion to compel arbitration in R.C. v. Walmart Inc., Case No. 5:24-cv-02003-SRM-DTB. 

The case involves allegations that Walmart disclosed sensitive health-related purchasing information to third parties through tracking technologies embedded on its website, including the Pinterest Tag. Plaintiffs, represented by Matthew Langley at Almeida Law Group and Peiffer Wolf Carr Kane Conway and Wise LLP, brought the action on behalf of a proposed class of consumers who purchased health-related items on Walmart.com without knowledge or consent of such disclosures. 

On September 30, 2025, Judge Murillo issued a detailed order denying Walmart’s motion to compel arbitration and stay litigation. The Court found that Walmart failed to establish the existence of a valid arbitration agreement, citing: 

  • Insufficient notice of the Terms of Use and arbitration clause due to small, light gray font and cluttered webpage design. 
  • Lack of mutual assent, as Plaintiffs engaged in isolated, one-time purchases without creating accounts or entering ongoing relationships. 
  • Inadequate context for expecting binding terms, especially in transactions involving sensitive health items. 

Because the Court found no valid arbitration agreement was formed, it did not reach arguments regarding the delegation clause or unconscionability. Walmart’s related motion to stay litigation was also denied as moot. 

Almeida Law Group remains committed to protecting consumer privacy and challenging the misuse of tracking technologies in healthcare-related transactions. 

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