The American Fashion Council (AFSC) says that the retailer is using a loophole in federal law to charge a fee for its own apparel and accessories.
The AFSC, a trade association representing the apparel and fashion industry, filed a complaint Thursday against Walmart for the practice.
AFSC says the fee is part of a “gross mismanagement” of its membership fees and claims that Walmart is “misusing its membership fee to cover its own merchandise and apparel.”
Walmart claims that the fee covers merchandise and “not apparel or accessories.”
The AFC says it will continue to fight Walmart’s practice, which it says “further misdirects AFSC members’ membership fees.”
The complaint comes as retailers grapple with a slowdown in demand and higher costs as the economy recovers.