AMS No. 104-07

Joan Shaffer (202) 720-8998

joan.shaffer@usda.gov

Billy Cox (202) 720-8998

billy.cox@usda.gov

WASHINGTON, May 22, 2007--The Department of Agriculture’s Agricultural Marketing Service (AMS) today announced that, following completion of an AMS compliance review, Wal-Mart Stores, Inc., has agreed to redesign the green shelf tags bearing the title “Wal-Mart Organics” by removing all product information. Instead, Wal-Mart will use the USDA organic seal as shelf information to direct customers to products that have been certified organic.

Although AMS found no evidence to show that any product certified as “USDA Organic” was mislabeled, AMS directed Wal-Mart Stores, Inc., to change the portion of its “Organic Food and Beverage Product Procedures” to address the manner in which the green shelf tags bearing the title “Wal-Mart Organics” are used to advertise products that are not certified organic. AMS determined the placement of the shelf tags in some stores had the potential to confuse consumers.

AMS initiated the review of Wal-Mart Stores, Inc., after receiving a complaint that alleged Wal-Mart Stores misled customers by labeling an entire section of the store as “Wal-Mart Organics” without ensuring that only certified organic products were stocked in the section. The review concluded Wal-Mart violated neither the Organic Foods Production Act nor the National Organic Program (NOP) regulations because certified organic products were stocked in those sections of the store.

Additionally, AMS concluded there was no violation of the NOP regulations when certified organic products are located on the same shelves as brand name conventional counterparts. Nor was it a violation of the NOP regulations when an identifying green organic shelf tag for a certified organic product was inadvertently or mistakenly placed or shifted in front of a non-organic item.

Wal-Mart has pledged to implement new written procedures and signage in all of its 4,000 retail outlets. AMS will continue to monitor the progress of Wal-Mart Stores, Inc., to ensure the approved procedures are fully implemented.