Wal-Mart getting a call from the feds over surveillance

The ongoing story of Wal-Mart Stores Inc.'s (NYSE: WMT) top secret security/surveillance team just keeps getting more interesting. The New York Comptroller has asked the SEC [subscription required] and the United States Attorney General's Office to look into what he called Wal-Mart's "ill-considered and possibly illegal surveillance operations." He said that he was "particularly troubled by reports that Wal-Mart engaged in chilling and truly outrageous surveillance activities."

Wal-Mart's security program has come under fire after it was reported that the company was conducting investigations into shareholders planning to offer proposals at the shareholder meeting. After the Wall Street Journal broke the story, the Bentonville retailer quickly called several of the firms involved to apologize, especially for referring to them as "potential threats."

Realistically, this whole thing will probably blow over from a legal perspective. I don't think there's any real risk to shareholders in that sense -- even a fine would not have a material impact on the company's earnings. But the real issue is that this is just another example of Wal-Mart acting really creepy, and it pretty much negates whatever goodwill the company has generated through its various socially-responsible initiatives. From a PR standpoint, this is a disaster, and Wal-Mart's going to need to change the way it operates dramatically to improve its image.