You can buy Target return/overstock pallets at auction, and a deals account likely just resells that. Target doesn’t have to deal with it on an item level at that point.
https://www.liquidation.com/c/Target-Defacing-and-Delabeling...
"Sources tell Modern Retail that all the listings are salvage merchandise from Target that’s been purchased by the reverse supply chain services company Liquidity Services, Inc."