FTC says Companies Ignored Warnings Concerning Mislabeling Textile
Wallingford, CT – January 10, 2013 – Four of the nation’s powerhouse retailers have agreed to pay fines for mislabeling textiles, despite warnings from the Federal Trade Commission (FTC).
Amazon.com, Inc.; Leon Max, Inc.; Macy’s, Inc.; and Sears, Roebuck and Co. and its Kmart subsidiaries, Kmart Corporation and Kmart.com were among 78 companies that received letters from the FTC in 2010 for improperly labeling their rayon textiles as bamboo.
While bamboo fiber textiles are promoted as environmentally-friendly, the Commission says the rayon manufacturing process is far from a “green” one.
The issue dates back to 2009, when the agency brought its first set of cases against companies for related labeling and advertising violations. The FTC subsequently issued a business alert about the practice.
In a release on its website, the FTC says the four companies continued the practice even after being told that they could face civil penalties if they did not properly label and advertise their textile products.
The companies have agreed to pay fines totaling $1.26 million for violating the Textile Products Identification Act (Textile Act). They also have been ordered to keep records and submit reports on their compliance. Each company is required to ensure that the labels and ads for bamboo textiles they sell accurately indicate their fiber content.
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