Macy's, Sears, Amazon and Leon Max Fined by FTC for Mislabeling Rayon as Bamboo
Federal Trade Commission (FTC) has fined retailers Macy's, Sears, Amazon and Leon Max for combined 1.26 million for falsely labeling rayon made products as bamboo, according to press statement.
"When attempting to appeal to environmentally conscious consumers, companies need to ensure they don't corss the line into misleading labeling and advertising," said Charles Hardwood, acting director of the FTC Consumer Protections Bureau. adding," If a textile is made of rayon, sellers need to say that, even if bamboo was used somewhere along the line in the production process."
The four major retailers in violation of Textile Products Identification Act and Rules, advertising and labeled rayon products as bamboo. Sears agreed to settle paying $475,000, Macy's agreed to a settlement of $250,000, Amazon for $455,000 and Leon Max $80,000 totaling $1.26 million total.
FTC brought first cases against the companies allegedly selling rayon textiles labeled as bamboo in 2009, citing examples sold by retailers as silk and bamboo, Max Studios sold "eco-friendly bamboo and silk fabric," but was actually rayon, Macy's labeled rayon product as "bamboo,' and 'bamboo fiber,' and amazon and sears labeled sheets as '100% bamboo.'
FTC have sent warning letters to over 70 companies citing mislabeling of textiles as bamboo in 2010. The four retailers continued to improperly labeled textiles as bamboo after being told in the warning letters. Violating the FTC's Textile Act and Rules, the four retailers must now keep records and report provisions to show that they are in compliance with the FTC terms.