October 21, 2016

Hot! Is it Really Bamboo? Retailers Fined for Mislabeling Merchandise


Macy’s Inc., Sears Roebuck and Co., Amazon Inc. and Leon Max Inc, thanks for the itch or better yet thanks for nothing. According to WWD, the mentioned retailers, have (allegedly) mislead consumers in their labeling. Items marked as made with bamboo, were in fact made with rayon. As a result, after two years of repeated warning letters, the Federal Trade Commission fined the four retailers a combined $1.26 million in damages.

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,” explained Charles Harwood, acting director of the FTC’s Bureau of Consumer Protection. Yet, the retailers failed to comply. The mislabeling violated the Textile Products Identification Act and the FTC’s textile rules.

The misdeed resulted in a fine of $475,000 for Sears, including its Kmart subsidiaries, while “Amazon agreed to pay $455,000, Macy’s $250,000 and Leon Max $80,000,” explains WWD.

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