FTC Penalizes Retailers for Mislabeling of 'Bamboo' Textiles
The Federal Trade Commission and four retailers agreed to settle lawsuits over the mislabeling of "rayon textiles" as made from "bamboo," the FTC said in a news release (here). Bed Bath & Beyond, Nordstrom, J.C. Penney Company and Backcountry.com will…
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pay a total of $1.3 million if the proposed court orders are approved by the U.S. District Court for the District of Columbia, the agency said. “It’s misleading to call bamboo that has been chemically processed into rayon simply ‘bamboo,’” said Jessica Rich, FTC director of the Bureau of Consumer Protection. The companies are alleged to have continued to misrepresent products despite the issuance of FTC warning letters in 2010, the FTC said.