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$1.3 Million in Penalties Imposed on Retailers for Textiles Mislabeling

Thursday, December 10, 2015
Sandler, Travis & Rosenberg Trade Report

The Federal Trade Commission has announced proposed court orders imposing a total of $1.3 million in penalties against four retail companies to settle allegations that they mislabeled and advertised rayon textiles as being made of bamboo. Noting that it is misleading to call bamboo that has been chemically processed into rayon simply “bamboo,” the FTC alleged that the companies continued to misrepresent or mislabel rayon products as bamboo despite receiving warning letters from the FTC in 2010 and a synopsis of previous litigated cases against marketers for deceptively labeling rayon products as bamboo. Each company will pay amounts ranging from $150,000 to $500,000.

The FTC is also sending letters to other retailers imploring them to check their own inventories and ensure proper labeling and advertising of rayon textile products. The FTC has provided information on how to correctly label and advertise textiles that are rayon made from bamboo as well as an educational publication for consumers called Bamboo Fabrics.

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