FTC levels fines of $1m+ over bamboo labelling

28/02/2013
The US Federal Trade Commission (FTC) has announced in recent weeks that retail groups Amazon, Leon Max, Macy’s and Sears-Roebuck and its Kmart subsidiaries have agreed to pay penalties totalling $1.26 million to settle charges that they violated the Textile Products Identification Act and the FTC’s textile rules by labelling and advertising products sold in stores and online as made of bamboo, while they actually were made of rayon.

“While so-called bamboo textiles often are promoted as environmentally friendly, the process for manufacturing rayon – even when it is made from bamboo – is far from a green one,” the FTC said in a statement.

In an additional comment, acting director of the FTC’s Bureau of Consumer Protection, Charles Harwood, said: “When attempting to appeal to environmentally conscious consumers, companies need to ensure they don’t cross the line into misleading labeling and advertising. 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.”

In 2009, the FTC brought its first set of cases against companies allegedly selling rayon textiles labelled as bamboo. The agency settled charges against four companies and distributed an alert advising manufacturers and sellers that if a textile is not made directly with bamboo fibre, it may not be labelled or advertised as bamboo.

In January 2010, the FTC sent warning letters to 78 companies, including Amazon, Leon Max, Macy’s, and Sears, concerning their “continuing mislabelling” of rayon textiles as bamboo. The FTC alleges that the four companies continued improperly to label their rayon textiles as bamboo, even after being told in the warning letters that they could face civil penalties if they did not properly label and advertise their textile products.