The Federal Trade Commission announced complaints and proposed court orders barring four national retailers from mislabeling and advertising rayon textiles as made of “bamboo,” and requiring them to pay civil penalties totaling $1.3 million.
The complaints allege the four companies broke the law by continuing 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. The Commission charged the companies with violating the Textile Act and the Textile Rules and with violating Section 5(m)(1)(B) of the FTC Act by falsely and deceptively selling the mislabeled products, despite knowing that doing so was illegal and could subject them to civil penalties.
“It’s misleading to call bamboo that has been chemically processed into rayon simply ‘bamboo,’” said Jessica Rich, Director of the Bureau of Consumer Protection.
Specifically, Backcountry.com sold “bamboo” textiles, such as “Bridgedale Bamboo Crew Sock – Men’s.” Backcountry also made anti-microbial claims for its “bamboo” products.
Under the court orders settling the FTC’s charges, Bed Bath & Beyond Inc. will pay $500,000; Nordstrom, Inc. will pay $360,000; J.C. Penney Company, Inc. will pay $290,000; and Backcountry.com LLC will pay $150,000 for allegedly violating the FTC Act and the agency’s Textile Rules.
“How to Avoid Bamboozling Your Customers” provides useful on how to correctly label and advertise textiles that are rayon made from bamboo and cautions sellers that it is highly unlikely they are selling actual bamboo fiber products. The FTC also has an educational publication for consumers called “Bamboo Fabrics.”
NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Civil penalty orders have the force of law when signed by the District Court judge.
