FTC Warns 78 Retailers, Including Wal-Mart, Target, and Kmart, to Stop Labeling and Advertising Rayon Textile Products as "Bamboo"

Seventy-eight companies nationwide have received Federal Trade Commission letters warning that they may be breaking the law by selling clothing and other textile products that are labeled and advertised as �bamboo,� but actually are made of manufactured rayon fiber. The letters, which the agency�s staff sent last week, make the retailers aware of the FTC�s concerns about possible mislabeling of rayon products as �bamboo,� so the companies can take corrective steps to avoid Commission action.

�We need to make sure companies use proper labeling and advertising in their efforts to appeal to environmentally conscious consumers,� said David C. Vladeck, Director of the agency�s Bureau of Consumer Protection. �Rayon is rayon, even if bamboo has been used somewhere along the line in the manufacturing process.�

The FTC sued several companies last year for allegedly selling products labeled or advertised as �bamboo� that in reality were made of rayon. Rayon is a man-made fiber created from the cellulose found in plants and trees and processed with harsh chemicals that release hazardous air pollution. Any plant or tree � including bamboo � could be used as the cellulose source, but the fiber that is created is rayon.

�While we have seen action by some retailers to correct mislabeled clothing and textile products, our hope is that these warning letters will serve as a wake-up call to all companies, regardless of their size,� Vladeck said.

The FTC staff letter outlines the requirements for proper labeling and advertising of textile products derived from bamboo. The letter states, �Rayon, even if manufactured using cellulose from bamboo, must be described using an appropriate term recognized under the FTC�s Textile Rules. . . . Failing to properly label and advertise textiles misleads consumers and runs afoul of both the Textile Rules and the FTC Act.�

In the letter, the FTC tells the companies they should review the labeling and advertising for the textile products they are selling and remove or correct any misleading bamboo references.

Along with the warning letters, the agency sent each company a synopsis of FTC decisions finding that the failure to use proper fiber names in textile labeling and advertising was deceptive and violated the FTC Act. Under the Act, the FTC can seek civil penalties of up to $16,000 per violation against any company that receives this information but fails to correct its advertising and labeling.

A complete list of the companies sent warning letters can be found on the FTC�s Web site and as a link to this press release. They include small and large retailers, with both online and brick-and-mortar stores, and firms selling textile products labeled or advertised as �bamboo� that may be made of rayon. The more commonly known retailers include:

Amazon.com, Barney�s New York, Bed Bath & Beyond, BJ�s Wholesale Club, Bloomingdale�s, Costco Wholesale, Garnet Hill, Gold Toe, Hanes, Isotoner, JC Penney, Jockey,
Kmart, Kohl�s, Land�s End, Macy�s, Maidenform, Nordstrom, Overstock.com, QVC, REI, Saks Fifth Avenue, Sears, Shop NBC, Spiegel, Sports Authority, Target, The Gap, The Great Indoors, Tommy Bahama, Toys R� Us, Wal-Mart, and Zappos.com.

Recent Enforcement Actions. Today�s announcement comes on the heels of four FTC enforcement actions brought against companies selling rayon products that were misleadingly labeled and advertised. According to the Commission�s complaints, filed in August 2009, the companies falsely claimed that their rayon clothing and other textile products were �bamboo fiber,� marketing them using names such as �ecoKashmere,� �Pure Bamboo,� �Bamboo Comfort,� and �BambooBaby.� The complaints also challenged a number of other deceptive �green� claims, including that the products retained the bamboo plant�s antimicrobial properties, were made using environmentally friendly manufacturing processes, and are biodegradable.

The four companies have settled the FTC�s charges and agreed to modify their labels to ensure their claims are not misleading or deceptive. (One of the cases still needs final FTC approval.) Press releases announcing the complaints and related settlements can be found at: http://www.ftc.gov/opa/2009/12/dynabamboo.shtm and http://www.ftc.gov/opa/2009/10/bamboosa.shtm, respectively.

Business and Consumer Information. The FTC has a publication designed to help businesses that sell clothing and textile products that are labeled as bamboo to market their products in ways that are truthful, non-deceptive, and in compliance with the law. �Avoid Bamboo-zling Your Customers� can be found at http://www.ftc.gov/bamboo. The FTC also has an alert entitled �Have You Been Bamboozled by Bamboo Fabrics?� that provides useful information for consumers shopping for bamboo-based fabrics. It also can be found at http://www.ftc.gov/bamboo.

The Commission vote to publicly disclose the warning letters was 4-0. Copies of the letters and a complete list of companies that received them can be found on the FTC�s Web site at http://www.ftc.gov/bamboo and as a link to this press release.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

This issue has come up before (Bamboozled Green Claims) and we'll keep an eye on this for future developments.  In the meantime, be certain your company's green claims are true, not misleading and are substantiated by competent and reliable scientific evidence.  Let us know if we can help. 

The National MS Society is a collective of passionate individuals who want to do something about MS now—to move together toward a world free of multiple sclerosis. MS stops people from moving. We exist to make sure it doesn't.

We help each person address the challenges of living with MS through our 50-state network of chapters. The Society helps people affected by MS by funding cutting-edge research, driving change through advocacy, facilitating professional education, and providing programs and services that help people with MS and their families move their lives forward.

• We are moving research forward by relentlessly pursuing prevention, treatment and cure.
• We are moving to reach out and respond to individuals, families and communities living with multiple sclerosis.
• We are moving politicians and legislation to champion the needs of people with MS through activism, advocacy and influence.
• We are moving to mobilize the millions of people who want to do something about MS now.

JOIN THE MOVEMENT^® 

Volunteer or donate at http://www.nationalmssociety.org/get-involved/index.aspx

Thanks to Pete Conroy at www.WRScompass.com for highlighting this cause.

Triad Manufacturing is a manufacturer of retail store fixtures used for displaying products. Triad's customers include Best Buy, Target, Banana Republic, Home Depot, and Pacific Sunwear.

The Situation:

Missouri Enterprise, a NIST Manufacturing Extension Partnership, approached Triad about participating in the Green Suppliers Network since they were aware that Triad routinely looked for opportunities to improve its operations.

David Goebel and Nick Hennen of Missouri Enterprise completed Triad's review in September 2008. Instead of focusing on one product or process line, Triad wanted to examine inefficiencies across its whole facility. The review team prepared high-level value stream maps that captured the entire system, from raw materials entering the facility to finished products exiting. The review process identified two primary opportunities: improved energy efficiency and increased recycling of byproducts.

The Solution:

Following the Green Suppliers Network review, Triad has succeeded in reducing its energy consumption by making four changes. The first two, capturing waste heat off its drying ovens and compressed air system for heating the facility during the winter months and installing infrared heaters to reduce the use of forced air heat, have saved the company an estimated $80,000 annually. The third, installing a new powder coating line, has decreased energy use for the powder coating process line by 40 percent and also reduced hazardous effluent by 10,000 gallons annually. Fourth, Triad implemented a leak detection program for its compressed air system that could potentially save an additional $25,000 annually.

Triad is also interested in recycling its sawdust and scrap wood pallets. The company is currently investigating the feasibility of sending its broken wood pallets to a company that manufactures wood pellets for heat. Recycling these wood pallets would eliminate a waste stream of 30,000 pounds annually.

Return to Success Stories

Triad incorporated Simple Ways to Reduce Waste and Save Money With Green Suppliers Network. Could your company do the same?

In Their Own Words:
Great Rivers Environmental Law Center is a nonprofit 501(c)(3) organization dedicated to providing free and reduced-fee public interest legal services to individuals and organizations working to protect and preserve Missouri's environment.

What They Do:
The primary purpose of Great Rivers Environmental Law Center is to provide public interest legal services to organizations, citizens groups and individuals who seek to protect the environment.

Great Rivers Environmental Law Center works through the courts and administrative agencies to safeguard the environment by enforcing environmental laws, especially air and water pollution laws, and laws intended to protect wetlands, floodplains, open space, and endangered species.

The issues which Great Rivers Environmental Law Center will raise will often have national significance, although Great Rivers Environmental Law Center will initially emphasize Missouri and Illinois.

What You Can Do:
Information on donations is available at http://www.greatriverslaw.org/Donate.pdf

International Response Fund

You can help the victims of countless crises, like the recent earthquake in Haiti, around the world each year by making a financial gift to the American Red Cross International Response Fund, which will provide immediate relief and long-term support through supplies, technical assistance and other support to help those in need. The American Red Cross honors donor intent. If you wish to designate your donation to a specific disaster, please do so at the time of your donation by mailing your donation with the designation to the American Red Cross, P.O. Box 37243, Washington, D.C. 20013 or to your local American Red Cross chapter. Donations to the International Response Fund can be made by phone at 1-800-REDCROSS or 1-800-257-7575 (Spanish) or online at www.redcross.org.

In Their Own Words:
Midwest Environmental Advocates is the first and only non-profit environmental law center in Wisconsin. MEA provides legal and technical support to grassroots groups that are working for environmental justice in the Western Great Lakes region.

Its Objectives:
1) Increase Legal Support on Environmental Issues for Lower Income Groups
In order to increase the amount of legal resources (both human and capital) available for environmental issues, MEA is building an Advocacy Network comprised of volunteer law students, lawyers, legal secretaries, and others. MEA serves as a clearinghouse that links groups in need of legal assistance with advocates. Law students from the University of Wisconsin-Madison Law School participate through an externship program that trains them to use lawyering as a tool for social change. The short-term goal is to increase MEA's ability to provide high quality legal services. The long-term goal is to increase the resources available for public interest law and the opportunities for lawyers to work in the public interest.

2) Enforce Environmental Laws, Regulations, and Agreements
Our laws are only as good as their enforcement. MEA uses a variety of legal tools to protect the environment. MEA brings cases in administrative, state, and federal court. MEA often works with co-counsel from our Advocacy Network. The goal is to reduce the threats to public health, the environment, and Native lands and sovereignty by holding polluters accountable for their actions.

3) Strengthen a Diverse Coalition of Communities Impacted by Environmental Problems
Diverse coalitions help overcome the tendency of individual groups to be isolated and marginalized by their opponents. Multicultural coalitions are also a first step to overcoming racism. When addressing an environmental problem, MEA works with or brings together a multicultural coalition to develop grassroots organizing strategies, create public outreach messages, and determine which legal tools best fit their needs. The goal of building these coalitions is to increase collaboration among diverse groups in order to increase the effectiveness of our political and legal strategies and to reduce ethnic tension in the region.

4) Maximize Community Education and Public Participation in Environmental Decision-making
MEA creates legal and technical materials for non-lawyers and works with local leaders to conduct "know your rights" and public speaking workshops. These workshops aim to mobilize local leaders to speak at public hearings, events, and press conferences. The goal of this component is to build social capital by facilitating the emergence of local leaders and increasing the capacity of low-income groups to shape the policies that impact their lives.

What You Can Do:
Sign up for MEA's Advocacy Updates, Join the Advocacy Network or make a donation.