Amazon, Macy's Also Part Of Settlement With FTC Over Bad Labels
Correct product labels are a must for retailers. However, a slew of high-profile names were recently entangled in a clash with the Federal Trade Commission (FTC) after the agency warned the companies to stop labeling products as made from bamboo, when there was no evidence to support that claim.
But Sears, Amazon, Macy's and Leon Max did not heed the FTC's warning and have been ordered to pay a total of $1.26 million as part of a settlement stemming from the companies' mislabeling policies.
Labels May Say Bamboo, But Rayon Is Reality
The problem emerged in late 2010 when the FTC warned the four firms to stop using bamboo fiber labels on textiles that were actually made with rayon fabrics. The products in question were so-called "pure fiber 100 percent bamboo" sheets and infant crib sheets, which the FTC complained did not contain unaltered bamboo fibers.
As part of the settlement, Sears will pay $475,000; Amazon, $455,000; Macy's, $250,000; and Leon Max, $80,000. The settlement also requires the companies accept enhanced compliance monitoring and reporting, as well as ensuring any further bamboo textiles carry correct labels.