FTC warns retailers on bamboo labels

An update on a September '09 posting

WASHINGTON – [04.02.10] The US Federal Trade Commission (FTC) has warned 78 retailers including Wal-Mart, Barney’s New York, Target and Nordstrom to stop labelling and advertising viscose (rayon) textile products as ‘bamboo’.

The FTC says retailers may be breaking the law by selling clothing and other textile products labelled and advertised as ‘bamboo’ if they are actually are made of man-made viscose or rayon as the cellulosic-based fibre is known in the USA. It notes that companies should take corrective steps to avoid Commission action.

Under the FTC Act, the regulatory body can seek civil penalties of up to US$16,000 per violation against any company that receives the letter but fails to correct its advertising and labeling accordingly.

“We need to make sure companies use proper labelling 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 [as a source of raw material] somewhere along the line in the manufacturing process.”

The move from the FTC follows on from a similar decision last year in Canada by The Canadian Competition Bureau (CCB) [CLICK HERE, for full story] and the FTC itself had to sue several companies last year for allegedly selling products labeled or advertised as “bamboo” that in reality were made of viscose.

The four companies involved have now 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.)

Although viscose is a man-made fibre created from cellulose found in plants and trees, textiles can also be made out of bamboo which goes through the bast fibre process – rather like linen. These types of bamboo textiles can be considered eco-friendly.

However, most retailers are selling viscose products derived from bamboo material which is essentially the same as other basic viscose type products. 
“While we have seen action by some retailers to correct mislabelled 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.

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 such as 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.