Furthermore, the consumer protection watchdog alleged Kohl’s and Walmart failed to disclose to consumers that their supposed bamboo textiles are actually made of rayon derived from bamboo. The companies’ failure is a violation of the FTC Act and the Textile Act and Rules.
FTC’s proposed orders against Kohl’s and Walmart
The consumer protection watchdog’s proposed order for Kohl’s and Walmart to settle its allegations includes the following:
Kohl’s must pay civil penalties of $2.5 million while Walmart must pay civil penalties of $3 million. The total amount is the largest-ever penalty in this area.
Kohl’s and Walmart must also stop violating the FTC’s Textile Act and Rules. The companies must also stop making unsubstantiated environmental claims that bamboo or bamboo fiber is produced free of harmful chemicals or non-toxic materials or in a process that is safe for the environment unless they can support their claims.
The companies must stop their marketing claims that a textile product is made of bamboo or bamboo fiber unless that can support it.
