By Cres Vellucci
WASHINGTON, DC – Two powerful federal government agencies targeted Walmart and Kohl’s for “deceptive advertising” and “greenwashing,” fining the two giant retailers late last week a collective $5.5 million in a negotiated settlement.
The Department of Justice announced Walmart Inc. and Kohl’s Inc. paid $3 million and $2.5 million in civil penalties.
The orders, according to the Federal Trade Commission, also “bar Kohl’s and Walmart from making misleading or unsubstantiated claims that products are made of bamboo or provide environmental benefits because they are derived from bamboo.”
The settlement comes after complaints were filed against the two companies accusing them of violating the Federal Trade Commission Act and the Textile Fiber Products Identification Act and its associated rules by making deceptive claims about products that were supposedly made from bamboo.
The complaints also alleged that Walmart and Kohl’s made claims that their bamboo products were environmentally friendly, and that Kohl’s claimed these products were free of harmful chemicals, although Rayon is produced using a chemical process that requires toxic chemicals and the emission of pollutants.
The DOJ charged both companies continued making false claims despite receiving warning letters from the FTC in 2010 that accused them of improper advertising of rayon products violated the Textile Rules and FTC Act.
The complaints alleged that “Walmart and Kohl’s made deceptive claims that...
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