The Federal Trade Commission used its Penalty Offense Authority today to take action against national retailers Kohl’s, Inc. and Walmart, Inc. for falsely marketing dozens of rayon textile products as bamboo. Both companies also are charged with making deceptive environmental claims, touting that the “bamboo” textiles were made using ecofriendly processes, while in reality converting bamboo into rayon requires the use of toxic chemicals and results in hazardous pollutants.
The Commission has asked the court to order Kohl’s and Walmart to stop making deceptive green claims or using other misleading advertising, and pay penalties of $2.5 million and $3 million, respectively, by far the largest penalties in this area. The complaints and proposed orders were filed by the U.S. Department of Justice on the FTC’s behalf.
“Kohl’s and Walmart are paying millions of dollars under the FTC’s Penalty Offense Authority for mislabeling their rayon products as bamboo,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “False environmental claims harm both consumers and honest businesses, and companies that greenwash can expect to pay a price.”
The FTC’s complaints against Kohl’s and Walmart are similar in their structure and allegations. According to the complaints, since at least January 2015, Kohl’s, headquartered in Menomonee Falls, Wisconsin, and Walmart, based in Bentonville, Arkansas, have each marketed at least two dozen items as made of bamboo in both...
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