Bed Bath & Beyond Inc (BBBY.O) will pay $ 500,000, Nordstrom Inc (JWN.N) will pay $ 360,000, J.C. Penney Co (JCP.N) will spend $ 290,000 and outside gear maker Backcountry.com LLC will spend $ 150,000 to settle, the Federal Trade Commission stated on Wednesday. None of the retailers admitted wrongdoing.
The FTC accused the retailers of marketing rayon goods such as dresses, socks, t-shirts, bath rugs, napkins and pillow shams as containing bamboo, despite having received warning letters from the agency in 2010 against doing that.
As opposed to rayon, bamboo is usually promoted as environmentally friendly due to the fact it grows rapidly and has tiny or no need to have for pesticides, the FTC has said.
In addition, some shoppers will spend much more for goods they think about great for the atmosphere.
“It is misleading to call bamboo that has been chemically processed into rayon merely ‘bamboo,'” Jessica Wealthy, director of the FTC’s customer protection bureau, mentioned in a statement.
“With customers in the midst of their vacation purchasing, it really is critical for them to know that textiles marketed as environmentally friendly options might not be as ‘green’ as they have been led to think,” she added.
The retailers have been accused of violating the federal Textile Fiber Items Identification Act and connected FTC rules.
Backcountry.com is controlled by private equity firm TSG Customer Partners.
Other retailers also received the FTC warning letter.
In Jan. 2013, Amazon.com Inc (AMZN.O), Macy’s Inc (M.N), Sears Holdings Corp (SHLD.O) and women’s clothing retailer Leon Max Inc agreed to spend a combined $ 1.26 million to settle related FTC claims.
(Reporting by Jonathan Stempel in New York Editing by Meredith Mazzilli)