Do not be fooled by environmental benefit claims
21 April 2022
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FTC Settlements for Bamboo Textile: $5.5 Million
Environmental Benefit Claims Under Penalty Offense
The Bottom Line
- These settlements demonstrate how the FTC intends for its assets to be used
Penalty Offense Authority. Sellers of “bamboo textile”
Products should verify product claims and verify that they are true.
They are not misleading
- Companies should make sustainability and green claims.
They are not exaggerating the environmental benefits of their products.
products and are also including the appropriate qualifying language. As the
FTC is currently reviewing the Green Guides. We expect these to be approved.
You will receive more attention.
Recently, the FTC announced that it had reached a$2.5 Million Settlement with
Kohl’sYou can also find out more about aWalmart settles $3 millionFor
False representations of textile products
They were made from bamboo fabric and offered environmental benefits
Because they were made from bamboo. The FTC stated
These products were made of rayon (derived form).
bamboo) using a chemical process that is dangerous to the
The Textile Labeling Act, and the Textile Fiber Rule govern textile labeling.
Advertisements for products that refer to or imply fiber content
Must disclose the generic names of fibers recognized or established by
The FTC. The FTC.
Source-material to make rayon, the FTC took the position
Rayon is the final textile fiber that was created. As such,
Products that are not made from bamboo fiber directly, but made from a
For manufactured fiber, bamboo should be used as the source of the material.
Labeled and advertised with the terms rayon, viscose or “rayon-made from”.
In addition, the FTC’s Green Guides mention that unqualified
General environmental benefit claims are misleading, because they
This could be used to refer to a variety of reasonable claims (including a product).
(has no negative environmental impact) That are almost impossible to
substantiate. These claims must usually be qualified to relate to
Companies should ensure that they provide a specific, tangible benefit.
They don’t exaggerate the environmental benefits.
In most cases rayon is used.
In a process that releases hazardous chemicals, environmentally toxic chemicals are used
The FTC challenged general environmental questions about the infiltration of pollutants into the atmosphere.
Benefit claims made by retailers include:
“Renewable,” “sustainable” and
“environmentally friendly.” If this is not true,
If the claims are not supported, companies should not claim that products were made of.
bamboo or bamboo fibre:
- Non-toxic ingredients are used to make them.
Materials that are safe for the environment
- Moreover, such products have other environmental benefits.
Bamboo is a great source of energy.
As we discussed previously, the FTC’s Penalty
The agency is empowered by the Offense Authority under Section 5 FTC Act
If the company knew of the challenged, they can impose civil penalties
Conduct was unfair, deceptive, or illegal. The FTC had already issued an advisory.
Written decision categorizing conduct as unfair or unjustifiable
The FTC brought several enforcement actions against bamboo.
Sending warning letters to 78 retailers about textile claims
(including Walmart and Kohl’s), taking the position of the
The truth was that the retailers knew.
Advertising textile products could result in civil penalties.
The FTC imposed combined civil penalties of $5.5 million.
Injunctive provisions were included as part of the settlements.
How the companies produce textile representations
Future bamboo-related environmental claims
This article is meant to be a guide.
guide to the subject matter Expert advice should be sought
Discuss your specific circumstances.
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Sidley Austin LLP
On March 25, 2022, Michael Regan, EPA Administrator, issued a memorandum titled “Consent Decrees & Settlement Agreements to Resolve Environment Claims Against the Agency” (the Memorandum).