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FTC Sues Walmart, Accuses It of Falsely Promoting Products As ‘Bamboo’

  • The FTC is suing Walmart over accusations it has falsely marketed some of its merchandise.
  • The Fee submitted the accommodate in the District of Columbia Friday. 
  • According to the FTC, some of the solutions in problem had been produced of rayon, not bamboo. 

The Federal Trade Fee is suing Walmart around accusations that the retailer falsely claimed that some of its products had been manufactured of bamboo or furnished an environmental reward. 

In accordance to the lawsuit, the FTC alleged that Walmart’s advertising and marketing and gross sales of its textile fiber goods, like towels, bedding, and bras deceptively described their material as “bamboo,” when in truth they had been built of rayon. 

Rayon is the name presented to a sort of regenerated or produced fiber produced from cellulose, the lawsuit said. It is built by taking “purified cellulose” from a plant supply and converting it into a liquid solution by mixing it with chemicals. The chemical alternative then solidifies wherever it turns into fibers. 

“No matter of the resource of the cellulose, the producing approach includes the use of dangerous substances, and the ensuing fiber is rayon and not cotton, wooden, or bamboo fiber,” the accommodate reported. 

Some of the merchandise that the FTC alleges Walmart falsely marketed on-line have been displayed in the lawsuit. They contain an “Ottomanson bamboo luxurious tub towel set” that lists the fiber articles as “100% Bamboo.”

The retailer has also marketed products and solutions it statements are made from bamboo as “eco-friendly,” and “in harmony with mother nature,” while the FTC statements it is not because hazardous air pollutants are emitted from the rayon-making course of action. 

Walmart did not right away respond to Insider’s request for remark created exterior of usual operating hours. 

The retailer was warned by the FTC in the earlier in excess of its improper labeling but the retailer barely took any action, the lawsuit alleged. In 2010, the FTC despatched a letter conveying that the expression “bamboo” can only be utilized in labeling or marketing textile merchandise built from fibers specifically taken from the bamboo plant. 

It also instructed Walmart that rayon must be described in the labeling of its merchandise, per the lawsuit. Walmart “engaged in its unlawful functions and methods continuously around a interval of at minimum 5 several years,” it even further alleged. 

This is not the only lawsuit Walmart has been entangled in above the past calendar year. Very last December, a South Carolina jury purchased the retailer to pay out $10 million to a woman who explained she lost portion of her leg soon after stepping on a rusty nail although shopping in the keep. 

Then in March, Walmart sued BJ’s Wholesale Club above self-checkout technology.