Crime & Justice

Walmart and Kohl’s to Fork Over Millions in FTC Settlement Over Fake Bamboo Products

NOT THE BAMBOO!

The retailers will be forced to pay a collective $5.5 million settlement.

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Dadi Luca/AGF/Universal Images Group via Getty

The Federal Trade Commission has sued—and settled with—Walmart and Kohl’s after it accused the two of falsely marketing pillows, sheets, and towels as made with bamboo. In reality, the linens were actually made of rayon, the FTC said. Walmart paid $3 million to resolve the lawsuit, while Kohl’s paid $2.5 million. “False environmental claims harm both consumers and honest businesses,” Samuel Levine, the director of the FTC’s consumer protection bureau, told The Wall Street Journal. “Companies that green wash can expect to pay a price.” The retailers had apparently been warned about the potential risk of the false products since 2010, but over a decade of inaction forced the federal watchdog to step in. The companies will now be required to prove that items are actual bamboo and are environmentally friendly before marketing them as such.

Read it at The Wall Street Journal