Nordstrom, J.C. Penney, Others Settle False Labeling Lawsuit

The FTC accused the retailers of falsely labeling rayon products as bamboo

Nordstrom, J.C. Penney, Bed Bath and Beyond, and agreed to pay penalties totaling $1.3 million for falsely labeling fibers in some of their products, according to the Federal Trade Commission.

In a release, the agency wrote that the four retailers “broke the law” by mislabeling rayon products as bamboo, despite receiving a warning from the FTC in February of 2010 to properly label the material.

The Commission charged Nordstrom, J.C. Penney, Bed Bath and Beyond, and with violating the Textile Act and the Textile Rules. The agency alleged the four companies deceptively sold the mislabeled products, despite knowing that it was illegal to do so.

Nordstrom will pay $360,000, J.C. Penney will pay $290,000, will pay $150,000, and Bed Bath and Beyond will pay $500,000, the highest of the penalties, according to the FTC.

The products under scrutiny included bamboo baby swaddles sold at Bed Bath and Beyond, a bamboo dress sold at Nordstrom, and bamboo men’s socks sold at J.C. Penney and The FTC claimed that none of these items contained bamboo, but actually contained rayon.

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