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Companies fined for mislabeling rayon

Posted by: Jane Friedmann under Advertising claims, Businesses in hot water, Whistleblower Updated: January 7, 2013 - 5:56 PM
Four national retailers agreed to pay fines for mislabeling rayon as bamboo, a violation of federal law, the Federal Trade Commission (FTC) said last week.
The FTC alleged that Sears, Amazon.com, Macy’s and Leon Max continued to mislabel bedding, clothing and other products after being warned in 2010 to cease the practice.
Rayon is made from plant fiber, including bamboo, which loses its natural properties after a “harsh chemical that releases hazardous air pollutants” is applied, according to the FTC.
Sears agreed to pay $475,000 in penalties, Amazon.com $455,000, Macy’s $250,000 and Leon Max $80,000.
Penalties were based on how long the companies continued to mislabel their products after being warned and how many of the products were sold.
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