FTC Fines Kohl’s, Walmart For Greenwashing Consumer Products

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FTC Fines Kohl's, Walmart For Greenwashing Consumer Products
FTC Fines Kohl's, Walmart For Greenwashing Consumer Products
The Federal Trade Commission (FTC) is taking action against Kohl’s and Walmart for marketing dozens of rayon textile products as bamboo-made.

The commission is asking the two retail giants to pay $2.5 million and $3 million in penalties, respectively — the largest penalties ever levied by the trade body for false advertising. FTC is also asking a court to require both Kohl’s and Walmart to stop making deceptive green claims.

“Kohl’s and Walmart are paying millions of dollars under the FTC’s Penalty Offense Authority for mislabeling their rayon products as bamboo. False environmental claims harm both consumers and honest businesses, and companies that greenwash can expect to pay the price,” said Director of the FTC’s Bureau of Consumer Protection Samuel Levine.

According to FTC, Kohl’s and Walmart claim several of their products to be bamboo-derived and free of harmful chemicals, which is deceptive as the production of rayon textile products involves toxic chemicals. Some of these products include blankets, sheets, rugs, nursing bras and towels.

In response to FTC’s action, Walmart said that it has taken the claims seriously and has worked with its suppliers to improve compliance.

“We have worked to strengthen our product description programs and expect our suppliers to provide products that comply with all laws, including those around labeling. We value our relationship with the FTC and are pleased we could work with them to resolve these issues.”

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