Kohl’s, Walmart To Pay $5.5M Penalty For Selling Fake Bamboo Products

Kohl’s, Walmart To Pay $5.5M Penalty For Selling Fake Bamboo Products

Kohl's, Walmart To Pay $5.5M Penalty For Selling Fake Bamboo Products
Kohl's, Walmart To Pay $5.5M Penalty For Selling Fake Bamboo Products
Retail Bum

Retail Bum

Retail Bum

Retail Bum

Kohl’s and Walmart have agreed to pay a total of $5.5 million in penalties to settle a case filed against them for deceptively marketing products as being made of bamboo when they contained other materials.

The case was brought against the two retailers by the Federal Trade Commission (FTC) in April 2022 for marketing dozens of rayon textile products as bamboo-made.

“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 last month.

Kohl’s will pay $2.5 million and Walmart will pay $3 million in fines, the U.S. Department of Justice said on Thursday.

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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