Don't Be Bamboozled By Environmental Benefit Claims

$5.5 Million FTC Settlements for Bamboo Textile and Environmental Benefit Claims Under Penalty Offense Authority

The Bottom Line

• These settlements illustrate how the FTC intends to use its Penalty Offense Authority. Sellers of "bamboo" textile products should review product claims, and ensure they are truthful and not misleading.
• Companies making green and sustainability claims should ensure they are not overstating the environmental benefits of their products and are including appropriate qualifying language. As the FTC undergoes its review of the Green Guides, we expect these claims to receive heightened attention.

The FTC recently announced that it has reached a $2.5 million settlement with Kohl's and a $3 million settlement with Walmart for allegedly making misleading representations that textile products were made of bamboo fabric and provided environmental benefits because those products were derived from bamboo. The FTC asserted that the products