Macy's & Sears Fined $1 Million for Misleading Consumers on Eco-Friendly Products

The Federal Trade Commission has fined four retailers, Macy's Inc., Sears Roebuck and Co., Amazon Inc., and Leon Max Inc. (a.k.a. Max Studio), with a combined $1.26 millon. Their offense? Labeling rayon products as made of bamboo. The fine comes after two years of warning letters.

The head of the Bureau of Consumer Protection explained, "When attempting to appeal to environmentally conscious consumers, companies need to ensure they don't cross the line into misleading labeling and advertising. If a textile is made of rayon, sellers need to say that, even if bamboo was used somewhere along the line in the production process." Especially if the production process for rayon emits "toxic chemicals and results in the emission of hazardous air pollutants" and the resulting material is not biodegradable.