FTC Warns Wal-Mart, Gap, Others Over 'Bamboo' Ads

Law360, New York (February 4, 2010, 2:42 PM EST) -- The Federal Trade Commission has alerted 78 U.S. retailers — including Wal-Mart Stores Inc., Kmart Corp., Amazon.com, J.C. Penney Corp. Inc. and Gap Inc. — that they may be breaking the law by advertising manufactured rayon products as natural bamboo.

The agency sent letters to each company last week, with the intention of nudging the retailers toward corrective action in order to avoid further regulation by the FTC, which recently settled with four other stores over misleading and deceptive advertising claims in the same vein, the...
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