Bag Makers Settle Suit Over Warring Enviro Claims

Law360, New York (September 13, 2011, 4:51 PM EDT) -- A designer of reusable shopping bags has settled plastic bag manufacturer Hilex Poly Co. LLC's unfair competition suit claiming it falsely advertised its reusable bags as much more environmentally friendly than plastic bags, the companies announced Tuesday.

The settlement stems from a Lanham Act suit Hilex Poly and two other plastic bag makers filed against ChicoEco Inc. in South Carolina federal court, claiming that Chico's assertions about single-use plastic bags were deceptive and harmful to their businesses.

As part of the settlement for an undisclosed sum,...
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