- Sara Ehlers |
Two major retailers face large-time fines for the mislabeling of their products. Both department chains Nordstrom and JCPenney face thousands of dollars in fines due to the Federal Trade Commission’s standards.
Nordstrom’s mislabeled products were due to products that were said to be made of bamboo materials. Through the retailer’s online site, Nordstrom labeled certain products such as a “Gypsy 05 Bamboo Racerback Hi-Lo Dress,” as reported by Apparel News. For the mistake, Nordstrom will pay 360,000 dollars in civil penalties.
JCPenney’s products were also deceiving labeled as bamboo. Examples include their “Muk Luk 4-Pack Men’s Bamboo Socks” that were “falsely advertised as having anti-microbial properties,” as reported by the publication. JCPenney has agreed to pay 290,000 dollars for their mislabel fine.
Together, the two retailers over 600,000 dollars in fines over the mislabeling of products. The companies were pre-warned of this issue in 2010. The FTC sent out a warning stating that all rayon products must be labeled as rayon and no bamboo, due to their textile regulations. The company sent out over 70 letters to several companies in violation of this rule. Other companies who have been affected by this include Amazon, Kmart, Macy’s and Sears. Because the violations have gone on for so long, more fines and lawsuits have been issued for both Nordstrom and JCPenney, which is why their fines are now a higher price. Currently, both department chains are in compliance with paying their fines.