• Feds claim ‘bamboo’ fabric was really rayon

    By Herb Weisbaum, TODAY contributor

    When you buy sheets, blankets or clothing made from “eco-friendly bamboo” you assume you’re getting what’s on the label – not fabric woven from rayon. But the Federal Trade Commission claims four national retailers did just that, even after they were warned to stop.

    Last week, Amazon.com, Macy’s, Sears and Leon Max (which does business as Max Studio), agreed to pay civil penalties totaling $1.26 million to settle federal charges that they labeled and advertised textile products made of bamboo fibers that were actually rayon.

    “When attempting to appeal to environmentally conscious consumers, companies need to ensure they don’t cross the line into misleading labeling and advertising,” said Charles Harwood, acting director of the FTC’s Bureau of Consumer Protection.  “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.”

    The varying penalty amounts, Sears and its Kmart subsidiaries ($475,000), Amazon ($455,000), Macy’s ($250,000), and Leon Max ($80,000), were based on the amount of items sold as well as how long the companies continued to sell mislabeled products after being warned to stop by the FTC in early 2010.

    The four companies did not admit doing anything wrong. But under the settlement agreement they’ll be required to ensure that the labels and ads for the bamboo textiles they sell from now on accurately indicate their fiber content.  The FTC will monitor the firms to make sure this is done.

    “We cooperated with the FTC in reaching this settlement in lieu of pursuing further litigation,” said Howard Riefs, a spokesperson for Sears Holdings Corp. in a statement to NBCNews.com. “We continue to take these regulations seriously.”

    Amazon.com, Macy’s and Leon Max did not respond to our request for a comment.

    The misconception about bamboo fiber
    Fabric made from bamboo may not be as “green” as you think.

    “There is no reason to go out of your way to buy bamboo fibers,” said Linda Greer, director of the Clean by Design program at the National Resources Defense Council. “While bamboo is environmentally friendly, it takes a lot of chemical processing to create those fibers. This undermines the redeeming natural qualities of bamboo.”

    The FTC’s fact sheet on ‘Bamboo’ fabrics explains that there is “no evidence” to back up claims that rayon made from bamboo retains the antimicrobial properties of the bamboo plant. Even when bamboo is used to create the rayon, “no traits of the original plant are left in the finished product.”

    More Information:

    Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website.

  • Sears reverses 'sneaky' up-sell policy

    By Herb Weisbaum, The ConsumerMan

    Did Sears.com pad the bill for major appliance orders by automatically tacking on a service contract even when it is not requested? 

    Edgar Dworsky, a nationally-respected consumer advocate and founder of the website ConsumerWorld.org, made that claim Thursday. Sears said on Friday that it will change the way its website operates. 

    Dworsky says he went on the site on Black Friday weekend looking for a refrigerator. He found a model he liked, put it in his cart and noticed that a five-year service contract for $469 had been added without his consent. 

    "I'm really upset and I think it's a very sneaky practice,” Dworsky tells me. “A consumer should not have to opt-out of buying something they never asked for to start with.” 

    If you bought a fridge from Sears.com, you may have been hit with a $469.99 protection fee without you knowing it.

    Dworsky points out that the charge for the service plan is easily removed from the cart if the customer spots it. If not, they could overpay from $110 to $550. 

    "How many shoppers have in their mind, 'Oh, I'd better check the cart just to make sure they haven't slipped something in there that I didn't order?' " 

    Dworsky shopped for various appliances on Sears.com and he says the same thing happened every time: an expensive five-year extended warranty turned up in the shopping cart. 

    I had the same experience when I went to the site and put a washing machine in my cart. A five-year service contract was added to the bill. I wasn’t asked if I wanted the service contract and I didn’t click any box indicating I wanted to purchase it. The computer just added the extra protection and a charge of $303 to my order. 

    What does Sears say about all this? In an email, Larry Costello, the company's public relations director, writes: 

    "Since 2010, we have selected the purchase of a protection agreement as the default and clearly displayed that choice.  The customer must click to confirm that choice or select another option prior to moving forward in the order process." 

    Costello says the company has received “very little negative customer feedback” about its up-sell policy. Even so, he says, “now that it's been pointed out as an item of concern, we've made a decision to provide customers with the default choice of declining the protection agreement.” 

    Dworsky says he is “thrilled that Sears is doing the right thing” by making their extended warranties an optional add-on, just as other major appliance sellers do. 

    NOTE: There is an important lesson here for anyone who shops online. Check the cart carefully before you hit the "buy" button.  You need to make sure the retailer hasn't added something to your cart that you didn't ask for." 

    More Info: 
    Sears Reverses Course After Being Accused of Cramming Major Appliance Orders with Expensive Service Contracts