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• Government Actions

  The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

  On January 3, 2013, the FTC issued a press release stating that Sears, Roebuck and Company and its subsidiaries have agreed to pay penalties to settle Federal Trade Commission charges that they violated the Textile Products Identification Act (Textile Act) and the FTC's Textile Rules by labeling and advertising products sold in stores and online as made of bamboo, while they actually were made of rayon.

  Sears has agreed to pay a civil penalty of $475,000 after receiving an FTC warning letter in early 2010. Sears allegedly claimed that some sheet sets sold in its stores and on its websites were made of "Pure Fiber 100% Bamboo." Sears also sold a "Ty Pennington Style Bamboo Sheet Set," which it claimed was made of "55% Bamboo/45% Cotton."

  The orders prohibit the companies from violating the FTC's Textile Act and Rules by failing to properly identify the fiber content when labeling and advertising the "bamboo" textiles they sell. This includes any products marketed or sold as made of bamboo or bamboo fiber, as well as products marketed as anti-microbial, anti-bacterial, or anti-fungal.

  The settlement orders allow the companies to obtain "good faith" guarantees that a product was not mislabeled before it was sold. This good faith provision will not apply, however, if the companies should have known that a product is mislabeled. In addition, consistent with a new Enforcement Policy Statement announced today, the orders clarify that when the companies cannot obtain a good faith guaranty because the products are imported directly from a foreign supplier, they will only be liable if they knew, or should have known, of the violation and did not modify or embellish the claims the supplier provided or market the product as a private-label product.

  Finally, in addition to imposing the civil penalties, the orders contain record-keeping and reporting provisions to ensure the companies' compliance with their terms.

  Full text for this report can be accessed on the FTC website.

  The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

  On June 10, 2013, Pikes Peak Regional Building Department, by and through its attorney, Todd S. Welch, and its Verified Complaint against Sears Authorized Hometown Stores, LLC, a Foreign Limited Liability Company, states and alleges that the Defendant does not hold building, electrical , mechanical, or plumbing licenses but advertise and perform building, electrical, mechanical, or plumbing work in Pikes Peak Regional Building Department's jurisdiction, which work is regulated by the Code and requires both a license and permits from Pikes Peak Regional Building Department.

  The Defendant was permanently enjoined from any work regulated by the Code done by them without a proper license and without proper permits to do the work and to enjoin any possible future similar unlicensed and unpermitted work by the Defendant.
  

  What government actions does BBB report on?

• Advertising Review

  BBB has nothing to report concerning Sears Holdings Corporation's advertising at this time.

  What is BBB Advertising Review?