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FTC's Crackdown on Cashmere

Published in "Womenâs Wear Daily"
May 7, 2001
Byline: Joanna Ramey

WASHINGTON -- Federal Trade Commission officials say more rigorous enforcement of cashmere labeling rules could be forthcoming, although they aren't promising a widespread inquiry into whether retailers are selling apparel mislabeled as to its cashmere content.

Elaine Kolish, the FTC's associate director for enforcement, told retailers, apparel importers and cashmere industry officials on Friday the agency has begun "paying more attention" to complaints from cashmere producers regarding mislabeling.

While noting the agency won't be quibbling over slight differences between a garment's content and what's stated on its label, Kolish said large deviations will prompt action. "If there's proof of intentional deception, we won't ignore it," the FTC official stated.

Kolish made her comments at a cashmere labeling forum at the FTC, an event aimed at informing retailers and importers about the FTC's truth-in-labeling fiber content rules. The forum was also called as a response to cashmere spinners' and cashmere textile and apparel makers' long-time complaint the agency has been lax acting against what they contend is rampant cashmere mislabeling. Among the retailers represented in the audience were J.C. Penney, Saks Fifth Avenue, Federated Department Stores, Lands' End, Polo Ralph Lauren and Costco Wholesale. "What has been missing in the cashmere industry," said Boris Shlomm, president of Amicale Industries, "is a lack of support by the government in enforcement." Cashmere textile and garment producers are worried their high-end products' prestige is being undercut when, for example, a garment labeled 100 percent cashmere actually contains 50 percent wool that has been specially treated to feel like the extra soft fiber. There have also been examples of garments labeled as containing, say, 50 percent cashmere when the amount is actually closer to 10 percent.

"There's a tremendous incentive to cheat," said Jim Coleman, president of New York-based Forte Cashmere Co. He cited China -- where Kashmir goats are plentiful -- as one place where significantly less expensive wool and yak are often blended with cashmere and where, in many cases, the presence of the other fibers either is underreported or isn't disclosed at all.

Coleman and other speakers urged retailers and importers to be sure yarns, fabrics and the final cashmere product are tested for their content. Under the 1939 Wool Products Labeling Act, anything made from animal hair must be labeled to reflect the fiber content. Retailers, manufacturers and distributors are to be held accountable for violations and can be fined $11,000 for each infraction -- but there haven't been any reported violations of the act involving cashmere in about 30 years. Meanwhile, the cashmere industry has undertaken its own policing of the marketplace. The Boston-based Cashmere and Camel Hair Manufacturers Institute routinely surveys stores in the U.S. and parts of Europe and buys garments to test for content. The group's president, Karl Spilhaus, said the organization usually notifies between 45 and 60 retailers a year about mislabeling.

For his part, David DaPonte, L.L. Bean's manager of product and research, in a presentation, warned retailers about falling prey to unscrupulous suppliers. Stores shouldn't just test cashmere garments after they arrive, he advised. "If you're looking at a garment and starting to test it, you're too late," he added.

Copyright © 2001 Fairchild Publications, Inc.