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INDUSTRY GROUP FINDS WIDESPREAD MISLABELING OF FINE WOOL GARMENTS

MILAN and BOSTON, 11 September, 2007 -- The Superfine Wool Council of the Cashmere and Camel Hair Manufacturers Institute released today a summary of recent luxury fiber labelling monitoring. Based on the organization's expertise in fine wool products, the CCMI Superfine Wool Council targeted suspect products at various U.S. retailers. The result was that, when the garments were sent to independent laboratories for testing, over 90 percent were found to be mislabeled as to the "Super X" designation. "Our testing efforts were directed toward suspicious cases, therefore one cannot infer that the prevalence of mislabeling in the market is 90 percent, however, the results confirm what we have long suspected, that there is much mislabeling in the market for fine wool products," said Karl Spilhaus, president of CCMI. This initial effort focused on obviously egregious violations such as highly inflated "Super X" labeling.

Testing of garments in other markets such as Japan, Italy, U.K., France and Germany show that the problem of mislabeling is not confined to any one market but is an international problem defrauding consumers and injuring producers and retailers of the genuine product. For example, in Japan four suits have been purchased with one found to be mislabeled. In all cases immediate action was taken by the retailers to correct the labeling. Also twenty-three garments were purchased in Italy, in the United Kingdom, France and Germany with similar results. Subject retailers have been notified and in most cases, have agreed to remove or re-label the offending products. Several cases have been referred to government agencies for further legal action.

In the U.S. mislabeling of the "Super X" or "X" number of wool product is a violation of the Wool Products Labeling Act, with fines of up to $11,000 per violation. Furthermore, U.S. Customs and Border Protection may hold up shipments at the port if there are violations of the Act.

“We are very pleased with the results of our international monitoring program,” said Mr. Spilhaus. He continued, “We have been able to bring to bear on the market for superfine wool products the reputation for firmness and integrity which has been established in cashmere. The monitoring program is expected to continue and intensify in the coming fall/winter season.”

[Founded in February 2006, the Superfine Wool Council now boasts 21 members, majority of which are from the Biella region of Italy. All are engaged in the manufacturing or processing of superfine wool and products. The mission of the Superfine Wool Council is to protect the image and ensure the correct labeling and classification of luxury fabrics and garments of fine and superfine wools. The organization was founded in response to the codification of the “Super X” and "X" classification system by the International Wool Textile Organisation.]