Wal-Mart (NYSE:WMT) Sued for Mislabeled Egyptian Cotton Linen

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A woman in the US state of Michigan has sued Wal-Mart Stores, Inc. (NYSE:WMT) for falsely labeling products and fooling customers. Dorothy Monahan, the plaintiff, says that Wal-Mart has been falsely labeling “100 % Egyptian Cotton”, while in truth, the product actually comes from a textile company in India. She further claims that the business has been doing this for several years.

The complaint has been filed with the U.S. District Court in Manhattan.

Fiber From India Questioned by the Plaintiff

According to the complaint, Wal-Mart had themselves questioned the fiber from Welspun India as early as 2008. The business was selling them labeled as Egyptian cotton bed linens. But Wal-Mart did not take any action, till the time Target Corporation (NYSE:TGT), which also used to sell the same products, stopped doing so. She says the business knew it wasn’t 100 percent Egyptian cotton but delayed taking action, thereby causing losses for its customers.

Since then, other retailers in the US, such as J.C. Penney, and Bed Bath & Beyond Inc also started to review their imports from Welspun.

Dorothy claims she purchased Homes and Gardens bed linens from the store mistaking them to be Egyptian cotton, because of the false labeling, and ended up paying more for lesser quality materials. She says by doing this, Wal-Mart Stores has violated U.S. laws on textile fiber labeling and advertising. Dorothy wants all Wal-Mart (NYSE:WMT) customers who have purchased bed linen at the store to be compensated for their loss.

Wal-Mart has denied these charges saying that these products were removed after carrying out a comprehensive review. The business has also issued a refund already. A spokesman for Wal-Mart said, “We plan to vigorously defend the company”.

The plaintiff’s lawyer did not issue any further comments.

Egyptian Cotton is the Best

Cotton from Egypt is accepted as the finest quality the world over. That’s because, their long cotton fibers make the fabric more durable, softer, lighter and finer. Australia and the United States too make high-end cotton, but Egyptian cotton is still regarded as the best. This African country also has a long history of producing the cotton, which goes in their favor.

Earlier, Wal-Mart used to sell bed linen with the Canopy name from Welspun. The business wanted an assurance from the Indian company that their products were 100 percent Egyptian cotton, which they failed to provide. Wal-Mart then discontinued offering these products.