Culhane Meadows Reports U.S. International Trade Commission Sanctions Resulting from Exaggerated Claims of Thread Count made by Certain Textile Manufacturers and Importers

DALLAS--()--On the heels of the uproar over fake Egyptian cotton textiles being sold to U.S. retailers and their customers, a recent investigation from the U.S. International Trade Commission is targeting manufacturing integrity in the textile industry.

“A general exclusion order will add another layer of protection for U.S. consumers against this rampant fraud.”

A complaint was made to the U.S. International Trade Commission (ITC) against a number of textile importers and manufacturers that they were falsely advertising numerous brands of woven textile fabric products by grossly inflating their thread counts. These products claimed significantly higher thread counts than were factual and were being imported into the U.S., sold to major U.S. retailers and then to consumers whose buying decisions were influenced by the fraudulent claims.

In investigating the complaint, the ITC’s administrative law judge found a violation of law. The judge also found that it was difficult, if not impossible, for U.S. consumers to trace the source and manufacturers of the textiles, which are generally manufactured by companies based out of India, Pakistan and China.

During the ITC’s investigation, at least 10 companies settled and/or entered consent orders with the ITC. The judge found that one company specifically advertised its textiles with hugely exaggerated thread counts, causing substantial injury to the domestic industry.

As a result of the investigation and findings of a widespread pattern of violation, the judge recommended that the ITC issue a general exclusion order that instructs U.S. Customs and Border Protection to prohibit from entry all such textiles from import, regardless of source, which contain exaggerated and falsely advertised thread counts.

“This investigation is an important step towards protecting consumers, protecting the U.S. domestic industry and leveling the playing field for those distributors, importers and manufacturers that are committed to the integrity of their products,” said Ajay Mago, Partner at Culhane Meadows, PLLC who represented the complainant along with Paul Brinkman, Partner at Quinn Emanuel Urquhart & Sullivan, L.P. “A general exclusion order will add another layer of protection for U.S. consumers against this rampant fraud.”

Release Summary

The U.S. International Trade Commission is targeting manufacturing integrity in the textile industry over thread count.