This case involves the marketing and sale of bed linens falsely labeled as “100% Egyptian Cotton” by retailer Bed Bath & Beyond, Inc. (“BB&B”). For years, under the label Perfect Touch and Crowning Touch, BB&B sold bed linens, manufactured by Welspun India, Ltd. (“Welspun”), labeled as “100% Egyptian Cotton.” Egyptian cotton, due to its quality and scarcity, commands a premium in the market.
Welspun, a large home textile manufacturer based in India and with offices in the United States, manufactures and distributes bed linens and other home textiles to BB&B and other retailers. BB&B is Welspun’s largest customer.
In August 2016, BB&B’s competitor, Target announced that its investigation showed that Welspun uses inferior and less expensive cottons in many of its bed linens labeled “100% Egyptian Cotton.” Target ended its relationship with Welspun, and Welspun admitted, “Without any ambiguity, the fault is on our side.”
In response to Target’s announcement, BB&B ordered an external audit of textiles from Welspun but has continued to sell its products. Because of BB&B’s conduct, consumers who purchased Welspun bed linens at BB&B overpaid for an inferior product. This action seeks full recompense for consumers.