In a letter dated June 26, 2012, the FTC wrote:
"Based on the information about the CRAiLAR process and the attributes of the fibers you provide in your letter, we conclude that describing these fibers as flax on labels attached to textile fiber products made from the fibers would comply with the Rules. We also conclude that describing these fibers as linen rather than flax could mislead or deceive consumers.
We base these conclusions on your assertions that the CRAiLAR process involves a manner of obtaining flax fibers that does not chemically alter them, that the attributes of the fibers differ from those of linen, and that international standards and practice as well as the U.S. government recognize the use of the term "flax" to describe flax fibers that have not been chemically changed."
"This is an important step in defining the groundbreaking nature of CRAiLAR," said Jay Nalbach, Chief Marketing Officer of NAT. "Our process results in a pure flax product that feels and can be cared for like cotton, and we believe that articulating that at retail is an important part of the unique brand proposition for CRAiLAR Flax, to the merchandising opportunities of our partner brands, and to the relationship we intend to build with consumers."
NAT supplies its CRAiLAR Flax to HanesBrands, Georgia-Pacific, and Brilliant Global Knitwear for commercial use, and to Levi Strauss & Co., Cintas, Carhartt, Ashland, Westex, Target and PVH Corp for evaluation and development. NAT is in construction on its first full-scale production facility in Pamplico, South Carolina, and anticipates it will be delivering fiber from the facility in Q3 2012. It will partner with Tintoria Piana and Barnhardt Manufacturing on the processing of that fiber.
Naturally Advanced Technologies Inc., through its wholly owned subsidiary, CRAiLAR Fiber Technologies Inc., has developed proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products in collaboration with Canada's National Research Council.
Naturally Advanced Technologies Inc.