JCPenney's unsold American Living products going in the trash
The retailer has an agreement with Polo Ralph Lauren Corp. that any merchandise from the designer's American Living Line must be destroyed if it's not sold, according to the Wall Street Journal. The agreement is meant to prevent the unsold items from being resold or ending up in a merchandise scam.
JCPenney rolled out the label in 2008 and it includes men's, women's and children's clothing, as well as home products. Consumer Ally could not reach a JCPenney representative to comment on the practice.
The company is not alone when it comes to throwing away unsold items. H&M and Wal-Mart came under fire earlier this year after a graduate student found that the stores were discarding bags of unworn and unsold clothing, some with holes punched in them. The student ended up reporting what she saw to The New York Times, which ran a story about the practice. H&M later said it would change its policy.
Other retailers sell their excess merchandise to discount websites or donate them to organizations like Goodwill or Salvation Army.