Penney offers refunds on questionable towels, comforter set

Markets Associated Press

Starting Wednesday, J.C. Penney says it will be offering refunds to shoppers who purchased certain towels and a comforter set though it still is unable to figure out whether they're actual knockoffs.

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Penney's move marks the latest chapter in a controversy that has caught other major retailers like Target, Bed Bath & Beyond, and Wal-Mart over whether one of India's largest textile suppliers, Welspun, has been furnishing retailers with knockoff Egyptian cotton products.

Penney said Friday that while the products under store brand Royal Velvet pose no safety concerns, it's giving concerned customers the option of returning them.

Target said in late August it was pulling items off store shelves and severing its relationship with Welspun after a probe revealed that the products were made of non-Egyptian cotton.