The company, The M Group, agreed to cease its marketing of its 100 percent rayon clothing as made from bamboo fibers and other green marketing claims without supporting evidence, the FTC said.

FTC said the company also falsely claimed that its clothes were biodegradable and retained antimicrobial properties - the rayon used in the clothes was processed with bamboo plants but these claims were untrue.

Even if the rayon used in clothing and textile products is manufactured using bamboo as the source of fibers, "rayon does not retain any natural antimicrobial properties of the bamboo plant," the FTC said. "The rayon manufacturing process eliminates any of these natural bamboo properties."

This could be important news for small business owners who market products or services with green marketing that unsupported or false claims could result in action by the trade commission.