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Clothing Bin Operator Changes Labels, Settles With Michigan

American Textile Recycling Service

A Texas-based clothing donation bin operator is changing the way it labels bins for the Michigan Humane Society as part of a settlement with Michigan's attorney general.

Attorney General Bill Schuette's office announced Tuesday it had reached the settlement with Houston-based ATRS.

Schuette alleged that ATRS falsely labeled about 250 clothing bins by saying the society gets 100 percent of the market value of every donation.

Under the settlement, which resolves a civil lawsuit, the company's bins will state the per pound amount that each donation generates for the society.

By contract, ATRS pays the society 2 cents per pound for items donated in the bins.

ATRS also has agreed to pay a $75,000 fine.

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