Qualities
Bamboo fabric is a textile made from the pulp of the bamboo grass. Bamboo fibers are more sustainable than other fibers. It has excellent wicking properties for summer time moisture and thus making it ideal for running gear and towels. To some extent, bamboo fibers is also anti-microbial. Another ideal feature of bamboo is its softness especially when put next to the skin.
Investigation
In 2006, the FTC started investigating five clothing companies that stated that they make towels out of bamboo. Only one company (Land's End) stated the towel was made from "Rayon from Bamboo." The other four stated that the towels were made from "Bamboo."
Although the ingredients to make the towel came from bamboo fibers. However, the fibers have to go through treatment using harsh and toxic chemicals in order to make it a wearable fiber. So in essence, the bamboo fibers turns into Rayon.
More False Claims
There's more: All four companies state that the towels were made with "environmentally-friendly manufacturing processes." and that they were antimicrobial. The FTC disputes both statements.
Is there anything the FTC agreed on? Yes one thing -- these Rayon from Bamboo towels were softer than cotton towels.
Settlement
In the end, the companies agreed to settle with the FTC and will no longer use the false and misleading claims
FTC Consumer Alert
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt160.shtm