American animal rights activists have named Benetton as their next target after the multi-billion dollar Italian fashion house ignored threats to drop Australian merino wool from its products. Benetton, with 5,000 stores worldwide and USD2.6 billion in annual revenue, is a major user of Australian wool for its high-end jumpers, suits and other products.

The US-based People for the Ethical Treatment of Animals says it has lobbied Benetton for more than a year to stop using Australian merino wool but received no satisfactory response. PETA has branded the Australian wool industry as one of the most violent industries for its use of a technique called mulesing. It is campaigning for US and European fashion retailers to boycott Australian wool until mulesing is stopped.