They are called flushable because they are made of biodegradable material and, technically, will decompose over time.
The issue is, they found a loophole. While they will decompose, it will not be quick enough for it to be useful. So what happens is these wipes are flushed and then before they can decompose waste will build up and then you have clogged pipes.
Really the definition of flushable should contain a requirement for the material to decompose in a timely manner. Unfortunately flushable wipes do not decompose quickly.
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