Fluffy cotton-wool type bedding is completely unsuitable for small pets, due to problems like you've had with it winding round limbs, and also if the animal decides to eat it, it can cause gut and cheek pouch impactions.
Most beddings of this type do now have a disclaimer on the packet. As babyboos said, like that will help! But really, I wouldn't touch it with a barge pole. I used to use it for years, and had very few problems, but it's not worth that risk is it.
To be honest, I think writing to manufacturers won't change things, they make products as long as there is a market to sell them. Writing to pet shops and asking them to stop stocking them will make a difference, IMO. Not that I've done that myself, but if you wanted to make a difference I think it's the pet shops, especially the chain ones, that campaigning should be aimed at. And educating owners via sites like this one
For bedding I use paper shavings (I think it's called Safe-Bed? It's just plain white paper tissue squares basically). The animals can't get tangled up, and it's digestible. Although only Alfie has bedding anymore, since the robos moved to their new big tank, they just make nests and tunnels in the sawdust and I haven't given them specific bedding material as they only spread it all over the cage.
Apparently there used to be a brand of cotton-wool type bedding that was endorsed by the NHC (National Hamster Council) until a few years ago, the endorsement was removed due to financial reasons. I was told that there was evidence that the product in question was "biodegradable" - not sure what that means - that still wouldn't make me happy using that product though!