Not familiar with that particular tag, but I have found the need to fold the collar over to prevent this with others for years.
Worst tags I ever came across were the Hanes Beefy right after the Sara Lee takeover.
They used dyes that ran and blurred if any spotting liquid got on them, and naturally, that's where we had our break-out soon after getting the new batch.
Fortunately, they had a rep visit us around then and when this was pointed out, they went back to whatever they were using previously.