They actually started with these new cheap fabric bags that they also only charge like five cents for, but the fabric ones are actually reusable, and they don't rip:) I actually heard of a certain store that gives them for free like regular shopping bags used to be like.

Yankel the Goat meant (I'm assuming) "If you can even call them bags."

Why is their ripping contingent on their being called bags?

if you call them bags they rip before you can pick them up

Many paper bags have plastic handles. The amount of plastic used is still much less than a plastic bag, but the bags are truly single use, and actually even less if it rains. A fully plastic bag can be used many times, so what is the ratio of plastic by volume to total uses?