"Oh fabrics off the new looms do that, just shave it off"
They are entirely correct. That line of fuzz is the ends of the threads that have been woven back into the selvedge, relaxing and 'opening up'. The fuzz only appears after wearing and you need to shave it off. You can do this very carefully with a razor (which I don't recommend) or a special appliance called a sweater shaver:
http://www.target.com/s?keywords=swe...bx_1_1&x=0&y=0