I'm sorry to hear about the issue that you have been experiencing and will be happy to offer any assistance that I can.
In general, Epson printers are known to output ink at a heavier saturation that printer models from other manufacturers. Our weatherproof materials for inkjet printing consist of a topcoat that is designed to absorb ink and protect it from moisture, but if the material is over-saturated you may still run into some minor issues with smudging and smearing.
There are a couple of printer settings you can adjust that will potentially provide more durable results. You had mentioned using the presentation paper matte material setting when printing your labels. I would try changing that to a photo or glossy material setting. The material you're using has a matte finish, but in my experience the photo/glossy material settings generally provide the best results with our weatherproof materials.
In addition to the material type setting you may want to adjust the print quality setting as well. If you're currently using the best or highest quality setting, that could potentially contribute to the over-saturation discussed above. I'd try running your design with the normal or possibly even draft quality setting instead. This should output less ink and will potentially resolve the smudging and smearing that is occurring.
If adjusting the material type and quality settings does not resolve the issue then you may want to consider using a clear overcoat spray - we recommend a spray called Krylon Preserve-It. Applying a light coat to your label sheet when it leaves the printer will seal the label and prevent smudging and smearing from occurring. You can view a tutorial on how to use the Krylon Preserve-It spray at the link below:
https://www.onlinelabels...label-overcoat-spray.htmI hope this information helps. If you'd like us to send you a few additional sample sheets for further testing please just let me know.