From the Super Mario Wiki
“This is a genuine Persian carpet! Made in Hong Kong.”
In the episode "Mario and the Red Baron Koopa", Mario and Luigi wind up at Sam's lot after an incident involving a rising platform. Needing a magic carpet to defeat King Koopa and Lakitu, Mario, after some bartering, manages to buy a bug-infested carpet from Sam for the price of three washers and a stick of gum.
Eventually, Mario and Luigi's carpet is burnt to a crisp by King Koopa and his fireball-gun. Without a flying carpet beneath them, Mario and Luigi are sent plummeting downward, only to be narrowly saved by a trampoline used Princess Toadstool, Toad and several others.
This trampoline bounced Mario and Luigi back-up to Sam's lot; meeting Sam again, Mario and Luigi accused Sam of cheating them, by saying the flying carpet he sold them was fire-proof, despite it being easily burned by King Koopa.
Hearing that Mario and Luigi want to stop King Koopa, Sam happily gives the two a pair of flying carpets; Sam's reason for doing this being that he wanted to see King Koopa defeated for having stolen his fireball-gun equipped magic carpet.