Request for Comments Concerning Guides for the Hosiery Industry

FEDERAL TRADE COMMISSION

16 CFR Part 22

Request for Comments Concerning Guides for the Hosiery Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (the ``Commission) is requesting

public comments on its Guides for the Hosiery Industry (``Hosiery

Industry Guides''). The Commission is also requesting comments about

the overall costs and benefits of the Hosiery Industry Guides and their

overall regulatory and economic impact as a part of it systematic

review of all current Commission regulations and guides.

DATES: Written comments will be accepted until June 14, 1994.

ADDRESSES: Comments should be directed to: Secretary, Federal Trade

Commission, room H-159, Sixth and Pennsylvania Ave., NW., Washington,

DC 20580. Comments about the Hosiery Industry Guides should be

identified as ``16 CFR Part 22--Comment.''

FOR FURTHER INFORMATION CONTACT: Ann M. Guler, Investigator, Federal

Trade Commission, Los Angeles Regional Office, suite 13209, 11000

Wilshire Blvd., Los Angeles, CA 90024, (310) 575-7890.

SUPPLEMENTARY INFORMATION: The Commission has determined, as part of

its oversight responsibilities, to review rules and guides

periodically. These reviews will seek information about the costs and

benefits of the Commission's rules and guides and their regulatory and

economic impact. The information obtained will assist the Commission in

identifying rules and guides that warrant modification or recision.

At this time, the Commission solicits written public comments

concerning the Commission's Guides for the Hosiery Industry (16 CFR

part 22).

The Hosiery Industry Guides, like the other industry guides issued

by the Commission, ``are administrative interpretations of laws

administered by the Commission for the guidance of the public in

conducting its affairs in conformity with legal requirements. They

provide the basis for voluntary and simultaneous abandonment of

unlawful practices by members of industry.'' 16 CFR 1.5. Conduct

inconsistent with the guides may result in corrective action by the

Commission under aapplicable statutory provisions. The Commission

promulgates industry guides ``when it appears to the commission that

guidance as to the legal requirements applicable to particular

practices would be beneficial in the public interest and would serve to

bring about more widespread and equitable observance of laws

administered by the Commission.'' 16 CFR 1.6.

The Hosiery Industry Guides concern deceptive advertising and

marketing of all hosiery industry products, including stockings and

socks that are marketed to men, women, and children. Specifically, the

Hosiery Industry Guides proscribe deception as to the grade, character,

construction, origin, denier, size, style, fashion, gauge, twist of

yarn, quality, quantity, value, price, serviceability, resistance to

snagging or the development of runs, holes or breaks in the fabric,

strength, stretch, length, color, finish, manufacture, or distribution

of any hosiery product. The Hosiery Industry Guides also delineate the

use of the terms ``lisle,'' ``irregulars,'' and ``seconds'' as they

apply to hosiery.

Section 22.3(a) of the Hosiery Industry Guides, relating to the

definition of ``lisle,'' sets forth the minimum ply twist in terms of

turns per inch. Section 22.3(b) states that the term ``long staple

cotton fiber'' refers to ``cotton fiber which is not less than 1\1/8\''

[inch] in length of staple: Provided, however, That nothing in this

section shall be construed as prohibiting the use of cotton fiber which

is not less than 1\1/16\'' [inch] in length of staple for the counts of

35 and less above referred to.'' Under Executive Order 12770 of July

25, 1991 (56 FR 35801, July 19, 1991), and the Metric Conversion Act,

as amended by the Omnibus Trade and Competitiveness Act (15 U.S.C.

205b), all federal agencies are required to use the SI metric system of

measurement in all procurement, grants and other business-related

activities (which include rulemakings), except to the extent that such

use is impractical or is likely to cause significant inefficiencies or

loss of business by United States firms. To comply with these

provisions, should the Commission elect to retain the Hosiery Industry

Guides after conducting this review, the inch measurements cited above

will be followed by the metric equivalents in parentheses. Thus, the

second sentence of Sec. 22.3(a) would be revised to read: ``For

purposes of this section the term `lisle' as descriptive of hosiery, or

part thereof, is considered as representing that such hosiery is made

of yarn composed to two or more ply of combed long staple cotton fiber,

the ply twist of which is not less than the turns per inch (2.54

centimeters) indicated on the following table.'' The note following the

table in Sec. 22.3(a) would be revised as follows: ``* * * for each

additional ply above 4, 1 turn per inch (2.54 centimeters) may be

deducted from the minimum number of turns given for the 4-ply yarn.''

In Sec. 22.3(b), the lengths of cotton fiber staples would be revised

to read: ``1\1/8\ inch (2.86 centimeters)'' and ``1\1/16\ inch (2.70

centimeters).''

If the Commission elects to retain the Hosiery Industry Guides

after conducting this review, it intends to update certain terms to

reflect statutory and policy changes that have occurred since the

Hosiery Industry Guides were originally promulgated. The term ``in

commerce'' in Sec. 22.0, would be changed to ``in or affecting

commerce'' in conformance with the amended language of Section 5 of the

Federal Trade Commission Act (15 U.S.C. 45). In conformance with the

same statutory section, all references in Secs. 22.2, 22.3, 22.4, 22.5,

and 22.6 of the Hosiery Industry Guides to ``unfair trade practice''

would be changed to ``unfair or deceptive act or practice.'' Finally,

the phrase ``capacity and tendency or effect of deceiving'' in

Secs. 22.2, 22.3, and 22.6 would be changed to conform with the

language regarding deception that is set forth in Cliffdale Associates,

Inc., 103 F.T.C. 110, 164-65 (1984) and subsequent cases.

Accordingly, the Commission solicits public comments on the

following questions:

1. Is there a continuing need for the guides?

a. What benefits have the guides provided to purchasers of the

products or services affected by the guides?

b. Have the guides imposed costs on purchasers?

2. What changes, if any, should be made to the guides to increase

the benefits of the guides to purchasers?

a. How would these changes affect the costs the guides impose on

firms subject to their requirements?

3. What significant burdens or costs, including costs of adherence,

have the guides imposed on firms subject to their requirements?

a. Have the guides provided benefits to such firms?

4. What changes, if any, should be made to the guides to reduce the

burdens or costs imposed on firms subject to their requirements?

a. How would these changes affect the benefits provided by the

guides?

5. Do the guides overlap or conflict with other federal, state, or

local laws or regulations?

6. Since the guides were issued, what effects, if any, have changes

in relevant technology or economic conditions had on the guides?

Authority: 15 U.S.C. 41-58.

List of Subjects in 16 CFR Part 22

Advertising, labeling, hosiery.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 94-9135 Filed 4-14-94; 8:45 am]

BILLING CODE 6750-01-M