Guides for Select Leather and Imitation Leather Products

FEDERAL TRADE COMMISSION

16 CFR Part 24

Guides for Select Leather and Imitation Leather Products

AGENCY: Federal Trade Commission.

ACTION: Request for public comment on proposed Guides for Select

Leather and Imitation Leather Products.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (the ``Commission''), as part of

its periodic review of its rules and guides, announces that it has

concluded a review of its Guides for the Luggage and Related Products

Industry (``Luggage Guides''); Guides for Shoe Content Labeling and

Advertising (``Shoe Content Guides''); and Guides for the Ladies'

Handbag Industry (``Handbag Guides''). The Commission rescinds these

three Guides in a document published elsewhere in this issue of the

Federal Register. The Commission now seeks public comment on proposed

Guides for Select Leather and Imitation Leather Products. The proposed

Guides combine relevant portions of the three Guides, update certain

language used in the Guides, and make other modifications to clarify

and streamline the provisions of the Guides. The Commission has

included within the coverage of the proposed combined Guides the

provisions of the Commission's Trade Regulation Rule Concerning

Misbranding and Deception as to Leather Content of Waist Belts (``Waist

Belt Rule'').

DATES: Written comments on the proposed Guides for Select Leather and

Imitation Leather Products must be submitted by October 18, 1995.

ADDRESSES: Written comments should be submitted to the Office of the

Secretary, Federal Trade Commission, Room H-159, Sixth Street and

Pennsylvania Avenue, N.W., Washington, D.C. 20580, telephone number

(202) 326-2506. Comments should be identified as ``16 CFR Part 24--

Comment--Proposed Guides for Select Leather and Imitation Leather

Products''.

FOR FURTHER INFORMATION CONTACT: Susan E. Arthur, Attorney, (214) 767-

5503, Federal Trade Commission, Dallas Regional Office, 100 N. Central

Expressway, Suite 500, Dallas, Texas 75201.

SUPPLEMENTARY INFORMATION:

I. Background

The Luggage Guides, promulgated on February 27, 1979, address

potential deception in the sale, offering for sale, and distribution of

luggage and related products. Specific industry guidance is provided by

the Guides in connection with the following:

--disclosures to be made for products made of split leather, imitation

leather or processed leather, or products which contain backing

material;

--representations that products are made from the skin of a fictitious

animal;

--the use of words, terms, depictions or devices that may indicate that

a product is made of any material when it is not;

--representations that a product is wholly of a particular composition;

--representations that a product is leather when it contains ground,

pulverized or shredded leather;

--representations that a product is colored, finished or dyed with

aniline dye or otherwise dyed, embossed, grained, processed, finished

or stitched in a certain manner;

[[Page 48057]]

--representations about the hardware, box or frame of products; and

--use of the terms ``waterproof,'' ``dustproof,'' ``warpproof,''

``scuffproof,'' and ``scratchproof.''

The Shoe Content Guides were adopted by the Commission on October

2, 1962. They contain industry guidance for the labeling and

advertising of shoe content with respect to the following:

--use of the term ``leather'' on labels and in advertisements;

--disclosures on labels concerning simulated or imitation leather,

concealed innersoles, split leather, embossed or processed leather, and

ground or shredded leather;

--disclosures in advertisements that depict non-leather parts of shoes

or slippers which appear to be made of leather;

--disclosures to be used with terms that are suggestive of leather

(e.g., ``Duraleather''); and

--use of words or terms which would convey the impression that shoes or

slippers are made of a certain material when they are not.

The Handbag Guides were promulgated on June 27, 1969, and address

potential misrepresentations regarding ladies' handbags and similar

articles. These Guides specifically address misrepresentations as to

the composition and other characteristics of such products and provide

specific industry guidance regarding the following:

--disclosures to be made with respect to a product's composition;

--representations that a product is colored, finished or dyed with

aniline dye or otherwise dyed, embossed, grained, processed, finished

or stitched in a certain manner;

--use of the terms ``scuffproof,'' ``scratchproof,'' ``scuff

resistant,'' and ``scratch resistant;'' and

--deceptive pricing of products.

In addition, the Handbag Guides address price discrimination,

advertising and promotional allowances, and the providing of

promotional services and facilities. The Guides also discuss inducing

or receiving a discrimination in price, advertising allowance or

promotional service or facility.

The Waist Belt Rule, promulgated on June 27, 1964, regulates

representations made in the sale, offering for sale, and distribution

of men's and boy's belts, and women's and children's belts when not

offered for sale as part of a garment. The Rule states that it is an

unfair method of competition and an unfair or deceptive act or practice

to:

--represent that a belt not made from the hide of an animal is leather;

--represent that a belt is ``leather'' when it contains ground,

pulverized, or shredded leather;

--represent that a product is ``leather'' when it contains split

leather;

--represent that a belt is made from a specified animal hide when it is

not

--represent that a product is wholly of a particular composition when

it is not;

--sell or distribute belts which have the appearance of leather, but

which are made of split leather or ground, pulverized or shredded

leather or of non-leather material, unless proper disclosure is made;

--sell or distribute belts which have been processed so as to have the

appearance of a different type of leather, unless proper disclosure is

made; and

--sell or distribute belts having an outer surface of leather or other

material, which are backed with a different kind of leather or non-

leather material having the appearance of leather, unless proper

disclosure is made.

In response to a request for public comment on the Luggage Guides,

the Shoe Content Guides and the Ladies' Handbag Guides, the Commission

received 12 comments. The Commission received 10 comments regarding the

Waist Belt Rule. Only three of the Waist Belt Rule comments were not

also submitted in response to the request for comments on the three

Guides.1

\1\ Comments Concerning the Three Guides:

1. Rose E. Kettering (``REK'') Same comment sent regarding

Waist Belt Rule

2. Matt Anderson (``MA'') Same comment sent regarding Waist

Belt Rule

3. Marilyn Raeth (``MR'') Same comment sent regarding Waist

Belt Rule

4. James A. McGarry (``JAM'') Same comment sent regarding Waist

Belt Rule

5. Lenna Mae Gara (``LMG'') Same comment sent regarding Waist

Belt Rule

6. Linda D. Lipinski (``LDL'')

7. Footwear Industries of America (``FIA'')

8. Leather Industries of America, Inc. (``LIA'') Same comment

sent regarding Waist Belt Rule

9. Luggage and Leather Goods Manufacturers of America,

Inc.(``LLGMA'')

10. Cromwell Leather Company, Inc. (``CL'') Same comment sent

regarding Waist Belt Rule

11. Enger Kress (``EK'')

12. Footwear Distributors and Retailers of America (``FDRA'')

Comments Concerning the Waist Belt Rule:

13. Stephen Toso (``ST'')

14. Humphreys, Inc. (``HI'')

15. Enger Kress (``EK2'')

---------------------------------------------------------------------------

The Federal Register notice requesting comments on the three sets

of Guides contained a list of questions designed to assist the

Commission in determining whether the Guides should be maintained,

amended or rescinded. Ten of the comments supported retaining the

Guides in some form,2 one expressed no opinion on the issue,3

and one comment merely asked a question.4 Six of the comments were

from consumers,5 one was from a leather tanning company,6 one

was from a manufacturer of wallets,7 and four were from trade

associations.8 The following discussion regarding the comments

received is grouped according to the questions posed in the notice. A

number of the comments dealt with issues common to all of the Guides

and the Rule. The comments for all four are addressed together.

\2\ REK, #1; MA, #2 at 1; MR, #3; JAM, #4; LMG, #5; FIA, #7 at

1; LIA, #8 at 1; LLGMA, #9 at 2; CL, #10 at 1; EK, #11.

\3\ FDRA, #12.

\4\ LDL, #6.

\5\ REK, #1; MA, #2; MR, #3; JAM, #4; LMG, #5; LDL, #6.

\6\ CL, #10.

\7\ EK, #11.

\8\ FIA, #7; LIA, #8; LLGMA, #9; FDRA, 12.

---------------------------------------------------------------------------

(1) Is there a continuing need for the Guides? Ten of the comments

indicated that there is a continuing need for the Guides.9

\9\ REK, #1; MA, #2 at 1; MR, #3; JAM, #4; LMG, #5; FIA, #7 at

1; LIA, #8 at 1; LLGMA, #9 at 1; CL, #10 at 1; EK, #11 at 1.

---------------------------------------------------------------------------

(a) What benefits have the Guides provided to purchasers of the

products or services affected by the Guides?

The comments received indicate that the Guides provide a number of

benefits to consumers. Two comments suggested that consumers benefit

from the Guides because the Guides require identification of imitation

leather content, which, when used in shoes, may cause feet to sweat

excessively.10 Another comment stated that the disclosure

requirements in the Guides benefit consumers because leather has

special properties of durability, breathability, and

flexibility.11 One comment indicated that animal lovers,

vegetarians and others who do not wish to wear leather need to know

what they are buying.12 Four comments indicated that the

requirements of the Guides otherwise assist consumers in making

purchasing decisions.13

\10\ REK, #1; MA, #2 at 2.

\11\ FIA, #7 at 1.

\12\ LMG, #5.

\13\ MR, #3; JAM, #4; EK, #11 at 1; CL, #10 at 2.

---------------------------------------------------------------------------

(b) Have the Guides imposed costs on purchasers? The comments

indicated that costs to purchasers are minimal.14

\14\ EK, #11 at 1; FIA, #7 at 2.

---------------------------------------------------------------------------

(2) What changes, if any, should be made to the Guides to increase

the benefits of the Guides to purchasers?

A number of the comments suggested that certain changes be made to

the Guides. Generally, these suggestions fall

[[Page 48058]]

into the following categories: Definitions and use of the term

``Leather,'' Disclosure Requirements, Scope of the Guides, and Use of

the term ``Bonded Leather.''

--Definitions and Use of the Term ``Leather''

One comment suggested that the Guides incorporate definitions of

the terms ``Leather,'' ``Bonded Leather,'' and ``Manmade.'' 15

Another comment suggested that a section should be added stating what

materials are covered and giving a definition of each.16 These

additional definitions are not necessary because the Guides clearly

cover all types of leather and all materials with the appearance of

leather.

\15\ LIA, #8 at 4-5.

\16\ LLGMA, #9 at 2-3.

---------------------------------------------------------------------------

Three comments suggested that ``man-made'' should be used to

describe certain non-leather products rather than ``simulated leather''

and similar terms using the word ``leather.'' 17 One comment

suggested that ``man-made'' be added to the list of examples of non-

leather products and that ``urethane'' be recognized as a material

which is often used in industry products.18 The terms listed in

the Guides as examples of appropriate disclosures for non-leather

materials are adequate and would clearly indicate to consumers that a

particular material is not leather. Because these terms are merely

examples, it is not necessary to make additions to the list.

\17\ FIA, #7 at 2; LIA, #8 at 4-5; LLGMA, #9 at 2-3.

\18\ EK, #11 at 2.

---------------------------------------------------------------------------

Two comments urged that the Guides be amended to allow split

leather to be called ``leather'' because the European Union countries

allow that term to be used without qualification to describe split

leather.19 However, insufficient support was presented to justify

modification of this aspect of the Guides. In support of preservation

of the Guides' distinction between top grain and split leather, one

comment stated that split grain is less expensive, less attractive, and

less durable than top grain leather, and that split leather is subject

to ``crocking.'' 20 Another comment stated that the Guides should

continue to permit only top grain leather to be called ``leather'' or

``genuine leather'' and that other forms of leather should include

qualifying words.21 The apparent differences between the

performance and appearance of top grain leather and that of split

leather, as well as possible consumer expectations with regard to these

materials, indicate that the Guides should continue to state that only

top grain leather products should be called ``leather'' without

qualification.

\19\ LIA, #8 at 4; FDRA, #12 at 3.

\20\ FIA, #7 at 2. Crocking is the transfer of color from the

surface of a colored material to an adjacent area of the same

material or to another surface, principally by rubbing.

\21\ CL, #10 at 1.

---------------------------------------------------------------------------

--Disclosure Requirements

The Guides contain a section specifically setting forth a method of

making disclosures. Regarding the form of disclosures, one comment

suggested that the Luggage Guides should be amended to state that the

type of outer material used in the product must be permanently stamped

on the product or on a label sewn into the product and that composition

information regarding any other part of the product may be stamped

either on the product, or on a tag, label, or card attached

thereto.22 There is insufficient justification for this amendment

because consumers are adequately protected by the current provision

which provides that disclosures should be stamped either on the product

or on a tag, label, or card attached to the product until the consumer

receives the item. A comment regarding the Waist Belt Rule suggested

that using abbreviations in disclosures may be deceptive.23 Some

abbreviations that might be used may not be readily understood by

consumers; however, the current disclosure provisions in the Guides

already discourage deceptive abbreviations.

\22\ LLGMA, #9 at 4.

\23\ ST, #13.

---------------------------------------------------------------------------

A suggestion was made in one comment to adopt the ``present

industry practice'' of identifying embossed products by the name of the

animal skin and by the name of the animal which is imitated in the

appearance of the material, for example, ``pigskin grain cowhide.''

24 This method may be deceptive because it may be unclear which

term describes the composition and which term describes the imitated

grain. The Guides are not changed with regard to this type of

disclosure.

\24\ LLGMA, #9 at 3.

---------------------------------------------------------------------------

One comment urged the Commission to delete the disclosure provision

relating to composition of backing material because it was alleged that

the provision was confusing and did not reflect current industry

practice. It was further alleged that disclosures were unnecessary

because backing material is not visible and is only used as support for

the outer covering.25 Because no substantiation was provided for

these allegations, this change has not been made.

\25\ LLGMA, #9 at 3.

---------------------------------------------------------------------------

A suggestion was made that, due to a change in consumer

preferences, the Commission should delete the provision regarding

affirmative disclosure of manmade materials.26 This comment stated

that great strides have been made in the manufacture of synthetic

materials and that such materials are often preferred. However, as

discussed above, it appears that consumers believe that the Guides'

suggested disclosures relating to manmade materials provide important

information. Therefore, the Commission is not making the recommended

change. The same comment stated that the Guides should be ``clarified''

with regard to multi-material uppers, and that a disclosure such as

``leather upper with manmade materials'' should be allowed. The Guides

currently indicate that disclosure as to individual components should

be made; therefore, a broad, non-specific disclosure would not be in

accordance with the Guides. The recommended change has not been made.

\26\ FDRA, #12 at 3.

---------------------------------------------------------------------------

An additional comment argued that the Guides should require country

of origin disclosures.27 Country of origin labeling for imported

products is addressed by statute and U.S. Customs Service

regulations.28 The FTC Guides address the nature of the product,

not its source. Therefore, incorporation of such a requirement in these

Guides would be inappropriate. Another comment stated that efforts to

acquaint foreign manufacturers with the Guides should be made.29

While this suggestion has merit, it is not appropriate to address it in

the Guides.

\27\ EK, #11 at 1-2.

\28\ 19 U.S.C. 1304; 19 CFR Part 134.

\29\ LIA, #8 at 2.

---------------------------------------------------------------------------

--Scope of the Guides

Several of the comments argued that the scope of the Guides should

be modified. One comment concerning the Luggage Guides suggested that

Parts 24.3 (deceptive practices as to aniline finish, graining,

embossing and processing), 24.4 (deception as to hardware, frame or

box) and 24.5 (misuse of the terms ``waterproof,'' ``dustproof,''

``warpproof,'' ``scuffproof,'' and ``scratchproof'') should be deleted

because they deal with specific deceptive claims that are covered by

the general deception paragraph, 24.1.30 Part 24.4 is deleted

because it does not deal with the nature of leather and

[[Page 48059]]

imitation-leather materials and is appropriately handled in the general

deception paragraph. However, the other two sections, which deal

primarily with the processing and manufacturing of materials used in

leather and imitation-leather products, provide useful guidance for

industry members and are retained.

\30\ EK, #11 at 2.

A suggestion was made that the Shoe Content Guides should apply

only to shoe uppers and outersoles because those are the parts of a

shoe upon which consumers base decisions, and there is limited space on

a shoe for markings.31 Another comment urged that the Guides

should not apply to concealed innersoles because consumers expect that

the concealed portions of footwear bottoms, particularly innersoles,

are made of synthetic material.32 However, no supporting evidence

of consumer beliefs was supplied for either of these comments. Since it

appears that useful information regarding other components of industry

products is provided pursuant to the Guides, the Guides will remain as

they are with respect to this issue.

\31\ FIA, #7 at 3.

\32\ FDRA, #12 at 4.

---------------------------------------------------------------------------

--Use of the Term ``Bonded Leather''

Several of the comments received dealt with the issue of ``bonded

leather,'' which generally refers to material made of leather fibers

held together with a bonding agent. Several comments suggested

permitting use of the term ``bonded leather'' for materials containing

at least 75% leather fiber.33 This, it was argued, would allow

limited addition of non-leather fibers to improve strength, humidity

expansion and heat resistance.34 One comment stated that this 75%

figure reflects a ``widespread consensus'' in the leather tanning and

manufacturing industries.35 Another called 75% an ``industry

practice.'' 36 However, insufficient evidence was submitted to

establish that the 75% figure is an industry standard.

\33\ FIA, #7 at 3; LIA, #8 at 5; LLGMA, #9 at 3-4; CL, #10 at 3.

\34\ CL, #10 at 3.

\35\ CL, #10 at 3.

\36\ LLGMA, #9 at 4.

---------------------------------------------------------------------------

Even if the 75% figure were an industry practice or standard, it

would not prevent deception. In a comment regarding the Waist Belt

Rule, consumer survey evidence was provided in support of use of the

term ``bonded leather.'' 37 However, this survey indicated that

23.2% of the people surveyed believe the term means genuine cowhide

leather. 57.2% believe the term means reprocessed leather scrap.38

Although the submitters of the survey asserted that ``reprocessed

leather scrap'' was the correct response, if other fibers have been

added to leather fibers, it would be deceptive to refer to the entire

mixture of materials as leather scrap. Use of the term ``bonded

leather'' standing alone violates the Guides as they existed prior to

this time. Without further qualification, the term would not appear to

inform consumers that non-leather fibers are contained in the material.

Further, some consumers may interpret the term ``bonded'' to mean

material of a greater quality than leather,39 or strengthened or

reinforced leather.

\37\ HI, #14, part 6.

\38\ HI, #14, part 6.

\39\ EK, #11 at 3.

A final comment suggested adding the term ``bonded leather'' to

that section of the Guides which addresses use of the terms ``ground,

pulverized or shredded leather.'' 40 This suggestion has merit.

Currently, two of the Guides and the Rule would allow use of terms such

as ``pulverized leather'' to describe the content of materials.

However, the Luggage Guides appear to suggest that disclosure be made

of all materials contained in ground, pulverized or shredded leather.

Such disclosures are useful, but may be lengthy. The proposed Guides

now state that manufacturers should only use terms such as ``ground

leather,'' ``pulverized leather,'' ``shredded leather'' or ``bonded

leather'' to identify the products made of such materials if there is a

disclosure of the amount of leather fibers and of the amount of non-

leather substances contained in the material.

\40\ FIA, #7 at 3.

---------------------------------------------------------------------------

One comment specifically opposed use of the term ``bonded

leather,'' and suggested that ground, pulverized or shredded leather

should continue to be identified as non-leather material, with

disclosures such as ``simulated leather containing leather fibers.''

41 Another comment stated that calling a product leather if it

contains little leather is deceptive.42 The Commission believes

that the term ``bonded leather'' could be confusing to consumers who do

not know that ``bonded leather'' may include substances other than

leather. This is equally true with respect to ground, pulverized or

shredded leather. However, a disclosure of the amount of leather fiber

and of the amount of non-leather materials in a product is an effective

way of preventing this deception. Further, providing a means by which a

product which contains substantial amounts of leather can be

distinguished in some way from totally simulated leather would be in

the best interest of consumers. Thus, the proposed Guides state that if

the terms ``ground leather,'' ``pulverized leather,'' ``shredded

leather'' or ``bonded leather'' are used to describe materials, then a

disclosure of the percentage of leather fiber and of the percentage of

other substances contained should be made.

\41\ EK, #11 at 3.

\42\ CL, #10 at 3.

---------------------------------------------------------------------------

(a) How would these changes affect the costs the Guides impose on

firms subject to their requirements?

The comment suggesting country of origin labeling stated that such

a requirement would impose no additional cost on firms.43 One of

the comments urging that the definition of leather include split

leather stated that costs would be reduced by permitting a single

standard for labeling in this country and in the European Union. No

other comments addressed this question.

\43\ EK, #11 at 2.

---------------------------------------------------------------------------

(b) Would it be useful to the affected industries if the Luggage

Guides, the Shoe Content Guides, and the Handbag Guides were combined

into one set of industry guides that address all of these products or

leather products in general?

One comment recommended that all Guides concerning leather be

consolidated.44 Another said that one set of guides should be made

to cover all leather-using industries.45 One comment stated that

the Guides could be generalized to many if not all industries.46

One comment urged the Commission to maintain separate Guides because

the manufacturing processes are separate and distinct.47 The

Luggage and Leather Goods Manufacturers of America stated that it did

not endorse combining the Guides.48 A final comment suggested that

a set of leather definitions be developed to apply to all finished

goods.49

\44\ LIA, #8 at 2.

\45\ CL, #10 at 1.

\46\ EK, #11 at 2.

\47\ FIA, #7 at 4.

\48\ LLGMA, #9 at 2.

\49\ LIA, #8 at 4-5.

---------------------------------------------------------------------------

The Commission believes that the three Guides should be combined

because of the similarity of the composition issues addressed by each

of the Guides. Further, the Commission believes it is appropriate to

include in the combined Guides the provisions of the Waist Belt Rule.

However, the Commission seeks further comments on the issue of whether

the Guides should be expanded to cover other products containing

leather and imitation leather. These products would include, for

[[Page 48060]]

example, clothing, furniture,50 watchbands, and equestrian items

such as saddles. In particular, the Commission seeks comment as to

whether there are special considerations for these different products

which are not addressed by the proposed Guides.

\50\ Representations concerning leather and imitation-leather

furniture currently are covered by the Commission's Guides for the

Household Furniture Industry, 16 CFR 250.4.

---------------------------------------------------------------------------

(3) What significant burdens or costs, including costs of

adherence, have the Guides imposed on firms subject to their

requirements?

The comments indicated that the costs are minimal.51

\51\ FIA, #7 at 2; LIA, #8 at 2; EK, #11 at 1.

---------------------------------------------------------------------------

(a) Have the Guides provided benefits to such firms?

One comment said that the Guides give industry members some

assurance that all companies are labeling their products consistently

and that valid comparisons can be made by consumers.52

\52\ EK, #11 at 2.

---------------------------------------------------------------------------

(4) What changes, if any, should be made to the Guides to reduce

the burdens or costs imposed on firms subject to their requirements?

One comment indicated that if the Guides cannot realistically be

enforced, then eliminating the regulation would reduce costs.53

The same comment supported simple, less complex regulation.54 One

of the comments stated that costs would be reduced by permitting a

single standard for labeling in this country and in the European Union.

Another comment stated that no changes to the Guides need be made

specifically to reduce costs of compliance.55

\53\ LIA, #8 at 2.

\54\ LIA, #8 at 3.

\55\ EK, #11 at 2.

---------------------------------------------------------------------------

(a) How would these changes affect the benefits provided by the

Guides?

No comments were received regarding this question.

(5) Do the Guides overlap or conflict with other federal, state, or

local laws or regulations?

One comment indicated that there is no overlap with other laws or

regulations.56 Another comment suggested that the Commission

examine the labeling practices in the European Union and review the

North American Free Trade Agreement and the Caribbean Basin

Initiative.57 A review of information provided by one commenter

regarding the European Union Directive on Footwear Labeling revealed

little similarity between it and the Guides. The calculation of shoe

material area used in the directive (if two materials are present, they

must be listed in descending order of area or volume) and the

differences in terminology may serve to make the Guides more, rather

than less, complex. Further, unlike the Guides, the directive allows

use of symbols to indicate type of material. While symbols might be an

effective, simpler way of providing information to consumers, symbols

have not been used before in this country in this context. An extensive

consumer education program would be required to implement the use of

such symbols. Further, the Guides currently provide consumers with more

information than does the use of the symbols adopted by the European

Union. A review of NAFTA and CBI revealed no conflicts with the Guides.

\56\ EK, #11 at 2.

\57\ LIA, #8 at 2.

---------------------------------------------------------------------------

(6) Since the Guides were issued, what effects, if any, have

changes in relevant technology or economic conditions had on the

Guides?

Two comments suggested that today's ecological concerns dictate

that leather scraps be used in ``bonded leather'' rather than disposed

of as waste.58 While not designed to address ecological concerns,

the Guides may encourage the use of leather scraps because they provide

that, if the term ``bonded leather'' is used, a disclosure regarding

the percentage of leather fibers in the material should be made.

\58\ LIA, #8 at 4; CL, #10 at 2.

---------------------------------------------------------------------------

As discussed above, two comments urged that the Guides be amended

to allow split leather to be called ``leather.'' One of the reasons

given for suggesting this change is that technological advances have

resulted in a split leather which is superior to that produced years

ago.59 However, another comment encouraged retaining the

distinction because split leather is less expensive, less attractive,

and less durable than top grain leather, and split leather is subject

to ``crocking.'' 60 Insufficient support was presented to justify

modification of this aspect of the Guides.

\59\ LIA, #8 at 4; FDRA, #12 at 3.

\60\ FIA, #7 at 2.

---------------------------------------------------------------------------

As discussed above, one comment urged the Commission to delete the

requirement that the presence of manmade materials be affirmatively

disclosed.61 The comment stated that great strides have been made

in the manufacture of synthetic materials and that such materials are

often preferred. This recommended change has not been made because it

appears that consumers obtain important information from this

disclosure and may use this information to select the material of their

choice.

\61\ FDRA, #12 at 3.

---------------------------------------------------------------------------

(7) Do members of the ladies' handbag industry require these

industry-specific Guides for information about the standards applicable

to price discrimination and discriminatory promotional allowances, or

could equally helpful guidance be obtained from more general sources

such as the Fred Meyer Guides?

No comments were received regarding this question. These

interpretive statements are duplicative of Sections (a) and (f) of the

Robinson-Patman Act with respect to price discrimination, and

duplicative of the Guides for Advertising Allowances and Other

Merchandising Payments and Services, 16 CFR Part 240 (commonly known as

the ``Fred Meyer Guides''), which interpret Sections (d) and (e) of the

Robinson-Patman Act, and Section 5 of the Federal Trade Commission Act

with respect to discriminatory promotional allowances and services. A

general statement of policy, such as that contained in the Fred Meyer

Guides, is preferable to industry-specific Guides. Therefore, these

sections of the Ladies' Handbag Guides have not been incorporated into

the proposed Guides.

II. Conclusion

A review of the comments and of the three Guides indicates that

retention and consolidation of their basic principles into one set of

Guides is clearly warranted. Furthermore, the provisions of the Waist

Belt Rule should be incorporated into the consolidated Guides. The

Guides and the Waist Belt Rule deal with very similar issues. The

nature of the covered products and the related concerns regarding

composition are such that combining their provisions would be an

efficient and effective way to prevent deception in this area. The

Commission also believes that the Guides probably should cover other

products made of leather or imitation leather. However, it is seeking

additional comment before deciding whether to include such products

within the scope of the Guides.

The proposed Guides consolidate 16 CFR Parts 24, 231, and 247. The

language of the proposed Guides has been simplified and clarified, as

well as updated to reflect current Commission legal standards.

In addition, the proposed Guides incorporate the following

modifications:

--The Guides now include all products formerly covered by the three

Guides and the Rule; boots were added as well.

--The scope of the Guides has been broadened to include deception in

the

[[Page 48061]]

marketing and advertising of industry products.

--A sentence setting forth the circumstances under which the

unqualified term ``leather'' may be used is included for clarity. A

similar provision was contained in the Shoe Guides.

--With regard to ground, pulverized, shredded, or bonded leather, the

proposed Guides state that manufacturers of such materials may choose

to identify the material as non-leather, or as ground, pulverized,

shredded, or bonded leather. The Guides state that if the terms

``ground leather,'' ``pulverized leather,'' ``shredded leather,'' or

``bonded leather'' are used, a disclosure of the percentages of leather

fibers and non-leather substances in the material should be made. The

section regarding visible backing material has been clarified with

regard to the use of the terms ``ground leather,'' ``pulverized

leather,'' ``shredded leather,'' or ``bonded leather'' to describe

backing materials.

--Provisions relating to the terms ``scuffproof'' and ``scratchproof''

have been amended to include other terms indicating that the product is

resistant to wear. Use of terms such as ``scuff resistant'' and

``scratch resistant'' are addressed in an added section. This provision

was taken from the Ladies' Handbag Guides.

--The section specifically dealing with deception as to the hardware,

frame, or box of luggage has been deleted as unnecessary. This is

covered by the general deception section.

--The Shoe Guides have a specific section relating to concealed

innersoles. To avoid being too industry-specific, concealed innersoles

are addressed in the proposed Guides in a footnote in the section

concerning misrepresentations that a product is wholly of a particular

composition.

--The Ladies' Handbag Guides included a section regarding deceptive

pricing. Deceptive pricing is specifically covered by the general

deception section; a separate section is not necessary and is therefore

not included in the proposed Guides.62

\62\ Additional guidance regarding this issue is provided by the

Commission's Guides Against Deceptive Pricing, 16 CFR Part 233.

---------------------------------------------------------------------------

--Finally, for the reasons discussed above, the price discrimination

and related areas are not addressed in the proposed Guides.

III. Questions for Comment

The Commission seeks public comment on the following questions:

1. Should the proposed Guides for Select Leather and Imitation

Leather Products be expanded in scope to include other products made of

leather or imitation leather? Such products might include, but are not

limited to, clothing, furniture, watchbands, and equestrian items.

2. Are there special considerations for these or other leather or

imitation-leather goods which are not addressed by the proposed Guides?

How could any such special considerations be addressed by the Guides?

List of Subjects in 16 CFR Part 24

Advertising, Distribution, Imitation-leather products, Labeling,

Ladies' handbags, Leather and leather products industry, Luggage and

related products, Shoes, Trade practices, Waist belts.

The Commission proposes to amend Title 16 of the Code of Federal

Regulations by adding a new Part 24 to read as follows:

PART 24--GUIDES FOR SELECT LEATHER AND IMITATION LEATHER PRODUCTS

Sec.

24.0 Scope of Guides.

24.1 Deception (general).

24.2 Deception as to composition.

24.3 Deceptive practices as to aniline finish, graining, embossing

and processing.

24.4 Misuse of the terms ``waterproof,'' ``dustproof,''

``warpproof,'' ``scuffproof,'' ``scratchproof,'' ``scuff

resistant,'' or ``scratch resistant.''

Authority: 15 U.S.C. 45, 46.

Sec. 24.0 Scope of Guides.

These Guides apply to the manufacture, sale, distribution,

marketing, or advertising of all kinds or types of leather or

simulated-leather trunks, suitcases, traveling bags, sample cases,

instrument cases, brief cases, ring binders, billfolds, wallets, key

cases, coin purses, card cases, french purses, dressing cases, stud

boxes, tie cases, jewel boxes, travel kits, gadget bags, camera bags,

ladies' handbags, shoulder bags, purses, pocketbooks, shoes, boots,

slippers, belts (when not sold as part of a garment) and similar

articles (hereinafter, ``industry product'').

Sec. 24.1 Deception (general).

It is unfair or deceptive to misrepresent, directly or by

implication, the kind, grade, quality, quantity, material content,

thickness, finish, serviceability, durability, price, origin, size,

weight, ease of cleaning, construction, manufacture, processing,

distribution, or any other material aspect of an industry product.

Sec. 24.2 Deception as to composition.

It is unfair or deceptive to misrepresent, directly or by

implication, the composition of any industry product or part thereof.

It is unfair or deceptive to use the unqualified term ``leather'' or

other unqualified terms suggestive of leather unless the industry

product so described is composed in all substantial parts of top grain

leather.1 This section includes, but is not limited to, the

following:

\1\ The composition of heels, stiffenings, and ornamentation are

not considered when making the determination of whether a shoe,

boot, or slipper may be called ``leather''.

---------------------------------------------------------------------------

(a) Split leather. If all or part of an industry product is made of

split leather and the split leather is visible or if any representation

is made as to the product's composition, then the presence of the split

leather should be disclosed. For example:

Split Cowhide.

Note: For purposes of these Guides, leather from portions of

hides or skins that have been split into two or more thicknesses,

other than the grain or hair side, shall be considered split

leather.

(b) Imitation or simulated leather. If all or part of an industry

product is made of non-leather material that appears to be leather, the

fact that the material is not leather, or the general nature of the

material as something other than leather, should be disclosed. For

example:

Not leather;

Imitation leather;

Simulated leather;

Vinyl;

Vinyl coated fabric; or

Plastic.

(c) Embossed or processed leather. The kind and type of leather

from which an industry product is made should be disclosed when all or

part of the product has been embossed, dyed, or otherwise processed so

as to simulate the appearance of a different kind or type of leather.

For example:

(1) An industry product made wholly of top grain cowhide that has

been processed so as to imitate pigskin may be represented as being

made of Top Grain Cowhide.

(2) Any additional representation concerning the simulated

appearance of an industry product composed of leather should be

immediately accompanied by a disclosure of the kind and type of leather

in the product. For example:

Top Grain Cowhide With Simulated Pigskin Grain.

(d) Backing material. (1) The backing of any material in an

industry product

[[Page 48062]]

with another kind of material should be disclosed when the backing is

not apparent upon casual inspection of the product, or when a

representation is made which, absent such disclosure, would be

misleading as to the product's composition. For example:

Top Grain Cowhide Backed With Split Cowhide; or

Split Cowhide Backed With Simulated Leather.

(2) The composition of the different backing material should be

disclosed if it is visible and consists of split leather, non-leather

material with the appearance of leather, or leather processed so as to

simulate a different kind of leather.

(e) Fictitious animal designations. A representation should not be

made, directly or by implication, that an industry product is made in

whole or in part from the skin or hide of an animal that does not

exist.

(f) Misuse of trade names, etc. A trade name, coined name,

trademark, or other word or term, or any depiction or device should not

be used if it misrepresents, directly or by implication, that an

industry product is made in whole or in part from animal skin or hide,

or that material in an industry product is leather, top grain leather,

split leather, or other material. This includes, among other practices,

the use of a stamp, tag, label, card, or other device in the shape of a

tanned hide or skin or in the shape of a silhouette of an animal, in

connection with any industry product that has the appearance of leather

but that is not made wholly or in substantial part from animal skin or

hide.

(g) Misrepresentation that product is wholly of a particular

composition. A misrepresentation should not be made, directly or by

implication, that an industry product is made wholly of a particular

composition. A representation as to the composition of a particular

part of a product should clearly indicate the part to which the

representation applies.

(1) Where a product is made principally of top grain leather or of

split leather but has certain non-leather parts that appear to be

leather, the product may be described as made of top grain leather or

split leather so long as accompanied by clear disclosure of the non-

leather parts.2 For example:

\2\ In the case of shoes, boots, slippers, and related industry

products that have visible parts with the appearance of leather, the

composition of concealed innersoles should be disclosed unless the

term ``leather'' can be used to describe the innersole material

under these Guides.

---------------------------------------------------------------------------

(i) An industry product made of top grain cowhide except for frame

covering, gussets, and partitions that are made of plastic but have the

appearance of leather may be described as:

Top Grain Cowhide With Plastic Frame Covering, Gussets and

Partitions; or Top Grain Cowhide With Gussets, Frame Covering and

Partitions Made of Non-Leather Material.

(ii) An industry product made throughout, except for hardware, of

vinyl backed with split cowhide may be described as:

Vinyl Backed With Split Cowhide (See also disclosure provision

concerning use of backing material in paragraph (d) of this

section).

(iii) An industry product made of top grain cowhide except for

partitions and stay, which are made of plastic-coated fabric but have

the appearance of leather, may be described as:

Top Grain Cowhide With Partitions and Stay Made of Non-leather

Material; or

Top Grain Cowhide With Partitions and Stay Made of Plastic-Coated

Fabric.

(2) Where a product is made principally of top grain leather and

its only other parts that appear to be leather are made of split

leather, the product may be described as made of top grain leather so

long as accompanied by adequate disclosure of the split leather parts.

For example: An industry product made of top grain cowhide except for

frame covering, gussets, and partitions made of split cowhide may be

described as:

Top Grain Cowhide With Split Cowhide Frame Covering, Gussets, and

Partitions.

(h) Ground, pulverized, shredded, or bonded leather. A material in

an industry product that contains ground, pulverized, shredded, or

bonded leather and thus is not wholly the hide of an animal should not

be represented, directly or by implication, as being leather. This

provision does not preclude an accurate representation as to the

ground, pulverized, shredded, or bonded leather content of the

material. However, if the material appears to be leather, it should be

accompanied by either:

(1) An adequate disclosure as described by paragraph (b) of this

section; or

(2) If the terms ``ground leather,'' ``pulverized leather,''

``shredded leather,'' or ``bonded leather'' are used, a disclosure of

the percentage of leather fibers and the percentage of non-leather

substances contained in the material. For example: An industry product

made of a composition material consisting of 60% shredded leather

fibers may be described as:

Bonded Leather Containing 60% Leather Fibers and 40% Non-leather

Substances.

(i) Form of disclosures under this section. All disclosures

described in this section should appear in the form of a stamping on

the product, or on a tag, label, or card attached to the product, and

should be affixed so as to remain on or attached to the product until

received by the consumer purchaser. All such disclosures should also

appear in all advertising of such products irrespective of the media

used whenever statements, representations, or depictions appear in such

advertising which, absent such disclosures, serve to create a false

impression that the products, or parts thereof, are of a certain kind

of composition. The disclosures affixed to products and made in

advertising should be of such conspicuousness and clarity as to be

noted by purchasers and prospective purchasers casually inspecting the

products or casually reading, or listening to, such advertising. A

disclosure necessitated by a particular representation should be in

close conjunction with the representation.

Sec. 24.3 Deceptive practices as to aniline finish, graining,

embossing and processing.

It is unfair or deceptive to misrepresent, directly or by

implication:

(a) That any industry product is colored, finished, or dyed with

aniline dye; or

(b) That all or part of any product is dyed, embossed, grained,

processed, finished or stitched in a certain manner.

Sec. 24.4. Misuse of the terms ``waterproof,'' ``dustproof,''

``warpproof,'' ``scuffproof,'' ``scratchproof,'' ``scuff resistant,''

and ``scratch resistant.''

It is unfair or deceptive to:

(a) Use the term ``Waterproof'' to describe all or part of an

industry product unless the designated product or material is

impermeable to water and moisture.

(b) Use the term ``Dustproof'' to describe an industry product

unless the product is so constructed that when it is closed dust cannot

enter it.

(c) Use the term ``Warpproof'' to describe all or part of an

industry product unless the designated product or part is such that it

cannot warp.

(d) Use the term ``Scuffproof,'' ``Scratchproof,'' or other terms

indicating that the product is not subject to wear in any other

respect, to describe an industry product unless the outside surface of

the product is immune to scratches or scuff marks, or is not subject to

wear as represented.

(e) Use the term ``Scuff Resistant,'' ``Scratch Resistant,'' or

other terms

[[Page 48063]]

indicating that the product is resistant to wear in any other respect,

unless there is a basis for the representation and the outside surface

of the product is meaningfully and significantly resistant to scuffing,

scratches, or to wear as represented.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-23039 Filed 9-15-95; 8:45 am]

BILLING CODE 6750-01-P