Rules and Regulations Under the Textile Fiber Products Identification Act

FEDERAL TRADE COMMISSION

16 CFR Part 303

Rules and Regulations Under the Textile Fiber Products

Identification Act

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: On January 27, 1992, Courtaulds Fibers, Inc. (``Courtaulds'')

applied to the Federal Trade Commission (``the Commission'') requesting

establishment of a new generic name and definition for a fiber it

manufactures. It recommended ``lyocell'' be adopted as the new generic

name for this fiber. The application was filed pursuant to Rule 8 (16

CFR 303.8) of the Rules and Regulations Under the Textile Fiber

Products Identification Act, 15 U.S.C. 70 et seq., and Subpart C of

Part 1 of the Commission's Rules of Practice, 16 CFR 1.26. In the

application Courtaulds stated that its cellulosic fiber differs in kind

and chemical structure from any of the existing fiber definitions of

Rule 7 (16 CFR 303.7).

Commission staff, with the assistance of an expert on textiles,

after review of Courtauld's application, determined that various tests

were necessary in order to evaluate whether lyocell was, in fact, a new

generic fiber. Courtaulds performed these tests using the procedures

and under the conditions outlined by the textile expert. In March 1995,

Courtaulds submitted the results of these tests, as well as other

materials relating to its application.

Although the Commission has determined that the proposed new fiber

falls within the existing Rule 7(d) (16

[[Page 62353]]

CFR 303.7(d)) definition of ``rayon,'' the Commission believes it is in

the public interest to amend the Rule to recognize the fiber's unique

characteristics.

Rule 7(d) currently defines ``rayon'' as: a manufactured fiber

composed of regenerated cellulose, as well as manufactured fibers

composed of regenerated cellulose in which substituents have replaced

not more than 15% of the hydrogens of the hydroxyl groups.

Based on its review of the Courtaulds application and related

materials, the Commission proposed to retain the current Rule 7(d)

definition and to add the following sentence: Where the fiber is

composed of cellulose precipitated from an organic solution in which no

substitution of the hydroxyl groups takes place and no chemical

intermediates are formed, the term lyocell may be used as a generic

description of the fiber.

The Commission now solicits comments as to whether Rule 7(d) should

be amended and, if so, the form of such an amendment.

DATE: Written comments will be accepted until February 5, 1996.

ADDRESS: Comments and other submissions should be directed to:

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

Avenue NW., Washington, DC 20580. Submissions should be identified as

``Rule 7(d) Under the Textile Act--Comment.''

FOR FURTHER INFORMATION CONTACT:

Bret S. Smart, Program Advisor, Los Angeles Regional Office, Federal

Trade Commission, 11000 Wilshire Boulevard, #13209, Los Angeles, CA

90024, (310) 235-7890.

SUPPLEMENTARY INFORMATION:

Section A. Background

Rule 6 (16 CFR Sec. 303.6) of the Rules and Regulations Under the

Textile Act requires covered persons to use the generic names of the

fibers contained in covered textile fiber products when making required

disclosures of the fiber content of the products. Rule 7 (16 CFR 303.7)

sets forth the generic names and definitions that the Commission has

established for manufactured fibers. These generic manufactured fibers

have been found by the Commission to be individually unique and

distinctive by virtue of their chemical composition and physical

properties. Rule 8 (16 CFR 303.8) sets the procedures for establishing

new generic names. Upon receipt of an application for a new generic

name, the Commission must, within 60 days, either deny the application

or assign to the fiber a numerical or alphabetical symbol for temporary

use during further consideration of the application.

Courtaulds submitted its application requesting establishment of

``lyocell'' as a new generic fiber name on January 27, 1992. After an

initial analysis the Commission granted Courtaulds the designation

``CF0001'' for temporary use in identifying the fiber until the final

determination is made as to the disposition of the application.

Commission staff, with the assistance of an expert on textiles,

determined that various tests were necessary in order to evaluate

whether lyocell was, in fact, a new generic fiber. Courtaulds performed

these tests using the procedures and under the conditions outlined by

the textile expert. In March 1995, Courtaulds submitted the results of

these tests, as well as other materials relating to its application.

The application and related materials have been placed on the

rulemaking record.

The effect of the proposed amendment would be to allow use of the

name ``lyocell'' as an alternative to the generic name ``rayon'' for

the subcategory of rayon fibers meeting the further criteria contained

in the sentence added by the proposed amendment. Within the established

21 generic names for manufactured fibers, there are presently two cases

where such generic name alternatives may be used. Specifically,

pursuant to Rule 7(e) (16 CFR 303.7(e)), within the generic category

``acetate,'' the term ``tricacetate'' may be used as an alternative

generic description for a specifically defined subcategory of acetate

fiber. And pursuant to Rule 7(j) (16 CFR 303.7(j)), within the generic

category ``rubber,'' the term ``lastrile'' may be used as an

alternative generic description for a specifically defined subcategory

of rubber fiber.

The Commission takes this opportunity to clarify its policy

concerning the criteria by which it will decide the disposition of

petitions filed under Rule 8 of the Textile Act Rules, 16 CFR 303.8

(1995). In 1973, at the conclusion of the rulemaking that led to

creation of the new generic name ``aramid,'' the Commission declared

the following policy for adopting generic fiber names:

[T]he Commission, in the interest of elucidating the grounds on

which it has based this decision and shall base future decisions as

to the grant of generic names for textile fibers, sets out the

following criteria for grant of such generic names.

1. The fiber for which a generic name is requested must have a

chemical composition radically different from other fibers, and that

distinctive chemical composition must result in distinctive physical

properties of significance to the general public.

2. The fiber must be in active commercial use or such use must

be immediately foreseen.

3. The grant of the generic name must be of importance to the

consuming public at large, rather than to a small group of

knowledgeable professionals such as purchasing officers for large

Government agencies.

The Commission believes it is in the public interest to prevent

the proliferation of generic names, and will adhere to a stringent

application of the above-mentioned criteria in consideration of any

future applications for generic names and in a systematic review of

any generic names previously granted which no longer meet these

criteria.

As exemplified by today's action and reflected in this notice, the

Commission generally reaffirms its 1973 criteria. In addition, it notes

that where appropriate, in considering applications for new generic

names for fibers that are of the same general chemical composition as

those for which a generic name already has been established, rather

than of a chemical composition that is radically different, but that

have distinctive properties of importance to the general public as a

result of a new method of manufacture or their substantially

differentiated physical characteristics, such as their fiber structure,

it may allow such fiber to be designated in required information

disclosures by either its generic name, or alternatively, by its

``subclass'' name. The Commission will consider this disposition when

the distinctive feature or features of the subclass fiber make it

suitable for uses for which other fibers under the established generic

name would not be suited or would be significantly less well suited.

The Commission believes that Courtaulds' current application

describes a subclass of generic rayon fibers with significant

distinctions to consumers resulting from physical characteristics of

the fiber and its new mode of manufacture that meet the above standard

for allowing designation by the subclass name ``lyocell.'' Courtaulds'

application and other documents and materials related to the petition

describe the lyocell fiber, its manufacture and possible uses as

follows:

Lyocell fiber results from the dissolution of cellulose into an

aqueous solution of N-methyl morpholine oxide and the precipitation of

the fiber out of solution. This process is unique among methods used to

manufacture other existing rayons. As a result, the molecular structure

of lyocell fiber is radically different from that of other rayons in

that it has a substantially

[[Page 62354]]

higher degree of polymerization and greater crystallinity. These

differences induce high wet and dry tenacity as well as high initial

wet modulus in lyocell fiber. Consequently, garments made from the

fiber are highly resistant to shrinkage and wrinkling and therefore do

not require drycleaning, unlike other rayons. In addition to its use in

apparel, Courtaulds maintains that lyocell may be used to produce

biodegradable paper and hydro-entangled nonwoven products since, unlike

other rayons, it fibrillates upon beating.

Section B. Invitation to Comment

In today's notice, the Commission is soliciting comments on all

aspects of the appropriateness of the proposed amendment to Rule 7(d).

Before adopting this proposed amendment, the Commission will give

consideration to any written comments and materials submitted to the

Secretary of the Commission within the time period stated above.

Submissions will be available for public inspection in accordance with

the Freedom of Information Act, 5 U.S.C. 552, and Commission

Regulations on normal business days between the hours of 8:30 a.m. and

5 p.m. at the Public Reference Room, Room 130, Federal Trade

Commission, 6th & Pennsylvania Avenue NW., Washington, DC 20580.

Section C. Regulatory Flexibility Act

The provisions of the Regulatory Flexibility Act relating to an

initial and final regulatory analysis, 5 U.S.C. 603-604, are not

applicable to this document because it is believed the amendment, if

promulgated, will not have a significant economic impact on a

substantial number of small entities. In considering the economic

impact of the proposed amendment on manufacturers and retailers, the

Commission notes that the amendment will impose no obligations,

penalties, or costs. The amendment would simply allow covered companies

to use the term ``lyocell'' as an alternative generic description for

``rayon'' for a well-defined subcategory of rayon fibers. The amendment

would impose no additional labeling requirements nor would it mandate

any changes in labeling.

To ensure, however, that no substantial economic impact is being

overlooked, public comment is requested on the effect of the proposed

amendment on costs, profit, competitiveness, and employment in small

entities. Subsequent to the receipt of public comments, the Commission

will decide whether the preparation of a final regulatory flexibility

analysis is warranted. Accordingly, based on available information, the

Commission hereby certifies, pursuant to the Regulatory Flexibility

Act, 5 U.S.C. Sec. 605(b), that the proposed amendment will not have a

significant economic impact on a substantial number of small entities.

This notice serves as certification to that effect for the purposes of

the Small Business Administration.

Section D. Paperwork Reduction Act

This proposed amendment does not constitute a ``collection of

information'' under the Paperwork Reduction Act of 1995, P.L. 104-13,

109 Stat. 163, and the implementing regulation, 5 CFR Part 1320 et seq.

The generic name petition request has already been submitted to the

OMB and has been assigned a control number, 3084-0047.

List of Subjects in 16 CFR Part 303

Labeling, Textiles, Trade practices.

Authority: Sec. 7(c) of the Textile Fiber Products

Identification Act, 15 U.S.C. 7(c); Sec. 553 of the Administrative

Procedure Act, 5 U.S.C. 553.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-28555 Filed 12-5-95; 8:45 am]

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