Request for Comments Concerning Guides for the Luggage and Related Products Industry, Guides for Shoe Content Labeling and Advertising, and Guides for the Ladies' Handbag Industry

FEDERAL TRADE COMMISSION

16 CFR Parts 24, 231, 247

Request for Comments Concerning Guides for the Luggage and

Related Products Industry, Guides for Shoe Content Labeling and

Advertising, and Guides for the Ladies' Handbag 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 Luggage and Related

Products Industry, its Guides for Shoe Content Labeling and

Advertising, and its Guides for the Ladies' Handbag Industry. The

Commission is also requesting comments about the overall costs and

benefits of the Guides and their overall regulatory and economic impact

as a part of its systematic review of all current Commission Rules and

Guides.

DATES: Written comments will be accepted until May 26, 1995.

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

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

DC 20580. Comments about the Guides for the Luggage and Related

Products Industry should be identified as ``16 CFR Part 24--Comment.''

Comments about the Guides for Shoe Content Labeling and Advertising

should be identified as ``16 CFR Part 231--Comment.'' Comments about

the Guides for the Ladies' Handbag Industry should be identified as

``16 CFR Part 247--Comment.'' Comments about more than one of the

guides should be identified by including reference to all relevant

parts, for example ``16 CFR Parts 24, 231 and 247.''

FOR FURTHER INFORMATION CONTACT:

Susan E. Arthur, Attorney, Federal Trade Commission, Dallas Regional

Office, 100 N. Central Expressway, Suite 500, Dallas, Texas 75201.

(214) 767-5503.

SUPPLEMENTARY INFORMATION:

A. Background

The Commission has determined, as part of its oversight

responsibilities, to review its 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 Luggage and Related Products

Industry (``Luggage Guides''), 16 CFR Part 24, the Commission's Guides

for Shoe Content Labeling and Advertising (``Shoe Content Guides''), 16

CFR Part 231, and the Commission's Guides for the Ladies' Handbag

Industry (``Handbag Guides'') 16 CFR Part 247. These Guides are being

reviewed together because they all pertain to goods which are

frequently made of leather or of material with the appearance of

leather.

These three Guides, like the other industry Guides issued by the

Commission, ``are administrative interpretation 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 applicable

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.

1. Luggage Guides

The Luggage Guides concern potential deception in the sale,

offering for sale, and distribution of luggage and related products,

such as trunks, instrument cases, brief cases, billfolds, wallets, key

cases, jewel boxes, travel kits, camera bags and similar products.

These Guides list disclosures that should be made for products made of

split leather, imitation leather, or processed leather, and for

products which contain backing material. The Guides address

representations that products are made from the skin of fictitious

animals and [[Page 15725]] the use of words, terms, depictions, or

devices that may indicate that a product is made of any material when

it is not. According to the Guides, industry members should not

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

is not, or that a product is leather when it contains ground,

pulverized or shredded leather. Additionally, representations should

not be made that a product is colored, finished, or dyed with aniline

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

stitched in a certain manner when it is not. The Guides also discuss

representations about the hardware, box, or frame of covered products.

Use of the terms ``waterproof,'' ``dustproof,'' ``warpproof,''

``scuffproof,'' and ``scratchproof'' is also covered by the Luggage

Guides.

2. Shoe Content Guides

The Shoe Content Guides contain guidance for labeling and

advertising shoe content. The Guides address use of the term

``leather'' on labels and labeling disclosures for simulated or

imitation leather, concealed innersoles, split leather, embossed or

processed leather, and ground or shredded leather. With regard to

advertising, the Guides state that disclosures should be made in

advertisements which depict non-leather parts of shoes or slippers

which appear to be made of leather. The Guides contain guidance for use

of the term ``leather'' in advertisements and for disclosures to be

used with terms suggestive of leather. The Guides state that words or

terms should not be used which would convey the impression that shoes

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

3. Handbag Guides

The Handbag Guides concern the potential misrepresentation of any

feature of ladies' handbags and similar articles. The Guides provide

guidance with respect to the disclosures which should be made regarding

product composition and address the use of 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 when the claims are not true. Use of the terms ``scuffproof,''

``scratchproof,'' ``scuff resistant,'' and ``scratch resistant'' is

also covered by the Ladies' Handbag Guides. The Guides also state that

members of the industry should not make deceptive representations about

the price of their products.

In addition, the Handbag Guides discuss the issues of price

discrimination, and discrimination in promotional allowances and

services. The Guides state that industry members should neither grant

nor knowingly induce or receive terms of trade in these respects that

are improperly discriminatory. The Commission is concerned, however,

that these interpretive statements in large part may be needlessly

duplicative of sections (a) and (f) of the Robinson-Patman Act with

respect to price discrimination, and duplicative of the so-called 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. See

Guides for Advertising Allowances and Other Merchandising Payments and

Services, 16 CFR part 240. Moreover, it is possible that general issues

of price discrimination are best clarified through statements of

general policy, such as that contained in the Fred Meyer Guides, rather

than through industry-specific statements such as the Handbag Guides.

B. Questions for Comment

The Commission solicits comments on the following questions with

respect to the Luggage Guides, the Shoe Content Guides, and the Handbag

Guides:

(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?

(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?

(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 of 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?

(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?

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

List of Subjects in 16 CFR Parts 24, 231, and 247

Advertising, Distribution, Labeling, Ladies' handbags, Luggage and

related products, Price discrimination, Promotional allowances, Shoes,

Trade practice.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-7468 Filed 3-24-95; 8:45 am]

BILLING CODE 6750-01-M