Guides for the Hosiery Industry

FEDERAL TRADE COMMISSION

16 CFR Part 22

Guides for the Hosiery Industry

AGENCY: Federal Trade Commission.

ACTION: Rescission of the guides for the hosiery industry.

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

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

concluded a review of its Guides for the Hosiery Industry (``Guides''

or ``Hosiery Guides''). The Commission has decided to rescind the

Guides.

EFFECTIVE DATE: February 2, 1996.

FOR FURTHER INFORMATION CONTACT: Ann Stahl Guler, Investigator, Federal

Trade Commission, Los Angeles Regional Office, 11000 Wilshire Blvd.,

Suite 13209, Los Angeles, CA 90024, (310) 235-7890.

SUPPLEMENTARY INFORMATION:

I. Background

The Hosiery Guides were issued by the Commission in 1979.\1\ The

Guides concerned deceptive advertising and marketing of all hosiery

industry products, including stockings and socks that are marketed to

men, women, and children. Specifically, the Guides proscribed

misrepresentations 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 in fabric, strength, stretch, length,

color, finish, manufacture, or distribution of any hosiery product. The

Hosiery Guides also delineated the use of the terms ``lisle,''

``irregulars,'' and ``seconds'' as they apply to hosiery.

\1\ The Guides were originally issued as Trade Practice Rules.

The Commission reissued them as guides in 1979 when it rescinded all

Trade Practice Rules. Industry guides are administrative

interpretations of laws administered by the Commission for the

guidance of the public in conducting its affairs in conformity with

legal requirements. 16 CFR 1.5.

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On April 15, 1994, the Commission published a Notice in the Federal

Register soliciting comment on the Hosiery Guides.\2\ Specifically, the

Commission solicited comments on six questions pertaining to the costs

and benefits of the guides and their regulatory and economic effect.

The initial closing date for comments was June 14, 1994. The Commission

subsequently extended the comment period until July 14, 1994. The

Commission received 52 comments in response to the Notice. They are

discussed in Part II below.

\2\ 59 FR 18004.

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II. Comments Received

The Commission received comments from 18 individuals, all of whom

focused on three issues related to women's history: fit, durability,

and the need for labels in pantyhose. Several commenters complained

that pantyhose wear out too quickly; others stated that pantyhose

either are ill-fitting or that their packaging reflects incorrect

sizes. Eight of the commenters asked the Commission to require that

labels be sewn in pantyhose. Three of the individual commenters praised

the quality of hosiery currently available to American consumers, and

supported retention of the Hosiery Guides.

One government official submitted two comments. Lydia Justice

Edwards, State Treasurer of Idaho, asked the Commission in her first

comment to expand the Hosiery Guides to mandate labeling on hosiery

packages. The State Treasurer submitted a proposed specification chart

listing such characteristics as the fiber and weight of the fabric, as

well as the type of stitch used. She also proposed that the Commission

develop a rating system that would enable purchasers to evaluate and

compare among brands such characteristics as resistance to runs and

snags, elasticity, and durability. Ms. Edwards further suggested that

the Commission develop a uniform sizing method that all hosiery

manufacturers would be required to use. Her first comment also

recommended that manufacturers be required to provide a means for

consumers to examine and touch hosiery before making a purchase

decision. The State Treasurer's second comment proposed that the

Commission mandate for every hosiery product a ``statement of

guarantee'' that the product is in perfect condition and meets a

minimum quality standard.

The Crafted With Pride in the U.S.A. Council, Inc. urged the

Commission not to modify current labeling requirements relating to

country of origin.

Twenty-nine comments were received from individual hosiery

manufacturers. The National Association of Hosiery Manufacturers (NAHM)

and the American Textile Manufacturers Institute (ATMI) also submitted

comments. All of the industry commenters supported the continuation of

the Guides. The NAHM and its members stated that the guides provide a

sound set of principles for the advertising and marketing of hosiery

products, and ensure that consumers are provided with fair and accurate

information. The ATMI commented that the guides are beneficial to the

industry because they provide information on deceptive practices,

definitions of hosiery and product classes, labeling information, and

product sizing guidance.

The NAHM and 14 hosiery firms recommended that the Guides'

definition of ``Industry Products'' be amended to include ``tights''

and to delete ``anklets.'' The NAHM and its members also requested that

the FTC include in the Guides a definition of the terms ``non-run,''

``no-run,'' and ``run-resistant'' that were contained in a Commission

decision dismissing a complaint against Holeproof Hosiery Company.\3\

\3\ 47 F.T.C. 1668 (1951).

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III. Conclusion

Although the comments submitted to the Commission supported

retaining the Guides, they did not clearly demonstrate why the hosiery

industry in particular needs special Commission guidance in the

advertising or sale of its products. In this regard, the Commission

notes that hosiery products are covered by its Textile Rules \4\ and

Care Labeling Rule.\5\ The Textile Rules require that textile products

be labeled with the fiber content, the name or registered

identification number of the manufacturer or other responsible company,

and the country of origin. For hosiery products, the required

information may appear on the packaging and need not be on a label

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affixed to the product itself.\6\ Under the Care Labeling Rule, items

of textile wearing apparel must be labeled with appropriate care

instructions. For most such items, the care instructions must appear on

a label permanently attached to the product. However, hosiery products

have been granted an exemption from the labeling requirement if care

instructions accompany the product on a tag or on packaging.\7\

\4\ Rules and Regulations under the Textile Fiber Products

Identification Act, 16 CFR Part 303.

\5\ Trade Regulation Rule concerning Care Labeling of Textile

Wearing Apparel and Certain Piece Goods as Amended, 16 CFR Part 423.

\6\ 16 CFR 303.15(c).

\7\ In addition, certain hosiery products which can be machine

washed and dried at hot settings without damage and without

transferring their dye to other fabrics, and which sell at retail

for less than $3.00, need not provide any form of care instructions.

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In addition, the Commission notes that industry self-regulation

efforts, led by the NAHM, already exist in certain technical areas. For

example, the industry currently conforms sizing of all hosiery products

to a set of voluntary standards.\8\

\8\ Commercial Standard CS 46-49 (last revised in 1990).

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For these reasons, the Commission concludes that it is unnecessary

to retain guides specific to the hosiery industry and therefore is

rescinding the Guides. If, in the future, practices in the sale of

hosiery are determined to be materially misleading and to cause

consumer harm, the Commission can address such practices under Section

5 of the Federal Trade Commission Act.\9\

\9\ Section 5 of the FTC Act, 15 U.S.C. 45(a)(1), prohibits

unfair or deceptive acts or practices in or affecting commerce.

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The Commission appreciates the concerns raised by the commenters.

It declines, however, to expand the coverage of the guides as

recommended. First, some of the areas suggested for inclusion in the

guides are beyond the Commission's authority under the FTC Act, which

is the basis for the content of the guides. Second, the Commission

believes that existing rules governing care labeling and labeling of

textile products are adequate to protect consumers from deceptive

claims concerning the attributes and care of hosiery products.

List of Subjects in 16 CFR Part 22

Advertising, Hosiery, Labeling, Trade practices.

By direction of the Commission.

Donald S. Clark,

Secretary.

PART 22--[REMOVED]

The Commission, under authority of section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code

of Federal Regulations by removing Part 22.

[FR Doc. 96-2261 Filed 2-1-96; 8:45 am]

BILLING CODE 6750-01-M