Rules and Regulations Under the Textile Fiber Products Identification Act, the Wool Products Labeling Act, and the Fur Products Labeling Act

Federal RegisterFeb 13, 1998

Ask Donna

What actually matters in this document.

Text

SUMMARY: The Federal Trade Commission (Commission or FTC) amends the

Rules and Regulations Under the Textile Fiber Products Identification

Act (Textile Rules); the Rules and Regulations under the Wool Products

Labeling Act (Wool Rules); the Rules and Regulations under the Fur

Products Labeling Act (Fur Rules); and General Procedures, Subpart D,

Administration of the Wool Products Labeling Act of 1939, Fur Products

Labeling Act, and Textile Fiber Products Identification Act.

The Commission amends the Textile and Wool Rules to: Allow the

listing of generic fiber names for fibers that have a functional

significance and constitute less than 5% of the total fiber weight of

covered products, without requiring disclosure of the functional

significance of such fibers; eliminate the requirement that the front

side of a label bear the words ``Fiber Content on Reverse Side'' when

the fiber content disclosure is on the back of the label; streamline

and simplify the requirements for placing information on labels;

incorporate by reference the generic fiber names and definitions for

manufactured fibers in International Organization for Standardization

(ISO) Standard 2076: 1989, ``Textiles--Man-made fibres--Generic

names''; and modify the definitions of terms such as ``mail order

catalog,'' ``mail order promotional material,'' and ``invoice,'' to

include those generated and disseminated electronically through the

Internet or E-mail.

The Wool Rules have been modified to add examples of fiber labeling

for articles made from the hair of certain cross-bred, wool-bearing

animals. In addition, the Commission amends the Textile, Wool, and Fur

Rules to specify that a Commission registered identification number

(RN) will be subject to cancellation if, after a change in the material

information contained on the RN application, a new application that

reflects current business information is not promptly received by the

Commission. The Commission amends the Fur Rules to increase the cost

figure for exemption from the Rules from $20 to $150. Finally, the

Commission removes Subpart D from its General Procedures.

DATES: The amended Rules are effective on March 16, 1998. The

incorporation by reference of the ISO standard is approved by the

Director of the Federal Register as of March 16, 1998.

ADDRESS: Requests for copies of the amended Rules should be sent to the

Public Reference Branch, Room 130, Federal Trade Commission,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Edwin Rodriguez, Attorney, Division of

Enforcement, Federal Trade Commission, Sixth St. & Pennsylvania Ave.,

NW, Washington, DC 20580 (202) 326-3147, or Bret S. Smart, Program

Advisor, Los Angeles Regional Office, Federal Trade Commission, 10877

Wilshire Blvd., Suite 700, Los Angeles, CA 90024 (310) 824-4314.

SUPPLEMENTARY INFORMATION:

I. Background

The Textile Fiber Products Identification Act (Textile Act), 15

U.S.C. 70, and the Wool Products Labeling Act (Wool Act), 15 U.S.C. 68,

require marketers of covered textile and wool products to mark each

product with: (1) The generic names and percentages by weight of the

constituent fibers present in the product, in the order of predominance

by weight; (2) the name under which the manufacturer or other

responsible company does business or, in lieu thereof, the RN issued to

the company by the Commission; and (3) the name of the country where

the product was processed or manufactured. The Fur Products Labeling

Act (Fur Act), 15 U.S.C. 69, requires marketers of covered fur products

to mark each product to show: (1) the name of the animal that produced

the fur; (2) that the fur product contains or is composed of used fur,

when such is the fact; (3) that the fur product contains or is composed

of bleached, dyed, or otherwise artificially colored fur, when such is

the fact; (4) that the fur product is composed in whole or in

substantial part of paws, tails, bellies, or waste fur, when such is

the fact; (5) the name under which the manufacturer or other

responsible company does business or, in lieu thereof, the RN issued to

the company by the Commission; and (6) the name of the country of

origin of any imported furs used in the fur product. The Textile, Wool,

and Fur Acts also contain advertising and recordkeeping provisions.

Pursuant to section 7(c) of the Textile Act, 15 U.S.C. 70e(c); section

6(a) of the Wool Act, 15 U.S.C. 68d(a); and section 8(b) of the Fur

Act, 15 U.S.C. 69f(b), the Commission has issued implementing

regulations, the Textile Rules, 16 CFR Part 303; the Wool Rules, 16 CFR

Part 300; and the Fur Rules, 16 CFR Part 301, respectively.

On February 12, 1996, the Commission published a Notice of Proposed

Rulemaking requesting public comment on various possible amendments to

the Textile Rules (Textile NPR) (61 FR 5340). On December 24, 1996, the

Commission published two Notices of Proposed Rulemaking, requesting

public comment on various possible amendments to the Wool Rules (Wool

NPR) (61 FR 67739) and the Fur Rules (Fur NPR) (61 FR 67748). The 1996

NPRs followed a May 6, 1994 request for comments issued as part of the

FTC's ongoing regulatory review program (59 FR 23645-46). In this

notice, the Commission announces several amendments to the Textile,

Wool, and Fur Rules, adopted as a result of those prior proceedings.

The comments, described below, are on the public record and available

for inspection during business hours in the Public Reference Branch,

Room 130, Federal Trade Commission, Sixth St. and Pennsylvania Ave.,

N.W., Washington, DC 20580. The comments are cited in this notice by

number and a shortened form of the name of the commenting party.

In response to the Textile NPR, 24 comments were filed by 23

parties, including manufacturers, trade associations, and governmental

entities.1 In response to the Wool NPR, nine comments were

filed by eight trade associations and governmental entities, six of

which had also responded to the

[[Page 7509]]

Textile NPR.2 One comment was filed in response to the Fur

NPR.3

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

\1\ The parties commenting on the Textile NPR are listed below,

with the number assigned to each comment by the Office of the

Secretary and a shortened form of the name used to cite to the

comment hereafter: (1) The Polyester Council of America (PCA); (2)

Association of Specialists in Cleaning and Restoration (ASCR); (3)

American Fiber Manufacturers Association (AFMA); (4) Monsanto

Company (Monsanto); (5) American Polyolefin Association, Inc. (APA);

(6) National Association of Hosiery Manufacturers (NAHM); (7) J.C.

Penney; (8) Ross & Hardies; (9) United States Association of

Importers of Textiles and Apparel (USA-ITA); (10) Wrangler, Inc.

(Wrangler); (11) Acrylic Council (Acrylic); (12) American Textile

Manufacturers Institute (ATMI); (13) Fruit of the Loom; (14)

Department of the Treasury, U.S. Customs Service (Customs); (15)

Courtaulds Fibers, Inc. (Courtaulds); (16) Cotton Incorporated

(Cotton); (17) American Apparel Manufacturers Association (AAMA);

(18) Mexico, Subsecretaria de Negociaciones Comerciales

Internacionales (Mexico); (19) Pillowtex Corporation (Pillowtex);

(20) National Cotton Council of America (NCCA); (21) Courtaulds

Fibers, Inc. (Courtaulds 2); (22) Pittsfield Weaving Company, Inc.

(Pittsfield); (23) Industry Canada Consumer Products Directorate

(Industry Canada); (24) Senator Strom Thurmond (Sen. Thurmond).

\2\ The parties commenting on the Wool NPR are listed below,

with the number assigned to the comment by the Office of the

Secretary and a shortened form of the name used to cite to the

comment hereafter: (1) American Fiber Manufacturers Association

(AFMA); (2) The Wool Bureau, Inc. (Wool Bureau); (3) United States

Association of Importers of Textiles and Apparel (USA-ITA); (4) and

(4A) Northern Textile Association and Cashmere & Camel Hair

Manufacturers Institute (NTA-CCMI); (5) American Textile

Manufacturers Institute (ATMI); (6) Department of the Treasury, U.S.

Customs Service (Customs); (7) American Apparel Manufacturers

Association (AAMA); (8) Industry Canada Consumer Products

Directorate (Industry Canada). (To distinguish between the Textile

comments and the Wool comments, the term ``wool'' will be used with

the comment number whenever the Wool comments are referenced.)

\3\ (1) Fur Information Council of America (FICA).

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

II. Fiber Content Identification Labeling

A. Fibers Present in Amounts of Less Than 5%

Under the Textile and Wool Acts, a covered product is misbranded if

it does not show on a stamp, tag, label or by other means the generic

name and percentage of each fiber or combination of fibers present in

the amount of 5% or more of the total fiber weight of the

product.4 The Textile Act permits the use of a generic fiber

name for a fiber present in an amount less than 5% only when the fiber

has a clearly established and definite functional significance when

present in the amount contained in the textile product.5

When such a fiber or combination of fibers does not have a functional

significance, it must be identified as ``other fiber'' or ``other

fibers.'' 6 Section 3 of the Textile Rules, 16 CFR 303.3,

implements this provision of the Textile Act, also stating, in

subsection (b), that when manufacturers or other parties wish to

disclose the presence of such a fiber by generic or fiber trademark

name, the fiber content disclosure must include the functional

significance of the fiber (for example, ``4% spandex, for

elasticity''). Section 3(b) of the Wool Rules, 16 CFR 300.3(b),

contains a similar provision for non-wool fibers in a wool product. The

Commission proposed amending both Rules to permit the use of generic

fiber names for fibers that have a functional significance and are

present in amounts less than 5%, without requiring disclosure of the

functional significance.

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

\4\ 15 U.S.C. 70b(b)(1) & (2); 15 U.S.C. 68b(a)(2). The Textile

Act exempts certain textile products, including the ``outer

coverings of furniture.'' 15 U.S.C. 70j(a)(2). The Wool Act exempts

carpets and upholsteries. 15 U.S.C. 68j. ASCR (2), pp.1-3,

recommended that the Textile Act be amended to require fiber content

identification labeling for the cover fabric of textile upholstered

furniture, in order to harmonize with Canada and to provide

information to consumers and upholstery cleaners relevant to the

selection, use, and care of such furniture. Because the exemption

for furniture upholstery is statutory, the Commission cannot require

fiber content labeling for upholstery. Of course, manufacturers and

sellers that wish to provide fiber content information can do so

voluntarily.

\5\ The Wool Act requires disclosure of any amount of wool even

if under 5%. It does not, however, allow fiber names for other

textile fibers present in amounts of less than 5%.

\6\ 15 U.S.C. 70b(b)(1) & (2).

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

Many comments supported the Commission's proposed

amendment,7 stating that it would benefit both consumers and

businesses by making labels shorter.8 Two comments in

response to the Wool NPR opposed the amendment,9 asserting

that it could result in consumer confusion and even deception as to the

value of small amounts of certain fibers in a garment.10

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

\7\ J.C. Penney (7) p.1; USA-ITA (9) p.2 and (3-wool) p.2;

Wrangler (10) p.1; ATMI (12) p.1 and (5-wool) p.1; Fruit of the Loom

(13) p.1; AAMA (17) p.1 and (7-wool) p.1; Mexico (18) p.1; NCC (20)

p.1.

\8\ J.C. Penney (7) p.3; AAMA (17) p.1.

\9\ Wool Bureau (2-wool) pp.1-2; NTA-CCMI (4-wool) p.2.

\10\ NTA-CCMI (4), p.2, provided an example of a garment labeled

``78% wool, 20% nylon, 2% cashmere,'' also bearing a prominent

sleeve tag stating only ``Cashmere Blend.'' Such labeling, however,

would appear to be a violation of Sec. 300.8(d) which provides that

``[w]here a generic name * * * is used on any label, whether

required or nonrequired, a full and complete fiber content

disclosure with percentages shall be made on such label * * *.'' It

may also violate Sec. 300.8(f) which states that ``[n]o * * *

generic name or word * * * shall be used on any label or elsewhere

on the product in such a manner as to be false, deceptive, or

misleading as to fiber content * * *.'' NTA-CCMI (4A), at p.2,

advocates prohibition of the naming of specialty fibers, such as

``cashmere'' or ``camel hair,'' when they are present in quantities

of less than 5%. The Commission believes that this proposal would be

contrary to the intent of the Wool Act, which requires disclosure of

any amount of wool in a product.

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

The Commission has decided to amend the Textile and Wool Rules by

deleting the requirement to disclose functional significance.

Eliminating the requirement will benefit industry by shortening and

simplifying labels. It will also eliminate the problem of imported

products often being delayed at borders for relabeling because labels

fail to disclose the functional significance of fibers present in

amounts of less than 5%.11 The amendment will not harm

consumers, who often know the functional significance of fibers used in

small amounts, such as spandex. Manufacturers may, of course,

voluntarily disclose the functional significance of such fibers when

the information would be beneficial to consumers.

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

\11\ Mexico (18) recommended at p.2 that the term ``functional

significance'' be defined to avoid import/export access problems. A

functionally significant fiber is a fiber that has an established

quality or trait--such as strength or elasticity--when the presence

of the fiber in a textile product imparts that same quality or trait

to the product.

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

A few comments also recommended that the Commission amend the Rules

to allow the listing of names of non-wool fibers with no functional

significance and present in amounts less than 5%.12 Because

the prohibition on naming these fibers is statutory, however, the

Commission cannot adopt the suggested amendment. The Commission will

consider whether to recommend that Congress amend the Textile and Wool

Acts in this manner.13

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

\12\ NAHM (6) p.1; J.C. Penney (7) p.1; Fruit of the Loom (13)

p.1. NAHM stated that because of technological advances, such as the

production of ``microfibers,'' fibers present in small amounts

sometimes impart a `` `hand' or feel to a product that are

significant to the consumer.'' The Commission notes that fibers

present in amounts less than 5% that impart special characteristics

to a textile product may, in fact, have a functional significance

enabling them to be listed on the label.

\13\ Canada permits naming fibers that do not have a functional

significance and are present in small amounts. Industry Canada (23)

suggested, at p.2, that the proposed amendment to this section of

the Rules would not harmonize with Canadian textile labeling

regulations which state that ``a fibre present in an amount less

than 5% by mass must be stated by generic name or as `other

fibre'.'' The Commission notes that although the requirements of the

two countries are not identical, manufacturers can easily comply

with both by listing a fiber that is not functionally significant

and present in an amount less than 5% as ``other fiber.''

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

The Wool Rules also have been amended to add a definition of the

term ``trimmings.'' Section 300.24 of the Rules (redesignated herein as

Sec. 300.23) refers to ``trimmings,'' which, if they do not contain

wool, are generally exempt from the fiber content disclosure

requirement. Unlike the Textile Rules, however, the Wool Rules do not

define the term. The lack of a definition has sometimes resulted in

problems, such as the retention of imports at the border by Customs

officials or the refusal of delivery of goods by retailers, pending a

resolution of the meaning of the term ``trimmings'' with respect to

products covered by the Wool Rules. This problem has been remedied by

adding a definition to the Wool Rules (Sec. 300.1(k)) that is cross-

referenced to the definition of ``trimmings'' contained in the Textile

Rules. This cross-reference does not constitute a change in Sec. 300.24

(redesignated as Sec. 300.23); it merely codifies the advice that has

consistently been given to industry by Commission staff.

B. ``Fiber Content on Reverse Side'' Disclosure Requirement

The Textile and Wool Rules require that, with certain exceptions,

all three disclosures--fiber content, company name or RN, and country

of origin--be

[[Page 7510]]

made on the front of the label.14 A proviso to this

requirement, however, states that the fiber content disclosure may be

placed on the back of a cloth label--sewn to the product at one end so

that both sides of the label are readily accessible to the prospective

purchaser--``if the front side of such label clearly and conspicuously

shows the wording `Fiber Content on Reverse Side.' '' In the 1996 NPRs,

the Commission proposed eliminating the ``Fiber Content on Reverse

Side'' disclosure requirement.

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

\14\ 16 CFR 303.16(b); 16 CFR 300.10(a).

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

Many comments supported the Commission's proposal, noting that

consumers are accustomed to looking on both sides of a double-sided

label for information about a textile product, and that consumers would

be protected as long as the fiber identification information is

``conspicuous and accessible.'' 15 Some asserted that

because the amendment would decrease the amount of information required

on labels, it would reduce the size of labels and perhaps reduce the

cost of labeling for manufacturers and the cost of textile products to

consumers.16 In addition, the amendment would increase NAFTA

harmonization by eliminating words that must be translated into French

and Spanish to meet the requirements of Canada and Mexico.17

Industry Canada stated that ``[t]he flexibility provided by the

amendment would more closely align the US requirements with those of

Canada.'' 18

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

\15\ J.C. Penney (7) pp.2-3; USA-ITA (9) p.5 and (3-wool) p.2;

Wrangler (10) p.1; ATMI (12) pp.1-2 and (5-wool) p.2; Fruit of the

Loom (13) p.1; AAMA (17) p.1 and (7-wool) p.2; NCC (20) p.1;

Pittsfield (22) p.1; Industry Canada (23) p.2 and (8-wool) p.2; Wool

Bureau (2-wool) p.2. NTA-CCMI (4) opposed the proposal, stating, at

p. 3, that a ``conspicuous and accessible'' standard may be

inadequate to protect consumers from deception.

\16\ J.C. Penney (7) p.2; Wrangler (10) p.1; ATMI (12) pp.1-2;

Fruit of the Loom (13) p.1; AAMA (17) p.1 and (7-wool) p.2;

Pittsfield (22) p.1.

\17\ AAMA (17) p.1 and (7-wool) p.2.

\18\ Industry Canada (23) p.2 and (8-wool) p.2.

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

The Commission has decided to amend the Textile and Wool Rules to

eliminate the requirement that the front side of the label state

``Fiber Content on Reverse Side'' and to allow fiber content

information to appear on the reverse side of any kind of label, not

just cloth labels. The Rules further clarify that the required

information may appear on the care label, required by the Commission's

Trade Regulation Rule on the Care Labeling of Textile Wearing Apparel

and Certain Piece Goods, 16 CFR Part 423, a practice already common in

the industry. The Commission believes that the amendment will allow

manufacturers greater flexibility, without diminishing the value of

fiber information to consumers. Other streamlining amendments regarding

the arrangement of information on the label will give added

flexibility. Because all of the required disclosures must be

conspicuous and accessible, there is little likelihood that the

amendment will result in harm to consumers.19

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

\19\ Mexico (18) stated, at p.2, that in order to accord with

Annex 311 of NAFTA and to avoid problems with Customs, the

Commission should make it clear that ``conspicuous and accessible''

means that the label is capable of being easily seen with normal

handling of the good. The Commission believes that section 303.16(b)

of the Textile Rules, as amended herein, which requires the

disclosures to be ``set forth in such a manner as to be clearly

legible, conspicuous, and readily accessible to the prospective

purchaser,'' is sufficiently clear. Similar language is contained in

section 300.10(a) of the Wool Rules. Disclosures that cannot be

easily seen with normal handling are not ``conspicuous and readily

accessible.''

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

C. Recognition of ISO Standard for Generic Fiber Names

Section 7(c) of the Textile Act, 15 U.S.C. 70e(c), authorizes and

directs the Commission ``to make such rules and regulations, including

the establishment of generic names of manufactured fibers * * * as may

be necessary and proper for administration and enforcement.'' Section 7

of the Textile Rules, 16 CFR 303.7, sets out the generic names and

definitions for manufactured fibers currently recognized by the

Commission. (The Wool Rules, 16 CFR 300.8(b), cross reference Sec. 7 of

the Textile Rules for purposes of fiber identification.) If a company

develops a new fiber and wishes to use a new generic name, the

manufacturer or producer of the fiber must file a written application

with the Commission, under procedures set forth in 16 CFR 303.8,

requesting the establishment of a new generic name for the fiber. The

Commission proposed amending the Textile Rules to allow the use of a

generic name for a manufactured fiber, if the name and fiber were

recognized by an appropriate international standards-setting

organization, such as the ISO.

The comments supported the Commission's proposed amendment,

asserting that it could expedite the use of new fiber names on

packaging and labeling, to the benefit of both manufacturers and

consumers.20 The comments also stated that the proposed

amendment would continue to ensure that generic fiber names are used

only for fibers that are in fact innovations in fiber

technology.21 Several comments supported Commission

recognition of names recognized by the ISO for manufactured

fibers.22 The comments also advocated that the Commission

retain its own petition procedure for new manufactured fiber

names.23

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

\20\ AFMA (3) p.5; NAHM (6) p.3; J.C. Penney (7) p.6; USA-ITA

(9) p.8; ATMI (12) p.6; Fruit of the Loom (13) p.4; AAMA (17) p.2;

NCC (20) p.1. Industry Canada (23) stated, at p.4, that the

procedures in the proposed amendment ``are consistent with those in

Canada, and we would encourage their adoption.''

\21\ NAHM (6) p.3.

\22\ AFMA (3) p.5; J.C. Penney (7) p.6; Fruit of the Loom (13)

p.4.

\23\ AFMA (3) p.5.

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

The Commission has decided to amend the Textile Rules to

incorporate by reference the generic fiber names and definitions for

manufactured fibers in ISO Standard 2076: 1989, ``Textiles--Man-made

fibres--Generic names.'' 24 Incorporating the ISO standard

will increase international harmonization and benefit manufacturers. A

manufacturer or other marketer of a fiber not listed in Sec. 7 of the

Textile Rules but recognized in ISO's 1989 standard need not petition

the Commission for recognition of the fiber name, but may simply use

the ISO established name.25 In addition, manufacturers may

use ISO alternative fiber names for names currently recognized by the

Commission. For example, ``viscose,'' a name recognized by ISO, may be

used as an alternative generic fiber name for some forms of ``rayon.''

26 ``Elastane'' may be used as an alternative to

``spandex.'' 27 As a result, manufacturers will have more

flexibility in labeling products for both domestic and international

sale.

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

\24\ A revision of ISO 2076 is under consideration at this time.

The Commission understands that the revised standard will not become

effective until sometime next year. When the revised standard is

finalized, the Commission will amend the Textile Rules to

incorporate the new standard by reference.

\25\ Ten fiber names not previously recognized by the Commission

are listed in the 1989 ISO Standard. Recognition of new fiber names

added by ISO in the future will not be automatic. However, the

Commission may accommodate future changes in the ISO Standard by

amending the Textile Rules to incorporate the new Standard without

going through the petition process.

\26\ USA-ITA (9) recommended, at p.8, that the name ``viscose''

be allowed.

\27\ AFMA (3) p. 5 and (1-wool), p.5, stated that the name

``elastane'' is commonly used worldwide for this fiber.

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

The Commission believes that consumers will not be harmed by its

recognition of the ISO standard. Although the immediate result may be a

few new and unfamiliar names on textile labels, consumers will learn

these fiber names quickly, just as they have learned the names of new

fibers recognized by the Commission through its own petition

process.28 Because most

[[Page 7511]]

of the fibers recognized by the ISO but not previously recognized by

the Commission are not widely used in consumer textile products, the

number of new names appearing on consumer labels probably will be

small. Of course, it will be in the interests of any manufacturer or

distributor marketing fibers or fiber names that are new and unfamiliar

to American consumers to provide some kind of consumer education about

the nature and properties of the fiber or the fact that the name is the

equivalent of a name already familiar to consumers.

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

\28\ For example, last year the Commission recognized

``lyocell'' as a new subclass of rayon. 61 FR 16385 (April 15,

1996). More recently, the Commission recognized ``elastoester'' as a

new generic fiber. 62 FR 28342 (May 23, 1997).

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

The Commission will retain its own list of manufactured fiber

names. This will enable manufacturers that use generic names recognized

by the Commission, but not recognized by ISO, to continue to use those

fiber names. The Commission will also retain its petition procedure to

allow manufacturers to apply to the Commission for the recognition of

new generic fiber names not recognized by ISO. The American Fiber

Manufacturers Association 29 requested that the Commission

consider shortening or expediting its petition process. The Commission

recognizes that the petition process can be lengthy because fiber name

petitions often raise difficult, technical issues. The Commission does

not believe that any changes to its procedural Rules are necessary, but

will endeavor to shorten the time for review of fiber name petitions

that may be filed in the future. Moreover, in the future, the

Commission recommends that manufacturers seeking recognition of new

fiber names first seek recognition from the ISO. While FTC recognition

of new fibers recognized by ISO in the future will not be automatic, it

can be accomplished easily by amending the Textile Rules to incorporate

the most recent ISO standard.

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

\29\ AFMA (3) p.5 and (1-wool) p.6.

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

D. New Specialty Wool Fibers

Wool Act Section 2(b) defines wool as ``the fiber from the fleece

of the sheep or lamb or hair of the Angora or Cashmere goat (and may

also include the so-called specialty fibers from the hair of the camel,

alpaca, llama, and vicuna) * * *.'' The Wool Rules allow mohair or

cashmere fiber to be identified as ``wool'' or by the terms ``mohair''

or ``cashmere'' respectively.30

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

\30\ Section 19(a) of the Wool Rules, 16 CFR 300.19(a), states:

``In setting forth the required fiber content of a product

containing hair of the Angora goat known as mohair or containing

hair or fleece of the Cashmere goat known as cashmere, the term

`mohair' or `cashmere,' respectively, may be used for such fiber in

lieu of the word `wool,' provided the respective percentage of each

such fiber designated as `mohair' or `cashmere' is given.''

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

In the Wool NPR, the Commission noted that it had been informed

that animals are being bred for new specialty fibers. For example,

breeders have crossed female cashmere goats with angora males to

produce an animal called a ``cashgora.'' 31 Apparently,

products made with this fiber are already on the market. The Commission

sought comment as to whether it should amend the Wool Rules to include

other specialty fibers, such as ``cashgora.''

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

\31\ See P. Tortora, Understanding Textiles, Fourth Edition at

106-107 (1992).

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

The Commission received only two comments on this question. The

Northern Textile Association and the Cashmere & Camel Hair

Manufacturers Institute, commenting jointly, opposed amendment of the

Wool Rules to include specialty fibers other than ``mohair'' and

``cashmere.'' They stated that the Institute has analyzed these animal

hair fibers and concluded that the physical properties of ``cashgora''

have not been sufficiently described or delineated to warrant inclusion

as a specialty fiber under the Wool Rules.32 No comments

were filed by industry members involved in the cross breeding of goats

or the production and marketing of products made with the resultant

fibers.

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

\32\ NTA-CCMI (4-wool) p.4.

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

Canada noted that although its regulations do not recognize

``cashgora'' as a generic fiber name, it has issued administrative

interpretations permitting the identification of fiber obtained from

this cross-bred goat as ``Cashgora hair,'' ``Cashgora fibre,'' ``fur

fibre,'' or ``wool''. Similarly, Canada permits identification of fiber

from the paco-vicuna (a cross-breed between the alpaca and the vicuna)

as ``Paco-vicuna hair,'' ``Paco-vicuna fibre,'' ``fur fibre,'' or

``wool''.33 To further the goal of label harmonization, the

Commission has decided to follow the Canadian approach. Section

300.8(g) of the Wool Rules states:

\33\ Industry Canada (8-wool) p.4.

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

The term fur fiber may be used to describe the hair or fur fiber

or mixtures thereof of any animal or animals other than the sheep,

lamb, Angora goat, Cashmere goat, camel, alpaca, llama and vicuna.

If the name, symbol, or depiction of any animal producing the hair

or fur fiber is used on the stamp, tag, label, or other means of

identification applied or affixed to the wool product, the

percentage by weight of such hair or fur fiber in the total fiber

weight of the wool product shall be separately stated in the

required fiber content disclosure.

The Commission believes that this section of the Wool Rules already

permits the identification of hair or fiber obtained from animals that

are the result of cross-breeding between two wool-producing animals.

Relevant examples have been added to those already listed at the end of

this section.

E. Abbreviations for Generic Fiber Names

In the 1996 Textile and Wool NPRs, the Commission sought comment on

a proposal to allow abbreviations for some common fiber names. While a

number of industry members supported the idea, others opposed it as

potentially confusing to consumers. Moreover, there was a lack of

consensus as to which fiber names should be abbreviated and what

abbreviations would be clear and appropriate. Most importantly,

however, neither Canada nor Mexico allow abbreviations of fiber names;

34 nor do these governments foresee that fiber abbreviations

will be feasible in the near future. Because there would be little

benefit to U.S. textile producers if abbreviations were not allowed by

all of the NAFTA trading partners, the Commission is not amending the

rules to allow fiber abbreviations at this time. The Commission will

re-examine this issue if, in the future, the Subcommittee on Labelling

of Textile and Apparel Goods of the NAFTA Committee on Standards-

Related Measures determines that abbreviations are feasible in all of

the NAFTA countries.

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

\34\ Industry Canada (23) p.3 and (8-wool) p. 3; Mexico (18)

p.3.

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

III. Identification Numbers of Manufacturers or Other Responsible

Parties

A. Interchangeable Use of RNs among NAFTA Countries

The Textile, Wool, and Fur Acts require that covered products bear

a stamp, tag, or label showing the name, or other identification issued

and registered by the Commission, of the manufacturer of the product or

one or more persons subject to the Acts.35 Pursuant to its

Rules, the Commission issues registered numbers (RNs) to qualified

applicants residing in the United States.36 Canada has a

similar system of ``CA'' numbers. Mexico does not at this time have a

system of registered numbers for members of the textile industry.

Mexico issues tax numbers to identify manufacturers and sellers of all

products; however, this system was created for a different purpose and

is not comparable to the RN and CA identification systems.

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

\35\ 15 U.S.C. 70b(b)(3); 15 U.S.C. 68b(a)(2)(C); 15 U.S.C.

69b(2)(E).

\36\ 16 CFR 303.20; 16 CFR 300.4; 16 CFR 301.26.

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

[[Page 7512]]

In the 1996 NPRs, the Commission sought comment on the advantages,

disadvantages, and feasibility of sharing registered number databases

among the NAFTA countries, or simply recognizing numbers registered in

another NAFTA country, so that manufacturers and importers who wish to

use registered numbers, instead of their names, would not have to

specific amendments to its Rules because statutory amendments would be

needed before it could do so.

Many of the comments supported sharing registered identification

information among the NAFTA countries because it would reduce

administrative burdens and costs,37 possibly resulting in

savings to consumers.38 The comments also asserted that

sharing information could result in smaller labels, by eliminating

multiple numbers, and ease the tracking of responsible parties across

borders.39 Some noted that sharing information is feasible

in light of communications technologies now available, such as the

Internet.40

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

\37\ NAHM (6) p.2; J.C. Penney (7) p.2, 4; USA-ITA (9) pp.6-7

and (3-wool), pp.3-4; Wrangler (10) p.1; ATMI (12) p.2 and (5-wool)

pp.2-3; Fruit of the Loom (13) p.2; AAMA (17) p.2 and (7-wool) p.2;

NCC (20) p.1; Pittsfield (22) p.2. On the other hand, the Fur

Information Council (FICA) (1-fur), responding to the Fur Rules NPR,

stated that it believes the current system is adequate and there is

no need to develop an integrated system.

\38\ Fruit of the Loom (13) p.2; Pittsfield (22) p.2.

\39\ J.C. Penney (7) p.4; ATMI (12) p.2; Fruit of the Loom (13)

p.2.

\40\ J.C. Penney (7) p.2, 4.

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

The Commission believes that an integrated identification

information system or, alternatively, mutually recognized

identification systems, is a desirable goal for the future. It will

pursue discussion of this issue with the NAFTA trading partners through

the Subcommittee on Labelling of Textile and Apparel Goods. If

appropriate in the future, it will recommend to Congress that the

Textile, Wool, and Fur Acts be amended to allow for implementation of

such a system.

B. Require RN Holders to Update Registration Information

RNs are subject to cancellation whenever they are procured or used

improperly or contrary to the requirements of the Acts and Rules, or

when otherwise deemed necessary in the public interest. The RN

application form states that RN holders are obligated to notify the

Commission about changes in the material information contained on the

application. Nonetheless, many RN holders have changed their business

name, business address, and/or company type (e.g., from proprietorship

to corporation) without notifying the FTC about the change(s). As a

result, the RN database currently contains much outdated information,

which diminishes its utility to the public. For this reason, the

Commission proposed amending the three Rules to add a provision that

would subject an RN to cancellation if, after a change in the material

information contained on the RN application, a new application

reflecting current business information is not promptly received by the

Commission.

The comments generally supported the Commission's

proposal,41 and the Commission has determined to incorporate

this provision in the three Rules. The Commission believes that this

provision is necessary to ensure the continuing utility of the RN

database. In addition to containing outdated addresses, the RN database

contains numerous entries for firms that are no longer in business.

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

\41\ NAHM (6) p.2; J.C. Penney (7) p.2; USA-ITA (9) p.7 and (3-

wool) p.4. One comment objected to the cancellation provision as too

drastic. The Commission notes, however, that adverse consequences

following a cancellation would be minimal. The canceled number would

not be reassigned for some extended period of time, and could be

reinstated when the firm furnishes the required updated information.

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

The RN database is now available at the FTC's web site on the

Internet.42 Firms are urged to look up this service to check

whether the information concerning their RN is current, and, if

necessary, submit an update. The form to apply for an RN or to update

an existing RN also is available on the Internet. The revised form

appears in the Textile Rules at Sec. 303.20(d). It has been removed

from the Wool and Fur Rules, with the relevant sections cross-

referenced to the Textile Rules.

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

\42\ The Commission's web site address is http://www.ftc.gov.

Industry Canada has made CA numbers available on its web site at

http://strategis.ic.gc.ca/cpd.

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

IV. Country of Origin Labeling

A. Consistency Between FTC and U.S. Customs Service Requirements

The Textile and Wool Acts require identification of the country

where the product was processed or manufactured.43 In the

Textile NPR, the Commission noted a possible inconsistency between FTC

requirements and U.S. Customs Service rulings, effective on July 1,

1996, implementing Section 334 of the Uruguay Round Agreements Act

(URAA).44 Section 33(a)(3) of the Textile Rules and

Sec. 25a(a)(3) of the Wool Rules state that a textile product ``made in

the United States, either in whole or part of imported materials shall

contain a label disclosing these facts; for example: `Made in USA of

imported fabric.' '' The URAA, on the other hand, provides that the

country of origin for certain categories of textile products--flat

goods, such as sheets, towels, comforters, handkerchiefs, scarves, and

napkins--is the country in which the fabric is created, not the country

where further processing of the fabric takes place.45

Customs has incorporated this ``fabric rule'' into its rulings

implementing the general labeling requirements of Section 304 of the

Tariff Act.46 For the affected products, a country of origin

statement that identifies fabric as ``imported,'' but does not name the

country in which the fabric was created--such as, ``Made in U.S.A. of

imported fabric''--will not satisfy Customs' labeling requirements

resulting from the new textile origin rules under the URAA.

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

\43\ 15 U.S.C. 70b(b)(4) & (5); 15 U.S.C. 68b(a)(2)(D). The Fur

Act generally requires that country of origin be identified only for

imported furs. 15 U.S.C. 69b(2)(F). Regulations implementing these

requirements are found at 16 CFR 303.33; 16 CFR 300.25a; and 16 CFR

301.12.

\44\ 19 U.S.C. 3592.

\45\ Customs (14) p. 2-3. The textile product categories for

which the country of origin is the country in which the fabric is

created are listed at 19 U.S.C. 3592(b)(2)(A) and 19 CFR

102.21(c)(3)(ii). 19 CFR 102.21(e) sets out specific rules for each

tariff classification.

\46\ Customs (14) stated, at p.3, that ``the origin rules set

forth in section 334 * * * govern the origin determinations for

purposes of the labeling requirements under 19 U.S.C. 1304 for

textile and apparel products.'' The Tariff Act requires that every

article of foreign origin imported into the United States must be

marked to indicate to an ultimate purchaser the English name of the

country of origin of the article.

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

Country of origin disclosures must comply with the requirements of

both FTC and Customs laws and regulations. Since the Textile NPR was

published, Commission staff has met with Customs staff, as well as

industry representatives, and any apparent inconsistency has now been

resolved. A U.S. manufacturer can comply with both requirements by

identifying the country of origin of the imported fabric and the fact

that the ultimate product was made in the U.S. For example, a scarf of

Chinese silk that is cut, dyed, and hemmed in the U.S. could be

labeled: ``Scarf made in USA of fabric made in China.'' This label

provides consumers with accurate information on the origin of the

product, as required by the Textile Act. It also identifies the origin

of the fabric, consistent with the new URAA origin rules.47

Sections 33 of the Textile Rules

[[Page 7513]]

and 25a (now redesignated as section 25) of the Wool Rules have been

amended to add clarifying examples.48 Rulings issued by

Customs regarding country of origin marking pursuant to the URAA

indicate that Customs will permit disclosures that comply with the

Textile Act, including the requirement to identify the processing and

manufacturing of textiles that takes place in the United

States.49

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

\47\ The labeling requirements under the Tariff Act, 19 U.S.C.

1304, apply only to imported articles of foreign origin; in this

case, only the fabric (not the scarf itself) is imported and remains

of foreign origin under the new URAA textile origin rules.

\48\ Sections 303.33(a)(3) and 300.25(a)(3) also have been

amended to correct a misplaced comma that may have caused confusion

by distorting the meaning of these provisions.

\49\ Customs has approved the following country of origin

markings that identify the processing or manufacturing in the United

States in addition to the country of origin of the fabric:

``Comforter Made in China Further Processed in U.S.'' and

``Comforter Made in China Sewn in the U.S.'' (HQ 559625, Jan. 19,

1996); ``Comforter Filled, Sewn and Finished in the U.S. With Shell

Made in China'' (HQ 559627, June 27, 1996); ``Made in China Sewn and

Stuffed in the U.S.'' and ``Sewn and Stuffed in the U.S./Made in

China'' (HQ 559736, Apr. 11, 1996). For handkerchiefs and bandannas

made in the United States from imported greige goods, Customs has

ruled that ``Fabric Made in [name of country]/Finished in USA'' is

an acceptable marking (HQ 559760, July 19, 1996). Customs stated in

the same ruling that the use of additional references to U.S.

processing, such as ``Manufactured in USA from Fabric Made in [name

of country]'' is a matter within the jurisdiction of the FTC.

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

B. Use of Abbreviations and Symbols in Country of Origin Labeling

The Textile, Wool, and Fur Rules permit the use of abbreviations

that ``unmistakably indicate the name of a country,'' such as ``Gt.

Britain'' for ``Great Britain.'' 50 The abbreviation ``USA''

for ``United States'' is acceptable and used throughout the examples

given for country of origin disclosures. In the 1996 NPRs, the

Commission sought comment on the use of abbreviations for its NAFTA

trading partners, such as ``CAN'' for ``Canada'' and ``MEX'' for

``Mexico.'' The Commission also sought comment on the viability,

benefits, and costs of allowing the use of symbols for the phrases

``made in'' or ``product of'' in country of origin disclosures.

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

\50\ 16 CFR 303.33(e); 16 CFR 300.25a(e); 16 CFR 301.12(e)(1).

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

Comments addressing this issue generally supported the use of

abbreviations to identify the NAFTA countries.51 Some

specifically supported the use of ``CAN'' and ``MEX,'' 52

and no alternative abbreviations for these countries were suggested.

The Commission believes that, as country of origin designations,

``CAN'' and ``MEX'' clearly indicate ``Canada'' and ``Mexico.'' It

notes, however, that at present U.S. Customs rulings do not permit

these abbreviations.53 If in the future, Customs regulations

are changed to permit these abbreviations, the Commission will add

``CAN'' and ``MEX'' to its Textile, Wool, and Fur Rules as examples of

acceptable country abbreviations.

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

\51\ NAHM (6) p. 2; J.C. Penney (7) p. 2; USA-ITA (9) p. 7-8 and

(3-wool) p. 5; Fruit of the Loom (13) p. 3; AAMA (17) p. 2 and (7-

wool) p. 1; Pittsfield (22) p. 2-3. Abbreviations for country of

origin were opposed by Wrangler (10) p. 2 and ATMI (12) p. 5 and (5-

wool), p. 2. Mexico (18) stated, at p. 3, that ``[t]he current

Mexican Textile Standard, NOM 004-SCFI-1994, does not allow the use

of abbreviations for country of origin names.''

\52\ Fruit of the Loom (13) p. 3; AAMA (17) pp. 2-3 and (7-wool)

p. 1; USA-ITA (9) pp. 7-8 and (3-wool) p. 5.

\53\ Customs (14) p. 5, citing C.S.D. 80-52 (July 23, 1979);

C.S.D. 89-57 (Dec. 27, 1988); T.D. 56545 (4) (Oct. 21, 1965); and

Continental Mexican Rubber Co. v. United States, Abstract No. 39882,

1 CCR 489 (Nov. 17, 1938). (The abbreviation ``Mex'' may be used to

indicate Mexico as the country of origin only if it is used in

conjunction with the name of the Mexican city and state in which the

good originates.) Customs also noted that, pursuant to 19 U.S.C.

1625, any interested party may request reconsideration of these

rulings.

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

A few comments supported allowing the use of symbols for the

phrases ``made in'' or ``product of'' in country of origin

labeling.54 Others opposed the use of symbols,55

or considered them unnecessary.56 Customs noted that in

general its regulations do not require ``made in'' or ``product of'' to

appear before the name of the country of origin. The exception to this

occurs when the name of a country or place other than the actual

country of origin also appears on an imported article or its container.

In this instance, the words ``made in'' or ``product of,'' or other

words of similar meaning, are required to prevent purchasers from being

misled as to the origin of the product.57 When that

requirement is triggered, the use of a symbol to denote ``made in'' or

``product of'' would not satisfy Customs marking

requirements.58

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

\54\ NAHM (6) p. 2-3; Fruit of the Loom (13) p. 3; Pittsfield

(22) p. 2-3.

\55\ Wrangler (10) p. 2; ATMI (12) p. 5 and (5-wool) p. 2; AAMA

(17) p. 3 and (7-wool) p. 2.

\56\ USA-ITA (9) p. 8 and (3-wool) p. 5.

\57\ Customs (14) p. 6 and (6-wool) p. 3. The special

requirements for such products are found at 19 CFR 134.46 (amended

by TD-72) and 134.47.

\58\ Customs (14) p. 7-8 and (6-wool) p. 3.

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

The Textile, Wool, and Fur Rules do not strictly require use of the

words ``made in'' or ``product of.'' In those instances where more than

one country is mentioned on a label, as in the examples discussed in

section IV.A. above, such words (or words describing more specifically

the processing done in a particular country) are probably necessary to

convey the required information to the consumer. Where only one country

is named on the label, such words may not be needed. In that instance,

the use of a symbol, such as a flag, next to the name of a country may

be adequate to inform the consumer of the origin of the

product.59

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

\59\ Customs (14) p. 6 and (6-wool) p. 3 states that this

disclosure would satisfy its marking requirements.

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

V. Placement of Label and Disclosures; Label Attachment

For a textile product with a neck, the Textile and Wool

Acts,60 as well as the Textile and Wool Rules, 16 CFR

303.15(b) and 300.5(b), require that a label be affixed to the inside

center of the neck midway between the shoulder seams.61 Both

Rules allow for some flexibility by permitting a label containing the

country of origin, fiber content, and RN or name of the company to

appear in another conspicuous location on the inside or the outside of

the garment, if the country of origin also is disclosed on a label

affixed to the inside center of the neck or in close proximity. In this

event, the country of origin would appear twice on the product. One

comment recommended that the Rules be amended to eliminate this

redundancy.62

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

\60\ 15 U.S.C. 70b(j); 15 U.S.C. 68b(f).

\61\ ATMI (12) requested, at p. 4, that the Rules not require

the label to be placed in the neckline because consumers often

complain about irritation from labels. Because the requirement is

statutory, the Commission cannot amend the Rules in this regard. The

amendments to the Rules, however, clarify that the only disclosure

required to be placed in the neck is the country of origin of the

product.

\62\ J.C. Penney (7) p. 2.

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

The Commission has decided to adopt the suggested amendment and to

streamline and simplify the label placement requirements. The three

required disclosures may appear either on the same label or on separate

labels. In a garment with a neck, the country of origin must continue

to appear on the front side of a label in the neck, midway between the

shoulder seams or in close proximity thereto. This requirement fulfills

the Congressional intent of providing a standard and prominent location

for the country of origin. If the fiber content and manufacturer

identification appear on labels located somewhere other than the neck,

however, the country of origin no longer has to be repeated on the

additional label or labels. In addition, the fiber content and the name

or RN of the responsible company may appear on the reverse side of a

label. All disclosures must be clear, conspicuous and readily

accessible to the consumer. Thus, the Commission is substituting a

performance standard for the formerly somewhat rigid requirements about

the placement of information on textile labels.

[[Page 7514]]

The Textile, Wool, and Fur Rules do not require permanent labels

for the disclosures mandated by the Textile, Wool, and Fur Acts. They

merely require that the label be sufficiently durable to remain affixed

to the product until purchased by the consumer. The Textile and Wool

NPRs sought comment on whether those Rules should be amended to require

a permanent label.

Some comments supported requiring a permanent label for these

disclosures because:

(1) Fiber content information is often necessary for post point-of-

purchase reasons, such as determining the proper care method to be

used, the recycling of textile products, and identifying fiber

allergies; (2) a permanent country of origin label might make it more

difficult to illegally relabel and trans-ship textile goods; and (3)

permanent manufacturer identification information would help consumers

in the event of a product defect or a product recall.63

Other comments opposed amending the Rules to require a permanent label,

stating that the Rules have worked well to date without such a

requirement and that textile fiber product construction considerations

may prevent the use of permanent labels for some products.64

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

\63\ ATMI (12) p. 2, 4 and (5-wool) p. 4; Fruit of the Loom (13)

p. 3-4; Pittsfield (22) p. 1-2; NTA-CCMI (4) p. 3.

\64\ USA-ITA (9) p. 5 and (3-wool) pp. 2-3; AAMA (17) p. 2 and

(7-wool) p. 3; Industry Canada (23) p. 3 and (8-wool) p. 4.

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

The Commission has decided not to amend these Rules to require a

permanent label for the disclosures required by the Textile, Wool and

Fur Acts. Permanent labels are already widely used to make the required

disclosures. U.S. Customs notes that its laws require country of origin

labels to be permanently affixed to imported articles of wearing

apparel.65 Because of the Customs requirement, many

manufacturers sew in labels with the information required by the

Commission's Rules.66 In addition, many manufacturers elect

to place fiber information on the permanent care label that must be

affixed to textile apparel products.67 Because U.S. Customs

requirements and voluntary industry practice often provide consumers

with the benefits of a permanent label, the Commission has decided not

to impose any additional requirement at this time. In considering

proposed changes to its Care Labeling Rule, however, the Commission

will consider requiring fiber identification on permanent labels for

textile items with certain kinds of care instructions. 68

This could be accomplished easily by placing the fiber identification

on the permanent care label, as many garment manufacturers already are

doing.

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

\65\ Customs (14) p. 2 and (6-wool) pp. 1-2.

\66\ USA-ITA (9) p. 5 and (3-wool) pp. 2-3.

\67\ Trade Regulation Rule on Care Labeling of Textile Wearing

Apparel and Certain Piece Goods, 16 CFR 423.1(a).

\68\ An Advance Notice of Proposed Rulemaking on the Care

Labeling Rule was published in 60 FR 67102 (Dec. 28, 1995).

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

VI. Internet Promotions and Electronic Transactions

Definitions of ``mail order catalog'' and ``mail order promotional

material'' in the Textile and Wool Rules have been modified to

recognize that such direct sales materials are now being disseminated

on the Internet. Therefore, the statutory requirement that country of

origin be disclosed in catalogs also applies to catalogs appearing on

the Internet. Section 303.40 of the Textile Rules, addressing use of

terms in written advertisements that imply the presence of a particular

fiber, has been modified to include advertisements disseminated through

the Internet or similar electronic media. Finally, definition of the

term ``invoice,'' used throughout the Textile and Wool Rules, has been

revised to recognize that these documents may now be generated and

disseminated electronically.

VII. Increase in Cost Figure for Exemption Under the Fur Rules

The Fur Rules, 16 CFR 301.39, provide for an exemption from some of

the requirements of the Fur Act and Rules for fur trim or other fur

items for which the cost to the manufacturer, or the manufacturer's

selling price, does not exceed $20. Because this amount was last

adjusted for inflation in 1969, the Fur NPR sought comment on an

appropriate increase to this amount. The Fur Information Council of

America, the only party to comment on the Fur Rules, urged that the

amount be raised to $145, to account both for inflation and for the

increasing cost of fur due to increase in demand. 69

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

\69\ FICA (1-fur) p. 2.

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

The Commission has determined to raise the exemption figure to

$150. Given the increases in fur prices since 1969, as pointed out by

the Fur Information Council, it appears that this amount would ensure

that only items substantially made of fur would be subject to the Fur

Rules.

VIII. Administration of the Textile, Wool, and Fur Rules

Subpart D of the Commission's procedural rules, 16 CFR 1, sets

forth procedures with respect to requesting RNs and filing continuing

guaranties 70 with the Commission. Because these provisions

merely duplicate information already contained in the Textile, Wool,

and Fur Rules, the Commission is removing Subpart D from the CFR.

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

\70\ A continuing guaranty is a guaranty from a seller to a

buyer that textile, wool, or fur products that it sells are labeled

in compliance with the relevant statute and regulations. 16 CFR

303.37-303.38; 16 CFR 300.33; and 16 CFR 301.48. A continuing

guaranty can be filed with the FTC in the form that appears in the

Textile Rules, Sec. 303.38(b); the form has been removed from the

Wool and Fur Rules, which are simply cross-referenced to the Textile

Rules.

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

IX. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-12, requires

that the agency conduct an analysis of the anticipated economic impact

of the proposed amendments on small businesses.71 The

purpose of a regulatory flexibility analysis is to ensure that the

agency considers impact on small entities and examines alternatives

that could achieve the regulatory purpose while minimizing burdens on

small entities. Section 605 of the RFA, 5 U.S.C. 605, provides,

however, that such an analysis is not required if the agency head

certifies that the regulatory action will not have a significant

economic impact on a substantial number of small entities.

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

\71\ The RFA addresses the impact of rules on ``small

entities,'' defined as ``small businesses,'' ``small governmental

entities,'' and ``small [not-for-profit] organizations.'' 5 U.S.C.

601. The Textile, Wool, and Fur Rules do not apply to the latter two

types of entities.

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

Because the Textile, Wool, and Fur Acts, and the three sets of

regulations issued thereunder, cover the manufacture, sale, offering

for sale, and distribution of textile, wool, and fur products,

respectively, the Commission believes that any amendments to the

Textile, Wool, and Fur Rules may affect a substantial number of small

businesses. Unpublished data prepared by the U.S. Census Bureau under

contract to the Small Business Administration (SBA) show that there are

many apparel manufacturers, covered by the Wool and/or Textile Rules,

that are considered to be small businesses under applicable SBA size

standards.72 For example, there are 288 manufacturers of

men's and boys' suits and coats (SIC Code 2311), more than 75% of which

are small businesses. There are 488 manufacturers of men's and boys'

shirts (SIC Code 2321), 75% of which are small businesses. More than

1,000 establishments manufacture women's, misses'', and juniors' suits,

skirts, and coats (SIC Code 2337), most

[[Page 7515]]

of which are small businesses. More than 1,400 establishments

manufacture women's shirts and blouses (SIC Code 2331), about 95% of

which are small businesses. There are 181 establishments manufacturing

fur goods (SIC Code 2371), all of which are small businesses. Other

small businesses are involved in the distribution and sale of products

subject to one or more of these rules.

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

\72\ SBA's revised small business size standards are published

at 13 CFR Part 121 (1997).

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

In the 1996 NPRs, the Commission stated its preliminary conclusion

that the proposed amendments would not have a significant economic

impact upon such entities. Comments received during the 1994 regulatory

review of the Textile, Wool, and Fur Rules indicated that the current

costs of complying with the Rules and their enabling statutes are

minimal. Comments received in response to the 1996 NPRs indicated that

the proposed amendments would not increase costs and might result in

some small savings to the industry.

Elimination of required disclosures of: (1) Functional significance

of named fibers present in less than 5% of product weight and (2)

``Fiber Content on Reverse Side,'' in the Textile and Wool Rules, do

not place any additional burdens or costs on manufacturers or sellers.

By reducing the size of labels and enabling more efficient labeling of

products traded within NAFTA countries, these amendments likely will

result in slight cost reduction. Similarly, eliminating the repetition

of country of origin and the streamlining of label placement

requirements also may reduce the size of labels and simplify labeling

requirements, resulting in slight cost savings. The incorporation into

the Textile Rules of ISO Standard 2076: 1989, ``Textiles--Man-made

fibres--Generic names'' will benefit manufacturers and sellers by

increasing international harmonization. It will obviate the need for

some petitions to the Commission to recognize additional generic fiber

names, resulting in some cost savings to both government and industry.

Amending the Textile, Wool, and Fur Rules to clarify that an RN is

subject to cancellation if, after a change in the material information

contained on the RN application, a new application reflecting current

business information is not promptly received by the Commission, is a

clarifying provision that does not impose new obligations on

businesses. Furthermore, while Commission cancellation of an

identification number would require a business to re-apply, this may be

done simply by submitting the identifying information already called

for in the Rules. Therefore, the amendments will not impose any

significant economic costs on industry members.

The addition to the Textile and Wool Rules of clarifying examples

of country of origin disclosures that comply with both Commission and

Customs law is not a substantive amendment to the Rules. It merely

provides guidance as to how firms affected by both sets of regulations,

including recent Customs regulations adopted pursuant to section 334 of

the URAA, can easily craft disclosures to comply with both.

The increase from $20 to $150 of the cost figure exempting certain

fur products from some requirements of the Fur Rules constitutes an

inflationary and market adjustment that will slightly reduce compliance

costs and burdens for members of this industry. The change, while

likely important to some firms, is not expected to have a significant

impact on the fur industry.

Finally, amendment of the Textile and Wool Rules to recognize that

promotions and transactions can take place by means of computers does

not impose significant economic costs on the industry. It merely

updates the Rules to reflect the fact that printed materials, such as

catalogs and invoices, can now be generated and transmitted

electronically.

On the basis of available information, the Commission certifies

that the amendments to the Textile, Wool, and Fur Rules, announced

herein, will not have a significant economic impact on a substantial

number of small businesses. Therefore, a final regulatory flexibility

analysis is not necessary or appropriate.

X. Paperwork Reduction Act

The Textile, Wool, and Fur Rules contain various collection of

information requirements for which the Commission has obtained

clearance under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et

seq., Office of Management and Budget (OMB) Control Numbers 3084-1010,

3084-0100, 3084-0099. These requirements relate to the accurate

disclosure of material information about textile, wool, and fur

products, including fiber or fur content and country of origin. The

Rules also require manufacturers and other marketers of covered

products to maintain records that support claims on labels. Most of the

disclosure requirements and all of the recordkeeping requirements are

specifically mandated by the Textile, Wool, and Fur Acts. See 15 U.S.C.

70b, 70d; 15 U.S.C. 68b, 68d; 15 U.S.C. 69b, 69f, respectively.

The Commission has also obtained OMB clearance for: (1) Petitions

under the Textile Rules requesting the establishment of generic names

for textile fibers; (2) petitions under the Wool Rules concerning

whether or not representations of the fiber content of a class of

articles are commonly made, or whether or not the textile content of

certain products is insignificant or inconsequential; and (3) petitions

for an exemption under the Fur Act. A Notice soliciting public comments

on extending these clearances through December 31, 1999, was published

in the Federal Register last year. 61 FR 43764, 43766-67 (Aug. 26,

1996).

The amendments adopted herein will lower the paperwork burden

associated with the current Rules. Eliminating certain disclosures (the

functional significance of named fibers present in small amounts; the

words ``Fiber Content on Reverse Side;'' and the repetition of the

country of origin on certain kinds of labels) from the Textile and Wool

Rules will allow for greater flexibility in labeling and will reduce

labeling burdens. The incorporation into the Textile Rules of ISO

Standard 2076: 1989, ``Textiles--Man-made fibres--Generic names'' will

reduce labeling burdens by increasing international harmonization. In

addition, it will obviate the need for some petitions to the Commission

to recognize additional generic fiber names, thus lowering paperwork

burdens.

The amendments to the Textile, Wool, and Fur Rules regarding the

cancellation of RN numbers does not impose a paperwork burden on

holders of RNs. The Rules, at 16 CFR 303.20, 16 CFR 300.4, and 16 CFR

301.26, already require companies to notify the FTC about changes in

business names, addresses, company type, etc. The current proposal

merely adds the element of cancellation by the Commission if these

requirements are not met. Neither the initial filing procedures nor the

requirement to update the information are new and therefore, no

``burden'' is imposed.

More importantly, the underlying certification itself does not meet

the definition of ``information'' contained in the PRA. In implementing

the Paperwork Reduction Act of 1995, OMB attempted to clarify the

exemption for ``certifications'' in both the Notice of Proposed

Rulemaking, 60 FR 30438, 30439 (June 8, 1995), and the Final Rule, 61

FR 44978, 44979 (Aug. 9, 1995) (``the exemption applies when the

certification is used to identify an individual in a `routine, non-

intrusive, non-burdensome way'.'') This language reflects current

guidance in OMB/OIRA's Information Collection Review Handbook (1989),

which discusses

[[Page 7516]]

exempt categories of inquiry (5 CFR 1320.3(h)(1)-(10)) that are not

deemed to constitute ``information.'' Certifications, as well as other

forms of acknowledgments, comprise one of these

categories.73 Such inquiries are considered to be routine

because response to the requests rarely requires examination of

records, usually does not require consideration about the correct

answer, and usually is provided on a form supplied by the government.

See OMB/OIRA Handbook, p. 29. Accordingly, OMB's regulations exempt

certifications from the clearance requirement, provided that no

information need be reported beyond certain basic identifying

information.74

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

\73\ Specifically, the first category consists of: ``affidavits,

oaths, affirmations, certifications, receipts, changes of address,

consents, or acknowledgments.'' 5 CFR 1320(h)(1).

\74\ The information required on an RN application includes only

the following: name of applicant firm, address of applicant, type of

company, type of business, products, certification that the listed

products are subject to the Textile, Wool, or Fur Acts, the name and

title of the person completing the application, and the date. The

form also includes spaces to enter, at the option of the applicant,

telephone and fax numbers, web site address, and E-mail address.

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

List of Subjects in 16 CFR Parts 1, 300, 301, and 303

Furs, Incorporation by reference, Labeling, Textile fiber products

identification, Trade practices, Wool products.

For the reasons set forth above, the Commission amends 16 CFR Part

1, 16 CFR Part 300, 16 CFR Part 301, and 16 CFR Part 303, as follows:

PART 1--GENERAL PROCEDURES

1. The authority citation for Part 1 continues to read as follows:

Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise

noted.

Subpart D (Secs. 1.31-1.34) [Removed]

2. Subpart D--Administration of the Wool Products Labeling Act of

1939, Fur Products Labeling Act, and Textile Fiber Products

Identification Act, containing Secs. 1.31, 1.32, 1.33, and 1.34, is

removed.

PART 300--RULES AND REGULATIONS UNDER THE WOOL PRODUCTS LABELING

ACT OF 1939

1. The authority citation for Part 300 continues to read as

follows:

Authority: 15 U.S.C. 68 et seq. and 15 U.S.C. 70 et seq.

2. Section 300.1 is amended by revising paragraph (h) and adding

paragraphs (j) and (k) to read as follows:

Sec. 300.1 Terms defined.

* * * * *

(h) The terms mail order catalog and mail order promotional

material mean any materials, used in the direct sale or direct offering

for sale of wool products, that are disseminated to ultimate consumers

in print or by electronic means, other than by broadcast, and that

solicit ultimate consumers to purchase such wool products by mail,

telephone, electronic mail, or some other method without examining the

actual product purchased.

* * * * *

(j) The terms invoice and invoice or other paper have the meaning

set forth in Sec. 303.1(h) of this chapter.

(k) The term trimmings has the meaning set forth in Sec. 303.12 of

this chapter.

3. Section 300.3(b) is revised to read as follows:

Sec. 300.3 Required label information.

* * * * *

(b) In disclosing the constituent fibers in information required by

the Act and regulations in this part or in any non-required

information, no fiber present in the amount of less than 5 percent

shall be designated by its generic name or fiber trademark but shall be

designated as ``other fiber,'' except that the percentage of wool or

recycled wool shall always be stated, in accordance with section

4(a)(2)(A) of the Act. When more than one of such fibers, other than

wool or recycled wool, are present in amounts of less than 5 percent,

they shall be designated in the aggregate as ``other fibers.''

Provided, however, that nothing in this section shall prevent the

disclosure of any fiber present in the product which has a clearly

established and definite functional significance when present in the

amount stated, as for example:

``98% wool

2% nylon.''

4. In Sec. 300.4, the section heading and paragraphs (c) and (e)

are revised to read as follows, and the form following paragraph (e) is

removed:

Sec. 300.4 Registered identification numbers.

* * * * *

person or firm to whom they are issued, and such numbers are not

transferable or assignable. Registered identification numbers shall be

subject to cancellation whenever any such number was procured or has

been used improperly or contrary to the requirements of the Acts

administered by the Federal Trade Commission, and regulations in this

part, or when otherwise deemed necessary in the public interest.

Registered identification numbers shall be subject to cancellation if

the Commission fails to receive prompt notification of any change in

name, business address, or legal business status of a person or firm to

whom a registered identification number has been assigned, by

application duly executed in the form set out in paragraph (e) of this

section, reflecting the current name, business address, and legal

business status of the person or firm.

* * * * *

(e) The form to apply for a registered identification number or to

update information pertaining to an existing number is found in

Sec. 303.20(d) of this Chapter. The form is available upon request from

the Commission's Los Angeles Regional Office, 10877 Wilshire Blvd.,

Suite 700, Los Angeles, CA 90024, or on the Internet at http://

www.ftc.gov.

5. Section 300.5(b) is revised to read as follows:

Sec. 300.5 Required label and method of affixing.

* * * * *

(b) Each wool product with a neck must have a label disclosing the

country of origin affixed to the inside center of the neck midway

between the shoulder seams or in close proximity to another label

affixed to the inside center of the neck. The fiber content and RN or

name of the company may be disclosed on the same label as the country

of origin or on another conspicuous and readily accessible label or

labels on the inside or outside of the garment. On all other wool

products, the required information shall be disclosed on a conspicuous

and readily accessible label or labels on the inside or outside of the

product. The country of origin disclosure must always appear on the

front side of the label. Other required information may appear either

on the front side or the reverse side of a label, provided that the

information is conspicuous and readily accessible.

* * * * *

6. The last sentence of section 300.8(g) is revised to read as

follows:

Sec. 300.8 Use of fiber trademark and generic names.

* * * * *

(g) * * * The following are examples of fiber content disclosures

under this paragraph:

60% Wool

40% Fur Fiber

60% Wool

[[Page 7517]]

30% Fur Fiber

10% Angora Rabbit

100% Cashgora Hair

100% Paco-Vicuna Hair

7. Section 300.10 is revised to read as follows:

Sec. 300.10 Disclosure of information on labels.

(a) Subject to the provisions of Sec. 300.5(b), the required

information may appear on any label or labels attached to the product,

including the care label required by 16 CFR Part 423, provided all the

pertinent requirements of the Act and regulations in this part are met

and so long as the combination of required information and non-required

information is not misleading. All parts of the required information

shall be set forth in such a manner as to be clearly legible,

conspicuous, and readily accessible to the prospective purchaser. All

parts of the required fiber content information shall appear in type or

lettering of equal size and conspicuousness.

(b) Subject to the provisions of Sec. 300.8, any non-required

information or representations placed on the product shall not

minimize, detract from, or conflict with required information and shall

not be false, deceptive, or misleading.

Sec. 300.21 [Removed]

Secs. 300.22 through 300.25b [Redesignated as Secs. 300.21 through

300.25a]

8. Section 300.21 is removed, and Secs. 300.22, 300.23, 300.24,

300.25, 300.25a, and 300.25b are redesignated as 300.21, 300.22,

300.23, 300.24, 300.25, and 300.25a, respectively.

9. Newly redesignated Sec. 300.25 is amended by revising paragraphs

(a)(3), (a)(4) introductory text, and (a)(4)(i) to read as follows:

Sec. 300.25 Country where wool products are processed or manufactured.

(a) * * *

(3) Each wool product made in the United States, either in whole or

in part of imported materials, shall contain a label disclosing these

facts; for example:

``Made in USA of imported fabric''

``Knitted in USA of imported yarn'' and

(4) Each wool product partially manufactured in a foreign country

and partially manufactured in the United States shall contain on a

label the following information:

(i) The manufacturing process in the foreign country and in the

USA; for example:

``Imported cloth, finished in USA''

``Sewn in USA of imported components''

``Made in (foreign country), finished in USA''

``Scarf made in USA of fabric made in China''

``Comforter Filled, Sewn and Finished in the U.S. With Shell Made in

China''

* * * * *

10. Section 300.33(b) is revised to read as follows, and the form

following paragraph (b) is removed:

Sec. 300.33 Continuing guaranty filed with Federal Trade Commission.

* * * * *

(b) The prescribed form for a continuing guaranty is found in

Sec. 303.38(b) of this chapter. The form is available on request from

the Federal Trade Commission's Los Angeles Regional Office, 10877

Wilshire Blvd., Suite 700, Los Angeles, CA 90024.

* * * * *

PART 301--RULES AND REGULATIONS UNDER THE FUR PRODUCTS LABELING ACT

1. The authority citation for Part 301 continues to read as

follows:

Authority: 15 U.S.C. 69 et seq.

2. In Sec. 301.26, the section heading and paragraphs (b)(2) and

(d) are revised to read as follows, and the form following paragraph

(d) is removed:

Sec. 301.26 Registered identification numbers.

* * * * *

(b)(1) * * *

(2) Registered identification numbers shall be subject to

cancellation if the Federal Trade Commission fails to receive prompt

notification of any change in name, business address, or legal business

status of a person or firm to whom a registered identification number

has been assigned, by application duly executed in the form set out in

paragraph (d) of this section, reflecting the current name, business

address, and legal business status of the person or firm.

* * * * *

(d) The form to apply for a registered identification number or to

update information pertaining to an existing number is found in

Sec. 303.20(d) of this chapter. The form is available upon request from

the Commission's Los Angeles Regional Office, 10877 Wilshire Blvd.,

Suite 700, Los Angeles, CA 90024, or on the Internet at http://

www.ftc.gov.

3. In Sec. 301.39, the first sentence of paragraph (a) and

paragraph (c) are revised to read as follows:

Sec. 301.39 Exempted fur products.

(a) If the cost of any fur trim or other manufactured fur or furs

contained in a fur product, exclusive of any costs incident to its

incorporation therein, does not exceed one hundred fifty dollars ($150)

to the manufacturer of the finished fur product, or if a manufacturer's

selling price of a fur product does not exceed one hundred fifty

dollars ($150), and the provisions of paragraphs (b) and (c) of this

section are met, the fur product shall be exempted from the

requirements of the Act and regulations in this part; provided,

however, that if the fur product is made of or contains any used fur,

or if the fur product itself is or purports to be the whole skin of an

animal with the head, ears, paws and tail, such as a choker or scarf,

the fur product is to be labeled, invoiced and advertised in accordance

with the requirements of the Act and regulations in this part,

regardless of the cost of the fur used in the fur product or the

manufacturer's selling price. * * *

* * * * *

manufacturer's selling price exceeds one hundred fifty dollars ($150),

the manufacturer's or wholesaler's invoice shall carry information

indicating such fur product is exempt from the provisions of the Act

and regulations in this part; as for example: ``FPL EXEMPT.''

4. The heading of Sec. 301.48 and paragraph (a)(3) are revised to

read as follows, and the form following paragraph (a)(3) is removed:

Sec. 301.48 Continuing guaranty filed with Federal Trade Commission.

* * * * *

(a)(3) The prescribed form for a continuing guaranty is found in

Sec. 303.38(b) of this chapter. The form is available on request from

the Federal Trade Commission's Los Angeles Regional Office, 10877

Wilshire Blvd., Suite 700, Los Angeles, CA 90024.

* * * * *

PART 303--RULES AND REGULATIONS UNDER THE TEXTILE FIBER PRODUCTS

IDENTIFICATION ACT

1. The authority citation for Part 303 continues to read as

follows:

Authority: 15 U.S.C. 70 et seq.

2. Footnote 1 of Part 303 is removed.

3. In Sec. 303.1, paragraphs (h) and (u) are revised to read as

follows:

Sec. 303.1 Terms defined.

* * * * *

[[Page 7518]]

(h) The terms invoice and invoice or other paper mean an account,

order, memorandum, list, or catalog, which is issued to a purchaser,

consignee, bailee, correspondent, agent, or any other person, in

writing or in some other form capable of being read and preserved in a

tangible form, in connection with the marketing or handling of any

textile fiber product transported or delivered to such person.

* * * * *

(u) The terms mail order catalog and mail order promotional

material mean any materials, used in the direct sale or direct offering

for sale of textile products, that are disseminated to ultimate

consumers in print or by electronic means, other than by broadcast, and

that solicit ultimate consumers to purchase such textile products by

mail, telephone, electronic mail, or some other method without

examining the actual product purchased.

4. Section 303.3 is revised to read as follows:

Sec. 303.3 Fibers present in amounts of less than 5 percent.

(a) Except as permitted in sections 4(b)(1) and 4(b)(2) of the Act,

as amended, no fiber present in the amount of less than 5 percent of

the total fiber weight shall be designated by its generic name or fiber

trademark in disclosing the constituent fibers in required information,

but shall be designated as ``other fiber.'' When more than one of such

fibers are present in a product, they shall be designated in the

aggregate as ``other fibers.'' Provided, however, that nothing in this

section shall be construed as prohibiting the disclosure of any fiber

present in a textile fiber product which has a clearly established and

definite functional significance when present in the amount contained

in such product, as for example:

96 percent Acetate

4 percent Spandex.

(b) In making such disclosure, all of the provisions of the Act and

regulations in this part setting forth the manner and form of

disclosure of fiber content information, including the provisions of

Secs. 303.17 and 303.41 of this part relating to the use of generic

names and fiber trademarks, shall be applicable.

5. Section 303.7 is amended by revising the introductory text to

read as follows:

Sec. 303.7 Generic names and definitions for manufactured fibers.

Pursuant to the provisions of section 7(c) of the Act, the

Commission hereby establishes the generic names for manufactured

fibers, together with their respective definitions, set forth in this

section and the generic names for manufactured fibers, together with

their respective definitions, set forth in International Organization

for Standardization (ISO) Standard 2076: 1989, ``Textiles--Man-made

fibres--Generic names.'' This incorporation by reference was approved

by the Director of the Federal Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. Copies may be obtained from the American

National Standards Institute, 11 West 42nd St., 13th floor, New York,

N.Y. 10036. Copies may be inspected at the Federal Trade Commission,

room 130, 6th St. & Pennsylvania Ave., NW, Washington, DC, or at the

Office of the Federal Register, 800 North Capitol St., NW, Suite 700,

Washington, DC.

* * * * *

6. Section 303.8(a) introductory text is revised to read as

follows:

Sec. 303.8 Procedure for establishing generic names for manufactured

fibers.

(a) Prior to the marketing or handling of a manufactured fiber for

which no generic name has been established or otherwise recognized by

the Commission, the manufacturer or producer thereof shall file a

written application with the Commission, requesting the establishment

of a generic name for such fiber, stating therein:

* * * * *

7. Section 303.15(b) is revised to read as follows:

Sec. 303.15 Required label and method of affixing.

* * * * *

(b) Each textile fiber product with a neck must have a label

disclosing the country of origin affixed to the inside center of the

neck midway between the shoulder seams or in close proximity to another

label affixed to the inside center of the neck. The fiber content and

RN or name of the company may be disclosed on the same label as the

country of origin or on another conspicuous and readily accessible

label or labels on the inside or outside of the garment. On all other

textile products, the required information shall be disclosed on a

conspicuous and readily accessible label or labels on the inside or

outside of the product. The country of origin disclosure must always

appear on the front side of the label. Other required information may

appear either on the front side or the reverse side of a label,

provided that the information is conspicuous and readily accessible.

* * * * *

8. In Sec. 303.16, paragraphs (a) introductory text, (a)(1), (b),

and (c) are revised to read as follows:

Sec. 303.16 Arrangement and disclosure of information on labels.

(a) Subject to the provisions of Sec. 303.15(b), information

required by the Act and regulations in this Part may appear on any

label or labels attached to the textile fiber product, including the

care label required by 16 CFR Part 423, provided all the pertinent

requirements of the Act and regulations in this Part are met and so

long as the combination of required information and non-required

information is not misleading. The required information shall include

the following:

(1) The generic names and percentages by weight of the constituent

fibers present in the textile fiber product, excluding permissive

ornamentation, in amounts of 5 percent or more and any fibers disclosed

in accordance with Sec. 303.3(a) shall appear in order of predominance

by weight with any percentage of fiber or fibers required to be

designated as ``other fiber'' or ``other fibers'' appearing last.

* * * * *

(b) All parts of the required information shall be set forth in

such a manner as to be clearly legible, conspicuous, and readily

accessible to the prospective purchaser. All parts of the fiber content

information shall appear in type or lettering of equal size and

conspicuousness.

information or representations placed on the product shall not

minimize, detract from, or conflict with required information and shall

not be false, deceptive, or misleading.

* * * * *

9. Section 303.20 is amended by adding paragraph (b)(3) and

revising paragraph (d) to read as follows:

Sec. 303.20 Registered identification numbers.

* * * * *

(b)(1) * * *

(3) Registered identification numbers shall be subject to

cancellation if the Commission fails to receive prompt notification of

any change in name, business address, or legal business status of a

person or firm to whom a registered identification number has been

assigned, by application duly executed in the form set out in paragraph

(d) of this section, reflecting the current name, business address, and

legal business status of the person or firm.

* * * * *

[[Page 7519]]

(d) Form to apply for a registered identification number or to

update information pertaining to an existing number (the form is

available upon request from the Commission's Los Angeles Regional

Office, 10877 Wilshire Blvd., Suite 700, Los Angeles, CA 90024, or on

the Internet at http://www.ftc.gov):

BILLING CODE 6750-01-P

[[Page 7520]]

[GRAPHIC] [TIFF OMITTED] TR13FE98.004

BILLING CODE 6750-01-C

[[Page 7521]]

10. In Sec. 303.33, the section heading and paragraphs (a)(3),

(a)(4) introductory text, and (a)(4)(i) are revised to read as follows:

Sec. 303.33 Country where textile fiber products are processed or

manufactured.

(a) * * *

(3) Each textile fiber product made in the United States, either in

whole or in part of imported materials, shall contain a label

disclosing these facts; for example:

Made in USA of imported fabric

Knitted in USA of imported yarn

and

(4) Each textile fiber product partially manufactured in a foreign

country and partially manufactured in the United States shall contain

on a label the following information:

(i) The manufacturing process in the foreign country and in the

USA; for example:

Imported cloth, finished in USA

Sewn in USA of imported components

Made in (foreign country), finished in USA

Scarf made in USA of fabric made in China

Comforter Filled, Sewn and Finished in the U.S. With Shell Made in

China'

* * * * *

11. Section 303.38(b) is revised to read as follows:

Sec. 303.38 Continuing guaranty filed with Federal Trade Commission.

* * * * *

(b) Prescribed form for a continuing guaranty:

BILLING CODE 6750-01-P

[[Page 7522]]

[GRAPHIC] [TIFF OMITTED] TR13FE98.005

[[Page 7523]]

BILLING CODE 6750-01-C

* * * * *

12. Section 303.40 is revised to read as follows:

Sec. 303.40 Use of terms in written advertisements that imply presence

of a fiber.

The use of terms in written advertisements, including

advertisements disseminated through the Internet and similar electronic

media, that are descriptive of a method of manufacture, construction,

or weave, and that by custom and usage are also indicative of a textile

fiber or fibers, or the use of terms in such advertisements that

constitute or connote the name or presence of a fiber or fibers, shall

be deemed to be an implication of fiber content under section 4(c) of

the Act, except that the provisions of this section shall not be

applicable to non-deceptive shelf or display signs in retail stores

indicating the location of textile fiber products and not intended as

advertisements.

13. In Sec. 303.42, the second sentence of paragraph (a) is revised

to read as follows:

Sec. 303.42 Arrangement of information in advertising textile fiber

products.

(a) * * * In making the required disclosure of the fiber content of

the product, the generic names of fibers present in an amount 5 percent

or more of the total fiber weight of the product, together with any

fibers disclosed in accordance with Sec. 303.3(a), shall appear in

order of predominance by weight, to be followed by the designation

``other fiber'' or ``other fibers'' if a fiber or fibers required to be

so designated are present.

* * * * *

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 98-3495 Filed 2-12-98; 8:45 am]

BILLING CODE 6750-01-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.