[Federal Register: February 13, 1998 (Volume 63, Number 30)] [Rules and Regulations] [Page 7507-7523] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr13fe98-19]

[[Page 7507]]

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Part II

Federal Trade Commission

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16 CFR Parts 1, 300, 301, and 303

Textile Fiber Products Identification Act, the Wool Products Labeling
Act, and the Fur Products Labeling Act; Final Rule

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FEDERAL TRADE COMMISSION

16 CFR Parts 1, 300, 301, and 303

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

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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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
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\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).
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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.
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\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).
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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
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\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.
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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.
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\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.
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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
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\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.''
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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.
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\14\ 16 CFR 303.16(b); 16 CFR 300.10(a).
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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
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\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.
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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
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\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.''
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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
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\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.
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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.
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\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.
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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.
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\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).
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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.
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\29\ AFMA (3) p.5 and (1-wool) p.6.
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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
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\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.''
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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.''
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\31\ See P. Tortora, Understanding Textiles, Fourth Edition at
106-107 (1992).
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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.
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\32\ NTA-CCMI (4-wool) p.4.
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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.
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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.

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[[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
register in more than one country. The Commission did not propose
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
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\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.
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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
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\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.

* * * * *
(c) Registered identification numbers shall be used only by the
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
or
60% Wool

[[Page 7517]]

30% Fur Fiber
10% Angora Rabbit
or
100% Cashgora Hair
or
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''
or
``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''
or
``Sewn in USA of imported components''
or
``Made in (foreign country), finished in USA''
or
``Scarf made in USA of fabric made in China''
or
``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. * * *
* * * * *
(c) If a fur product is exempt under this section and the
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.
(c) Subject to the provisions of Sec. 303.17, 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.
* * * * *
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
or
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
or
Sewn in USA of imported components
or
Made in (foreign country), finished in USA
or
Scarf made in USA of fabric made in China
or
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

Federal Trade Commission Protecting America's Consumers

[Federal Register: February 13, 1998 (Volume 63, Number 30)] [Rules and Regulations] [Page 7507-7523] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr13fe98-19]