[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4125 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4125

    To inform and empower consumers in the United States through a 
 voluntary labeling system for wearing apparel and sporting goods made 
 without abusive and exploitative child labor, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 1996

 Mr. Miller of California (for himself, Mr. Andrews, Mr. Baldacci, Mr. 
   Barrett of Wisconsin, Mr. Berman, Mr. Blumenauer, Mr. Bonior, Mr. 
    Borski, Mr. Brown of California, Mrs. Clayton, Mr. Conyers, Mr. 
DeFazio, Mr. Dellums, Mr. Durbin, Mr. Evans, Mr. Faleomavaega, Mr. Farr 
  of California, Mr. Fattah, Mr. Filner, Mr. Foglietta, Mr. Frank of 
 Massachusetts, Mr. Frost, Mr. Gejdenson, Mr. Gephardt, Mr. Gene Green 
 of Texas, Mr. Gutierrez, Mr. Hefner, Mr. Hilliard, Ms. Eddie Bernice 
    Johnson of Texas, Ms. Kaptur, Mr. Kennedy of Massachusetts, Mr. 
 LaFalce, Mr. Lantos, Mr. Lewis of Georgia, Mr. Lipinski, Ms. Lofgren, 
   Mr. Manton, Mr. Markey, Mr. McDermott, Ms. McKinney, Mrs. Mink of 
 Hawaii, Mr. Moakley, Mr. Moran, Mr. Murtha, Mr. Obey, Mr. Olver, Mr. 
Owens, Mr. Payne of New Jersey, Ms. Pelosi, Mr. Rangel, Ms. Rivers, Ms. 
 Roybal-Allard, Mr. Sawyer, Mrs. Schroeder, Mr. Schumer, Mr. Serrano, 
 Ms. Slaughter, Mr. Spratt, Mr. Torricelli, Mr. Underwood, Mr. Vento, 
Mr. Watt of North Carolina, Ms. Woolsey, and Mr. Yates) introduced the 
    following bill; which was referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
    To inform and empower consumers in the United States through a 
 voluntary labeling system for wearing apparel and sporting goods made 
 without abusive and exploitative child labor, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Labor Free Consumer 
Information Act of 1996''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the Secretary of Labor has conducted 2 detailed studies 
        that document the fact that abusive and exploitative child 
        labor exists worldwide;
            (2) the Secretary of Labor has also determined, through the 
        studies referred to in paragraph (1), that child laborers are 
        often forced to work beyond their physical capacities and under 
        conditions that threaten their health, safety, and development, 
        and are denied basic educational opportunities;
            (3) in most instances, countries that have abusive and 
        exploitative child labor also experience a high adult 
        unemployment rate;
            (4) the International Labor Organization (commonly known as 
        the ``ILO'') estimates that hundreds of millions of children 
        are full-time workers, and many of those children manufacture 
        wearing apparel and sporting goods that are offered for sale in 
        the United States;
            (5) consumers in the United States spend billions of 
        dollars each year on wearing apparel and sporting goods made by 
        abusive and exploitative child labor;
            (6) consumers in the United States have the right to 
        information on whether the items of wearing apparel and 
        sporting goods that they purchase are made without abusive and 
        exploitative child labor;
            (7) the labeling of wearing apparel and sporting goods 
        would provide the information referred to in paragraph (5) to 
        consumers; and
            (8) it is important to recognize United States businesses 
        that have effective programs to ensure that products sold in 
        the United States are not made with abusive and exploitative 
        child labor.

              TITLE I--CHILD LABOR FREE LABELING STANDARDS

SEC. 101. LABELING STANDARDS.

    (a) Establishment of Labeling Standards.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Labor, in consultation 
        with the Child Labor Free Commission established under section 
        201 shall issue regulations to ensure that a label using the 
        terms ``Not Made With Child Labor'', ``Child Labor Free'', or 
        any other term or symbol referring to child labor does not make 
        a false statement or suggestion that the article or section of 
        wearing apparel or sporting good was not made with child labor. 
        The regulations developed under this section shall encourage 
        the use of an easily identifiable symbol or term indicating 
        that the article or section of wearing apparel or sporting good 
        was not made with child labor.
            (2) Notification on use.--A producer, importer, exporter, 
        distributor, or other person intending to use any label 
        referred to in paragraph (4) shall notify the Commission not 
        later than 60 days after the product bearing that label becomes 
        available to the public for purchase. Upon receipt of the 
        notification, the Commission shall review the notification. A 
        response from the Commission shall not be required for use of 
        the label.
            (3) Fee.--The Secretary is authorized to charge a fee to 
        cover the expenses of the Commission in reviewing a 
        notification under paragraph (2). The level of fees charged 
        under this subparagraph shall not exceed the administrative 
        costs incurred in reviewing a notification. Fees collected 
        under this paragraph shall be available to the Secretary of 
        Labor for expenses incurred in the review and response of the 
        Commission under this subsection.
            (4) Applicability.--The regulations issued under paragraph 
        (1) shall apply to any label contained in--
                    (A) an article or section of wearing apparel or 
                sporting good that is exported from or offered for sale 
                in the United States; or
                    (B) any packaging thereof.
    (b) Violation of Section 5 of the Federal Trade Commission Act.--It 
is a violation of section 5 of the Federal Trade Commission Act for any 
producer, importer, exporter, distributor, or seller of any article of 
wearing apparel (or section of an article of wearing apparel) or 
sporting good that is exported from or offered for sale in the United 
States--
            (1) to falsely indicate on the label of that article (or 
        section) or sporting good or the packaging of the article (or 
        section) or sporting good that the article (or section) or 
        sporting good was not made with child labor; or
            (2) to otherwise falsely claim or suggest that the article 
        (or section) or sporting good was not made with child labor.
    (c) Amendment to the Federal Trade Commission Act.--Section 5(m)(1) 
of the Federal Trade Commission Act (15 U.S.C. 45(m)(1)) is amended--
            (1) in subparagraph (A), by striking ``The Commission'' and 
        inserting ``Except as provided in subparagraph (D), the 
        Commission'';
            (2) in subparagraph (B), by striking ``If the Commission'' 
        and inserting ``Except as provided in subparagraph (D), if the 
        Commission''; and
            (3) by adding at the end the following new subparagraph:
    ``(D)(i) In lieu of the applicable civil penalty under subparagraph 
(A) or (B), in any case in which the Commission commences a civil 
action for a violation of section 101 of the Child Labor Free Consumer 
Information Act of 1996 under subparagraph (A) or under subparagraph 
(B) for an unfair or deceptive practice that is considered to be a 
violation of this section by reason of section 101(b) of such Act, if 
that violation is a knowing or willful violation, the amount of a civil 
penalty for the violation shall be determined under clause (ii).
    ``(ii) The amount of a civil penalty for a violation under clause 
(i) that is committed shall be--
            ``(I) for an initial violation, an amount equal to the 
        greater of--
                    ``(aa) 2 times the retail value of the articles of 
                wearing apparel or sporting goods mislabeled; or
                    ``(bb) $200,000; and
            ``(II) for any subsequent violation, an amount equal to the 
        greater of--
                    ``(aa) 4 times the retail value of the articles of 
                wearing apparel or sporting goods mislabeled; or
                    ``(bb) $400,000.''.
    (d) Special Fund To Assist Children.--
            (1) Creation of fund.--There is established in the United 
        States Treasury a special fund to be known as the Free the 
        Children Fund.
            (2) Deposits into fund.--An amount equal to the amount of 
        penalties collected under this section shall be deposited into 
        the special fund. The Secretary of the Treasury shall, upon 
        request of the Secretary of the Labor, make the amounts 
        deposited into the special fund available to the Secretary of 
        Labor for use by the Secretary of Labor for educational and 
        other programs described in paragraph (3).
            (3) Authorization.--Amounts deposited into the special fund 
        are authorized to be appropriated annually for educational and 
        other programs with the goal of eliminating child labor.

SEC. 102. REVIEW OF PETITIONS BY THE CHILD LABOR FREE COMMISSION.

    (a) In General.--In addition to the procedures established under 
section 5 of the Federal Trade Commission Act, the Child Labor Free 
Commission established under section 201 shall assist the Federal Trade 
Commission by reviewing petitions under this section.
    (b) Contents of Petitions.--A petition under this section shall--
            (1) be submitted in such form, and in such manner as the 
        Federal Trade Commission, in consultation with the Child Labor 
        Free Commission, shall prescribe;
            (2) contain the name of the--
                    (A) petitioner; and
                    (B) person or entity involved in the alleged 
                violation of the labeling standards under section 101; 
                and
            (3) provide a detailed explanation of the alleged 
        violation, including all available evidence.
    (c) Review by Commission.--The Commission shall--
            (1) to the maximum extent practicable, not later than 90 
        days after receiving a petition, review the petition to 
        determine whether there appears to have been a violation of the 
        labeling standards; and
            (2) upon completion of that review, forward that petition 
        to the Federal Trade Commission, together with a report by the 
        Child Labor Free Commission containing a determination by the 
        Child Labor Free Commission whether--
                    (A) it is appropriate for the Federal Trade 
                Commission, in consultation with the Secretary of 
                Labor, to take such action as may be necessary under 
                the Federal Trade Commission Act to cause the person or 
                entity in violation of the labeling standards under 
                section 101 to cease and desist from violating those 
                standards; and
                    (B) there appears to have been a willful or 
                repeated violation of the labeling standards.

SEC. 103. COOPERATION BY THE SECRETARY OF COMMERCE.

    (a) In General.--If, in the course of an investigation conducted by 
the Secretary of Commerce, the Secretary of Commerce discovers a 
violation of the requirements of this Act, the Secretary of Commerce 
shall report that violation to the Secretary of Labor.
    (b) Action by the Secretary of Labor.--The Secretary of Labor shall 
review each report made by the Secretary of Commerce under subsection 
(a), and, as appropriate, refer the violation to the Federal Trade 
Commission for enforcement under the Federal Trade Commission Act.

                 TITLE II--CHILD LABOR FREE COMMISSION

SEC. 201. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Child Labor Free Commission.
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 17 
        members, of whom--
                    (A) 1 shall be the Secretary of Commerce or a 
                designee of the Secretary of Commerce;
                    (B) 1 shall be the Secretary of the Treasury or a 
                designee of the Secretary of the Treasury;
                    (C) 1 shall be the United States Trade 
                Representative or a designee of the United States Trade 
                Representative;
                    (D) 1 shall be the Secretary of Labor or a designee 
                of the Secretary of Labor, who shall serve as the 
                Chairperson of the Commission;
                    (E) 3 shall be representatives of nongovernmental 
                organizations that work toward the eradication of 
                abusive and exploitative child labor and in the 
                promotion of human rights, appointed by the Secretary 
                of Labor;
                    (F) 3 shall be representatives of labor 
                organizations, appointed by the Secretary of Labor;
                    (G) 3 shall be representatives of the wearing 
                apparel industry, appointed by the Secretary of Labor;
                    (H) 3 shall be representatives of the sporting 
                goods industry; and
                    (I) 1 shall be an additional member, appointed by 
                the Secretary of Labor.
            (2) Date.--The appointments of the members of the 
        Commission shall be made not later than 60 days after the date 
        of enactment of this Act.
    (c) Period of Appointment; Vacancies.--
            (1) Federal employees.--Each member of the Commission who 
        is an officer or employee of the United States shall be 
        appointed for the life of the Commission. Any vacancy in the 
        Commission shall not affect its powers, but shall be filled in 
        the same manner as the original appointment.
            (2) Non-federal members.--Each member of the Commission who 
        is not an officer or employee of the Federal Government shall 
        serve for a term of 4 years, except that in appointing the 
        initial members of the Commission, the Secretary of Labor shall 
        stagger the terms of the non-Federal members.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairperson or at the request of a majority of the members.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings 
or other meetings.

SEC. 202. DUTIES OF THE COMMISSION.

    The Commission shall--
            (1) assist the Secretary of Labor in developing labeling 
        standards under section 101; and
            (2) assist the Secretary of Labor in developing and 
        implementing a system to ensure compliance with the labeling 
        standards established under section 101, including--
                    (A) receiving, reviewing, and making 
                recommendations for the resolution of petitions 
                received under section 102 that allege noncompliance 
                with the labeling standards under section 101;
                    (B) making recommendations to the Secretary of 
                Labor for the removal of labels subject to the 
                standards under section 101 that are found to be in 
                violation of those standards;
                    (C) assisting the Secretary of Labor in developing 
                and implementing a system to promote the increased use 
                of the labeling standards under section 101;
                    (D) publishing, not less frequently than 
                biannually, a list of persons and entities that have 
                notified the Commission of their intent to use a label 
                under section 101(a)(2); and
                    (E) publishing, not less frequently than 
                biannually, a list of persons and entities found to be 
                in violation of any provision of this Act; and
            (3) not later than 1 year after the date of the 
        establishment of the Commission, commence developing an easily 
        identifiable labeling standard that the Secretary of Labor 
        shall issue to encourage the use of voluntary labels ensuring 
        consumers that an article of wearing apparel or sporting good 
        was made without the use of sweatshop or exploited adult labor.

SEC. 203. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the duties 
of the Commission under this title.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out the duties of the 
Commission under this title. Upon request of the Chairperson of the 
Commission, the head of such department or agency shall furnish such 
information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 204. COMMISSION PERSONNEL MATTERS.

    (a) Non-Federal Members.--Each member of the Commission who is not 
an officer or employee of the Federal Government shall serve without 
compensation.
    (b) Federal Members.--Each member of the Commission who is an 
officer or employee of the United States shall serve without 
compensation in addition to that received for that member's services as 
an officer or employee of the United States.

SEC. 205. ADMINISTRATIVE AND SUPPORT SERVICES.

    The Secretary of Labor shall, to the extent permitted by law, 
provide the Commission with such administrative services, funds, 
facilities, staff, and other support services as may be necessary for 
the performance of its functions.

         TITLE III--RECOGNITION OF EXEMPLARY CORPORATE EFFORTS

SEC. 301. ANNUAL REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary of Labor shall issue a report 
concerning companies that are making exemplary progress in ensuring 
that products made, sold, or distributed by those companies are not 
made with abusive and exploitative child labor.

SEC. 302. ADDITIONAL METHODS.

    In addition to the reports made under section 301, the Secretary of 
Labor in consultation with the Commission shall develop and implement 
other methods of providing recognition for exemplary programs carried 
out by companies to ensure that products made, sold, or distributed by 
those companies are not made with abusive and exploitative child labor.

                         TITLE IV--DEFINITIONS

SEC. 401. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Child.--The term ``child'' means--
                    (A) an individual who has not attained the age of 
                15 years, as measured by the Julian calendar; or
                    (B) an individual who has not attained the age of 
                14 years, as measured by the Julian calendar, in the 
                case of an individual who resides in a country that, by 
                law, defines a child as such an individual.
            (2) Commission.--The term ``Commission'' means the Child 
        Labor Free Commission established under section 201.
            (3) Label.--The term ``label'' means a display of written, 
        printed, or graphic matter on or affixed to an article of 
        wearing apparel or a sporting good or on the packaging of the 
        article or a sporting good that meets the standards described 
        in section 101(a).
            (4) Made with child labor.--
                    (A) In general.--A manufactured article or section 
                of wearing apparel or a sporting good shall be 
                considered to have been made with child labor if the 
                article or section--
                            (i) was fabricated, assembled, or processed 
                        in whole or in part; or
                            (ii) contains any part that was fabricated 
                        assembled, or processed in whole or in part,
                by any child described in subparagraph (B).
                    (B) Covered children.--A child is described in this 
                subparagraph if that child engaged in the fabrication, 
                assembly, or processing of the article or section--
                            (i) in exchange for remuneration (without 
                        regard to whom the remuneration is paid), 
                        subsistence, goods or services, or any 
                        combination thereof;
                            (ii) under circumstances tantamount to 
                        involuntary servitude; or
                            (iii) under exposure to toxic substances or 
                        working conditions that otherwise pose serious 
                        health hazards.
            (5) Sporting good.--The term ``sporting good'' shall have 
        the meaning provided that term by the Secretary of Labor.
            (6) Wearing apparel.--The term ``wearing apparel'' shall 
        have the meaning provided that term by the Secretary of Labor.
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