[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1301 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1301

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 1997

    Mr. Miller of California (for himself, Mr. Berman, Mr. Farr of 
     California, Mr. Evans, Mr. Moran of Virginia, Mr. Kennedy of 
Massachusetts, Ms. Pelosi, Mr. Bonior, Mrs. Mink of Hawaii, Mr. Frost, 
   Mr. Sanders, Mr. Lipinski, Mr. Obey, Mr. Olver, Mr. Dellums, Mr. 
    Filner, Ms. Kaptur, Ms. Rivers, Ms. Woolsey, and Mr. Underwood) 
 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 or 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 1997''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the Secretary of Labor has conducted 3 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, 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--
                    (A) approximately 250,000,000 children between the 
                ages of 5 and 14 are working in developing countries; 
                and
                    (B) many of those children manufacture wearing 
                apparel or 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;
            (6) consumers in the United States have the right to 
        information on whether the articles of wearing apparel 
        (including any section of that wearing apparel) or sporting 
        goods that they purchase are made without abusive and 
        exploitative child labor;
            (7) the rugmark labeling and monitoring system is a 
        successful model for eliminating abusive and exploitative child 
        labor in the rug industry;
            (8) the labeling of wearing apparel or sporting goods would 
        provide the information referred to in paragraph (6) to 
        consumers; and
            (9) 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. CHILD LABOR FREE 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) In general.--A producer, importer, exporter, 
                distributor, or other person intending to use any label 
                referred to in paragraph (1) shall submit a 
                notification to the Commission for review under 
                subparagraph (C).
                    (B) Notification.--The notification referred to in 
                subparagraph (A) shall include information concerning 
                the source of the article or section of wearing apparel 
                or sporting good to which the label will be affixed, 
                including--
                            (i) the country in which the article or 
                        section of wearing apparel or sporting good is 
                        manufactured;
                            (ii) the name and location of the 
                        manufacturer; and
                            (iii) information concerning any 
                        outsourcing by the manufacturer in 
the manufacture of the article or section of wearing apparel or 
sporting good.
                    (C) Review of notification.--Upon receipt of the 
                notification, the Commission shall review the 
                notification and inform the Secretary of Labor 
                concerning the findings of the review. The permission 
                of the Secretary of Labor shall be required for the use 
                of the label. The Secretary of Labor, in consultation 
                with the Commission, shall establish procedures for 
                granting permission to use a label under this 
                subparagraph.
            (3) Fee.--The Secretary of Labor 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;
                    (B) any packaging thereof; or
                    (C) any advertising for an article or section of 
                wearing apparel or sporting good referred to in 
                subparagraph (A).
            (5) Effective date.--The regulations issued under paragraph 
        (1) shall take effect on the date that is 180 days after the 
        date of publication as final regulations.
    (b) Violation of Section 5 of the Federal Trade Commission Act.--It 
is a violation of section 5 of the Federal Trade Commission Act (15 
U.S.C. 45) for any producer, importer, exporter, distributor, or seller 
of any article or section 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 of wearing apparel or sporting good, the packaging of 
        the article or section of wearing apparel or sporting good, or 
        any advertising for the article or section of wearing apparel 
        or sporting good that the article or section of wearing apparel 
        or sporting good was not made with child labor; or
            (2) to otherwise falsely claim or suggest that the article 
        (or section of that article of wearing apparel) 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)(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 1997 under subparagraph (A), 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, or under subparagraph (C) for a continuing failure that is 
considered to be a violation of this section by reason of section 
101(b) of such Act, if that violation--
            ``(aa) is a knowing or willful violation, the amount of a 
        civil penalty for the violation shall be determined under 
        clause (ii); or
            ``(bb) is not a knowing or willful violation, no penalty 
        shall be assessed against the person, partnership, or 
        corporation that committed the violation.
    ``(II) For purposes of this subparagraph, if in an action referred 
to in subclause (I), if the Commission asserts that a violation is a 
knowing and willful violation, the defendant shall bear the burden of 
proving otherwise.
    ``(ii) The amount of a civil penalty for a violation under clause 
(i)(I)(aa) 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 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.
    (e) Other Industries.--The Commission may, as appropriate, develop 
labeling standards similar to the labeling standards developed under 
this section for any industry that is not otherwise covered under this 
Act and recommend to the Secretary of Labor that those standards be 
promulgated. If the standards are promulgated by the Secretary of 
Labor--
            (1) the provisions of this Act and the amendments made by 
        this Act shall apply to the labeling covered by those standards 
        in the same manner as they apply to any other standards 
        promulgated by the Secretary of Labor under this section; and
            (2) it shall be a violation of section 5 of the Federal 
        Trade Commission Act (15 U.S.C. 45) for any producer, importer, 
        exporter, distributor, or seller of any good that is covered 
        under the labeling standards and that is exported from or 
        offered for sale in the United States--
                    (A) to falsely indicate on the label of that good, 
                the packaging thereof, or any related advertising that 
                the good was not made with child labor; or
                    (B) to otherwise falsely claim or suggest that the 
                good was not made with 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 (15 U.S.C. 45), 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 Secretary of 
        Labor and 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.--
            (1) In general.--The Commission shall, 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.
            (2) Action by the federal trade commission.--
                    (A) In general.--Upon completion of a review 
                conducted under paragraph (1), the Commission shall 
                forward the petition to the Secretary of Labor, 
                together with a report by the Commission containing a 
                determination by the Commission concerning the merits 
                of the petition, including whether a violation of the 
                labeling standards occurred and whether there appears 
                to have been a knowing and willful (within the meaning 
                of section 5(m)(1)(D)(i) of the Federal Trade 
                Commission Act, as added by section 101(c) of this Act) 
                or repeated violation of those standards.
                    (B) Duties of the secretary of labor.--Upon receipt 
                of the petition and report, the Secretary of Labor 
                shall--
                            (i) forward a copy of the petition and 
                        report to the Federal Trade Commission for 
                        review by the Federal Trade Commission; and
                            (ii) review the petition and report.
            (3) Temporary withdrawal of permission; order to cease and 
        desist.--
                    (A) Temporary withdrawal of permission.--If the 
                Secretary of Labor determines, on the basis of the 
                report referred to in paragraph (2), that there is a 
                substantial likelihood that a violation of the labeling 
                standards promulgated under section 101 has occurred, 
                the Secretary of Labor may temporarily withdraw the 
                permission granted under section 101(a)(2)(C) and 
inform the Federal Trade Commission of the action and the reason for 
the action.
                    (B) Order to cease and desist.--If the Federal 
                Trade Commission concurs with a determination of the 
                Child Labor Free Commission in the report referred to 
                in subparagraph (A) that a violation of the labeling 
                standards has occurred, the Federal Trade Commission 
                shall take such action as may be necessary under the 
                Federal Trade Commission Act (15 U.S.C. 41 et seq.) to 
                cause the person or entity in violation of the labeling 
                standards under section 101 to cease and desist from 
                violating those standards immediately upon that 
                concurrence.

                 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, appointed by the Secretary of Labor; 
                and
                    (I) 1 additional member shall be 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) Period of appointment.--Each member of the Commission 
        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.
            (2) Vacancies.--Any vacancy in the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (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 annually, 
                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 annually, 
                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 a study into the 
        feasibility of developing an easily identifiable labeling 
        standard that the Secretary of Labor may issue to encourage the 
        use of voluntary labels that ensure 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--
                                    (I) exposure to toxic substances or 
                                working conditions that otherwise pose 
                                serious health hazards; or
                                    (II) working conditions that result 
                                in the child's being deprived of basic 
                                educational opportunities.
            (5) Producer.--The term ``producer'' includes a contractor 
        or subcontractor of a manufacturer of all or part of a good.
            (6) Sporting good.--The term ``sporting good'' shall have 
        the meaning provided that term by the Secretary of Labor.
            (7) Wearing apparel.--The term ``wearing apparel'' shall 
        have the meaning provided that term by the Secretary of Labor.
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