[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[House]
[Pages H9472-H9474]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   ESTABLISHING TOLL-FREE NUMBER IN DEPARTMENT OF COMMERCE TO ASSIST 
         CONSUMERS IN DETERMINING IF PRODUCTS ARE AMERICAN-MADE

  Mr. BLILEY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 563) to establish a toll free number in the Department of 
Commerce to assist consumers in determining if products are American-
made, as amended.
  The Clerk read as follows:

                                H.R. 563

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

[[Page H9473]]

     SECTION 1. ESTABLISHMENT OF TOLL FREE NUMBER PILOT PROGRAM.

       (a) Establishment.--If the Secretary of Commerce 
     determines, on the basis of comments submitted in rulemaking 
     under section 2, that--
       (1) interest among manufacturers is sufficient to warrant 
     the establishment of a 3-year toll free number pilot program, 
     and
       (2) manufacturers will provide fees under section 2(c) so 
     that the program will operate without cost to the Federal 
     Government,

     the Secretary shall establish such program solely to help 
     inform consumers whether a product is ``Made in America''. 
     The Secretary shall publish the toll-free number by notice in 
     the Federal Register.
       (b) Contract.--The Secretary of Commerce shall enter into a 
     contract for--
       (1) the establishment and operation of the toll free number 
     pilot program provided for in subsection (a), and
       (2) the registration of products pursuant to regulations 
     issued under section 2,

     which shall be funded entirely from fees collected under 
     section 2(c).
       (c) Use.--The toll free number shall be used solely to 
     inform consumers as to whether products are registered under 
     section 2 as ``Made in America''. Consumers shall also be 
     informed that registration of a product does not mean--
       (1) that the product is endorsed or approved by the 
     Government,
       (2) that the Secretary has conducted any investigation to 
     confirm that the product is a product which meets the 
     definition of ``Made in America'' in section 4 of this Act, 
     or
       (3) that the product contains 100 percent United States 
     content.

     SEC. 2. REGISTRATION.

       (a) Proposed Regulation.--The Secretary of Commerce shall 
     propose a regulation--
       (1) to establish a procedure under which the manufacturer 
     of a product may voluntarily register such product as 
     complying with the definition of ``Made in America'' in 
     section 4 of this Act and have such product included in the 
     information available through the toll free number 
     established under section 1(a);
       (2) to establish, assess, and collect a fee to cover all 
     the costs (including start-up costs) of registering products 
     and including registered products in information provided 
     under the toll-free number;
       (3) for the establishment under section 1(a) of the toll-
     free number pilot program; and
       (4) to solicit views from the private sector concerning the 
     level of interest of manufacturers in registering products 
     under the terms and conditions of paragraph (1).
       (b) Promulgation.--If the Secretary determines based on the 
     comments on the regulation proposed under subsection (a) that 
     the toll-free number pilot program and the registration of 
     products is warranted, the Secretary shall promulgate such 
     regulation.
       (c) Registration Fee.--
       (1) In general.--Manufacturers of products included in 
     information provided under section 1 shall be subject to a 
     fee imposed by the Secretary of Commerce to pay the cost of 
     registering products and including them in information 
     provided under subsection (a).
       (2) Amount.--The amount of fees imposed under paragraph (1) 
     shall--
       (A) in the case of a manufacturer, not be greater than the 
     cost of registering the manufacturer's product and providing 
     product information directly attributable to such 
     manufacturer, and
       (B) in the case of the total amount of fees, not be greater 
     than the total amount appropriated to the Secretary of 
     Commerce for salaries and expenses directly attributable to 
     registration of manufacturers and having products included in 
     the information provided under section 1(a).
       (3) Crediting and availability of fees.--
       (A) In general.--Fees collected for a fiscal year pursuant 
     to paragraph (1) shall be credited to the appropriation 
     account for salaries and expenses of the Secretary of 
     Commerce and shall be available in accordance with 
     appropriation Acts until expended without fiscal year 
     limitation.
       (B) Collections and appropriation acts.--The fees imposed 
     under paragraph (1)--
       (i) shall be collected in each fiscal year in an amount 
     equal to the amount specified in appropriation Acts for such 
     fiscal year, and
       (ii) shall only be collected and available for the costs 
     described in paragraph (2).

     SEC. 3. PENALTY.

       Any manufacturer of a product who knowingly registers a 
     product under section 2 which is not ``Made in America''--
       (1) shall be subject to a civil penalty of not more than 
     $7500 which the Secretary of Commerce may assess and collect, 
     and
       (2) shall not offer such product for purchase by the 
     Federal Government.

     SEC. 4. DEFINITION.

       For purposes of this Act:
       (1) The term ``Made in America'' has the meaning given 
     unqualified ``Made in U.S.A.'' or ``Made in America'' claims 
     for purposes of laws administered by the Federal Trade 
     Commission.
       (2) The term ``product'' means a product with a retail 
     value of at least $250.

     SEC. 5. RULE OF CONSTRUCTION.

       Nothing in this Act or in any regulation promulgated under 
     section 2 shall be construed to alter, amend, modify, or 
     otherwise affect in any way, the Federal Trade Commission Act 
     or the opinions, decisions, rules, or any guidance issued by 
     the Federal Trade Commission regarding the use of unqualified 
     ``Made in U.S.A.'' or ``Made in America'' claims in labels on 
     products introduced, delivered for introduction, sold, 
     advertised, or offered for sale in commerce.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Virginia (Mr. Bliley) and the gentleman from Ohio (Mr. Brown) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Virginia (Mr. Bliley).


                             General Leave

  Mr. BLILEY. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and to include extraneous material in the Record on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.

                              {time}  1730

  Mr. BLILEY. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I am pleased today to be able to rise in support of H.R. 
563, a bill which would create a toll-free number in the Department of 
Commerce to assist consumers in determining if products are American 
made. The bill's sponsor, the gentleman from Ohio (Mr. Traficant), 
should be commended for his commitment to American products and the 
American worker, and this bill is a fitting tribute to that commitment.
  The legislation is designed to assist consumers when they are 
thinking about purchasing a major appliance or other product. For 
instance, a family looking for a new refrigerator could call the number 
to find out which brands and models of refrigerators are manufactured 
in the United States. Consumers have consistently demonstrated their 
desire to purchase products made in America. And I believe that if this 
information is provided, they will use this as another major factor in 
their purchasing decisions.
  An important feature of the legislation is that the creation of the 
service is conditional both on market demand and the presence of 
private sector funding. This toll-free number will only be implemented 
if there is sufficient interest on the part of manufacturers in listing 
their products and funding the cost of the program through annual fees. 
Thus, there is no cost to the taxpayer for implementing this program to 
promote American-made products.
  This legislation, as reported by the Committee on Commerce, creates a 
much-needed consumer service. I urge all of my colleagues to support 
it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BROWN of Ohio. Mr. Speaker, I yield myself such time as I may 
consume.
  I would like to say how pleased I am, Mr. Speaker, that this 
legislation gives the House an opportunity once again to confirm its 
support for the Federal Trade Commission's standard for making a claim 
that a product is made in the USA. Under this legislation, only those 
products that meet the FTC's standard are eligible for inclusion on the 
toll-free registry of products that are made in America.
  The FTC's standard for making an unqualified ``Made in USA'' claim 
requires that ``all'' or ``virtually all'' of a product's components be 
made in the United States and that ``all'' or ``virtually all'' of the 
labor be American labor. This has been the FTC's standard for more than 
50 years. And after a 2-year review, the FTC concluded last year that 
its standards should not be changed.
  For the past several decades, consumers in the United States have 
relied on the ``Made in USA'' label to mean exactly what it says. 
American consumers want to buy genuine American products made by 
American workers. The ``Made in USA'' standard educates consumers, 
ensures truth-in-labeling, promotes U.S. companies, and preserves and 
creates American jobs.
  Last year, Mr. Speaker, the FTC proposed weakening the standard to 
allow products to be labeled ``Made in USA'' when as little as 75 
percent of their content and labor originated in the United States. If 
these proposed regulations had been adopted, the FTC's mandate to fight 
deceptive practices would instead be used to sanction deception.
  People all over the country petitioned this Congress and the FTC 
opposing this new standard. In my district, 9,000 people, by mail, by 
phone, by petition, said ``no'' to this proposed change. I commend the 
FTC for its wisdom, ultimately, in returning to the

[[Page H9474]]

time honored ``Made in USA'' standard. Any weakening of the 
Commission's standard would only mislead consumers and expose them to 
the kind of deceptive practices the FTC is supposed to prohibit.
  The Commission has recognized what many American consumers have known 
for a long time: Where a product is made is an important factor in 
making purchasing decisions. And consumers want the ability to support 
American workers and to invest in the Nation's economic growth through 
those purchasing decisions. I am happy to support legislation that will 
help consumers buy products that are ``all'' or ``virtually all'' made 
in this country.
  Mr. Speaker, I would note that except for certain technical and 
conforming changes, this legislation is the same as legislation that 
has passed the House in each of the last 2 Congresses. Unfortunately, 
the other body has never taken action on it and the bill has not been 
enacted. I sincerely hope that will not be the situation this year and 
that this bill can be enacted into law.
  Mr. Speaker, I urge my colleagues to support this important 
legislation. I thank the gentleman from Virginia (Mr. Bliley) for his 
good work.
  Mr. Speaker, I yield 5 minutes to the gentleman from Ohio (Mr. 
Traficant).
  Mr. TRAFICANT. Mr. Speaker, I want to start out by thanking the 
gentleman from Virginia (Mr. Bliley), one of the strong Members of this 
House, for taking into consideration this legislation. I want to thank 
the gentleman from New York (Mr. Tom Manton), and the ranking member, 
the gentleman from Michigan (Mr. Dingell), the gentleman from Louisiana 
(Mr. Tauzin), the gentleman from Ohio (Mr. Oxley), and the gentleman 
from Pennsylvania (Mr. Phil English), a friend of mine, who worked very 
hard to bring this to the floor.
  I have worked hard to pass this legislation. The Congress might look 
at a few facts: We have a $60 billion trade deficit with Japan, and an 
approaching $50 billion trade deficit with China. Everybody talks about 
buy American. But the truth of the matter is, what is an American made 
product today? Where is that car really made? Is it made in Detroit? Is 
it made in Ohio? Is it made in Mexico? Is it made in Canada? Is it made 
in China? Is it made in Korea?
  My legislation simply says if it costs more than $250, and all or 
virtually all of its components are made in America, a company could 
register it by paying a small fee to put it on this toll-free hot line. 
So if a family out in Chicago is going to buy a washer and dryer, they 
can call this number and say, I want to buy a washer and dryer, what 
washers and dryers are made in America? It does not cost the taxpayers 
anything. And I believe the consuming public of America will buy 
American if their level of conscious understanding of where these 
products are made are made available to them.
  But I wanted to bring something up to the attention of the Congress 
today, especially to the chairman. I am holding up here a little ad 
that was sent to me by George Booth of Big Sandy, Texas. It is an ad, I 
believe in Consumer Reports, for Tisonic quality car radio cassette 
players. And down in the right-hand corner of this ad there is a very 
small American flag. But we have to look close, because the colors are 
reversed. It is, in fact, blue stars on a white map. And if we look at 
it, we would swear it says made in the USA, until we get the magnifying 
glass. And listen to what it says. It says, made for the USA. And then 
in even smaller print below it, it says made in China. Now we have a 
new label, if we are quick enough, I guess, to investigate these 
labels: Made ``for'' USA; Made ``in'' China.
  Look, I think this is straightforward legislation. It makes sense. 
And the American people who, I believe, will want to buy American-made 
products will use the service. More importantly, I think the industries 
and the companies that produce these products will begin to take pride 
in being able to say that, ``We pay taxes in America. We hire Americans 
who pay taxes to keep our government afloat. This product is the one 
that we make, and, by God, it is good and we take pride in advertising 
it on our toll-free number.''
  So I want to thank the gentleman from Virginia (Mr. Bliley). I know 
the mindset of many in the other body. They think ``Made in China'' 
perhaps is good for consumption patterns around the world. I do not 
know what their thinking is. I think we have to work hard, and I 
appreciate the gentleman giving it a chance here, and I am hoping we 
get some help in the other body.
  Mr. BROWN of Ohio. Mr. Speaker, I have no further requests for time, 
and I yield back the balance of my time.
  Mr. BLILEY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Miller of Florida). The question is on 
the motion offered by the gentleman from Virginia (Mr. Bliley) that the 
House suspend the rules and pass the bill, H.R. 563, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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