[House Report 111-571]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-571
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TRUTH IN FUR LABELING ACT OF 2010
_______
July 27, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Waxman, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 2480]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 2480) to improve the accuracy of fur product
labeling, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Legislative History.............................................. 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings and Recommendations................. 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Statement of General Performance Goals and Objectives............ 4
Constitutional Authority Statement............................... 4
Earmarks and Tax and Tariff Benefits............................. 4
Federal Advisory Committee Statement............................. 4
Applicability of Law to Legislative Branch....................... 4
Federal Mandates Statement....................................... 4
Committee Cost Estimate.......................................... 5
Budget Authority and Congressional Budget Office Cost Estimate... 5
Section-by-Section Analysis of the Legislation................... 6
Explanation of Amendment......................................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Truth in Fur Labeling Act of 2010''.
SEC. 2. ELIMINATION OF EXEMPTION TO FUR PRODUCT LABELING REQUIREMENTS
FOR PRODUCTS CONTAINING RELATIVELY SMALL QUANTITIES
OR VALUES OF FUR.
(a) In General.--Section 2(d) of the Fur Products Labeling Act (15
U.S.C. 69(d)) is amended by striking ``; except that'' and all that
follows through ``contained therein''.
(b) Effective Date.--The amendment made by subsection (a) shall take
effect on the date that is 90 days after the date of the enactment of
this Act.
SEC. 3. EXEMPTION FOR DISCRETE SALES BY NON-RETAILERS.
Section 3 of the Fur Products Labeling Act (15 U.S.C. 69a) is amended
by adding at the end the following:
``(g) No provision of this Act shall apply to a fur product--
``(1) the fur of which was obtained from an animal through
trapping or hunting; and
``(2) when sold in a face to face transaction at a place such
as a residence, craft fair, or other location used on a
temporary or short term basis, by the person who trapped or
hunted the animal, where the revenue from the sale of apparel
or fur products is not the primary source of income of such
person.''.
SEC. 4. FEDERAL TRADE COMMISSION REVIEW OF FUR PRODUCTS NAME GUIDE.
Not later than 90 days after the date of the enactment of this Act,
the Federal Trade Commission shall publish in the Federal Register
notice of, and an opportunity to comment on, a review of the Fur
Products Name Guide (16 C.F.R. 301.0).
Purpose and Summary
H.R. 2480, the ``Truth in Fur Labeling Act of 2009'', was
introduced on May 19, 2009, by Rep. James P. Moran (D-VA), Rep.
Mary Bono Mack (R-CA), and 13 other members. H.R. 2480 amends
the Fur Products Labeling Act to require all fur products to be
labeled.
Background and Need for Legislation
The labeling of fur products is currently regulated by the
Fur Products Labeling Act of 1951, which requires that fur
manufactured for use as attire have labels indicating the
animal name and the country of origin.\1\ Apparel with less
than $150 worth of fur is exempted from these requirements by
the Rules and Regulations of the Federal Trade Commission (FTC)
under the Fur Products Labeling Act.\2\
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\1\15 U.S.C. Sec. Sec. 69-69j. The law also requires labeling of
the manufacturer name, whether the fur is natural or dyed, and whether
the fur is used or damaged.
\2\16 CFR Sec. 301.39.
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In today's manufacturing of fur apparel, roughly 14% of
products trimmed with animal fur go unlabeled because they fall
below the $150 threshold set by current federal law.\3\ In
addition, an investigation by the Humane Society found real fur
that was labeled as faux fur and other furs that were
mislabeled.\4\
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\3\The Humane Society of the United States, Congress Calls for
Truth in Fur Labeling In Response to Ongoing Misrepresentation (May 20,
2009) (online at www.hsus.org/press_ and_publications/press_releases/
congress_calls_for_truth_in_fur_labeling_ 052009.html).
\4\Id.
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The FTC, as instructed by the Fur Products Labeling Act,
produces the Fur Products Name Guide that defines how fur
products may be listed on the label.\5\ This guide, which was
last updated by the FTC in 1967, has been criticized as
outdated and inaccurate.\6\
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\5\16 C.F.R. Sec. 301.
\6\Humane Society Legislative Fund, Fact Sheet: Support the Truth
in Fur Labeling Act S.1076/H.R. 2480 (online at www.hslf.org/pdfs/fur-
labeling-fact-sheet-tafa.pdf) (accessed May 10, 2010).
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H.R. 2480 amends the Fur Products Labeling Act by removing
the FTC's authority to exempt apparel valued under a certain
amount. As a result, all articles of apparel containing fur
will be required to be labeled. The legislation also instructs
the FTC to review the Fur Products Name Guide.
A companion bill, S. 1076, was introduced by Senator Robert
Menendez (D-NJ) on May 19, 2009.
Legislative History
H.R. 2480, the ``Truth in Fur Labeling Act of 2009,'' was
introduced on May 19, 2009, by Rep. James P. Moran (D-VA), with
cosponsors Reps. Mary Bono Mack (R-CA), Dennis Moore (D-KS),
Henry Brown (R-SC), Lynn Woolsey (D-CA), Steve Cohen (D-TN),
George Miller (D-CA), Earl Blumenauer (D-OR), Sam Farr (D-CA),
Thaddeus McCotter (R-MI), Maurice Hinchey (D-NY), Dennis
Kucinich (D-OH), Brad Sherman (D-CA), Pete King (R-NY), and
Todd Russell Platts (R-PA).
The bill was referred to the Committee on Energy and
Commerce and on May 20, 2009, H.R. 2480 was referred to the
Subcommittee on Commerce, Trade, and Consumer Protection. A
legislative hearing was held by Subcommittee on May 13, 2010.
At the hearing, witnesses representing the FTC, animal rights
advocates, and the industry association expressed support for
the legislation.
Committee Consideration
On June 30, 2010, the Subcommittee on Commerce, Trade, and
Consumer Protection met in open markup session to consider H.R.
2480. During that consideration a manager's amendment offered
by Subcommittee Chairman Rush was adopted by a voice vote.
Subsequently, the Subcommittee forwarded H.R. 2480 favorably to
the full Committee, amended, by a voice vote.
On July 15, 2010, the Committee on Energy and Commerce met
in open markup session and considered H.R. 2480 as approved by
Subcommittee. The Committee agreed by a voice vote to adopt an
amendment by Mr. Latta. Subsequently, the full Committee
ordered H.R. 2480, favorably reported to the House, amended, by
a voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list each record vote
on the motion to report legislation and amendments thereto. A
motion by Mr. Stupak ordering H.R. 2480 reported to the House,
amended, was approved by a voice vote. There were no record
votes taken during consideration of this bill.
Committee Oversight Findings and Recommendations
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report, including
the finding that all fur products should be labeled.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Regarding compliance with clause 3(c)(2) of rule XIII of
the Rules of the House of Representatives, the Committee adopts
as its own the estimate regarding H.R. 2480 prepared by the
Director of the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report, including the requirement that all fur products
be labeled.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 2480. Article I, section 8, clauses 3 and 18
of the Constitution of the United States grants the Congress
the power to enact this law.
Earmarks and Tax and Tariff Benefits
H.R. 2480 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
Federal Advisory Committee Statement
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., section 5(b) of the Federal
Advisory Committee Act.
Applicability of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to terms and conditions of
employment or access to public services and accommodations.
This bill does not relate to employment or access to public
services and accommodations.
Federal Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement whether
the provisions of the reported bill include unfunded mandates.
In compliance with this requirement the Committee adopts as its
own the estimates prepared by the Congressional Budget Office
and included herein.
Committee Cost Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2480. Clause 3(d)(3)(B) of that rule, however, provides
that this requirement does not apply when the Committee adopts
as its own the cost estimate of H.R. 2480 prepared by the
Director of the Congressional Budget Office under section 402
of the Congressional Budget Act.
Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for H.R. 2480 from the
Director of the Congressional Budget Office:
July 26, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2480, the Truth in
Fur Labeling Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2480--Truth in Fur Labeling Act of 2010
H.R. 2480 would require products that contain a small
quantity of fur to comply with provisions of current law that
prohibit false or misleading branding, advertising, or
invoicing of fur products. Currently, products containing a
small quantity of fur, as defined by the Federal Trade
Commission (FTC), are exempt from the labeling requirements.
The bill also would exempt products containing fur obtained by
trapping or hunting and sold in a face-to-face transaction from
the labeling requirements. The FTC would be required to develop
regulations to carry out those new requirements.
Based on information from the FTC, CBO expects that
developing and enforcing the new regulations would impose a
minimal cost on the agency; therefore, CBO estimates that
implementing H.R. 2480 would not significantly increase
spending subject to appropriation. Enacting H.R. 2480 could
increase civil and criminal penalties and thus would affect
federal revenues and direct spending; therefore, pay-as-you-go
procedures would apply. However, CBO estimates that such
effects would not be significant in any year.
H.R. 2480 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments.
H.R. 2480 would impose private-sector mandates, as defined
in UMRA, on manufacturers of fur products, fur-trimmed
products, and fur accessories. The bill would expand existing
labeling requirements for products containing animal fur to
include items using relatively small amounts of animal fur. The
labels include information about the name of the animal used,
manufacturer, country of origin, and other information.
According to information from the FTC, about 140,000 products--
less than 14 percent of the market--would be affected by the
mandate, and the incremental cost of compliance would be low.
Therefore, CBO estimates that the aggregate cost of the
mandates would fall well below the annual threshold for
private-sector mandates ($141 million in 2010, adjusted
annually for inflation).
The CBO staff contacts for this estimate are Susan Willie
(for federal costs) and Marin Randall (for the private-sector
impact). The estimate was approved by Theresa Gullo, Deputy
Assistant Director for Budget Analysis.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 designates the short title of the Act as the
``Truth in Fur Labeling Act of 2010.''
Section 2. Elimination of exemption to fur product labeling
requirements for products containing relatively small
quantities or values of fur
Section 2(a) of H.R. 2480 amends section 2(d) of the Fur
Products Labeling Act (15 U.S.C. 69(d)) to remove the authority
of the FTC to exempt articles of wearing apparel from the
requirements of the Act by reason of the relatively small
quantity or value of the fur or used fur contained in such
articles. All ``fur products'' as defined in the Fur Products
Labeling Act will therefore be subject to the requirements of
that Act.
Section 3. Exemption for discrete sales by non-retailers
Section 3 exempts certain fur products sold by hunters or
trappers from the requirements of the Fur Products Labeling
Act. In order to qualify for the exemption, the fur product
must have been obtained from an animal by trapping or hunting,
must be sold by the person who trapped or hunted the animal,
must be sold in a face-to-face transaction in a home or a
location used on a temporary or short term basis, and the
revenue from the sale of apparel or fur products must not be
the primary source of income for the seller. This exemption
would not apply to the resale of those same fur products by the
original purchasers or any successor purchasers.
Section 4. Federal Trade Commission review of Fur Products Name Guide
Section 4 directs the FTC to review the Fur Products Name
Guide (16 CFR 301.0). Notice of the review shall be published
in the Federal Register, and the public shall have an
opportunity to comment on the review.
Explanation of Amendment
Mr. Latta offered an amendment to create a new section of
the bill exempting certain fur products sold by trappers or
hunters from the requirements of the Fur Products Labeling Act.
The amendment became new section 3 of the Act and is explained
in the section-by-section analysis. The full Committee agreed
to the amendment by a voice vote.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
FUR PRODUCTS LABELING ACT
* * * * * * *
Sec. 2. As used in this Act--
(a) * * *
* * * * * * *
(d) The term ``fur product'' means any article of wearing
apparel made in whole or in part of fur or used fur[; except
that such term shall not include such articles (other than any
dog or cat fur product to which section 308 of the Tariff Act
of 1930 applies) as the Commission shall exempt by reason of
the relatively small quantity or value of the fur or used fur
contained therein].
* * * * * * *
MISBRANDING, FALSE ADVERTISING, AND INVOICING DECLARED UNLAWFUL
Sec. 3. (a) * * *
* * * * * * *
(g) No provision of this Act shall apply to a fur product--
(1) the fur of which was obtained from an animal
through trapping or hunting; and
(2) when sold in a face to face transaction at a
place such as a residence, craft fair, or other
location used on a temporary or short term basis, by
the person who trapped or hunted the animal, where the
revenue from the sale of apparel or fur products is not
the primary source of income of such person.
* * * * * * *