[Federal Register Volume 59, Number 239 (Wednesday, December 14, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-30706] [[Page Unknown]] [Federal Register: December 14, 1994] _______________________________________________________________________ Part VI Federal Trade Commission _______________________________________________________________________ 16 CFR Part 18 _______________________________________________________________________ Guides for the Nursery Industry; Final Rule FEDERAL TRADE COMMISSION 16 CFR Part 18 Guides for the Nursery Industry AGENCY: Federal Trade Commission. ACTION: Final amendment. ----------------------------------------------------------------------- SUMMARY: The Federal Trade Commission (the ``Commission''), as part of its periodic review of all its guides and rules, announces that it has concluded a review of its Guides for the Nursery Industry (``Guides'' or ``Nursery Guides'') and has decided to retain them with certain modifications. Specifically, the Commission has decided to amend Guide 6 and the definitions section of the Guides to advise sellers of plants that it is an unfair or deceptive act or practice to offer for sale or to sell plants collected from the wild state without disclosing that fact, with the proviso that plants propagated from plants lawfully collected from the wild state may be designated as ``nursery- propagated.'' The Commission has also decided to amend Guides 1-8 to update their legal terminology with terms that the Commission presently uses. EFFECTIVE DATE: February 13, 1995. FOR FURTHER INFORMATION CONTACT: Terrence J. Boyle, Attorney, (202) 326-3016, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580. SUPPLEMENTARY INFORMATION: I. Background The Nursery Guides were issued by the Commission in 1979.\1\ These Guides address numerous sales practices for outdoor plants, trees and flowers, including deceptive claims as to quantity, size, grade, kind, species, age, maturity, condition, vigor, hardiness, growth ability, price and origin or place where grown. On March 25, 1993, the Commission published a Notice in the Federal Register soliciting comment on the Guides.\2\ Specifically, the Commission solicited comments on the costs and benefits of the Guides and their regulatory and economic effect (see Part B below) and on a proposed amendment to the Guides submitted by the Natural Resources Defense Council and others (see Part A below). The comment period closed on May 26, 1993. In response to the Notice the Commission received 37 comments. They are discussed in Part II below. --------------------------------------------------------------------------- \1\Industry guides are administrative interpretations of laws administered by the Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. 16 CFR 1.5. \2\58 FR 16139. --------------------------------------------------------------------------- A. The Amendment Petition On October 15, 1991, the Natural Resources Defense Council (NRDC) requested for itself and ten other organizations\3\ that the Commission amend Guide 6 and the definitions section of the Nursery Guides. The petitioners asked the Commission to narrow significantly the one exception to the Guides' requirement that plants collected from the wild be identified as such. Guide 6 presently exempts from this wild- origin disclosure requirement wild-collected plants that have been grown in a nursery for a full growing season.\4\ Such plants could be called ``Nursery-grown'' under the Guides because the Guides defined the term ``nursery-grown stock'' to include both plants propagated and cultivated in nurseries and wild-collected plants grown in nurseries for a full growing season.\5\ --------------------------------------------------------------------------- \3\NRDC was joined in its petition by the following: California Native Plant Society (CNPS); Environmental Defense Fund (EDF); Garden Club of America (GCA); Mt. Cuba Center for the Study of Piedmont Flora (MCCSPF); National Audubon Society (NAS); Native Plant Society of Oregon (NPSO); Native Gardens (of Greenback, Tennessee) (NGGT); New England Wild Flower Society, Inc. (NEWFS); Niche Gardens Nursery of Chapel Hill, North Carolina (NGN); Traffic U.S.A. (T-USA). \4\Guide 6, 16 CFR 18.6, entitled ``Plants collected from the wild state,'' reads as follows: ``It is an unfair trade practice to sell, offer for sale, or distribute industry products collected from the wild state without disclosing that they were collected from the wild state: Provided, however, That if collected plants are grown in the nursery row for at least one growing season before being marketed, such disclosure is not required. [Guide 6]'' \5\Section 18.0 of the Guides, 16 CFR 18.0, entitled ``Definitions,'' includes the following definition: ```Nursery-grown stock.' Plants propagated and grown under cultivation, or plants transplanted from the wild and grown under cultivation for at least one full growing season.'' --------------------------------------------------------------------------- The petitioners contended that Guide 6's exception to the wild- origin disclosure requirement for wild-collected plants grown in nurseries for a growing season and the Guides' definition of the term ``Nursery-grown stock'' can cause consumer confusion about the origins of plants being offered for sale and contribute to the endangering of several species of wild plants. The petitioners argued that many consumers, for environmental reasons, do not want to purchase any plants collected from the wild at any stage of their existence. Such consumers are only willing to buy plants that have been propagated in nurseries. Because the present Guides allow both nursery-propagated and some wild-collected plants to be called ``Nursery Grown,'' consumers are unable to tell whether a plant described as ``Nursery-Grown'' was actually collected from the wild. The petition requested that the: Commission amend its Guides for The Nursery Industry to prohibit use of the misleading term ``nursery grown'' and require that plants labeled as ``propagated'' be grown from seeds, cuttings, callus tissue, spores or other propagules (bulblets, bulbils, single cells, leaves) under controlled conditions. The original petition did not propose specific amendment language. The petitioners expected discussions among interested parties would first be necessary before specific amendment language could be suggested. The essence of the petitioners' request, however, was to have the Rule henceforth require plants collected from the wild but then grown in a nursery for a full growing season to be identified as wild collected. The Rule would no longer allow them to be called ``nursery grown.'' Only those plants propagated and grown in nurseries would be exempt from the wild-collected disclosure requirement. The petitioners also asked that the Guides make clear under what conditions plants may be designated ``nursery propagated'' by proposing: The term ``controlled conditions'' would include open beds on one's property (including rented property) as long as the propagator is engaging in efforts to promote propagation and growth of the plants, e.g., weeding; fencing out deer, rabbits, or other wild animals; watering; or providing fertilizer. On May 21, 1992, the American Association of Nurserymen (AAN), the nursery industry trade association, wrote to the Commission stating its support for the petitioners' request and offered for consideration specific amendment language.\6\ AAN urged that the Commission amend Guide 6 to delete the exception to the wild origin disclosure requirement for ``Nursery Grown'' stock. Further, AAN urged restricting use of the term ``Nursery Propagated'' to just those plants actually grown in nurseries from seeds or other propagules and specifying that any plant propagated in a nursery from a plant lawfully collected from the wild is to be considered ``nursery propagated.'' --------------------------------------------------------------------------- \6\This letter, along with the original petition, was placed on the public record and described in the Federal Register Notice. --------------------------------------------------------------------------- AAN explained that at the time the Guides were adopted the critical issue with respect to plants' origins was to protect consumers from inferior plant specimens. Plants freshly gathered from the wild often die shortly afterwards due to their weakened condition following the collection process. Guide 6 was written to prevent the omission of the material fact of recent wild-collecting and thereby protect consumers from inadvertently purchasing freshly collected wild plants. In recent years, however, plant consumers have developed environmental concerns that fifteen years ago were not known by the Commission. As a result, AAN stated that over time the disclosure allowed by Guide 6 to permit consumers to distinguish newly collected wild plants from nursery- propagated plants or wild-collected plants that have been grown in a nursery for a full growing season has become misleading. Some consumers now object to buying any wild-collected plants, not because of the harm that the collection processes may have caused the particular plants being sold, but because of the harm the collection processes may be causing the plant species in general and the environment. AAN therefore proposed the following specific language to amend Guide 6: It is an unfair trade practice to sell, offer for sale, or distribute industry products collected from the wild state without disclosing that they were collected from the wild state; provided, however, that plants propagated from plants lawfully collected from the wild state are recognized and may be designated as nursery-propagated. AAN argued that the above language would resolve the ambiguity in the term ``nursery-grown'' that troubles petitioners (i.e., was the plant collected from the wild state and grown in a nursery for a full growing season or was the plant propagated in a nursery from a wild- collected plant?). At the same time it avoids an ambiguity from arising over the meaning of the term ``plants propagated'' by recognizing that for all plants under consideration there had to have been an initial propagative stock obtained from the wild. AAN argued that succeeding generations of such plants should be distinguished from the initial stocks and that the Guides should exempt from the wild-origin disclosure requirement only the succeeding generations that have been propagated and grown in nurseries. Only such plants should be allowed to be sold as ``Nursery Propagated.'' The Federal Register Notice described the amendment proposals and sought comment on sixteen questions asking about the extent of wild- collecting, the degree consumers are concerned about knowing the origins of the plants they purchase, the interpretation consumers give to the term ``nursery-grown,'' the identities of plant species that are now commonly wild-collected, the likelihood that continued wild- collecting of these plants might endanger the chances of the species surviving, and the costs and benefits associated with amending this Guide. B. Regulatory Review As part of the Commission's ongoing project to review all its guides and rules, the Federal Register Notice that sought comment on the amendment proposal for the Guides also included questions about the costs and benefits of the guides and their regulatory and economic impact. The Notice also asked three general questions about the environmental impact of the Nursery Guides, the relationship of those Guides to statutes and treaties that cover the same subject matter, and any changes since 1979 in consumer perceptions or preferences about products covered by those Guides. II. Comments Received The Commission received comments from 36 individuals and organizations. Of these, 23 were from individuals interested in gardening. The others were from state or federal government officials, gardening publications, members of the nursery industry, and a garden club officer.7 --------------------------------------------------------------------------- \7\One person, Aimlee D. Laderman, submitted two comments. The list of commentators below includes the document number for the public record assigned each comment, the name of (and an abbreviation for) the commentator, and (when included in the comment or otherwise made known to the Commission) a general description of the person or organization making the comment. #001............................. William A. Niering, Professor of Botony, Department of Botony, Connecticut College,[WAN]. #002............................. Richard W. Lighty, Director, Mt Cuba Center For The Study Of Piedmont Flora [MCCSPF] One of the petitioners. #003............................. Richard L. Krueger, Environmental Education Coordinator, Connecticut Department of Environmental Protection [RLK]. #004............................. Susan M. Smith [SMS]. #005............................. Joan L. Faust [JLF]. #006............................. Marilyn Magid, Chairman, Conservation Committee, The Garden Club of America [GCA]. One of the petitioners. #007............................. Ellen McMahon [EMcM]. #008............................. Clarisse S. Willemsen [CSW]. #009............................. Kelly Kearns, Native Plant Management Specialist, Wisconsin Department of Natural Resources [KK]. #010............................. Aimlee D. Laderman, Lecturer in Wetland Ecology, School of Forestry and Environmental Studies, Yale University [ADL]. #011............................. Faith Thompson Campbell, Natural Resources Defense Council [NRDC] One of the petitioners. #012............................. Mrs. Donald C. McClure [DCMcC]. #013............................. Zella E. Ellshoff [ZEE]. #014............................. Thomas Morley [TM]. #015............................. David Morgan, Editor, Nursery Manager: The Nation's Magazine, for Nurseries, Garden Centers & Landscapers [DM]. #016............................. Sally D. Pettit [SP]. #017............................. Scott Weber, Co-Owner, Bluestem Farm: Native Wildflowers & Grasses [SW]. #018............................. Teri Dunn, Associate Editor, Horticulture: The Magazine of American Gardening [TD]. #019............................. Craig J. Regelbrugge,, Director of Regulatory Affairs and Grower Services, American Association of Nurserymen [AAN] Joined in the petition. #020............................. Patrick Smith [PS]. #021............................. Anne N. Clark [ANC]. #022............................. Marilyn Ortt [MO]. #023............................. Gloria C. Jones [GCJ]. #024............................. Rebecca Beattie [RB]. #025............................. Nina Peyton [NP]. #026............................. Calvert J. Armbrecht [CJA]. #027............................. Louise H. Hisdreth [LHH]. #028............................. Stuart Swift [SS]. #029............................. Sally L. White, Conservation Committee, Colorado Native Plant Society [SLW]. #030............................. Jennifer McAnlis [JMcA]. #031............................. Katharine P. Mackie [KPM]. #032............................. David S. Longland, Executive Director, New England Wild Flower Society [NEWFS]. One of the petitioners. #033............................. Charles Thomas, President, Mailorder Association of Nurseries [CT]. #034............................. Gracie Harison [GH]. #035............................. Wayne L. Mitchell, Acting Chief, Office of [CITES] Scientific Authority, United States Department of the Interior [WLM]. #036............................. Mary E. Morris [MEM]. #037............................. Aimlee D. Laderman, Lecturer in Wetland Ecology, School of Forestry and Environmental Studies, Yale University [ADL]. The comments addressed only the proposal to amend Guide 6. No comment responded to any of the regulatory review questions.8 Four of the comments were letters from the petitioners supporting their proposal.9 A fifth comment was a follow-up letter from the American Association of Nurserymen.10 --------------------------------------------------------------------------- \8\For the text of the questions see the March 25, 1993, Federal Register Notice. \9\MCCSPF, #002, 1-2.; GCA, #006, 1; NRDC, #011, 1-9; NEWFS, #032, 1-11. \1\0AAN, #019, 1-4. --------------------------------------------------------------------------- The comments from the petitioners and AAN stated that they had reached agreement among themselves in requesting that the Commission adopt the specifically worded amendment that AAN had proposed and that the Commission amend the definitions section of the Guides by deleting the present definition for ``Nursery-grown stock'' and adding instead the following two new definitions: `Nursery propagated stock' Plants propagated and grown under cultivation, including plants propagated from plants, seeds, or cuttings lawfully collected from the wild state. `Propagation' Plants grown from seeds, cuttings, callous tissues or other plant tissues, spores or other propagules under controlled conditions. `Under controlled conditions' means in a non-natural environment that is intensely manipulated by human intervention for the purpose of producing selected species or hybrids. Twenty-three comments simply urged the Commission to help protect the environment and plant species now being wild-collected by amending Guide 6 as petitioners have requested, but not answering any of the specific questions of the Federal Register Notice.11 The 8 remaining commentators also urged the Commission to adopt the proposed amendments, contending that many consumers are increasingly becoming concerned with the effect that wild-collecting of plants is having on the chances of survival of several popular species. In response to a question in the Notice, four of these comments identified wild- collected plants that are presently being sold in nurseries.12 For example, Marilyn Ortt wrote that Cypripedium calceolus var. pubescens is currently listed as ``Potentially Threatened'' by the State of Ohio, but sells at retail for $7-9 in southern Ohio.13 --------------------------------------------------------------------------- \1\1WAN, #001, 1; RLK, #003, 1; SMS, #004, 1; JLF, #005, 1; EMcM, #007, 1; CSW, #008, 1-2; ADL, #010, 1; WLM, #035, 1-36; DCMcC, #012, 1-2; TM, #014, 1; SP, #016, 1; ANC, #021, 1; GCJ, #023, 1; RB, #024, 1; NP, #025. 1; CJA, #026, 1; LHH, #027, 1; SS, #028, 1; SLW, #029, 1; KPM, #031, 1; CT, #033, 1; GH, #034, 1-2; MEM, #036, 1; ADL, #037, 1. \1\2SW, #017, 1; PS, #020, 1-2; MO, #022, 1-2; JMcA, #030, 1. \1\3MO, #022, 1. --------------------------------------------------------------------------- The other four comments provided examples of the price differences existing between wild-collected and nursery-propagated specimens of the same plant species and offered explanations for such differences.14 For example, when collected from the wild, orchids typically cost less than $1, while orchids propagated from tissue culture or seed and then grown to maturity in nurseries can cost $15 or more.15 Such price differences exist primarily because of the great difficulty so far experienced in getting certain popular wild plants to propagate and grow in nurseries or because of the amount of time and labor necessary to raise such plants to a point when they are suitable for sale. One commentator cited the popular plant, Trillium, which is rarely, if ever, nursery-propagated because it takes seven years to grow before blossoming.16 None of the comments, however, provided any data regarding what increased costs there might be for retailers if the Guides no longer exempted from the wild-origin disclosure requirement those wild-collected plants that had grown in nurseries for a full growing season. --------------------------------------------------------------------------- \1\4KK, #009, 1-3; ZEE, #013, 1-3; TD, #018, 1-5; WLM, #035, 1- 36. \1\5KK, #009, 2. See also TD, #018, 2-3. \1\6PS, #020, 1. --------------------------------------------------------------------------- The United States Department of the Interior also submitted a comment favoring the petitioners' proposal to amend the Guides to narrow the exception to the wild-origin disclosure requirement. It attached copies of pertinent sections of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Endangered Species Act of 1973 (ESA), as amended, and the Lacey Act, all of which are concerned with protecting endangered species of animals and plants. These show that revising the Guides to use the word ``propagated'' rather than ``grown'' would be consistent with the terminology of that treaty and those statutes.17 The comment stated that the Commission's Guides ``are useful for plant conservation.'' The kinds of plants covered by the Guides, and of concern to the petitioners, are not (yet) endangered and therefore not among those that specifically come under that treaty or those statutes. The comment nonetheless stated that amending the Guides as requested would be ``an important force to help keep the trade away from overuse of wild specimens.'' --------------------------------------------------------------------------- \1\7WLM, #035, 1-2. --------------------------------------------------------------------------- III. Conclusion Although none of the comments specifically addressed the regulatory review questions, no comment suggested that sellers have experienced any difficulties in complying with the Guides.18 The Commission infers that, because all the commentators urged the Commission to amend the Guides as petitioners have requested, they all favor retaining the Guides. The Commission therefore has concluded its regulatory review of the Guides by deciding to retain them. --------------------------------------------------------------------------- \1\8Although it did not respond to particular questions, the United States Department of the Interior stated in its comment its desire to ``encourage the Federal Trade Commission to continue 16 CFR part 18--Guides for the Nursery Industry.'' Ibid., 2. --------------------------------------------------------------------------- All the comments urged that the Guides be amended as the petitioners have requested.19 The Commission has determined to revise the Guides because, as presently written, Guide 6 and the definition of the term ``Nursery-grown stock'' do not allow consumers to distinguish between plants that were propagated in nurseries and those that were collected from the wild state and then grown in a nursery for a full growing season. Under the present Guides, both kinds of plants may be designated as ``nursery-grown,'' which may inadvertently mislead consumers about the origin of the plants. When the Guides were issued there may have been no deception involved in so combining nursery-propagated and wild-gathered-but-nursery-cultivated plants in a single category called ``nursery-grown stock.'' The Commission now, however, knows there are substantial numbers of consumers opposed to buying any wild-collected plants because they believe that such collection processes are endangering the survival of various plant species and damaging the environment. To them, a failure to disclose that plants were originally collected from the wild would be an omission of material fact. The industry itself (AAN) appears to concur in this view. Accordingly, the Commission's original interpretation of Section 5(a) of the FTC Act as it pertains to this issue is being revised to reflect changes in what is material to consumers when purchasing plants. --------------------------------------------------------------------------- \1\9The Notice soliciting comments on the Guides (58 FR 16139, March 25, 1993) quoted both the petitioners' general request that Guide 6 be amended and the specific amendment proposals that AAN requested and that the petitioners later supported. --------------------------------------------------------------------------- The amendments proposed by AAN and the petitioners would permit only those plants actually propagated in nurseries to be exempt from the Guides' wild-origin disclosure requirement. Those sellers who have lawfully collected plants from the wild will have to disclose this fact, even if the plants have later been grown in a nursery for a full growing season. Sellers will, however, be free to add to the wild- origin disclosure a statement that the plant has been grown in a nursery for a full growing season, if they wish. By defining what is meant by ``propagated'' and ``propagation,'' the proposed amendments also will clarify that it is only the plants being offered for sale, not those from which they are descended, that are subject to the Guides' disclosure requirement. The Commission, however, has concluded that the words ``are recognized and'' that the petitioners included in their proposed amendment to Guide 6 are neither necessary nor helpful and therefore has omitted them. The Commission also is using slightly revised wording for the two proposed new definitions for the Guides so that: (1) Each definition consists of just one sentence; (2) the two terms being defined are for words actually used in the Guides rather than variants of them (i.e., define ``nursery-propagated'' rather than ``nursery- propagated stock'' and ``propagated'' rather than ``propagation''); and (3) the definitions do not use a word that is itself part of the term being defined (i.e., do not use the word ``propagated'' in the definition of the term ``nursery-propagated''). Lastly, the Commission is revising Sec. Sec. 18.1(a), 18.2(a)-(b), 18.3(a), 18.4(a)-(b), 18.5, 18.6, 18.7(a)-(b), and 18.8(a)-(b) of the Guides. Specifically, the Commission is deleting from the Guides the expressions ``it is an unfair trade practice'' and ``has the capacity and tendency or effect of deceiving purchasers'' that the Commission no longer uses in its orders, rules or guides. The Commission is bringing these Guides up to date by substituting the language ``it is an unfair or deceptive act or practice'' and ``misrepresents directly or by implication.'' See the Commission's 1983 Statement on Deception found in the appendix to Cliffdale Associates, 103 F.T.C. 110, 174 (1984). List of Subjects in 16 CFR Part 18 Advertising, Nursery, Unfair or deceptive acts or practices. Text of Amendments For the reasons set forth in the preamble, 16 CFR Part 18 is amended as follows: PART 18--GUIDES FOR THE NURSERY INDUSTRY 1. The authority citation for part 18 is revised to read as follows: Authority: Secs. 5, 6 FTC Act; 38 Stat. 719, 721; 15 U.S.C. 45, 46. 2. Section 18.0 is amended by removing the paragraph Nursery-grown stock. and by adding the following definitions: Sec. 18.0 Definitions. * * * * * Nursery-propagated. Reproduced and grown under cultivation, including reproduced and grown under cultivation from plants, seeds or cuttings lawfully collected from the wild state. Propagated. Reproduced from seeds, cuttings, callus or other plant tissue, spores or other propagules under a controlled environment that is intensely manipulated by human intervention for the purpose of producing selected species or hybrids. 3. Section 18.1 is amended by revising paragraph (a) to read as follows: Sec. 18.1 Deception (general). (a) It is an unfair or deceptive act or practice to sell, offer for sale, or distribute industry products by any method or under any circumstance or condition that misrepresents directly or by implication to purchasers or prospective purchasers the products with respect to quantity, size, grade, kind, species, age, maturity, condition, vigor, hardiness, number of times transplanted, growth ability, growth characteristics, rate of growth or time required before flowering or fruiting, price, origin or place where grown, or any other material aspect of the industry product. * * * * * 4. Section 18.2 is amended by revising paragraphs (a) and (b)(1) and (2) to read as follows: Sec. 18.2 Deception through use of names. (a) In the sale, offering for sale, or distribution of an industry product, it is an unfair or deceptive act or practice for any industry member to use a name for such product that misrepresents directly or by implication to purchasers or prospective purchasers its true identity. (b) Subject to the foregoing: (1) When an industry product has a generally recognized and well- established common name, it is proper to use such name as a designation therefor, either alone or in conjunction with the correct botanical name of the product. (2) When an industry product has a generally recognized and well- established common name, it is an unfair or deceptive act or practice for an industry member to adopt and use a new name for the product unless such new name is immediately accompanied by the generally recognized and well-established common name, or by the correct botanical name, or by a description of the nature and properties of the product which is of sufficient detail to prevent confusion and deception of purchasers or prospective purchasers as to the true identity of the product. * * * * * 5. Section 18.3 is amended by revising the introductory text and paragraph (a) to read as follows: Sec. 18.3 Substitution of products. With respect to industry products offered for sale by an industry member, it is an unfair or deceptive act or practice for any member of the industry: (a) To ship or deliver industry products which do not conform to representations made prior to securing the order or to specifications upon which the sale is consummated, without advising the purchaser of the substitution and obtaining the purchaser's consent thereto prior to making shipment or delivery, where failure to advise would be misleading to purchasers; or * * * * * 6. Section 18.4 is amended by revising paragraphs (a) and (b) to read as follows: Sec. 18.4 Size and grade designations. (a) In the sale, offering for sale, or distribution of industry products, it is an unfair or deceptive act or practice for an industry member to use any term, designation, number, letter, mark, or symbol as a size or grade designation for any industry product in a manner or under any circumstance that misrepresents directly or by implication to purchasers or prospective purchasers the actual size or grade of such products. (b) Under this section industry members offering lining-out stock for sale shall specify conspicuously and accurately the size and age of such stock when failure to do so may misrepresent directly or by implication such stock to purchasers or prospective purchasers. * * * * * 7. Section 18.5 is amended by revising the introductory text to read as follows: Sec. 18.5 Deception as to blooming, fruiting, or growing ability. In the sale, offering for sale, or distribution of industry products, it is an unfair or deceptive act or practice for any industry member to misrepresent directly or by implication to purchasers or prospective purchasers the ability of such products: * * * * * 8. Section 18.6 is revised to read as follows: Sec. 18.6 Plants collected from the wild state. It is an unfair or deceptive act or practice to sell, offer for sale, or distribute industry products collected from the wild state without disclosing that they were collected from the wild state; provided, however, that plants propagated in nurseries from plants lawfully collected from the wild state may be designated as ``nursery- propagated.'' [Guide 6] 9. Section 18.7 is revised to read as follows: Sec. 18.7 Misrepresentation as to character of business. (a) In the sale, offering for sale, or distribution of industry products, it is an unfair or deceptive act or practice for any industry member to represent itself directly or by implication to be a grower or propagator of such products, or any portion thereof, or to have any other experience or qualification either relating to the growing or propagation of such products or enabling the industry member to be of assistance to purchasers or prospective purchasers in the selection by them of the kinds or types of products, or the placement thereof, when such is not the fact, or in any other manner to misrepresent directly or by implication the character, nature, or extent of the industry member's business. Note: Among practices subject to the inhibitions of this section is a representation by an industry member to the effect that he is a landscape architect when his training, experience, and knowledge do not qualify him for such representation. (b) It is also an unfair or deceptive act or practice for an industry member to use the word ``guild,'' ``club,'' ``association,'' ``council,'' ``society,'' ``foundation,'' or any other word of similar import or meaning, as part of a trade name, or otherwise, in such a manner or under such circumstances as to indicate or imply that its business is other than a commercial enterprise operated for profit, unless such be true in fact, or so as to deceive purchasers or prospective purchasers in any other material respect. [Guide 7] 10. Section 18.8 is revised to read as follows: Sec. 18.8 Deception as to origin or source of industry products. (a) It is an unfair or deceptive act or practice to sell, offer for sale, or advertise an industry product by misrepresenting directly or by implication the origin or source of such product to purchasers or prospective purchasers (e.g., by use of the term ``Holland'' to describe bulbs grown in the U.S.A.); provided, however, that when a plant has an accepted common name that incorporates a geographical term and such term has lost its geographical significance as so used, the mere use of such common names does not constitute a misrepresentation as to source or origin (e.g., ``Colorado Blue Spruce,'' ``Arizona Cypress,'' ``Black Hills Spruce,'' ``California Privet,'' ``Japanese Barberry,'' etc.). (b) It is also an unfair or deceptive act or practice to advertise, sell, or offer for sale an industry product of foreign origin without adequate and non-deceptive disclosure of the name of the foreign country from which it came, where the failure to make such disclosure would be misleading to purchasers or prospective purchasers. [Guide 8] By direction of the Commission, Commissioner Varney not participating. Donald S. Clark, Secretary. [FR Doc. 94-30706 Filed 12-13-94; 8:45 am] BILLING CODE 6750-01-P