[Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
[Proposed Rules]
[Pages 48056-48063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23039]



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FEDERAL TRADE COMMISSION

16 CFR Part 24


Guides for Select Leather and Imitation Leather Products

AGENCY: Federal Trade Commission.

ACTION: Request for public comment on proposed Guides for Select 
Leather and Imitation Leather Products.

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SUMMARY: The Federal Trade Commission (the ``Commission''), as part of 
its periodic review of its rules and guides, announces that it has 
concluded a review of its Guides for the Luggage and Related Products 
Industry (``Luggage Guides''); Guides for Shoe Content Labeling and 
Advertising (``Shoe Content Guides''); and Guides for the Ladies' 
Handbag Industry (``Handbag Guides''). The Commission rescinds these 
three Guides in a document published elsewhere in this issue of the 
Federal Register. The Commission now seeks public comment on proposed 
Guides for Select Leather and Imitation Leather Products. The proposed 
Guides combine relevant portions of the three Guides, update certain 
language used in the Guides, and make other modifications to clarify 
and streamline the provisions of the Guides. The Commission has 
included within the coverage of the proposed combined Guides the 
provisions of the Commission's Trade Regulation Rule Concerning 
Misbranding and Deception as to Leather Content of Waist Belts (``Waist 
Belt Rule'').

DATES: Written comments on the proposed Guides for Select Leather and 
Imitation Leather Products must be submitted by October 18, 1995.

ADDRESSES: Written comments should be submitted to the Office of the 
Secretary, Federal Trade Commission, Room H-159, Sixth Street and 
Pennsylvania Avenue, N.W., Washington, D.C. 20580, telephone number 
(202) 326-2506. Comments should be identified as ``16 CFR Part 24--
Comment--Proposed Guides for Select Leather and Imitation Leather 
Products''.

FOR FURTHER INFORMATION CONTACT: Susan E. Arthur, Attorney, (214) 767-
5503, Federal Trade Commission, Dallas Regional Office, 100 N. Central 
Expressway, Suite 500, Dallas, Texas 75201.

SUPPLEMENTARY INFORMATION:

I. Background

    The Luggage Guides, promulgated on February 27, 1979, address 
potential deception in the sale, offering for sale, and distribution of 
luggage and related products. Specific industry guidance is provided by 
the Guides in connection with the following:
--disclosures to be made for products made of split leather, imitation 
leather or processed leather, or products which contain backing 
material;
--representations that products are made from the skin of a fictitious 
animal;
--the use of words, terms, depictions or devices that may indicate that 
a product is made of any material when it is not;
--representations that a product is wholly of a particular composition;
--representations that a product is leather when it contains ground, 
pulverized or shredded leather;
--representations that a product is colored, finished or dyed with 
aniline dye or otherwise dyed, embossed, grained, processed, finished 
or stitched in a certain manner; 

[[Page 48057]]

--representations about the hardware, box or frame of products; and
--use of the terms ``waterproof,'' ``dustproof,'' ``warpproof,'' 
``scuffproof,'' and ``scratchproof.''

    The Shoe Content Guides were adopted by the Commission on October 
2, 1962. They contain industry guidance for the labeling and 
advertising of shoe content with respect to the following:

--use of the term ``leather'' on labels and in advertisements;
--disclosures on labels concerning simulated or imitation leather, 
concealed innersoles, split leather, embossed or processed leather, and 
ground or shredded leather;
--disclosures in advertisements that depict non-leather parts of shoes 
or slippers which appear to be made of leather;
--disclosures to be used with terms that are suggestive of leather 
(e.g., ``Duraleather''); and
--use of words or terms which would convey the impression that shoes or 
slippers are made of a certain material when they are not.

    The Handbag Guides were promulgated on June 27, 1969, and address 
potential misrepresentations regarding ladies' handbags and similar 
articles. These Guides specifically address misrepresentations as to 
the composition and other characteristics of such products and provide 
specific industry guidance regarding the following:

--disclosures to be made with respect to a product's composition;
--representations that a product is colored, finished or dyed with 
aniline dye or otherwise dyed, embossed, grained, processed, finished 
or stitched in a certain manner;
--use of the terms ``scuffproof,'' ``scratchproof,'' ``scuff 
resistant,'' and ``scratch resistant;'' and
--deceptive pricing of products.

    In addition, the Handbag Guides address price discrimination, 
advertising and promotional allowances, and the providing of 
promotional services and facilities. The Guides also discuss inducing 
or receiving a discrimination in price, advertising allowance or 
promotional service or facility.
    The Waist Belt Rule, promulgated on June 27, 1964, regulates 
representations made in the sale, offering for sale, and distribution 
of men's and boy's belts, and women's and children's belts when not 
offered for sale as part of a garment. The Rule states that it is an 
unfair method of competition and an unfair or deceptive act or practice 
to:
--represent that a belt not made from the hide of an animal is leather;
--represent that a belt is ``leather'' when it contains ground, 
pulverized, or shredded leather;
--represent that a product is ``leather'' when it contains split 
leather;
--represent that a belt is made from a specified animal hide when it is 
not
--represent that a product is wholly of a particular composition when 
it is not;
--sell or distribute belts which have the appearance of leather, but 
which are made of split leather or ground, pulverized or shredded 
leather or of non-leather material, unless proper disclosure is made;
--sell or distribute belts which have been processed so as to have the 
appearance of a different type of leather, unless proper disclosure is 
made; and
--sell or distribute belts having an outer surface of leather or other 
material, which are backed with a different kind of leather or non-
leather material having the appearance of leather, unless proper 
disclosure is made.
    In response to a request for public comment on the Luggage Guides, 
the Shoe Content Guides and the Ladies' Handbag Guides, the Commission 
received 12 comments. The Commission received 10 comments regarding the 
Waist Belt Rule. Only three of the Waist Belt Rule comments were not 
also submitted in response to the request for comments on the three 
Guides.1

    \1\ Comments Concerning the Three Guides:
     1. Rose E. Kettering (``REK'') Same comment sent regarding 
Waist Belt Rule
     2. Matt Anderson (``MA'') Same comment sent regarding Waist 
Belt Rule
     3. Marilyn Raeth (``MR'') Same comment sent regarding Waist 
Belt Rule
     4. James A. McGarry (``JAM'') Same comment sent regarding Waist 
Belt Rule
     5. Lenna Mae Gara (``LMG'') Same comment sent regarding Waist 
Belt Rule
     6. Linda D. Lipinski (``LDL'')
     7. Footwear Industries of America (``FIA'')
     8. Leather Industries of America, Inc. (``LIA'') Same comment 
sent regarding Waist Belt Rule
     9. Luggage and Leather Goods Manufacturers of America, 
Inc.(``LLGMA'')
    10. Cromwell Leather Company, Inc. (``CL'') Same comment sent 
regarding Waist Belt Rule
    11. Enger Kress (``EK'')
    12. Footwear Distributors and Retailers of America (``FDRA'')
    Comments Concerning the Waist Belt Rule:
    13. Stephen Toso (``ST'')
    14. Humphreys, Inc. (``HI'')
    15. Enger Kress (``EK2'')
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    The Federal Register notice requesting comments on the three sets 
of Guides contained a list of questions designed to assist the 
Commission in determining whether the Guides should be maintained, 
amended or rescinded. Ten of the comments supported retaining the 
Guides in some form,2 one expressed no opinion on the issue,3 
and one comment merely asked a question.4 Six of the comments were 
from consumers,5 one was from a leather tanning company,6 one 
was from a manufacturer of wallets,7 and four were from trade 
associations.8 The following discussion regarding the comments 
received is grouped according to the questions posed in the notice. A 
number of the comments dealt with issues common to all of the Guides 
and the Rule. The comments for all four are addressed together.

    \2\ REK, #1; MA, #2 at 1; MR, #3; JAM, #4; LMG, #5; FIA, #7 at 
1; LIA, #8 at 1; LLGMA, #9 at 2; CL, #10 at 1; EK, #11.
    \3\ FDRA, #12.
    \4\ LDL, #6.
    \5\ REK, #1; MA, #2; MR, #3; JAM, #4; LMG, #5; LDL, #6.
    \6\ CL, #10.
    \7\ EK, #11.
    \8\ FIA, #7; LIA, #8; LLGMA, #9; FDRA, 12.
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    (1) Is there a continuing need for the Guides? Ten of the comments 
indicated that there is a continuing need for the Guides.9

    \9\ REK, #1; MA, #2 at 1; MR, #3; JAM, #4; LMG, #5; FIA, #7 at 
1; LIA, #8 at 1; LLGMA, #9 at 1; CL, #10 at 1; EK, #11 at 1.
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    (a) What benefits have the Guides provided to purchasers of the 
products or services affected by the Guides?
    The comments received indicate that the Guides provide a number of 
benefits to consumers. Two comments suggested that consumers benefit 
from the Guides because the Guides require identification of imitation 
leather content, which, when used in shoes, may cause feet to sweat 
excessively.10 Another comment stated that the disclosure 
requirements in the Guides benefit consumers because leather has 
special properties of durability, breathability, and 
flexibility.11 One comment indicated that animal lovers, 
vegetarians and others who do not wish to wear leather need to know 
what they are buying.12 Four comments indicated that the 
requirements of the Guides otherwise assist consumers in making 
purchasing decisions.13

    \10\ REK, #1; MA, #2 at 2.
    \11\ FIA, #7 at 1.
    \12\ LMG, #5.
    \13\ MR, #3; JAM, #4; EK, #11 at 1; CL, #10 at 2.
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    (b) Have the Guides imposed costs on purchasers? The comments 
indicated that costs to purchasers are minimal.14

    \14\ EK, #11 at 1; FIA, #7 at 2.
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    (2) What changes, if any, should be made to the Guides to increase 
the benefits of the Guides to purchasers?
    A number of the comments suggested that certain changes be made to 
the Guides. Generally, these suggestions fall 

[[Page 48058]]
into the following categories: Definitions and use of the term 
``Leather,'' Disclosure Requirements, Scope of the Guides, and Use of 
the term ``Bonded Leather.''
--Definitions and Use of the Term ``Leather''
    One comment suggested that the Guides incorporate definitions of 
the terms ``Leather,'' ``Bonded Leather,'' and ``Manmade.'' 15 
Another comment suggested that a section should be added stating what 
materials are covered and giving a definition of each.16 These 
additional definitions are not necessary because the Guides clearly 
cover all types of leather and all materials with the appearance of 
leather.

    \15\ LIA, #8 at 4-5.
    \16\ LLGMA, #9 at 2-3.
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    Three comments suggested that ``man-made'' should be used to 
describe certain non-leather products rather than ``simulated leather'' 
and similar terms using the word ``leather.'' 17 One comment 
suggested that ``man-made'' be added to the list of examples of non-
leather products and that ``urethane'' be recognized as a material 
which is often used in industry products.18 The terms listed in 
the Guides as examples of appropriate disclosures for non-leather 
materials are adequate and would clearly indicate to consumers that a 
particular material is not leather. Because these terms are merely 
examples, it is not necessary to make additions to the list.

    \17\ FIA, #7 at 2; LIA, #8 at 4-5; LLGMA, #9 at 2-3.
    \18\ EK, #11 at 2.
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    Two comments urged that the Guides be amended to allow split 
leather to be called ``leather'' because the European Union countries 
allow that term to be used without qualification to describe split 
leather.19 However, insufficient support was presented to justify 
modification of this aspect of the Guides. In support of preservation 
of the Guides' distinction between top grain and split leather, one 
comment stated that split grain is less expensive, less attractive, and 
less durable than top grain leather, and that split leather is subject 
to ``crocking.'' 20 Another comment stated that the Guides should 
continue to permit only top grain leather to be called ``leather'' or 
``genuine leather'' and that other forms of leather should include 
qualifying words.21 The apparent differences between the 
performance and appearance of top grain leather and that of split 
leather, as well as possible consumer expectations with regard to these 
materials, indicate that the Guides should continue to state that only 
top grain leather products should be called ``leather'' without 
qualification.

    \19\ LIA, #8 at 4; FDRA, #12 at 3.
    \20\ FIA, #7 at 2. Crocking is the transfer of color from the 
surface of a colored material to an adjacent area of the same 
material or to another surface, principally by rubbing.
    \21\ CL, #10 at 1.
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--Disclosure Requirements
    The Guides contain a section specifically setting forth a method of 
making disclosures. Regarding the form of disclosures, one comment 
suggested that the Luggage Guides should be amended to state that the 
type of outer material used in the product must be permanently stamped 
on the product or on a label sewn into the product and that composition 
information regarding any other part of the product may be stamped 
either on the product, or on a tag, label, or card attached 
thereto.22 There is insufficient justification for this amendment 
because consumers are adequately protected by the current provision 
which provides that disclosures should be stamped either on the product 
or on a tag, label, or card attached to the product until the consumer 
receives the item. A comment regarding the Waist Belt Rule suggested 
that using abbreviations in disclosures may be deceptive.23 Some 
abbreviations that might be used may not be readily understood by 
consumers; however, the current disclosure provisions in the Guides 
already discourage deceptive abbreviations.

    \22\ LLGMA, #9 at 4.
    \23\ ST, #13.
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    A suggestion was made in one comment to adopt the ``present 
industry practice'' of identifying embossed products by the name of the 
animal skin and by the name of the animal which is imitated in the 
appearance of the material, for example, ``pigskin grain cowhide.'' 
24 This method may be deceptive because it may be unclear which 
term describes the composition and which term describes the imitated 
grain. The Guides are not changed with regard to this type of 
disclosure.

    \24\ LLGMA, #9 at 3.
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    One comment urged the Commission to delete the disclosure provision 
relating to composition of backing material because it was alleged that 
the provision was confusing and did not reflect current industry 
practice. It was further alleged that disclosures were unnecessary 
because backing material is not visible and is only used as support for 
the outer covering.25 Because no substantiation was provided for 
these allegations, this change has not been made.

    \25\ LLGMA, #9 at 3.
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    A suggestion was made that, due to a change in consumer 
preferences, the Commission should delete the provision regarding 
affirmative disclosure of manmade materials.26 This comment stated 
that great strides have been made in the manufacture of synthetic 
materials and that such materials are often preferred. However, as 
discussed above, it appears that consumers believe that the Guides' 
suggested disclosures relating to manmade materials provide important 
information. Therefore, the Commission is not making the recommended 
change. The same comment stated that the Guides should be ``clarified'' 
with regard to multi-material uppers, and that a disclosure such as 
``leather upper with manmade materials'' should be allowed. The Guides 
currently indicate that disclosure as to individual components should 
be made; therefore, a broad, non-specific disclosure would not be in 
accordance with the Guides. The recommended change has not been made.

    \26\ FDRA, #12 at 3.
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    An additional comment argued that the Guides should require country 
of origin disclosures.27 Country of origin labeling for imported 
products is addressed by statute and U.S. Customs Service 
regulations.28 The FTC Guides address the nature of the product, 
not its source. Therefore, incorporation of such a requirement in these 
Guides would be inappropriate. Another comment stated that efforts to 
acquaint foreign manufacturers with the Guides should be made.29 
While this suggestion has merit, it is not appropriate to address it in 
the Guides.

    \27\ EK, #11 at 1-2.
    \28\ 19 U.S.C. 1304; 19 CFR Part 134.
    \29\ LIA, #8 at 2.
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--Scope of the Guides
    Several of the comments argued that the scope of the Guides should 
be modified. One comment concerning the Luggage Guides suggested that 
Parts 24.3 (deceptive practices as to aniline finish, graining, 
embossing and processing), 24.4 (deception as to hardware, frame or 
box) and 24.5 (misuse of the terms ``waterproof,'' ``dustproof,'' 
``warpproof,'' ``scuffproof,'' and ``scratchproof'') should be deleted 
because they deal with specific deceptive claims that are covered by 
the general deception paragraph, 24.1.30 Part 24.4 is deleted 
because it does not deal with the nature of leather and 

[[Page 48059]]
imitation-leather materials and is appropriately handled in the general 
deception paragraph. However, the other two sections, which deal 
primarily with the processing and manufacturing of materials used in 
leather and imitation-leather products, provide useful guidance for 
industry members and are retained.

    \30\ EK, #11 at 2.
    A suggestion was made that the Shoe Content Guides should apply 
only to shoe uppers and outersoles because those are the parts of a 
shoe upon which consumers base decisions, and there is limited space on 
a shoe for markings.31 Another comment urged that the Guides 
should not apply to concealed innersoles because consumers expect that 
the concealed portions of footwear bottoms, particularly innersoles, 
are made of synthetic material.32 However, no supporting evidence 
of consumer beliefs was supplied for either of these comments. Since it 
appears that useful information regarding other components of industry 
products is provided pursuant to the Guides, the Guides will remain as 
they are with respect to this issue.

    \31\ FIA, #7 at 3.
    \32\ FDRA, #12 at 4.
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--Use of the Term ``Bonded Leather''
    Several of the comments received dealt with the issue of ``bonded 
leather,'' which generally refers to material made of leather fibers 
held together with a bonding agent. Several comments suggested 
permitting use of the term ``bonded leather'' for materials containing 
at least 75% leather fiber.33 This, it was argued, would allow 
limited addition of non-leather fibers to improve strength, humidity 
expansion and heat resistance.34 One comment stated that this 75% 
figure reflects a ``widespread consensus'' in the leather tanning and 
manufacturing industries.35 Another called 75% an ``industry 
practice.'' 36 However, insufficient evidence was submitted to 
establish that the 75% figure is an industry standard.

    \33\ FIA, #7 at 3; LIA, #8 at 5; LLGMA, #9 at 3-4; CL, #10 at 3.
    \34\ CL, #10 at 3.
    \35\ CL, #10 at 3.
    \36\ LLGMA, #9 at 4.
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    Even if the 75% figure were an industry practice or standard, it 
would not prevent deception. In a comment regarding the Waist Belt 
Rule, consumer survey evidence was provided in support of use of the 
term ``bonded leather.'' 37 However, this survey indicated that 
23.2% of the people surveyed believe the term means genuine cowhide 
leather. 57.2% believe the term means reprocessed leather scrap.38 
Although the submitters of the survey asserted that ``reprocessed 
leather scrap'' was the correct response, if other fibers have been 
added to leather fibers, it would be deceptive to refer to the entire 
mixture of materials as leather scrap. Use of the term ``bonded 
leather'' standing alone violates the Guides as they existed prior to 
this time. Without further qualification, the term would not appear to 
inform consumers that non-leather fibers are contained in the material. 
Further, some consumers may interpret the term ``bonded'' to mean 
material of a greater quality than leather,39 or strengthened or 
reinforced leather.

    \37\ HI, #14, part 6.
    \38\ HI, #14, part 6.
    \39\ EK, #11 at 3.
    A final comment suggested adding the term ``bonded leather'' to 
that section of the Guides which addresses use of the terms ``ground, 
pulverized or shredded leather.'' 40 This suggestion has merit. 
Currently, two of the Guides and the Rule would allow use of terms such 
as ``pulverized leather'' to describe the content of materials. 
However, the Luggage Guides appear to suggest that disclosure be made 
of all materials contained in ground, pulverized or shredded leather. 
Such disclosures are useful, but may be lengthy. The proposed Guides 
now state that manufacturers should only use terms such as ``ground 
leather,'' ``pulverized leather,'' ``shredded leather'' or ``bonded 
leather'' to identify the products made of such materials if there is a 
disclosure of the amount of leather fibers and of the amount of non-
leather substances contained in the material.

    \40\ FIA, #7 at 3.
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    One comment specifically opposed use of the term ``bonded 
leather,'' and suggested that ground, pulverized or shredded leather 
should continue to be identified as non-leather material, with 
disclosures such as ``simulated leather containing leather fibers.'' 
41 Another comment stated that calling a product leather if it 
contains little leather is deceptive.42 The Commission believes 
that the term ``bonded leather'' could be confusing to consumers who do 
not know that ``bonded leather'' may include substances other than 
leather. This is equally true with respect to ground, pulverized or 
shredded leather. However, a disclosure of the amount of leather fiber 
and of the amount of non-leather materials in a product is an effective 
way of preventing this deception. Further, providing a means by which a 
product which contains substantial amounts of leather can be 
distinguished in some way from totally simulated leather would be in 
the best interest of consumers. Thus, the proposed Guides state that if 
the terms ``ground leather,'' ``pulverized leather,'' ``shredded 
leather'' or ``bonded leather'' are used to describe materials, then a 
disclosure of the percentage of leather fiber and of the percentage of 
other substances contained should be made.

    \41\ EK, #11 at 3.
    \42\ CL, #10 at 3.
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    (a) How would these changes affect the costs the Guides impose on 
firms subject to their requirements?
    The comment suggesting country of origin labeling stated that such 
a requirement would impose no additional cost on firms.43 One of 
the comments urging that the definition of leather include split 
leather stated that costs would be reduced by permitting a single 
standard for labeling in this country and in the European Union. No 
other comments addressed this question.

    \43\ EK, #11 at 2.
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    (b) Would it be useful to the affected industries if the Luggage 
Guides, the Shoe Content Guides, and the Handbag Guides were combined 
into one set of industry guides that address all of these products or 
leather products in general?
    One comment recommended that all Guides concerning leather be 
consolidated.44 Another said that one set of guides should be made 
to cover all leather-using industries.45 One comment stated that 
the Guides could be generalized to many if not all industries.46 
One comment urged the Commission to maintain separate Guides because 
the manufacturing processes are separate and distinct.47 The 
Luggage and Leather Goods Manufacturers of America stated that it did 
not endorse combining the Guides.48 A final comment suggested that 
a set of leather definitions be developed to apply to all finished 
goods.49

    \44\ LIA, #8 at 2.
    \45\ CL, #10 at 1.
    \46\ EK, #11 at 2.
    \47\ FIA, #7 at 4.
    \48\ LLGMA, #9 at 2.
    \49\ LIA, #8 at 4-5.
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    The Commission believes that the three Guides should be combined 
because of the similarity of the composition issues addressed by each 
of the Guides. Further, the Commission believes it is appropriate to 
include in the combined Guides the provisions of the Waist Belt Rule. 
However, the Commission seeks further comments on the issue of whether 
the Guides should be expanded to cover other products containing 
leather and imitation leather. These products would include, for 

[[Page 48060]]
example, clothing, furniture,50 watchbands, and equestrian items 
such as saddles. In particular, the Commission seeks comment as to 
whether there are special considerations for these different products 
which are not addressed by the proposed Guides.

    \50\  Representations concerning leather and imitation-leather 
furniture currently are covered by the Commission's Guides for the 
Household Furniture Industry, 16 CFR 250.4.
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    (3) What significant burdens or costs, including costs of 
adherence, have the Guides imposed on firms subject to their 
requirements?
    The comments indicated that the costs are minimal.51

    \51\ FIA, #7 at 2; LIA, #8 at 2; EK, #11 at 1.
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    (a) Have the Guides provided benefits to such firms?
    One comment said that the Guides give industry members some 
assurance that all companies are labeling their products consistently 
and that valid comparisons can be made by consumers.52

    \52\ EK, #11 at 2.
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    (4) What changes, if any, should be made to the Guides to reduce 
the burdens or costs imposed on firms subject to their requirements?
    One comment indicated that if the Guides cannot realistically be 
enforced, then eliminating the regulation would reduce costs.53 
The same comment supported simple, less complex regulation.54 One 
of the comments stated that costs would be reduced by permitting a 
single standard for labeling in this country and in the European Union. 
Another comment stated that no changes to the Guides need be made 
specifically to reduce costs of compliance.55

    \53\ LIA, #8 at 2.
    \54\ LIA, #8 at 3.
    \55\ EK, #11 at 2.
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    (a) How would these changes affect the benefits provided by the 
Guides?
    No comments were received regarding this question.
    (5) Do the Guides overlap or conflict with other federal, state, or 
local laws or regulations?
    One comment indicated that there is no overlap with other laws or 
regulations.56 Another comment suggested that the Commission 
examine the labeling practices in the European Union and review the 
North American Free Trade Agreement and the Caribbean Basin 
Initiative.57 A review of information provided by one commenter 
regarding the European Union Directive on Footwear Labeling revealed 
little similarity between it and the Guides. The calculation of shoe 
material area used in the directive (if two materials are present, they 
must be listed in descending order of area or volume) and the 
differences in terminology may serve to make the Guides more, rather 
than less, complex. Further, unlike the Guides, the directive allows 
use of symbols to indicate type of material. While symbols might be an 
effective, simpler way of providing information to consumers, symbols 
have not been used before in this country in this context. An extensive 
consumer education program would be required to implement the use of 
such symbols. Further, the Guides currently provide consumers with more 
information than does the use of the symbols adopted by the European 
Union. A review of NAFTA and CBI revealed no conflicts with the Guides.

    \56\ EK, #11 at 2.
    \57\ LIA, #8 at 2.
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    (6) Since the Guides were issued, what effects, if any, have 
changes in relevant technology or economic conditions had on the 
Guides?
    Two comments suggested that today's ecological concerns dictate 
that leather scraps be used in ``bonded leather'' rather than disposed 
of as waste.58 While not designed to address ecological concerns, 
the Guides may encourage the use of leather scraps because they provide 
that, if the term ``bonded leather'' is used, a disclosure regarding 
the percentage of leather fibers in the material should be made.

    \58\ LIA, #8 at 4; CL, #10 at 2.
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    As discussed above, two comments urged that the Guides be amended 
to allow split leather to be called ``leather.'' One of the reasons 
given for suggesting this change is that technological advances have 
resulted in a split leather which is superior to that produced years 
ago.59 However, another comment encouraged retaining the 
distinction because split leather is less expensive, less attractive, 
and less durable than top grain leather, and split leather is subject 
to ``crocking.'' 60 Insufficient support was presented to justify 
modification of this aspect of the Guides.

    \59\ LIA, #8 at 4; FDRA, #12 at 3.
    \60\ FIA, #7 at 2.
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    As discussed above, one comment urged the Commission to delete the 
requirement that the presence of manmade materials be affirmatively 
disclosed.61 The comment stated that great strides have been made 
in the manufacture of synthetic materials and that such materials are 
often preferred. This recommended change has not been made because it 
appears that consumers obtain important information from this 
disclosure and may use this information to select the material of their 
choice.

    \61\ FDRA, #12 at 3.
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    (7) Do members of the ladies' handbag industry require these 
industry-specific Guides for information about the standards applicable 
to price discrimination and discriminatory promotional allowances, or 
could equally helpful guidance be obtained from more general sources 
such as the Fred Meyer Guides?
    No comments were received regarding this question. These 
interpretive statements are duplicative of Sections (a) and (f) of the 
Robinson-Patman Act with respect to price discrimination, and 
duplicative of the Guides for Advertising Allowances and Other 
Merchandising Payments and Services, 16 CFR Part 240 (commonly known as 
the ``Fred Meyer Guides''), which interpret Sections (d) and (e) of the 
Robinson-Patman Act, and Section 5 of the Federal Trade Commission Act 
with respect to discriminatory promotional allowances and services. A 
general statement of policy, such as that contained in the Fred Meyer 
Guides, is preferable to industry-specific Guides. Therefore, these 
sections of the Ladies' Handbag Guides have not been incorporated into 
the proposed Guides.

II. Conclusion

    A review of the comments and of the three Guides indicates that 
retention and consolidation of their basic principles into one set of 
Guides is clearly warranted. Furthermore, the provisions of the Waist 
Belt Rule should be incorporated into the consolidated Guides. The 
Guides and the Waist Belt Rule deal with very similar issues. The 
nature of the covered products and the related concerns regarding 
composition are such that combining their provisions would be an 
efficient and effective way to prevent deception in this area. The 
Commission also believes that the Guides probably should cover other 
products made of leather or imitation leather. However, it is seeking 
additional comment before deciding whether to include such products 
within the scope of the Guides.
    The proposed Guides consolidate 16 CFR Parts 24, 231, and 247. The 
language of the proposed Guides has been simplified and clarified, as 
well as updated to reflect current Commission legal standards.
    In addition, the proposed Guides incorporate the following 
modifications:

--The Guides now include all products formerly covered by the three 
Guides and the Rule; boots were added as well.
--The scope of the Guides has been broadened to include deception in 
the 

[[Page 48061]]
marketing and advertising of industry products.
--A sentence setting forth the circumstances under which the 
unqualified term ``leather'' may be used is included for clarity. A 
similar provision was contained in the Shoe Guides.
--With regard to ground, pulverized, shredded, or bonded leather, the 
proposed Guides state that manufacturers of such materials may choose 
to identify the material as non-leather, or as ground, pulverized, 
shredded, or bonded leather. The Guides state that if the terms 
``ground leather,'' ``pulverized leather,'' ``shredded leather,'' or 
``bonded leather'' are used, a disclosure of the percentages of leather 
fibers and non-leather substances in the material should be made. The 
section regarding visible backing material has been clarified with 
regard to the use of the terms ``ground leather,'' ``pulverized 
leather,'' ``shredded leather,'' or ``bonded leather'' to describe 
backing materials.
--Provisions relating to the terms ``scuffproof'' and ``scratchproof'' 
have been amended to include other terms indicating that the product is 
resistant to wear. Use of terms such as ``scuff resistant'' and 
``scratch resistant'' are addressed in an added section. This provision 
was taken from the Ladies' Handbag Guides.
--The section specifically dealing with deception as to the hardware, 
frame, or box of luggage has been deleted as unnecessary. This is 
covered by the general deception section.
--The Shoe Guides have a specific section relating to concealed 
innersoles. To avoid being too industry-specific, concealed innersoles 
are addressed in the proposed Guides in a footnote in the section 
concerning misrepresentations that a product is wholly of a particular 
composition.
--The Ladies' Handbag Guides included a section regarding deceptive 
pricing. Deceptive pricing is specifically covered by the general 
deception section; a separate section is not necessary and is therefore 
not included in the proposed Guides.62

    \62\ Additional guidance regarding this issue is provided by the 
Commission's Guides Against Deceptive Pricing, 16 CFR Part 233.
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--Finally, for the reasons discussed above, the price discrimination 
and related areas are not addressed in the proposed Guides.

III. Questions for Comment

    The Commission seeks public comment on the following questions:
    1. Should the proposed Guides for Select Leather and Imitation 
Leather Products be expanded in scope to include other products made of 
leather or imitation leather? Such products might include, but are not 
limited to, clothing, furniture, watchbands, and equestrian items.
    2. Are there special considerations for these or other leather or 
imitation-leather goods which are not addressed by the proposed Guides? 
How could any such special considerations be addressed by the Guides?

List of Subjects in 16 CFR Part 24

    Advertising, Distribution, Imitation-leather products, Labeling, 
Ladies' handbags, Leather and leather products industry, Luggage and 
related products, Shoes, Trade practices, Waist belts.

    The Commission proposes to amend Title 16 of the Code of Federal 
Regulations by adding a new Part 24 to read as follows:

PART 24--GUIDES FOR SELECT LEATHER AND IMITATION LEATHER PRODUCTS

Sec.
24.0  Scope of Guides.
24.1  Deception (general).
24.2  Deception as to composition.
24.3  Deceptive practices as to aniline finish, graining, embossing 
and processing.
24.4  Misuse of the terms ``waterproof,'' ``dustproof,'' 
``warpproof,'' ``scuffproof,'' ``scratchproof,'' ``scuff 
resistant,'' or ``scratch resistant.''

    Authority: 15 U.S.C. 45, 46.


Sec. 24.0  Scope of Guides.

    These Guides apply to the manufacture, sale, distribution, 
marketing, or advertising of all kinds or types of leather or 
simulated-leather trunks, suitcases, traveling bags, sample cases, 
instrument cases, brief cases, ring binders, billfolds, wallets, key 
cases, coin purses, card cases, french purses, dressing cases, stud 
boxes, tie cases, jewel boxes, travel kits, gadget bags, camera bags, 
ladies' handbags, shoulder bags, purses, pocketbooks, shoes, boots, 
slippers, belts (when not sold as part of a garment) and similar 
articles (hereinafter, ``industry product'').


Sec. 24.1  Deception (general).

    It is unfair or deceptive to misrepresent, directly or by 
implication, the kind, grade, quality, quantity, material content, 
thickness, finish, serviceability, durability, price, origin, size, 
weight, ease of cleaning, construction, manufacture, processing, 
distribution, or any other material aspect of an industry product.


Sec. 24.2  Deception as to composition.

    It is unfair or deceptive to misrepresent, directly or by 
implication, the composition of any industry product or part thereof. 
It is unfair or deceptive to use the unqualified term ``leather'' or 
other unqualified terms suggestive of leather unless the industry 
product so described is composed in all substantial parts of top grain 
leather.1 This section includes, but is not limited to, the 
following:

    \1\ The composition of heels, stiffenings, and ornamentation are 
not considered when making the determination of whether a shoe, 
boot, or slipper may be called ``leather''.
---------------------------------------------------------------------------

    (a) Split leather. If all or part of an industry product is made of 
split leather and the split leather is visible or if any representation 
is made as to the product's composition, then the presence of the split 
leather should be disclosed. For example:

Split Cowhide.

    Note: For purposes of these Guides, leather from portions of 
hides or skins that have been split into two or more thicknesses, 
other than the grain or hair side, shall be considered split 
leather.

    (b) Imitation or simulated leather. If all or part of an industry 
product is made of non-leather material that appears to be leather, the 
fact that the material is not leather, or the general nature of the 
material as something other than leather, should be disclosed. For 
example:

Not leather;
Imitation leather;
Simulated leather;
Vinyl;
Vinyl coated fabric; or
Plastic.

    (c) Embossed or processed leather. The kind and type of leather 
from which an industry product is made should be disclosed when all or 
part of the product has been embossed, dyed, or otherwise processed so 
as to simulate the appearance of a different kind or type of leather. 
For example:
    (1) An industry product made wholly of top grain cowhide that has 
been processed so as to imitate pigskin may be represented as being 
made of Top Grain Cowhide.
    (2) Any additional representation concerning the simulated 
appearance of an industry product composed of leather should be 
immediately accompanied by a disclosure of the kind and type of leather 
in the product. For example:

Top Grain Cowhide With Simulated Pigskin Grain.
    (d) Backing material. (1) The backing of any material in an 
industry product 

[[Page 48062]]
with another kind of material should be disclosed when the backing is 
not apparent upon casual inspection of the product, or when a 
representation is made which, absent such disclosure, would be 
misleading as to the product's composition. For example:

Top Grain Cowhide Backed With Split Cowhide; or
Split Cowhide Backed With Simulated Leather.

    (2) The composition of the different backing material should be 
disclosed if it is visible and consists of split leather, non-leather 
material with the appearance of leather, or leather processed so as to 
simulate a different kind of leather.
    (e) Fictitious animal designations. A representation should not be 
made, directly or by implication, that an industry product is made in 
whole or in part from the skin or hide of an animal that does not 
exist.
    (f) Misuse of trade names, etc. A trade name, coined name, 
trademark, or other word or term, or any depiction or device should not 
be used if it misrepresents, directly or by implication, that an 
industry product is made in whole or in part from animal skin or hide, 
or that material in an industry product is leather, top grain leather, 
split leather, or other material. This includes, among other practices, 
the use of a stamp, tag, label, card, or other device in the shape of a 
tanned hide or skin or in the shape of a silhouette of an animal, in 
connection with any industry product that has the appearance of leather 
but that is not made wholly or in substantial part from animal skin or 
hide.
    (g) Misrepresentation that product is wholly of a particular 
composition. A misrepresentation should not be made, directly or by 
implication, that an industry product is made wholly of a particular 
composition. A representation as to the composition of a particular 
part of a product should clearly indicate the part to which the 
representation applies.
    (1) Where a product is made principally of top grain leather or of 
split leather but has certain non-leather parts that appear to be 
leather, the product may be described as made of top grain leather or 
split leather so long as accompanied by clear disclosure of the non-
leather parts.2 For example:

    \2\ In the case of shoes, boots, slippers, and related industry 
products that have visible parts with the appearance of leather, the 
composition of concealed innersoles should be disclosed unless the 
term ``leather'' can be used to describe the innersole material 
under these Guides.
---------------------------------------------------------------------------

    (i) An industry product made of top grain cowhide except for frame 
covering, gussets, and partitions that are made of plastic but have the 
appearance of leather may be described as:

Top Grain Cowhide With Plastic Frame Covering, Gussets and 
Partitions; or Top Grain Cowhide With Gussets, Frame Covering and 
Partitions Made of Non-Leather Material.

    (ii) An industry product made throughout, except for hardware, of 
vinyl backed with split cowhide may be described as:

Vinyl Backed With Split Cowhide (See also disclosure provision 
concerning use of backing material in paragraph (d) of this 
section).

    (iii) An industry product made of top grain cowhide except for 
partitions and stay, which are made of plastic-coated fabric but have 
the appearance of leather, may be described as:

Top Grain Cowhide With Partitions and Stay Made of Non-leather 
Material; or
Top Grain Cowhide With Partitions and Stay Made of Plastic-Coated 
Fabric.

    (2) Where a product is made principally of top grain leather and 
its only other parts that appear to be leather are made of split 
leather, the product may be described as made of top grain leather so 
long as accompanied by adequate disclosure of the split leather parts. 
For example: An industry product made of top grain cowhide except for 
frame covering, gussets, and partitions made of split cowhide may be 
described as:

Top Grain Cowhide With Split Cowhide Frame Covering, Gussets, and 
Partitions.

    (h) Ground, pulverized, shredded, or bonded leather. A material in 
an industry product that contains ground, pulverized, shredded, or 
bonded leather and thus is not wholly the hide of an animal should not 
be represented, directly or by implication, as being leather. This 
provision does not preclude an accurate representation as to the 
ground, pulverized, shredded, or bonded leather content of the 
material. However, if the material appears to be leather, it should be 
accompanied by either:
    (1) An adequate disclosure as described by paragraph (b) of this 
section; or
    (2) If the terms ``ground leather,'' ``pulverized leather,'' 
``shredded leather,'' or ``bonded leather'' are used, a disclosure of 
the percentage of leather fibers and the percentage of non-leather 
substances contained in the material. For example: An industry product 
made of a composition material consisting of 60% shredded leather 
fibers may be described as:

Bonded Leather Containing 60% Leather Fibers and 40% Non-leather 
Substances.

    (i) Form of disclosures under this section. All disclosures 
described in this section should appear in the form of a stamping on 
the product, or on a tag, label, or card attached to the product, and 
should be affixed so as to remain on or attached to the product until 
received by the consumer purchaser. All such disclosures should also 
appear in all advertising of such products irrespective of the media 
used whenever statements, representations, or depictions appear in such 
advertising which, absent such disclosures, serve to create a false 
impression that the products, or parts thereof, are of a certain kind 
of composition. The disclosures affixed to products and made in 
advertising should be of such conspicuousness and clarity as to be 
noted by purchasers and prospective purchasers casually inspecting the 
products or casually reading, or listening to, such advertising. A 
disclosure necessitated by a particular representation should be in 
close conjunction with the representation.


Sec. 24.3  Deceptive practices as to aniline finish, graining, 
embossing and processing.

    It is unfair or deceptive to misrepresent, directly or by 
implication:
    (a) That any industry product is colored, finished, or dyed with 
aniline dye; or
    (b) That all or part of any product is dyed, embossed, grained, 
processed, finished or stitched in a certain manner.


Sec. 24.4.  Misuse of the terms ``waterproof,'' ``dustproof,'' 
``warpproof,'' ``scuffproof,'' ``scratchproof,'' ``scuff resistant,'' 
and ``scratch resistant.''

    It is unfair or deceptive to:
    (a) Use the term ``Waterproof'' to describe all or part of an 
industry product unless the designated product or material is 
impermeable to water and moisture.
    (b) Use the term ``Dustproof'' to describe an industry product 
unless the product is so constructed that when it is closed dust cannot 
enter it.
    (c) Use the term ``Warpproof'' to describe all or part of an 
industry product unless the designated product or part is such that it 
cannot warp.
    (d) Use the term ``Scuffproof,'' ``Scratchproof,'' or other terms 
indicating that the product is not subject to wear in any other 
respect, to describe an industry product unless the outside surface of 
the product is immune to scratches or scuff marks, or is not subject to 
wear as represented.
    (e) Use the term ``Scuff Resistant,'' ``Scratch Resistant,'' or 
other terms 

[[Page 48063]]
indicating that the product is resistant to wear in any other respect, 
unless there is a basis for the representation and the outside surface 
of the product is meaningfully and significantly resistant to scuffing, 
scratches, or to wear as represented.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-23039 Filed 9-15-95; 8:45 am]
BILLING CODE 6750-01-P