[Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
[Notices]
[Pages 48162-48163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23078]



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FEDERAL TRADE COMMISSION


``Made in USA'' Consumer Perception Study Information Collection 
Requirements

AGENCY: Federal Trade Commission.

ACTION: Notice of application to OMB under the Paperwork Reduction Act 
(44 U.S.C. 3501 et seq.) for clearance of information collections to 
gather information on consumer perception and attitudes regarding 
``Made in USA'' and other country of origin advertising and labeling 
claims.

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SUMMARY: OMB clearance is being sought for two questionnaires to be 
used in connection with a survey to gather information regarding ``Made 
in USA'' and other country of origin claims in advertising and labeling 
of products. Section 5 of the Federal Trade Commission Act, 15 U.S.C. 
45, directs the Commission to prevent ``deceptive acts and practices.'' 
Under this general authority, the Commission has prohibited deceptive 
``Made in USA'' claims in product advertising and labeling. The 
Commission's longstanding standard in this area is that a manufacturer 
can make an unqualified ``Made in USA'' claim only if the product is 
``wholly of domestic origin.'' See, e.g., Windsor Pen Corp., 64 F.T.C. 
454 (1964).
    Recently, the Commission sought public comments on a proposed 
consent agreement prohibiting unqualified ``Made in USA'' claims for 
both imported products and products assembled in the United States from 
domestic and foreign components. In response, the Commission received 
150 comments, many of which urged reconsideration of the standard, 
stating that it is too stringent, does not reflect current consumer 
perceptions in today's globalized economy, and is inconsistent with 
other government standards. At the same time, Congress has shown 
interest in this issue, most notably by passing the 1994 Crime Bill, 
which provides that certain ``Made in USA'' labels must comply with the 
Commission's standards under Section 5 of the FTC Act. On July 11, 
1995, the Commission announced that it would re-examine the standard by 
(1) conducting a comprehensive review of consumers' perceptions of 
``Made in USA'' and 

[[Page 48163]]
similar claims and (2) holding a public workshop to examine issues 
relevant to the standard.
    The proposed survey is necessary to assist the Commission in 
evaluating its existing standard, determining whether it should be 
changed, and formulating a new standard if appropriate. The 
Commission's existing ``Made in USA'' policy is supported by a 1991 
study showing that approximately 77% of consumers who were asked about 
an unqualified ``Made in USA'' claim interpreted the claim to mean that 
``all or nearly all'' parts and labor are domestic. The test involved 
two different products and asked questions of 400 participants.
    While the test results appear to support the Commission's existing 
policy, evidence also suggests that consumer perceptions are influenced 
by the nature of the claims and the product being tested. Therefore, 
the Commission believes that testing different claims and different 
products would provide a more complete understanding of consumer 
perceptions of country of origin claims. In addition, including a 
larger number of consumers in the survey will provide a broader basis 
from which to evaluate consumer perceptions. Finally, consumer 
perceptions may have changed--even since 1991--due to the rapid 
globalization of our economy. These changes may have occurred to 
differing extents for different products.
    Accordingly, the survey is designed to expand the Commission's 
knowledge by eliciting, for several different products, current 
consumer perceptions of country of origin claims, including ``Made in 
USA claims.'' Although consumer perceptions and attitudes are not the 
only factors to consider in determining the appropriate standard for 
law enforcement in this area, they are extremely important because they 
help to identify which claims deceive consumers. The survey data will 
also be used to assist the Commission in preparing for the upcoming 
public workshop and ensuring that the workshop is as useful, 
productive, and focused as possible.
    The FTC is seeking clearance for two questionnaires to be used in 
connection with the survey. Both questionnaires will be used to 
interview adult consumers in shopping malls around the country. Using 
the first questionnaire, approximately 1,200 consumers will be shown 
advertisements and/or product labels and then asked questions 
concerning product claims. This questionnaire consists of approximately 
30 questions and will take an estimated ten minutes to complete, for a 
total burden estimate of 200 hours.
    The second questionnaire will be used to ask an additional 400 
consumers different questions about product claims. It consists of 
approximately 15 questions and will take an estimated ten minutes to 
complete, for a total burden estimate of 67 hours.

DATES: Comments on this clearance application must be submitted on or 
before October 18, 1995.

ADDRESSES: Send comments both to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3228, Washington, DC 20503, Attn: Desk Officer 
for the Federal Trade Commission and to the Office of the General 
Counsel, Federal Trade Commission, Washington, DC 20580. Copies of the 
application may be obtained from the Public Reference Section, Room 
130, Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Robert Easton, Special Assistant, Division of Enforcement, Bureau of 
Consumer Protection, Federal Trade Commission, Washington, DC 20580 
(202) 326-3029.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-23078 Filed 9-15-95; 8:45 am]
BILLING CODE 6750-01-M