[Federal Register Volume 61, Number 23 (Friday, February 2, 1996)] [Rules and Regulations] [Pages 3799-3800] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-2261] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION 16 CFR Part 22 Guides for the Hosiery Industry AGENCY: Federal Trade Commission. ACTION: Rescission of the guides for the hosiery industry. ----------------------------------------------------------------------- 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 Hosiery Industry (``Guides'' or ``Hosiery Guides''). The Commission has decided to rescind the Guides. EFFECTIVE DATE: February 2, 1996. FOR FURTHER INFORMATION CONTACT: Ann Stahl Guler, Investigator, Federal Trade Commission, Los Angeles Regional Office, 11000 Wilshire Blvd., Suite 13209, Los Angeles, CA 90024, (310) 235-7890. SUPPLEMENTARY INFORMATION: I. Background The Hosiery Guides were issued by the Commission in 1979.\1\ The Guides concerned deceptive advertising and marketing of all hosiery industry products, including stockings and socks that are marketed to men, women, and children. Specifically, the Guides proscribed misrepresentations as to the grade, character, construction, origin, denier, size, style, fashion, gauge, twist of yarn, quality, quantity, value, price, serviceability, resistance to snagging or the development of runs, holes or breaks in the in fabric, strength, stretch, length, color, finish, manufacture, or distribution of any hosiery product. The Hosiery Guides also delineated the use of the terms ``lisle,'' ``irregulars,'' and ``seconds'' as they apply to hosiery. \1\ The Guides were originally issued as Trade Practice Rules. The Commission reissued them as guides in 1979 when it rescinded all Trade Practice Rules. 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. --------------------------------------------------------------------------- On April 15, 1994, the Commission published a Notice in the Federal Register soliciting comment on the Hosiery Guides.\2\ Specifically, the Commission solicited comments on six questions pertaining to the costs and benefits of the guides and their regulatory and economic effect. The initial closing date for comments was June 14, 1994. The Commission subsequently extended the comment period until July 14, 1994. The Commission received 52 comments in response to the Notice. They are discussed in Part II below. \2\ 59 FR 18004. --------------------------------------------------------------------------- II. Comments Received The Commission received comments from 18 individuals, all of whom focused on three issues related to women's history: fit, durability, and the need for labels in pantyhose. Several commenters complained that pantyhose wear out too quickly; others stated that pantyhose either are ill-fitting or that their packaging reflects incorrect sizes. Eight of the commenters asked the Commission to require that labels be sewn in pantyhose. Three of the individual commenters praised the quality of hosiery currently available to American consumers, and supported retention of the Hosiery Guides. One government official submitted two comments. Lydia Justice Edwards, State Treasurer of Idaho, asked the Commission in her first comment to expand the Hosiery Guides to mandate labeling on hosiery packages. The State Treasurer submitted a proposed specification chart listing such characteristics as the fiber and weight of the fabric, as well as the type of stitch used. She also proposed that the Commission develop a rating system that would enable purchasers to evaluate and compare among brands such characteristics as resistance to runs and snags, elasticity, and durability. Ms. Edwards further suggested that the Commission develop a uniform sizing method that all hosiery manufacturers would be required to use. Her first comment also recommended that manufacturers be required to provide a means for consumers to examine and touch hosiery before making a purchase decision. The State Treasurer's second comment proposed that the Commission mandate for every hosiery product a ``statement of guarantee'' that the product is in perfect condition and meets a minimum quality standard. The Crafted With Pride in the U.S.A. Council, Inc. urged the Commission not to modify current labeling requirements relating to country of origin. Twenty-nine comments were received from individual hosiery manufacturers. The National Association of Hosiery Manufacturers (NAHM) and the American Textile Manufacturers Institute (ATMI) also submitted comments. All of the industry commenters supported the continuation of the Guides. The NAHM and its members stated that the guides provide a sound set of principles for the advertising and marketing of hosiery products, and ensure that consumers are provided with fair and accurate information. The ATMI commented that the guides are beneficial to the industry because they provide information on deceptive practices, definitions of hosiery and product classes, labeling information, and product sizing guidance. The NAHM and 14 hosiery firms recommended that the Guides' definition of ``Industry Products'' be amended to include ``tights'' and to delete ``anklets.'' The NAHM and its members also requested that the FTC include in the Guides a definition of the terms ``non-run,'' ``no-run,'' and ``run-resistant'' that were contained in a Commission decision dismissing a complaint against Holeproof Hosiery Company.\3\ \3\ 47 F.T.C. 1668 (1951). --------------------------------------------------------------------------- III. Conclusion Although the comments submitted to the Commission supported retaining the Guides, they did not clearly demonstrate why the hosiery industry in particular needs special Commission guidance in the advertising or sale of its products. In this regard, the Commission notes that hosiery products are covered by its Textile Rules \4\ and Care Labeling Rule.\5\ The Textile Rules require that textile products be labeled with the fiber content, the name or registered identification number of the manufacturer or other responsible company, and the country of origin. For hosiery products, the required information may appear on the packaging and need not be on a label [[Page 3800]] affixed to the product itself.\6\ Under the Care Labeling Rule, items of textile wearing apparel must be labeled with appropriate care instructions. For most such items, the care instructions must appear on a label permanently attached to the product. However, hosiery products have been granted an exemption from the labeling requirement if care instructions accompany the product on a tag or on packaging.\7\ \4\ Rules and Regulations under the Textile Fiber Products Identification Act, 16 CFR Part 303. \5\ Trade Regulation Rule concerning Care Labeling of Textile Wearing Apparel and Certain Piece Goods as Amended, 16 CFR Part 423. \6\ 16 CFR 303.15(c). \7\ In addition, certain hosiery products which can be machine washed and dried at hot settings without damage and without transferring their dye to other fabrics, and which sell at retail for less than $3.00, need not provide any form of care instructions. --------------------------------------------------------------------------- In addition, the Commission notes that industry self-regulation efforts, led by the NAHM, already exist in certain technical areas. For example, the industry currently conforms sizing of all hosiery products to a set of voluntary standards.\8\ \8\ Commercial Standard CS 46-49 (last revised in 1990). --------------------------------------------------------------------------- For these reasons, the Commission concludes that it is unnecessary to retain guides specific to the hosiery industry and therefore is rescinding the Guides. If, in the future, practices in the sale of hosiery are determined to be materially misleading and to cause consumer harm, the Commission can address such practices under Section 5 of the Federal Trade Commission Act.\9\ \9\ Section 5 of the FTC Act, 15 U.S.C. 45(a)(1), prohibits unfair or deceptive acts or practices in or affecting commerce. --------------------------------------------------------------------------- The Commission appreciates the concerns raised by the commenters. It declines, however, to expand the coverage of the guides as recommended. First, some of the areas suggested for inclusion in the guides are beyond the Commission's authority under the FTC Act, which is the basis for the content of the guides. Second, the Commission believes that existing rules governing care labeling and labeling of textile products are adequate to protect consumers from deceptive claims concerning the attributes and care of hosiery products. List of Subjects in 16 CFR Part 22 Advertising, Hosiery, Labeling, Trade practices. By direction of the Commission. Donald S. Clark, Secretary. PART 22--[REMOVED] The Commission, under authority of section 18 of the Federal Trade Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code of Federal Regulations by removing Part 22. [FR Doc. 96-2261 Filed 2-1-96; 8:45 am] BILLING CODE 6750-01-M