[Federal Register Volume 63, Number 30 (Friday, February 13, 1998)]
[Rules and Regulations]
[Pages 7508-7523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3495]



[[Page 7507]]

_______________________________________________________________________

Part II





Federal Trade Commission





_______________________________________________________________________



16 CFR Parts 1, 300, 301, and 303



Textile Fiber Products Identification Act, the Wool Products Labeling 
Act, and the Fur Products Labeling Act; Final Rule

  Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / 
Rules and Regulations  

[[Page 7508]]



FEDERAL TRADE COMMISSION

16 CFR Parts 1, 300, 301, and 303


Rules and Regulations Under the Textile Fiber Products 
Identification Act, the Wool Products Labeling Act, and the Fur 
Products Labeling Act

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (Commission or FTC) amends the 
Rules and Regulations Under the Textile Fiber Products Identification 
Act (Textile Rules); the Rules and Regulations under the Wool Products 
Labeling Act (Wool Rules); the Rules and Regulations under the Fur 
Products Labeling Act (Fur Rules); and General Procedures, Subpart D, 
Administration of the Wool Products Labeling Act of 1939, Fur Products 
Labeling Act, and Textile Fiber Products Identification Act.
    The Commission amends the Textile and Wool Rules to: Allow the 
listing of generic fiber names for fibers that have a functional 
significance and constitute less than 5% of the total fiber weight of 
covered products, without requiring disclosure of the functional 
significance of such fibers; eliminate the requirement that the front 
side of a label bear the words ``Fiber Content on Reverse Side'' when 
the fiber content disclosure is on the back of the label; streamline 
and simplify the requirements for placing information on labels; 
incorporate by reference the generic fiber names and definitions for 
manufactured fibers in International Organization for Standardization 
(ISO) Standard 2076: 1989, ``Textiles--Man-made fibres--Generic 
names''; and modify the definitions of terms such as ``mail order 
catalog,'' ``mail order promotional material,'' and ``invoice,'' to 
include those generated and disseminated electronically through the 
Internet or E-mail.
    The Wool Rules have been modified to add examples of fiber labeling 
for articles made from the hair of certain cross-bred, wool-bearing 
animals. In addition, the Commission amends the Textile, Wool, and Fur 
Rules to specify that a Commission registered identification number 
(RN) will be subject to cancellation if, after a change in the material 
information contained on the RN application, a new application that 
reflects current business information is not promptly received by the 
Commission. The Commission amends the Fur Rules to increase the cost 
figure for exemption from the Rules from $20 to $150. Finally, the 
Commission removes Subpart D from its General Procedures.

DATES: The amended Rules are effective on March 16, 1998. The 
incorporation by reference of the ISO standard is approved by the 
Director of the Federal Register as of March 16, 1998.

ADDRESS: Requests for copies of the amended Rules should be sent to the 
Public Reference Branch, Room 130, Federal Trade Commission, 
Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Edwin Rodriguez, Attorney, Division of 
Enforcement, Federal Trade Commission, Sixth St. & Pennsylvania Ave., 
NW, Washington, DC 20580 (202) 326-3147, or Bret S. Smart, Program 
Advisor, Los Angeles Regional Office, Federal Trade Commission, 10877 
Wilshire Blvd., Suite 700, Los Angeles, CA 90024 (310) 824-4314.

SUPPLEMENTARY INFORMATION:

I. Background

    The Textile Fiber Products Identification Act (Textile Act), 15 
U.S.C. 70, and the Wool Products Labeling Act (Wool Act), 15 U.S.C. 68, 
require marketers of covered textile and wool products to mark each 
product with: (1) The generic names and percentages by weight of the 
constituent fibers present in the product, in the order of predominance 
by weight; (2) the name under which the manufacturer or other 
responsible company does business or, in lieu thereof, the RN issued to 
the company by the Commission; and (3) the name of the country where 
the product was processed or manufactured. The Fur Products Labeling 
Act (Fur Act), 15 U.S.C. 69, requires marketers of covered fur products 
to mark each product to show: (1) the name of the animal that produced 
the fur; (2) that the fur product contains or is composed of used fur, 
when such is the fact; (3) that the fur product contains or is composed 
of bleached, dyed, or otherwise artificially colored fur, when such is 
the fact; (4) that the fur product is composed in whole or in 
substantial part of paws, tails, bellies, or waste fur, when such is 
the fact; (5) the name under which the manufacturer or other 
responsible company does business or, in lieu thereof, the RN issued to 
the company by the Commission; and (6) the name of the country of 
origin of any imported furs used in the fur product. The Textile, Wool, 
and Fur Acts also contain advertising and recordkeeping provisions. 
Pursuant to section 7(c) of the Textile Act, 15 U.S.C. 70e(c); section 
6(a) of the Wool Act, 15 U.S.C. 68d(a); and section 8(b) of the Fur 
Act, 15 U.S.C. 69f(b), the Commission has issued implementing 
regulations, the Textile Rules, 16 CFR Part 303; the Wool Rules, 16 CFR 
Part 300; and the Fur Rules, 16 CFR Part 301, respectively.
    On February 12, 1996, the Commission published a Notice of Proposed 
Rulemaking requesting public comment on various possible amendments to 
the Textile Rules (Textile NPR) (61 FR 5340). On December 24, 1996, the 
Commission published two Notices of Proposed Rulemaking, requesting 
public comment on various possible amendments to the Wool Rules (Wool 
NPR) (61 FR 67739) and the Fur Rules (Fur NPR) (61 FR 67748). The 1996 
NPRs followed a May 6, 1994 request for comments issued as part of the 
FTC's ongoing regulatory review program (59 FR 23645-46). In this 
notice, the Commission announces several amendments to the Textile, 
Wool, and Fur Rules, adopted as a result of those prior proceedings. 
The comments, described below, are on the public record and available 
for inspection during business hours in the Public Reference Branch, 
Room 130, Federal Trade Commission, Sixth St. and Pennsylvania Ave., 
N.W., Washington, DC 20580. The comments are cited in this notice by 
number and a shortened form of the name of the commenting party.
    In response to the Textile NPR, 24 comments were filed by 23 
parties, including manufacturers, trade associations, and governmental 
entities.1 In response to the Wool NPR, nine comments were 
filed by eight trade associations and governmental entities, six of 
which had also responded to the

[[Page 7509]]

Textile NPR.2 One comment was filed in response to the Fur 
NPR.3
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    \1\ The parties commenting on the Textile NPR are listed below, 
with the number assigned to each comment by the Office of the 
Secretary and a shortened form of the name used to cite to the 
comment hereafter: (1) The Polyester Council of America (PCA); (2) 
Association of Specialists in Cleaning and Restoration (ASCR); (3) 
American Fiber Manufacturers Association (AFMA); (4) Monsanto 
Company (Monsanto); (5) American Polyolefin Association, Inc. (APA); 
(6) National Association of Hosiery Manufacturers (NAHM); (7) J.C. 
Penney; (8) Ross & Hardies; (9) United States Association of 
Importers of Textiles and Apparel (USA-ITA); (10) Wrangler, Inc. 
(Wrangler); (11) Acrylic Council (Acrylic); (12) American Textile 
Manufacturers Institute (ATMI); (13) Fruit of the Loom; (14) 
Department of the Treasury, U.S. Customs Service (Customs); (15) 
Courtaulds Fibers, Inc. (Courtaulds); (16) Cotton Incorporated 
(Cotton); (17) American Apparel Manufacturers Association (AAMA); 
(18) Mexico, Subsecretaria de Negociaciones Comerciales 
Internacionales (Mexico); (19) Pillowtex Corporation (Pillowtex); 
(20) National Cotton Council of America (NCCA); (21) Courtaulds 
Fibers, Inc. (Courtaulds 2); (22) Pittsfield Weaving Company, Inc. 
(Pittsfield); (23) Industry Canada Consumer Products Directorate 
(Industry Canada); (24) Senator Strom Thurmond (Sen. Thurmond).
    \2\ The parties commenting on the Wool NPR are listed below, 
with the number assigned to the comment by the Office of the 
Secretary and a shortened form of the name used to cite to the 
comment hereafter: (1) American Fiber Manufacturers Association 
(AFMA); (2) The Wool Bureau, Inc. (Wool Bureau); (3) United States 
Association of Importers of Textiles and Apparel (USA-ITA); (4) and 
(4A) Northern Textile Association and Cashmere & Camel Hair 
Manufacturers Institute (NTA-CCMI); (5) American Textile 
Manufacturers Institute (ATMI); (6) Department of the Treasury, U.S. 
Customs Service (Customs); (7) American Apparel Manufacturers 
Association (AAMA); (8) Industry Canada Consumer Products 
Directorate (Industry Canada). (To distinguish between the Textile 
comments and the Wool comments, the term ``wool'' will be used with 
the comment number whenever the Wool comments are referenced.)
    \3\ (1) Fur Information Council of America (FICA).
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II. Fiber Content Identification Labeling

A. Fibers Present in Amounts of Less Than 5%

    Under the Textile and Wool Acts, a covered product is misbranded if 
it does not show on a stamp, tag, label or by other means the generic 
name and percentage of each fiber or combination of fibers present in 
the amount of 5% or more of the total fiber weight of the 
product.4 The Textile Act permits the use of a generic fiber 
name for a fiber present in an amount less than 5% only when the fiber 
has a clearly established and definite functional significance when 
present in the amount contained in the textile product.5 
When such a fiber or combination of fibers does not have a functional 
significance, it must be identified as ``other fiber'' or ``other 
fibers.'' 6 Section 3 of the Textile Rules, 16 CFR 303.3, 
implements this provision of the Textile Act, also stating, in 
subsection (b), that when manufacturers or other parties wish to 
disclose the presence of such a fiber by generic or fiber trademark 
name, the fiber content disclosure must include the functional 
significance of the fiber (for example, ``4% spandex, for 
elasticity''). Section 3(b) of the Wool Rules, 16 CFR 300.3(b), 
contains a similar provision for non-wool fibers in a wool product. The 
Commission proposed amending both Rules to permit the use of generic 
fiber names for fibers that have a functional significance and are 
present in amounts less than 5%, without requiring disclosure of the 
functional significance.
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    \4\ 15 U.S.C. 70b(b)(1) & (2); 15 U.S.C. 68b(a)(2). The Textile 
Act exempts certain textile products, including the ``outer 
coverings of furniture.'' 15 U.S.C. 70j(a)(2). The Wool Act exempts 
carpets and upholsteries. 15 U.S.C. 68j. ASCR (2), pp.1-3, 
recommended that the Textile Act be amended to require fiber content 
identification labeling for the cover fabric of textile upholstered 
furniture, in order to harmonize with Canada and to provide 
information to consumers and upholstery cleaners relevant to the 
selection, use, and care of such furniture. Because the exemption 
for furniture upholstery is statutory, the Commission cannot require 
fiber content labeling for upholstery. Of course, manufacturers and 
sellers that wish to provide fiber content information can do so 
voluntarily.
    \5\ The Wool Act requires disclosure of any amount of wool even 
if under 5%. It does not, however, allow fiber names for other 
textile fibers present in amounts of less than 5%.
    \6\ 15 U.S.C. 70b(b)(1) & (2).
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    Many comments supported the Commission's proposed 
amendment,7 stating that it would benefit both consumers and 
businesses by making labels shorter.8 Two comments in 
response to the Wool NPR opposed the amendment,9 asserting 
that it could result in consumer confusion and even deception as to the 
value of small amounts of certain fibers in a garment.10
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    \7\ J.C. Penney (7) p.1; USA-ITA (9) p.2 and (3-wool) p.2; 
Wrangler (10) p.1; ATMI (12) p.1 and (5-wool) p.1; Fruit of the Loom 
(13) p.1; AAMA (17) p.1 and (7-wool) p.1; Mexico (18) p.1; NCC (20) 
p.1.
    \8\ J.C. Penney (7) p.3; AAMA (17) p.1.
    \9\ Wool Bureau (2-wool) pp.1-2; NTA-CCMI (4-wool) p.2.
    \10\ NTA-CCMI (4), p.2, provided an example of a garment labeled 
``78% wool, 20% nylon, 2% cashmere,'' also bearing a prominent 
sleeve tag stating only ``Cashmere Blend.'' Such labeling, however, 
would appear to be a violation of Sec. 300.8(d) which provides that 
``[w]here a generic name * * * is used on any label, whether 
required or nonrequired, a full and complete fiber content 
disclosure with percentages shall be made on such label * * *.'' It 
may also violate Sec. 300.8(f) which states that ``[n]o * * * 
generic name or word * * * shall be used on any label or elsewhere 
on the product in such a manner as to be false, deceptive, or 
misleading as to fiber content * * *.'' NTA-CCMI (4A), at p.2, 
advocates prohibition of the naming of specialty fibers, such as 
``cashmere'' or ``camel hair,'' when they are present in quantities 
of less than 5%. The Commission believes that this proposal would be 
contrary to the intent of the Wool Act, which requires disclosure of 
any amount of wool in a product.
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    The Commission has decided to amend the Textile and Wool Rules by 
deleting the requirement to disclose functional significance. 
Eliminating the requirement will benefit industry by shortening and 
simplifying labels. It will also eliminate the problem of imported 
products often being delayed at borders for relabeling because labels 
fail to disclose the functional significance of fibers present in 
amounts of less than 5%.11 The amendment will not harm 
consumers, who often know the functional significance of fibers used in 
small amounts, such as spandex. Manufacturers may, of course, 
voluntarily disclose the functional significance of such fibers when 
the information would be beneficial to consumers.
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    \11\ Mexico (18) recommended at p.2 that the term ``functional 
significance'' be defined to avoid import/export access problems. A 
functionally significant fiber is a fiber that has an established 
quality or trait--such as strength or elasticity--when the presence 
of the fiber in a textile product imparts that same quality or trait 
to the product.
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    A few comments also recommended that the Commission amend the Rules 
to allow the listing of names of non-wool fibers with no functional 
significance and present in amounts less than 5%.12 Because 
the prohibition on naming these fibers is statutory, however, the 
Commission cannot adopt the suggested amendment. The Commission will 
consider whether to recommend that Congress amend the Textile and Wool 
Acts in this manner.13
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    \12\ NAHM (6) p.1; J.C. Penney (7) p.1; Fruit of the Loom (13) 
p.1. NAHM stated that because of technological advances, such as the 
production of ``microfibers,'' fibers present in small amounts 
sometimes impart a `` `hand' or feel to a product that are 
significant to the consumer.'' The Commission notes that fibers 
present in amounts less than 5% that impart special characteristics 
to a textile product may, in fact, have a functional significance 
enabling them to be listed on the label.
    \13\ Canada permits naming fibers that do not have a functional 
significance and are present in small amounts. Industry Canada (23) 
suggested, at p.2, that the proposed amendment to this section of 
the Rules would not harmonize with Canadian textile labeling 
regulations which state that ``a fibre present in an amount less 
than 5% by mass must be stated by generic name or as `other 
fibre'.'' The Commission notes that although the requirements of the 
two countries are not identical, manufacturers can easily comply 
with both by listing a fiber that is not functionally significant 
and present in an amount less than 5% as ``other fiber.''
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    The Wool Rules also have been amended to add a definition of the 
term ``trimmings.'' Section 300.24 of the Rules (redesignated herein as 
Sec. 300.23) refers to ``trimmings,'' which, if they do not contain 
wool, are generally exempt from the fiber content disclosure 
requirement. Unlike the Textile Rules, however, the Wool Rules do not 
define the term. The lack of a definition has sometimes resulted in 
problems, such as the retention of imports at the border by Customs 
officials or the refusal of delivery of goods by retailers, pending a 
resolution of the meaning of the term ``trimmings'' with respect to 
products covered by the Wool Rules. This problem has been remedied by 
adding a definition to the Wool Rules (Sec. 300.1(k)) that is cross-
referenced to the definition of ``trimmings'' contained in the Textile 
Rules. This cross-reference does not constitute a change in Sec. 300.24 
(redesignated as Sec. 300.23); it merely codifies the advice that has 
consistently been given to industry by Commission staff.

B. ``Fiber Content on Reverse Side'' Disclosure Requirement

    The Textile and Wool Rules require that, with certain exceptions, 
all three disclosures--fiber content, company name or RN, and country 
of origin--be

[[Page 7510]]

made on the front of the label.14 A proviso to this 
requirement, however, states that the fiber content disclosure may be 
placed on the back of a cloth label--sewn to the product at one end so 
that both sides of the label are readily accessible to the prospective 
purchaser--``if the front side of such label clearly and conspicuously 
shows the wording `Fiber Content on Reverse Side.' '' In the 1996 NPRs, 
the Commission proposed eliminating the ``Fiber Content on Reverse 
Side'' disclosure requirement.
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    \14\ 16 CFR 303.16(b); 16 CFR 300.10(a).
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    Many comments supported the Commission's proposal, noting that 
consumers are accustomed to looking on both sides of a double-sided 
label for information about a textile product, and that consumers would 
be protected as long as the fiber identification information is 
``conspicuous and accessible.'' 15 Some asserted that 
because the amendment would decrease the amount of information required 
on labels, it would reduce the size of labels and perhaps reduce the 
cost of labeling for manufacturers and the cost of textile products to 
consumers.16 In addition, the amendment would increase NAFTA 
harmonization by eliminating words that must be translated into French 
and Spanish to meet the requirements of Canada and Mexico.17 
Industry Canada stated that ``[t]he flexibility provided by the 
amendment would more closely align the US requirements with those of 
Canada.'' 18
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    \15\ J.C. Penney (7) pp.2-3; USA-ITA (9) p.5 and (3-wool) p.2; 
Wrangler (10) p.1; ATMI (12) pp.1-2 and (5-wool) p.2; Fruit of the 
Loom (13) p.1; AAMA (17) p.1 and (7-wool) p.2; NCC (20) p.1; 
Pittsfield (22) p.1; Industry Canada (23) p.2 and (8-wool) p.2; Wool 
Bureau (2-wool) p.2. NTA-CCMI (4) opposed the proposal, stating, at 
p. 3, that a ``conspicuous and accessible'' standard may be 
inadequate to protect consumers from deception.
    \16\ J.C. Penney (7) p.2; Wrangler (10) p.1; ATMI (12) pp.1-2; 
Fruit of the Loom (13) p.1; AAMA (17) p.1 and (7-wool) p.2; 
Pittsfield (22) p.1.
    \17\ AAMA (17) p.1 and (7-wool) p.2.
    \18\ Industry Canada (23) p.2 and (8-wool) p.2.
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    The Commission has decided to amend the Textile and Wool Rules to 
eliminate the requirement that the front side of the label state 
``Fiber Content on Reverse Side'' and to allow fiber content 
information to appear on the reverse side of any kind of label, not 
just cloth labels. The Rules further clarify that the required 
information may appear on the care label, required by the Commission's 
Trade Regulation Rule on the Care Labeling of Textile Wearing Apparel 
and Certain Piece Goods, 16 CFR Part 423, a practice already common in 
the industry. The Commission believes that the amendment will allow 
manufacturers greater flexibility, without diminishing the value of 
fiber information to consumers. Other streamlining amendments regarding 
the arrangement of information on the label will give added 
flexibility. Because all of the required disclosures must be 
conspicuous and accessible, there is little likelihood that the 
amendment will result in harm to consumers.19
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    \19\ Mexico (18) stated, at p.2, that in order to accord with 
Annex 311 of NAFTA and to avoid problems with Customs, the 
Commission should make it clear that ``conspicuous and accessible'' 
means that the label is capable of being easily seen with normal 
handling of the good. The Commission believes that section 303.16(b) 
of the Textile Rules, as amended herein, which requires the 
disclosures to be ``set forth in such a manner as to be clearly 
legible, conspicuous, and readily accessible to the prospective 
purchaser,'' is sufficiently clear. Similar language is contained in 
section 300.10(a) of the Wool Rules. Disclosures that cannot be 
easily seen with normal handling are not ``conspicuous and readily 
accessible.''
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C. Recognition of ISO Standard for Generic Fiber Names

    Section 7(c) of the Textile Act, 15 U.S.C. 70e(c), authorizes and 
directs the Commission ``to make such rules and regulations, including 
the establishment of generic names of manufactured fibers * * * as may 
be necessary and proper for administration and enforcement.'' Section 7 
of the Textile Rules, 16 CFR 303.7, sets out the generic names and 
definitions for manufactured fibers currently recognized by the 
Commission. (The Wool Rules, 16 CFR 300.8(b), cross reference Sec. 7 of 
the Textile Rules for purposes of fiber identification.) If a company 
develops a new fiber and wishes to use a new generic name, the 
manufacturer or producer of the fiber must file a written application 
with the Commission, under procedures set forth in 16 CFR 303.8, 
requesting the establishment of a new generic name for the fiber. The 
Commission proposed amending the Textile Rules to allow the use of a 
generic name for a manufactured fiber, if the name and fiber were 
recognized by an appropriate international standards-setting 
organization, such as the ISO.
    The comments supported the Commission's proposed amendment, 
asserting that it could expedite the use of new fiber names on 
packaging and labeling, to the benefit of both manufacturers and 
consumers.20 The comments also stated that the proposed 
amendment would continue to ensure that generic fiber names are used 
only for fibers that are in fact innovations in fiber 
technology.21 Several comments supported Commission 
recognition of names recognized by the ISO for manufactured 
fibers.22 The comments also advocated that the Commission 
retain its own petition procedure for new manufactured fiber 
names.23
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    \20\ AFMA (3) p.5; NAHM (6) p.3; J.C. Penney (7) p.6; USA-ITA 
(9) p.8; ATMI (12) p.6; Fruit of the Loom (13) p.4; AAMA (17) p.2; 
NCC (20) p.1. Industry Canada (23) stated, at p.4, that the 
procedures in the proposed amendment ``are consistent with those in 
Canada, and we would encourage their adoption.''
    \21\ NAHM (6) p.3.
    \22\ AFMA (3) p.5; J.C. Penney (7) p.6; Fruit of the Loom (13) 
p.4.
    \23\ AFMA (3) p.5.
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    The Commission has decided to amend the Textile Rules to 
incorporate by reference the generic fiber names and definitions for 
manufactured fibers in ISO Standard 2076: 1989, ``Textiles--Man-made 
fibres--Generic names.'' 24 Incorporating the ISO standard 
will increase international harmonization and benefit manufacturers. A 
manufacturer or other marketer of a fiber not listed in Sec. 7 of the 
Textile Rules but recognized in ISO's 1989 standard need not petition 
the Commission for recognition of the fiber name, but may simply use 
the ISO established name.25 In addition, manufacturers may 
use ISO alternative fiber names for names currently recognized by the 
Commission. For example, ``viscose,'' a name recognized by ISO, may be 
used as an alternative generic fiber name for some forms of ``rayon.'' 
26 ``Elastane'' may be used as an alternative to 
``spandex.'' 27 As a result, manufacturers will have more 
flexibility in labeling products for both domestic and international 
sale.
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    \24\ A revision of ISO 2076 is under consideration at this time. 
The Commission understands that the revised standard will not become 
effective until sometime next year. When the revised standard is 
finalized, the Commission will amend the Textile Rules to 
incorporate the new standard by reference.
    \25\ Ten fiber names not previously recognized by the Commission 
are listed in the 1989 ISO Standard. Recognition of new fiber names 
added by ISO in the future will not be automatic. However, the 
Commission may accommodate future changes in the ISO Standard by 
amending the Textile Rules to incorporate the new Standard without 
going through the petition process.
    \26\ USA-ITA (9) recommended, at p.8, that the name ``viscose'' 
be allowed.
    \27\ AFMA (3) p. 5 and (1-wool), p.5, stated that the name 
``elastane'' is commonly used worldwide for this fiber.
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    The Commission believes that consumers will not be harmed by its 
recognition of the ISO standard. Although the immediate result may be a 
few new and unfamiliar names on textile labels, consumers will learn 
these fiber names quickly, just as they have learned the names of new 
fibers recognized by the Commission through its own petition 
process.28 Because most

[[Page 7511]]

of the fibers recognized by the ISO but not previously recognized by 
the Commission are not widely used in consumer textile products, the 
number of new names appearing on consumer labels probably will be 
small. Of course, it will be in the interests of any manufacturer or 
distributor marketing fibers or fiber names that are new and unfamiliar 
to American consumers to provide some kind of consumer education about 
the nature and properties of the fiber or the fact that the name is the 
equivalent of a name already familiar to consumers.
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    \28\ For example, last year the Commission recognized 
``lyocell'' as a new subclass of rayon. 61 FR 16385 (April 15, 
1996). More recently, the Commission recognized ``elastoester'' as a 
new generic fiber. 62 FR 28342 (May 23, 1997).
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    The Commission will retain its own list of manufactured fiber 
names. This will enable manufacturers that use generic names recognized 
by the Commission, but not recognized by ISO, to continue to use those 
fiber names. The Commission will also retain its petition procedure to 
allow manufacturers to apply to the Commission for the recognition of 
new generic fiber names not recognized by ISO. The American Fiber 
Manufacturers Association 29 requested that the Commission 
consider shortening or expediting its petition process. The Commission 
recognizes that the petition process can be lengthy because fiber name 
petitions often raise difficult, technical issues. The Commission does 
not believe that any changes to its procedural Rules are necessary, but 
will endeavor to shorten the time for review of fiber name petitions 
that may be filed in the future. Moreover, in the future, the 
Commission recommends that manufacturers seeking recognition of new 
fiber names first seek recognition from the ISO. While FTC recognition 
of new fibers recognized by ISO in the future will not be automatic, it 
can be accomplished easily by amending the Textile Rules to incorporate 
the most recent ISO standard.
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    \29\ AFMA (3) p.5 and (1-wool) p.6.
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D. New Specialty Wool Fibers

    Wool Act Section 2(b) defines wool as ``the fiber from the fleece 
of the sheep or lamb or hair of the Angora or Cashmere goat (and may 
also include the so-called specialty fibers from the hair of the camel, 
alpaca, llama, and vicuna) * * *.'' The Wool Rules allow mohair or 
cashmere fiber to be identified as ``wool'' or by the terms ``mohair'' 
or ``cashmere'' respectively.30
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    \30\ Section 19(a) of the Wool Rules, 16 CFR 300.19(a), states: 
``In setting forth the required fiber content of a product 
containing hair of the Angora goat known as mohair or containing 
hair or fleece of the Cashmere goat known as cashmere, the term 
`mohair' or `cashmere,' respectively, may be used for such fiber in 
lieu of the word `wool,' provided the respective percentage of each 
such fiber designated as `mohair' or `cashmere' is given.''
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    In the Wool NPR, the Commission noted that it had been informed 
that animals are being bred for new specialty fibers. For example, 
breeders have crossed female cashmere goats with angora males to 
produce an animal called a ``cashgora.'' 31 Apparently, 
products made with this fiber are already on the market. The Commission 
sought comment as to whether it should amend the Wool Rules to include 
other specialty fibers, such as ``cashgora.''
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    \31\ See P. Tortora, Understanding Textiles, Fourth Edition at 
106-107 (1992).
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    The Commission received only two comments on this question. The 
Northern Textile Association and the Cashmere & Camel Hair 
Manufacturers Institute, commenting jointly, opposed amendment of the 
Wool Rules to include specialty fibers other than ``mohair'' and 
``cashmere.'' They stated that the Institute has analyzed these animal 
hair fibers and concluded that the physical properties of ``cashgora'' 
have not been sufficiently described or delineated to warrant inclusion 
as a specialty fiber under the Wool Rules.32 No comments 
were filed by industry members involved in the cross breeding of goats 
or the production and marketing of products made with the resultant 
fibers.
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    \32\ NTA-CCMI (4-wool) p.4.
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    Canada noted that although its regulations do not recognize 
``cashgora'' as a generic fiber name, it has issued administrative 
interpretations permitting the identification of fiber obtained from 
this cross-bred goat as ``Cashgora hair,'' ``Cashgora fibre,'' ``fur 
fibre,'' or ``wool''. Similarly, Canada permits identification of fiber 
from the paco-vicuna (a cross-breed between the alpaca and the vicuna) 
as ``Paco-vicuna hair,'' ``Paco-vicuna fibre,'' ``fur fibre,'' or 
``wool''.33 To further the goal of label harmonization, the 
Commission has decided to follow the Canadian approach. Section 
300.8(g) of the Wool Rules states:

    \33\ Industry Canada (8-wool) p.4.
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    The term fur fiber may be used to describe the hair or fur fiber 
or mixtures thereof of any animal or animals other than the sheep, 
lamb, Angora goat, Cashmere goat, camel, alpaca, llama and vicuna. 
If the name, symbol, or depiction of any animal producing the hair 
or fur fiber is used on the stamp, tag, label, or other means of 
identification applied or affixed to the wool product, the 
percentage by weight of such hair or fur fiber in the total fiber 
weight of the wool product shall be separately stated in the 
required fiber content disclosure.

The Commission believes that this section of the Wool Rules already 
permits the identification of hair or fiber obtained from animals that 
are the result of cross-breeding between two wool-producing animals. 
Relevant examples have been added to those already listed at the end of 
this section.

E. Abbreviations for Generic Fiber Names

    In the 1996 Textile and Wool NPRs, the Commission sought comment on 
a proposal to allow abbreviations for some common fiber names. While a 
number of industry members supported the idea, others opposed it as 
potentially confusing to consumers. Moreover, there was a lack of 
consensus as to which fiber names should be abbreviated and what 
abbreviations would be clear and appropriate. Most importantly, 
however, neither Canada nor Mexico allow abbreviations of fiber names; 
34 nor do these governments foresee that fiber abbreviations 
will be feasible in the near future. Because there would be little 
benefit to U.S. textile producers if abbreviations were not allowed by 
all of the NAFTA trading partners, the Commission is not amending the 
rules to allow fiber abbreviations at this time. The Commission will 
re-examine this issue if, in the future, the Subcommittee on Labelling 
of Textile and Apparel Goods of the NAFTA Committee on Standards-
Related Measures determines that abbreviations are feasible in all of 
the NAFTA countries.
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    \34\ Industry Canada (23) p.3 and (8-wool) p. 3; Mexico (18) 
p.3.
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III. Identification Numbers of Manufacturers or Other Responsible 
Parties

A. Interchangeable Use of RNs among NAFTA Countries

    The Textile, Wool, and Fur Acts require that covered products bear 
a stamp, tag, or label showing the name, or other identification issued 
and registered by the Commission, of the manufacturer of the product or 
one or more persons subject to the Acts.35 Pursuant to its 
Rules, the Commission issues registered numbers (RNs) to qualified 
applicants residing in the United States.36 Canada has a 
similar system of ``CA'' numbers. Mexico does not at this time have a 
system of registered numbers for members of the textile industry. 
Mexico issues tax numbers to identify manufacturers and sellers of all 
products; however, this system was created for a different purpose and 
is not comparable to the RN and CA identification systems.
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    \35\ 15 U.S.C. 70b(b)(3); 15 U.S.C. 68b(a)(2)(C); 15 U.S.C. 
69b(2)(E).
    \36\ 16 CFR 303.20; 16 CFR 300.4; 16 CFR 301.26.

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[[Page 7512]]

    In the 1996 NPRs, the Commission sought comment on the advantages, 
disadvantages, and feasibility of sharing registered number databases 
among the NAFTA countries, or simply recognizing numbers registered in 
another NAFTA country, so that manufacturers and importers who wish to 
use registered numbers, instead of their names, would not have to 
register in more than one country. The Commission did not propose 
specific amendments to its Rules because statutory amendments would be 
needed before it could do so.
    Many of the comments supported sharing registered identification 
information among the NAFTA countries because it would reduce 
administrative burdens and costs,37 possibly resulting in 
savings to consumers.38 The comments also asserted that 
sharing information could result in smaller labels, by eliminating 
multiple numbers, and ease the tracking of responsible parties across 
borders.39 Some noted that sharing information is feasible 
in light of communications technologies now available, such as the 
Internet.40
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    \37\ NAHM (6) p.2; J.C. Penney (7) p.2, 4; USA-ITA (9) pp.6-7 
and (3-wool), pp.3-4; Wrangler (10) p.1; ATMI (12) p.2 and (5-wool) 
pp.2-3; Fruit of the Loom (13) p.2; AAMA (17) p.2 and (7-wool) p.2; 
NCC (20) p.1; Pittsfield (22) p.2. On the other hand, the Fur 
Information Council (FICA) (1-fur), responding to the Fur Rules NPR, 
stated that it believes the current system is adequate and there is 
no need to develop an integrated system.
    \38\ Fruit of the Loom (13) p.2; Pittsfield (22) p.2.
    \39\ J.C. Penney (7) p.4; ATMI (12) p.2; Fruit of the Loom (13) 
p.2.
    \40\ J.C. Penney (7) p.2, 4.
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    The Commission believes that an integrated identification 
information system or, alternatively, mutually recognized 
identification systems, is a desirable goal for the future. It will 
pursue discussion of this issue with the NAFTA trading partners through 
the Subcommittee on Labelling of Textile and Apparel Goods. If 
appropriate in the future, it will recommend to Congress that the 
Textile, Wool, and Fur Acts be amended to allow for implementation of 
such a system.

B. Require RN Holders to Update Registration Information

    RNs are subject to cancellation whenever they are procured or used 
improperly or contrary to the requirements of the Acts and Rules, or 
when otherwise deemed necessary in the public interest. The RN 
application form states that RN holders are obligated to notify the 
Commission about changes in the material information contained on the 
application. Nonetheless, many RN holders have changed their business 
name, business address, and/or company type (e.g., from proprietorship 
to corporation) without notifying the FTC about the change(s). As a 
result, the RN database currently contains much outdated information, 
which diminishes its utility to the public. For this reason, the 
Commission proposed amending the three Rules to add a provision that 
would subject an RN to cancellation if, after a change in the material 
information contained on the RN application, a new application 
reflecting current business information is not promptly received by the 
Commission.
    The comments generally supported the Commission's 
proposal,41 and the Commission has determined to incorporate 
this provision in the three Rules. The Commission believes that this 
provision is necessary to ensure the continuing utility of the RN 
database. In addition to containing outdated addresses, the RN database 
contains numerous entries for firms that are no longer in business.
---------------------------------------------------------------------------

    \41\ NAHM (6) p.2; J.C. Penney (7) p.2; USA-ITA (9) p.7 and (3-
wool) p.4. One comment objected to the cancellation provision as too 
drastic. The Commission notes, however, that adverse consequences 
following a cancellation would be minimal. The canceled number would 
not be reassigned for some extended period of time, and could be 
reinstated when the firm furnishes the required updated information.
---------------------------------------------------------------------------

    The RN database is now available at the FTC's web site on the 
Internet.42 Firms are urged to look up this service to check 
whether the information concerning their RN is current, and, if 
necessary, submit an update. The form to apply for an RN or to update 
an existing RN also is available on the Internet. The revised form 
appears in the Textile Rules at Sec. 303.20(d). It has been removed 
from the Wool and Fur Rules, with the relevant sections cross-
referenced to the Textile Rules.
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    \42\ The Commission's web site address is http://www.ftc.gov. 
Industry Canada has made CA numbers available on its web site at 
http://strategis.ic.gc.ca/cpd.
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IV. Country of Origin Labeling

A. Consistency Between FTC and U.S. Customs Service Requirements

    The Textile and Wool Acts require identification of the country 
where the product was processed or manufactured.43 In the 
Textile NPR, the Commission noted a possible inconsistency between FTC 
requirements and U.S. Customs Service rulings, effective on July 1, 
1996, implementing Section 334 of the Uruguay Round Agreements Act 
(URAA).44 Section 33(a)(3) of the Textile Rules and 
Sec. 25a(a)(3) of the Wool Rules state that a textile product ``made in 
the United States, either in whole or part of imported materials shall 
contain a label disclosing these facts; for example: `Made in USA of 
imported fabric.' '' The URAA, on the other hand, provides that the 
country of origin for certain categories of textile products--flat 
goods, such as sheets, towels, comforters, handkerchiefs, scarves, and 
napkins--is the country in which the fabric is created, not the country 
where further processing of the fabric takes place.45 
Customs has incorporated this ``fabric rule'' into its rulings 
implementing the general labeling requirements of Section 304 of the 
Tariff Act.46 For the affected products, a country of origin 
statement that identifies fabric as ``imported,'' but does not name the 
country in which the fabric was created--such as, ``Made in U.S.A. of 
imported fabric''--will not satisfy Customs' labeling requirements 
resulting from the new textile origin rules under the URAA.
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    \43\ 15 U.S.C. 70b(b)(4) & (5); 15 U.S.C. 68b(a)(2)(D). The Fur 
Act generally requires that country of origin be identified only for 
imported furs. 15 U.S.C. 69b(2)(F). Regulations implementing these 
requirements are found at 16 CFR 303.33; 16 CFR 300.25a; and 16 CFR 
301.12.
    \44\ 19 U.S.C. 3592.
    \45\ Customs (14) p. 2-3. The textile product categories for 
which the country of origin is the country in which the fabric is 
created are listed at 19 U.S.C. 3592(b)(2)(A) and 19 CFR 
102.21(c)(3)(ii). 19 CFR 102.21(e) sets out specific rules for each 
tariff classification.
    \46\ Customs (14) stated, at p.3, that ``the origin rules set 
forth in section 334 * * * govern the origin determinations for 
purposes of the labeling requirements under 19 U.S.C. 1304 for 
textile and apparel products.'' The Tariff Act requires that every 
article of foreign origin imported into the United States must be 
marked to indicate to an ultimate purchaser the English name of the 
country of origin of the article.
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    Country of origin disclosures must comply with the requirements of 
both FTC and Customs laws and regulations. Since the Textile NPR was 
published, Commission staff has met with Customs staff, as well as 
industry representatives, and any apparent inconsistency has now been 
resolved. A U.S. manufacturer can comply with both requirements by 
identifying the country of origin of the imported fabric and the fact 
that the ultimate product was made in the U.S. For example, a scarf of 
Chinese silk that is cut, dyed, and hemmed in the U.S. could be 
labeled: ``Scarf made in USA of fabric made in China.'' This label 
provides consumers with accurate information on the origin of the 
product, as required by the Textile Act. It also identifies the origin 
of the fabric, consistent with the new URAA origin rules.47 
Sections 33 of the Textile Rules

[[Page 7513]]

and 25a (now redesignated as section 25) of the Wool Rules have been 
amended to add clarifying examples.48 Rulings issued by 
Customs regarding country of origin marking pursuant to the URAA 
indicate that Customs will permit disclosures that comply with the 
Textile Act, including the requirement to identify the processing and 
manufacturing of textiles that takes place in the United 
States.49
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    \47\ The labeling requirements under the Tariff Act, 19 U.S.C. 
1304, apply only to imported articles of foreign origin; in this 
case, only the fabric (not the scarf itself) is imported and remains 
of foreign origin under the new URAA textile origin rules.
    \48\ Sections 303.33(a)(3) and 300.25(a)(3) also have been 
amended to correct a misplaced comma that may have caused confusion 
by distorting the meaning of these provisions.
    \49\ Customs has approved the following country of origin 
markings that identify the processing or manufacturing in the United 
States in addition to the country of origin of the fabric: 
``Comforter Made in China Further Processed in U.S.'' and 
``Comforter Made in China Sewn in the U.S.'' (HQ 559625, Jan. 19, 
1996); ``Comforter Filled, Sewn and Finished in the U.S. With Shell 
Made in China'' (HQ 559627, June 27, 1996); ``Made in China Sewn and 
Stuffed in the U.S.'' and ``Sewn and Stuffed in the U.S./Made in 
China'' (HQ 559736, Apr. 11, 1996). For handkerchiefs and bandannas 
made in the United States from imported greige goods, Customs has 
ruled that ``Fabric Made in [name of country]/Finished in USA'' is 
an acceptable marking (HQ 559760, July 19, 1996). Customs stated in 
the same ruling that the use of additional references to U.S. 
processing, such as ``Manufactured in USA from Fabric Made in [name 
of country]'' is a matter within the jurisdiction of the FTC.
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B. Use of Abbreviations and Symbols in Country of Origin Labeling

    The Textile, Wool, and Fur Rules permit the use of abbreviations 
that ``unmistakably indicate the name of a country,'' such as ``Gt. 
Britain'' for ``Great Britain.'' 50 The abbreviation ``USA'' 
for ``United States'' is acceptable and used throughout the examples 
given for country of origin disclosures. In the 1996 NPRs, the 
Commission sought comment on the use of abbreviations for its NAFTA 
trading partners, such as ``CAN'' for ``Canada'' and ``MEX'' for 
``Mexico.'' The Commission also sought comment on the viability, 
benefits, and costs of allowing the use of symbols for the phrases 
``made in'' or ``product of'' in country of origin disclosures.
---------------------------------------------------------------------------

    \50\ 16 CFR 303.33(e); 16 CFR 300.25a(e); 16 CFR 301.12(e)(1).
---------------------------------------------------------------------------

    Comments addressing this issue generally supported the use of 
abbreviations to identify the NAFTA countries.51 Some 
specifically supported the use of ``CAN'' and ``MEX,'' 52 
and no alternative abbreviations for these countries were suggested. 
The Commission believes that, as country of origin designations, 
``CAN'' and ``MEX'' clearly indicate ``Canada'' and ``Mexico.'' It 
notes, however, that at present U.S. Customs rulings do not permit 
these abbreviations.53 If in the future, Customs regulations 
are changed to permit these abbreviations, the Commission will add 
``CAN'' and ``MEX'' to its Textile, Wool, and Fur Rules as examples of 
acceptable country abbreviations.
---------------------------------------------------------------------------

    \51\ NAHM (6) p. 2; J.C. Penney (7) p. 2; USA-ITA (9) p. 7-8 and 
(3-wool) p. 5; Fruit of the Loom (13) p. 3; AAMA (17) p. 2 and (7-
wool) p. 1; Pittsfield (22) p. 2-3. Abbreviations for country of 
origin were opposed by Wrangler (10) p. 2 and ATMI (12) p. 5 and (5-
wool), p. 2. Mexico (18) stated, at p. 3, that ``[t]he current 
Mexican Textile Standard, NOM 004-SCFI-1994, does not allow the use 
of abbreviations for country of origin names.''
    \52\ Fruit of the Loom (13) p. 3; AAMA (17) pp. 2-3 and (7-wool) 
p. 1; USA-ITA (9) pp. 7-8 and (3-wool) p. 5.
    \53\ Customs (14) p. 5, citing C.S.D. 80-52 (July 23, 1979); 
C.S.D. 89-57 (Dec. 27, 1988); T.D. 56545 (4) (Oct. 21, 1965); and 
Continental Mexican Rubber Co. v. United States, Abstract No. 39882, 
1 CCR 489 (Nov. 17, 1938). (The abbreviation ``Mex'' may be used to 
indicate Mexico as the country of origin only if it is used in 
conjunction with the name of the Mexican city and state in which the 
good originates.) Customs also noted that, pursuant to 19 U.S.C. 
1625, any interested party may request reconsideration of these 
rulings.
---------------------------------------------------------------------------

    A few comments supported allowing the use of symbols for the 
phrases ``made in'' or ``product of'' in country of origin 
labeling.54 Others opposed the use of symbols,55 
or considered them unnecessary.56 Customs noted that in 
general its regulations do not require ``made in'' or ``product of'' to 
appear before the name of the country of origin. The exception to this 
occurs when the name of a country or place other than the actual 
country of origin also appears on an imported article or its container. 
In this instance, the words ``made in'' or ``product of,'' or other 
words of similar meaning, are required to prevent purchasers from being 
misled as to the origin of the product.57 When that 
requirement is triggered, the use of a symbol to denote ``made in'' or 
``product of'' would not satisfy Customs marking 
requirements.58
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    \54\ NAHM (6) p. 2-3; Fruit of the Loom (13) p. 3; Pittsfield 
(22) p. 2-3.
    \55\ Wrangler (10) p. 2; ATMI (12) p. 5 and (5-wool) p. 2; AAMA 
(17) p. 3 and (7-wool) p. 2.
    \56\ USA-ITA (9) p. 8 and (3-wool) p. 5.
    \57\ Customs (14) p. 6 and (6-wool) p. 3. The special 
requirements for such products are found at 19 CFR 134.46 (amended 
by TD-72) and 134.47.
    \58\ Customs (14) p. 7-8 and (6-wool) p. 3.
---------------------------------------------------------------------------

    The Textile, Wool, and Fur Rules do not strictly require use of the 
words ``made in'' or ``product of.'' In those instances where more than 
one country is mentioned on a label, as in the examples discussed in 
section IV.A. above, such words (or words describing more specifically 
the processing done in a particular country) are probably necessary to 
convey the required information to the consumer. Where only one country 
is named on the label, such words may not be needed. In that instance, 
the use of a symbol, such as a flag, next to the name of a country may 
be adequate to inform the consumer of the origin of the 
product.59
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    \59\ Customs (14) p. 6 and (6-wool) p. 3 states that this 
disclosure would satisfy its marking requirements.
---------------------------------------------------------------------------

V. Placement of Label and Disclosures; Label Attachment

    For a textile product with a neck, the Textile and Wool 
Acts,60 as well as the Textile and Wool Rules, 16 CFR 
303.15(b) and 300.5(b), require that a label be affixed to the inside 
center of the neck midway between the shoulder seams.61 Both 
Rules allow for some flexibility by permitting a label containing the 
country of origin, fiber content, and RN or name of the company to 
appear in another conspicuous location on the inside or the outside of 
the garment, if the country of origin also is disclosed on a label 
affixed to the inside center of the neck or in close proximity. In this 
event, the country of origin would appear twice on the product. One 
comment recommended that the Rules be amended to eliminate this 
redundancy.62
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    \60\ 15 U.S.C. 70b(j); 15 U.S.C. 68b(f).
    \61\ ATMI (12) requested, at p. 4, that the Rules not require 
the label to be placed in the neckline because consumers often 
complain about irritation from labels. Because the requirement is 
statutory, the Commission cannot amend the Rules in this regard. The 
amendments to the Rules, however, clarify that the only disclosure 
required to be placed in the neck is the country of origin of the 
product.
    \62\ J.C. Penney (7) p. 2.
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    The Commission has decided to adopt the suggested amendment and to 
streamline and simplify the label placement requirements. The three 
required disclosures may appear either on the same label or on separate 
labels. In a garment with a neck, the country of origin must continue 
to appear on the front side of a label in the neck, midway between the 
shoulder seams or in close proximity thereto. This requirement fulfills 
the Congressional intent of providing a standard and prominent location 
for the country of origin. If the fiber content and manufacturer 
identification appear on labels located somewhere other than the neck, 
however, the country of origin no longer has to be repeated on the 
additional label or labels. In addition, the fiber content and the name 
or RN of the responsible company may appear on the reverse side of a 
label. All disclosures must be clear, conspicuous and readily 
accessible to the consumer. Thus, the Commission is substituting a 
performance standard for the formerly somewhat rigid requirements about 
the placement of information on textile labels.

[[Page 7514]]

    The Textile, Wool, and Fur Rules do not require permanent labels 
for the disclosures mandated by the Textile, Wool, and Fur Acts. They 
merely require that the label be sufficiently durable to remain affixed 
to the product until purchased by the consumer. The Textile and Wool 
NPRs sought comment on whether those Rules should be amended to require 
a permanent label.
    Some comments supported requiring a permanent label for these 
disclosures because:
    (1) Fiber content information is often necessary for post point-of-
purchase reasons, such as determining the proper care method to be 
used, the recycling of textile products, and identifying fiber 
allergies; (2) a permanent country of origin label might make it more 
difficult to illegally relabel and trans-ship textile goods; and (3) 
permanent manufacturer identification information would help consumers 
in the event of a product defect or a product recall.63 
Other comments opposed amending the Rules to require a permanent label, 
stating that the Rules have worked well to date without such a 
requirement and that textile fiber product construction considerations 
may prevent the use of permanent labels for some products.64
---------------------------------------------------------------------------

    \63\ ATMI (12) p. 2, 4 and (5-wool) p. 4; Fruit of the Loom (13) 
p. 3-4; Pittsfield (22) p. 1-2; NTA-CCMI (4) p. 3.
    \64\ USA-ITA (9) p. 5 and (3-wool) pp. 2-3; AAMA (17) p. 2 and 
(7-wool) p. 3; Industry Canada (23) p. 3 and (8-wool) p. 4.
---------------------------------------------------------------------------

    The Commission has decided not to amend these Rules to require a 
permanent label for the disclosures required by the Textile, Wool and 
Fur Acts. Permanent labels are already widely used to make the required 
disclosures. U.S. Customs notes that its laws require country of origin 
labels to be permanently affixed to imported articles of wearing 
apparel.65 Because of the Customs requirement, many 
manufacturers sew in labels with the information required by the 
Commission's Rules.66 In addition, many manufacturers elect 
to place fiber information on the permanent care label that must be 
affixed to textile apparel products.67 Because U.S. Customs 
requirements and voluntary industry practice often provide consumers 
with the benefits of a permanent label, the Commission has decided not 
to impose any additional requirement at this time. In considering 
proposed changes to its Care Labeling Rule, however, the Commission 
will consider requiring fiber identification on permanent labels for 
textile items with certain kinds of care instructions. 68 
This could be accomplished easily by placing the fiber identification 
on the permanent care label, as many garment manufacturers already are 
doing.
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    \65\ Customs (14) p. 2 and (6-wool) pp. 1-2.
    \66\ USA-ITA (9) p. 5 and (3-wool) pp. 2-3.
    \67\ Trade Regulation Rule on Care Labeling of Textile Wearing 
Apparel and Certain Piece Goods, 16 CFR 423.1(a).
    \68\ An Advance Notice of Proposed Rulemaking on the Care 
Labeling Rule was published in 60 FR 67102 (Dec. 28, 1995).
---------------------------------------------------------------------------

VI. Internet Promotions and Electronic Transactions

    Definitions of ``mail order catalog'' and ``mail order promotional 
material'' in the Textile and Wool Rules have been modified to 
recognize that such direct sales materials are now being disseminated 
on the Internet. Therefore, the statutory requirement that country of 
origin be disclosed in catalogs also applies to catalogs appearing on 
the Internet. Section 303.40 of the Textile Rules, addressing use of 
terms in written advertisements that imply the presence of a particular 
fiber, has been modified to include advertisements disseminated through 
the Internet or similar electronic media. Finally, definition of the 
term ``invoice,'' used throughout the Textile and Wool Rules, has been 
revised to recognize that these documents may now be generated and 
disseminated electronically.

VII. Increase in Cost Figure for Exemption Under the Fur Rules

    The Fur Rules, 16 CFR 301.39, provide for an exemption from some of 
the requirements of the Fur Act and Rules for fur trim or other fur 
items for which the cost to the manufacturer, or the manufacturer's 
selling price, does not exceed $20. Because this amount was last 
adjusted for inflation in 1969, the Fur NPR sought comment on an 
appropriate increase to this amount. The Fur Information Council of 
America, the only party to comment on the Fur Rules, urged that the 
amount be raised to $145, to account both for inflation and for the 
increasing cost of fur due to increase in demand. 69
---------------------------------------------------------------------------

    \69\ FICA (1-fur) p. 2.
---------------------------------------------------------------------------

    The Commission has determined to raise the exemption figure to 
$150. Given the increases in fur prices since 1969, as pointed out by 
the Fur Information Council, it appears that this amount would ensure 
that only items substantially made of fur would be subject to the Fur 
Rules.

VIII. Administration of the Textile, Wool, and Fur Rules

    Subpart D of the Commission's procedural rules, 16 CFR 1, sets 
forth procedures with respect to requesting RNs and filing continuing 
guaranties 70 with the Commission. Because these provisions 
merely duplicate information already contained in the Textile, Wool, 
and Fur Rules, the Commission is removing Subpart D from the CFR.
---------------------------------------------------------------------------

    \70\ A continuing guaranty is a guaranty from a seller to a 
buyer that textile, wool, or fur products that it sells are labeled 
in compliance with the relevant statute and regulations. 16 CFR 
303.37-303.38; 16 CFR 300.33; and 16 CFR 301.48. A continuing 
guaranty can be filed with the FTC in the form that appears in the 
Textile Rules, Sec. 303.38(b); the form has been removed from the 
Wool and Fur Rules, which are simply cross-referenced to the Textile 
Rules.
---------------------------------------------------------------------------

IX. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-12, requires 
that the agency conduct an analysis of the anticipated economic impact 
of the proposed amendments on small businesses.71 The 
purpose of a regulatory flexibility analysis is to ensure that the 
agency considers impact on small entities and examines alternatives 
that could achieve the regulatory purpose while minimizing burdens on 
small entities. Section 605 of the RFA, 5 U.S.C. 605, provides, 
however, that such an analysis is not required if the agency head 
certifies that the regulatory action will not have a significant 
economic impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \71\ The RFA addresses the impact of rules on ``small 
entities,'' defined as ``small businesses,'' ``small governmental 
entities,'' and ``small [not-for-profit] organizations.'' 5 U.S.C. 
601. The Textile, Wool, and Fur Rules do not apply to the latter two 
types of entities.
---------------------------------------------------------------------------

    Because the Textile, Wool, and Fur Acts, and the three sets of 
regulations issued thereunder, cover the manufacture, sale, offering 
for sale, and distribution of textile, wool, and fur products, 
respectively, the Commission believes that any amendments to the 
Textile, Wool, and Fur Rules may affect a substantial number of small 
businesses. Unpublished data prepared by the U.S. Census Bureau under 
contract to the Small Business Administration (SBA) show that there are 
many apparel manufacturers, covered by the Wool and/or Textile Rules, 
that are considered to be small businesses under applicable SBA size 
standards.72 For example, there are 288 manufacturers of 
men's and boys' suits and coats (SIC Code 2311), more than 75% of which 
are small businesses. There are 488 manufacturers of men's and boys' 
shirts (SIC Code 2321), 75% of which are small businesses. More than 
1,000 establishments manufacture women's, misses'', and juniors' suits, 
skirts, and coats (SIC Code 2337), most

[[Page 7515]]

of which are small businesses. More than 1,400 establishments 
manufacture women's shirts and blouses (SIC Code 2331), about 95% of 
which are small businesses. There are 181 establishments manufacturing 
fur goods (SIC Code 2371), all of which are small businesses. Other 
small businesses are involved in the distribution and sale of products 
subject to one or more of these rules.
---------------------------------------------------------------------------

    \72\  SBA's revised small business size standards are published 
at 13 CFR Part 121 (1997).
---------------------------------------------------------------------------

    In the 1996 NPRs, the Commission stated its preliminary conclusion 
that the proposed amendments would not have a significant economic 
impact upon such entities. Comments received during the 1994 regulatory 
review of the Textile, Wool, and Fur Rules indicated that the current 
costs of complying with the Rules and their enabling statutes are 
minimal. Comments received in response to the 1996 NPRs indicated that 
the proposed amendments would not increase costs and might result in 
some small savings to the industry.
    Elimination of required disclosures of: (1) Functional significance 
of named fibers present in less than 5% of product weight and (2) 
``Fiber Content on Reverse Side,'' in the Textile and Wool Rules, do 
not place any additional burdens or costs on manufacturers or sellers. 
By reducing the size of labels and enabling more efficient labeling of 
products traded within NAFTA countries, these amendments likely will 
result in slight cost reduction. Similarly, eliminating the repetition 
of country of origin and the streamlining of label placement 
requirements also may reduce the size of labels and simplify labeling 
requirements, resulting in slight cost savings. The incorporation into 
the Textile Rules of ISO Standard 2076: 1989, ``Textiles--Man-made 
fibres--Generic names'' will benefit manufacturers and sellers by 
increasing international harmonization. It will obviate the need for 
some petitions to the Commission to recognize additional generic fiber 
names, resulting in some cost savings to both government and industry.
    Amending the Textile, Wool, and Fur Rules to clarify that an RN is 
subject to cancellation if, after a change in the material information 
contained on the RN application, a new application reflecting current 
business information is not promptly received by the Commission, is a 
clarifying provision that does not impose new obligations on 
businesses. Furthermore, while Commission cancellation of an 
identification number would require a business to re-apply, this may be 
done simply by submitting the identifying information already called 
for in the Rules. Therefore, the amendments will not impose any 
significant economic costs on industry members.
    The addition to the Textile and Wool Rules of clarifying examples 
of country of origin disclosures that comply with both Commission and 
Customs law is not a substantive amendment to the Rules. It merely 
provides guidance as to how firms affected by both sets of regulations, 
including recent Customs regulations adopted pursuant to section 334 of 
the URAA, can easily craft disclosures to comply with both.
    The increase from $20 to $150 of the cost figure exempting certain 
fur products from some requirements of the Fur Rules constitutes an 
inflationary and market adjustment that will slightly reduce compliance 
costs and burdens for members of this industry. The change, while 
likely important to some firms, is not expected to have a significant 
impact on the fur industry.
    Finally, amendment of the Textile and Wool Rules to recognize that 
promotions and transactions can take place by means of computers does 
not impose significant economic costs on the industry. It merely 
updates the Rules to reflect the fact that printed materials, such as 
catalogs and invoices, can now be generated and transmitted 
electronically.
    On the basis of available information, the Commission certifies 
that the amendments to the Textile, Wool, and Fur Rules, announced 
herein, will not have a significant economic impact on a substantial 
number of small businesses. Therefore, a final regulatory flexibility 
analysis is not necessary or appropriate.

X. Paperwork Reduction Act

    The Textile, Wool, and Fur Rules contain various collection of 
information requirements for which the Commission has obtained 
clearance under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et 
seq., Office of Management and Budget (OMB) Control Numbers 3084-1010, 
3084-0100, 3084-0099. These requirements relate to the accurate 
disclosure of material information about textile, wool, and fur 
products, including fiber or fur content and country of origin. The 
Rules also require manufacturers and other marketers of covered 
products to maintain records that support claims on labels. Most of the 
disclosure requirements and all of the recordkeeping requirements are 
specifically mandated by the Textile, Wool, and Fur Acts. See 15 U.S.C. 
70b, 70d; 15 U.S.C. 68b, 68d; 15 U.S.C. 69b, 69f, respectively.
    The Commission has also obtained OMB clearance for: (1) Petitions 
under the Textile Rules requesting the establishment of generic names 
for textile fibers; (2) petitions under the Wool Rules concerning 
whether or not representations of the fiber content of a class of 
articles are commonly made, or whether or not the textile content of 
certain products is insignificant or inconsequential; and (3) petitions 
for an exemption under the Fur Act. A Notice soliciting public comments 
on extending these clearances through December 31, 1999, was published 
in the Federal Register last year. 61 FR 43764, 43766-67 (Aug. 26, 
1996).
    The amendments adopted herein will lower the paperwork burden 
associated with the current Rules. Eliminating certain disclosures (the 
functional significance of named fibers present in small amounts; the 
words ``Fiber Content on Reverse Side;'' and the repetition of the 
country of origin on certain kinds of labels) from the Textile and Wool 
Rules will allow for greater flexibility in labeling and will reduce 
labeling burdens. The incorporation into the Textile Rules of ISO 
Standard 2076: 1989, ``Textiles--Man-made fibres--Generic names'' will 
reduce labeling burdens by increasing international harmonization. In 
addition, it will obviate the need for some petitions to the Commission 
to recognize additional generic fiber names, thus lowering paperwork 
burdens.
    The amendments to the Textile, Wool, and Fur Rules regarding the 
cancellation of RN numbers does not impose a paperwork burden on 
holders of RNs. The Rules, at 16 CFR 303.20, 16 CFR 300.4, and 16 CFR 
301.26, already require companies to notify the FTC about changes in 
business names, addresses, company type, etc. The current proposal 
merely adds the element of cancellation by the Commission if these 
requirements are not met. Neither the initial filing procedures nor the 
requirement to update the information are new and therefore, no 
``burden'' is imposed.
    More importantly, the underlying certification itself does not meet 
the definition of ``information'' contained in the PRA. In implementing 
the Paperwork Reduction Act of 1995, OMB attempted to clarify the 
exemption for ``certifications'' in both the Notice of Proposed 
Rulemaking, 60 FR 30438, 30439 (June 8, 1995), and the Final Rule, 61 
FR 44978, 44979 (Aug. 9, 1995) (``the exemption applies when the 
certification is used to identify an individual in a `routine, non-
intrusive, non-burdensome way'.'') This language reflects current 
guidance in OMB/OIRA's Information Collection Review Handbook (1989), 
which discusses

[[Page 7516]]

exempt categories of inquiry (5 CFR 1320.3(h)(1)-(10)) that are not 
deemed to constitute ``information.'' Certifications, as well as other 
forms of acknowledgments, comprise one of these 
categories.73 Such inquiries are considered to be routine 
because response to the requests rarely requires examination of 
records, usually does not require consideration about the correct 
answer, and usually is provided on a form supplied by the government. 
See OMB/OIRA Handbook, p. 29. Accordingly, OMB's regulations exempt 
certifications from the clearance requirement, provided that no 
information need be reported beyond certain basic identifying 
information.74
---------------------------------------------------------------------------

    \73\ Specifically, the first category consists of: ``affidavits, 
oaths, affirmations, certifications, receipts, changes of address, 
consents, or acknowledgments.'' 5 CFR 1320(h)(1).
    \74\ The information required on an RN application includes only 
the following: name of applicant firm, address of applicant, type of 
company, type of business, products, certification that the listed 
products are subject to the Textile, Wool, or Fur Acts, the name and 
title of the person completing the application, and the date. The 
form also includes spaces to enter, at the option of the applicant, 
telephone and fax numbers, web site address, and E-mail address.
---------------------------------------------------------------------------

List of Subjects in 16 CFR Parts 1, 300, 301, and 303

    Furs, Incorporation by reference, Labeling, Textile fiber products 
identification, Trade practices, Wool products.

    For the reasons set forth above, the Commission amends 16 CFR Part 
1, 16 CFR Part 300, 16 CFR Part 301, and 16 CFR Part 303, as follows:

PART 1--GENERAL PROCEDURES

    1. The authority citation for Part 1 continues to read as follows:

    Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise 
noted.

Subpart D (Secs. 1.31-1.34) [Removed]

    2. Subpart D--Administration of the Wool Products Labeling Act of 
1939, Fur Products Labeling Act, and Textile Fiber Products 
Identification Act, containing Secs. 1.31, 1.32, 1.33, and 1.34, is 
removed.

PART 300--RULES AND REGULATIONS UNDER THE WOOL PRODUCTS LABELING 
ACT OF 1939

    1. The authority citation for Part 300 continues to read as 
follows:

    Authority: 15 U.S.C. 68 et seq. and 15 U.S.C. 70 et seq.

    2. Section 300.1 is amended by revising paragraph (h) and adding 
paragraphs (j) and (k) to read as follows:


Sec. 300.1  Terms defined.

* * * * *
    (h) The terms mail order catalog and mail order promotional 
material mean any materials, used in the direct sale or direct offering 
for sale of wool products, that are disseminated to ultimate consumers 
in print or by electronic means, other than by broadcast, and that 
solicit ultimate consumers to purchase such wool products by mail, 
telephone, electronic mail, or some other method without examining the 
actual product purchased.
* * * * *
    (j) The terms invoice and invoice or other paper have the meaning 
set forth in Sec. 303.1(h) of this chapter.
    (k) The term trimmings has the meaning set forth in Sec. 303.12 of 
this chapter.
    3. Section 300.3(b) is revised to read as follows:


Sec. 300.3  Required label information.

* * * * *
    (b) In disclosing the constituent fibers in information required by 
the Act and regulations in this part or in any non-required 
information, no fiber present in the amount of less than 5 percent 
shall be designated by its generic name or fiber trademark but shall be 
designated as ``other fiber,'' except that the percentage of wool or 
recycled wool shall always be stated, in accordance with section 
4(a)(2)(A) of the Act. When more than one of such fibers, other than 
wool or recycled wool, are present in amounts of less than 5 percent, 
they shall be designated in the aggregate as ``other fibers.'' 
Provided, however, that nothing in this section shall prevent the 
disclosure of any fiber present in the product which has a clearly 
established and definite functional significance when present in the 
amount stated, as for example:

``98% wool
2% nylon.''

    4. In Sec. 300.4, the section heading and paragraphs (c) and (e) 
are revised to read as follows, and the form following paragraph (e) is 
removed:


Sec. 300.4  Registered identification numbers.

* * * * *
    (c) Registered identification numbers shall be used only by the 
person or firm to whom they are issued, and such numbers are not 
transferable or assignable. Registered identification numbers shall be 
subject to cancellation whenever any such number was procured or has 
been used improperly or contrary to the requirements of the Acts 
administered by the Federal Trade Commission, and regulations in this 
part, or when otherwise deemed necessary in the public interest. 
Registered identification numbers shall be subject to cancellation if 
the Commission fails to receive prompt notification of any change in 
name, business address, or legal business status of a person or firm to 
whom a registered identification number has been assigned, by 
application duly executed in the form set out in paragraph (e) of this 
section, reflecting the current name, business address, and legal 
business status of the person or firm.
* * * * *
    (e) The form to apply for a registered identification number or to 
update information pertaining to an existing number is found in 
Sec. 303.20(d) of this Chapter. The form is available upon request from 
the Commission's Los Angeles Regional Office, 10877 Wilshire Blvd., 
Suite 700, Los Angeles, CA 90024, or on the Internet at http://
www.ftc.gov.
    5. Section 300.5(b) is revised to read as follows:


Sec. 300.5  Required label and method of affixing.

* * * * *
    (b) Each wool product with a neck must have a label disclosing the 
country of origin affixed to the inside center of the neck midway 
between the shoulder seams or in close proximity to another label 
affixed to the inside center of the neck. The fiber content and RN or 
name of the company may be disclosed on the same label as the country 
of origin or on another conspicuous and readily accessible label or 
labels on the inside or outside of the garment. On all other wool 
products, the required information shall be disclosed on a conspicuous 
and readily accessible label or labels on the inside or outside of the 
product. The country of origin disclosure must always appear on the 
front side of the label. Other required information may appear either 
on the front side or the reverse side of a label, provided that the 
information is conspicuous and readily accessible.
* * * * *
    6. The last sentence of section 300.8(g) is revised to read as 
follows:


Sec. 300.8  Use of fiber trademark and generic names.

* * * * *
    (g) * * * The following are examples of fiber content disclosures 
under this paragraph:

60% Wool
40% Fur Fiber
    or
60% Wool

[[Page 7517]]

30% Fur Fiber
10% Angora Rabbit
    or
100% Cashgora Hair
    or
100% Paco-Vicuna Hair

    7. Section 300.10 is revised to read as follows:


Sec. 300.10  Disclosure of information on labels.

    (a) Subject to the provisions of Sec. 300.5(b), the required 
information may appear on any label or labels attached to the product, 
including the care label required by 16 CFR Part 423, provided all the 
pertinent requirements of the Act and regulations in this part are met 
and so long as the combination of required information and non-required 
information is not misleading. All parts of the required information 
shall be set forth in such a manner as to be clearly legible, 
conspicuous, and readily accessible to the prospective purchaser. All 
parts of the required fiber content information shall appear in type or 
lettering of equal size and conspicuousness.
    (b) Subject to the provisions of Sec. 300.8, any non-required 
information or representations placed on the product shall not 
minimize, detract from, or conflict with required information and shall 
not be false, deceptive, or misleading.


Sec. 300.21  [Removed]


Secs. 300.22 through 300.25b  [Redesignated as Secs. 300.21 through 
300.25a]

    8. Section 300.21 is removed, and Secs. 300.22, 300.23, 300.24, 
300.25, 300.25a, and 300.25b are redesignated as 300.21, 300.22, 
300.23, 300.24, 300.25, and 300.25a, respectively.
    9. Newly redesignated Sec. 300.25 is amended by revising paragraphs 
(a)(3), (a)(4) introductory text, and (a)(4)(i) to read as follows:


Sec. 300.25  Country where wool products are processed or manufactured.

    (a) * * *
    (3) Each wool product made in the United States, either in whole or 
in part of imported materials, shall contain a label disclosing these 
facts; for example:

``Made in USA of imported fabric''
    or
``Knitted in USA of imported yarn'' and

    (4) Each wool product partially manufactured in a foreign country 
and partially manufactured in the United States shall contain on a 
label the following information:
    (i) The manufacturing process in the foreign country and in the 
USA; for example:

``Imported cloth, finished in USA''
    or
``Sewn in USA of imported components''
    or
``Made in (foreign country), finished in USA''
    or
``Scarf made in USA of fabric made in China''
    or
``Comforter Filled, Sewn and Finished in the U.S. With Shell Made in 
China''
* * * * *
    10. Section 300.33(b) is revised to read as follows, and the form 
following paragraph (b) is removed:


Sec. 300.33  Continuing guaranty filed with Federal Trade Commission.

* * * * *
    (b) The prescribed form for a continuing guaranty is found in 
Sec. 303.38(b) of this chapter. The form is available on request from 
the Federal Trade Commission's Los Angeles Regional Office, 10877 
Wilshire Blvd., Suite 700, Los Angeles, CA 90024.
* * * * *

PART 301--RULES AND REGULATIONS UNDER THE FUR PRODUCTS LABELING ACT

    1. The authority citation for Part 301 continues to read as 
follows:

    Authority: 15 U.S.C. 69 et seq.

    2. In Sec. 301.26, the section heading and paragraphs (b)(2) and 
(d) are revised to read as follows, and the form following paragraph 
(d) is removed:


Sec. 301.26  Registered identification numbers.

* * * * *
    (b)(1) * * *
    (2) Registered identification numbers shall be subject to 
cancellation if the Federal Trade Commission fails to receive prompt 
notification of any change in name, business address, or legal business 
status of a person or firm to whom a registered identification number 
has been assigned, by application duly executed in the form set out in 
paragraph (d) of this section, reflecting the current name, business 
address, and legal business status of the person or firm.
* * * * *
    (d) The form to apply for a registered identification number or to 
update information pertaining to an existing number is found in 
Sec. 303.20(d) of this chapter. The form is available upon request from 
the Commission's Los Angeles Regional Office, 10877 Wilshire Blvd., 
Suite 700, Los Angeles, CA 90024, or on the Internet at http://
www.ftc.gov.
    3. In Sec. 301.39, the first sentence of paragraph (a) and 
paragraph (c) are revised to read as follows:


Sec. 301.39  Exempted fur products.

    (a) If the cost of any fur trim or other manufactured fur or furs 
contained in a fur product, exclusive of any costs incident to its 
incorporation therein, does not exceed one hundred fifty dollars ($150) 
to the manufacturer of the finished fur product, or if a manufacturer's 
selling price of a fur product does not exceed one hundred fifty 
dollars ($150), and the provisions of paragraphs (b) and (c) of this 
section are met, the fur product shall be exempted from the 
requirements of the Act and regulations in this part; provided, 
however, that if the fur product is made of or contains any used fur, 
or if the fur product itself is or purports to be the whole skin of an 
animal with the head, ears, paws and tail, such as a choker or scarf, 
the fur product is to be labeled, invoiced and advertised in accordance 
with the requirements of the Act and regulations in this part, 
regardless of the cost of the fur used in the fur product or the 
manufacturer's selling price. * * *
* * * * *
    (c) If a fur product is exempt under this section and the 
manufacturer's selling price exceeds one hundred fifty dollars ($150), 
the manufacturer's or wholesaler's invoice shall carry information 
indicating such fur product is exempt from the provisions of the Act 
and regulations in this part; as for example: ``FPL EXEMPT.''
    4. The heading of Sec. 301.48 and paragraph (a)(3) are revised to 
read as follows, and the form following paragraph (a)(3) is removed:


Sec. 301.48  Continuing guaranty filed with Federal Trade Commission.

* * * * *
    (a)(3) The prescribed form for a continuing guaranty is found in 
Sec. 303.38(b) of this chapter. The form is available on request from 
the Federal Trade Commission's Los Angeles Regional Office, 10877 
Wilshire Blvd., Suite 700, Los Angeles, CA 90024.
* * * * *

PART 303--RULES AND REGULATIONS UNDER THE TEXTILE FIBER PRODUCTS 
IDENTIFICATION ACT

    1. The authority citation for Part 303 continues to read as 
follows:

    Authority: 15 U.S.C. 70 et seq.

    2. Footnote 1 of Part 303 is removed.
    3. In Sec. 303.1, paragraphs (h) and (u) are revised to read as 
follows:


Sec. 303.1  Terms defined.

* * * * *

[[Page 7518]]

    (h) The terms invoice and invoice or other paper mean an account, 
order, memorandum, list, or catalog, which is issued to a purchaser, 
consignee, bailee, correspondent, agent, or any other person, in 
writing or in some other form capable of being read and preserved in a 
tangible form, in connection with the marketing or handling of any 
textile fiber product transported or delivered to such person.
* * * * *
    (u) The terms mail order catalog and mail order promotional 
material mean any materials, used in the direct sale or direct offering 
for sale of textile products, that are disseminated to ultimate 
consumers in print or by electronic means, other than by broadcast, and 
that solicit ultimate consumers to purchase such textile products by 
mail, telephone, electronic mail, or some other method without 
examining the actual product purchased.
    4. Section 303.3 is revised to read as follows:


Sec. 303.3  Fibers present in amounts of less than 5 percent.

    (a) Except as permitted in sections 4(b)(1) and 4(b)(2) of the Act, 
as amended, no fiber present in the amount of less than 5 percent of 
the total fiber weight shall be designated by its generic name or fiber 
trademark in disclosing the constituent fibers in required information, 
but shall be designated as ``other fiber.'' When more than one of such 
fibers are present in a product, they shall be designated in the 
aggregate as ``other fibers.'' Provided, however, that nothing in this 
section shall be construed as prohibiting the disclosure of any fiber 
present in a textile fiber product which has a clearly established and 
definite functional significance when present in the amount contained 
in such product, as for example:

96 percent Acetate
4 percent Spandex.

    (b) In making such disclosure, all of the provisions of the Act and 
regulations in this part setting forth the manner and form of 
disclosure of fiber content information, including the provisions of 
Secs. 303.17 and 303.41 of this part relating to the use of generic 
names and fiber trademarks, shall be applicable.
    5. Section 303.7 is amended by revising the introductory text to 
read as follows:


Sec. 303.7  Generic names and definitions for manufactured fibers.

    Pursuant to the provisions of section 7(c) of the Act, the 
Commission hereby establishes the generic names for manufactured 
fibers, together with their respective definitions, set forth in this 
section and the generic names for manufactured fibers, together with 
their respective definitions, set forth in International Organization 
for Standardization (ISO) Standard 2076: 1989, ``Textiles--Man-made 
fibres--Generic names.'' This incorporation by reference was approved 
by the Director of the Federal Register in accordance with 5 U.S.C. 
552(a) and 1 CFR part 51. Copies may be obtained from the American 
National Standards Institute, 11 West 42nd St., 13th floor, New York, 
N.Y. 10036. Copies may be inspected at the Federal Trade Commission, 
room 130, 6th St. & Pennsylvania Ave., NW, Washington, DC, or at the 
Office of the Federal Register, 800 North Capitol St., NW, Suite 700, 
Washington, DC.
* * * * *
    6. Section 303.8(a) introductory text is revised to read as 
follows:


Sec. 303.8  Procedure for establishing generic names for manufactured 
fibers.

    (a) Prior to the marketing or handling of a manufactured fiber for 
which no generic name has been established or otherwise recognized by 
the Commission, the manufacturer or producer thereof shall file a 
written application with the Commission, requesting the establishment 
of a generic name for such fiber, stating therein:
* * * * *
    7. Section 303.15(b) is revised to read as follows:


Sec. 303.15  Required label and method of affixing.

* * * * *
    (b) Each textile fiber product with a neck must have a label 
disclosing the country of origin affixed to the inside center of the 
neck midway between the shoulder seams or in close proximity to another 
label affixed to the inside center of the neck. The fiber content and 
RN or name of the company may be disclosed on the same label as the 
country of origin or on another conspicuous and readily accessible 
label or labels on the inside or outside of the garment. On all other 
textile products, the required information shall be disclosed on a 
conspicuous and readily accessible label or labels on the inside or 
outside of the product. The country of origin disclosure must always 
appear on the front side of the label. Other required information may 
appear either on the front side or the reverse side of a label, 
provided that the information is conspicuous and readily accessible.
* * * * *
    8. In Sec. 303.16, paragraphs (a) introductory text, (a)(1), (b), 
and (c) are revised to read as follows:


Sec. 303.16  Arrangement and disclosure of information on labels.

    (a) Subject to the provisions of Sec. 303.15(b), information 
required by the Act and regulations in this Part may appear on any 
label or labels attached to the textile fiber product, including the 
care label required by 16 CFR Part 423, provided all the pertinent 
requirements of the Act and regulations in this Part are met and so 
long as the combination of required information and non-required 
information is not misleading. The required information shall include 
the following:
    (1) The generic names and percentages by weight of the constituent 
fibers present in the textile fiber product, excluding permissive 
ornamentation, in amounts of 5 percent or more and any fibers disclosed 
in accordance with Sec. 303.3(a) shall appear in order of predominance 
by weight with any percentage of fiber or fibers required to be 
designated as ``other fiber'' or ``other fibers'' appearing last.
* * * * *
    (b) All parts of the required information shall be set forth in 
such a manner as to be clearly legible, conspicuous, and readily 
accessible to the prospective purchaser. All parts of the fiber content 
information shall appear in type or lettering of equal size and 
conspicuousness.
    (c) Subject to the provisions of Sec. 303.17, any non-required 
information or representations placed on the product shall not 
minimize, detract from, or conflict with required information and shall 
not be false, deceptive, or misleading.
* * * * *
    9. Section 303.20 is amended by adding paragraph (b)(3) and 
revising paragraph (d) to read as follows:


Sec. 303.20  Registered identification numbers.

* * * * *
    (b)(1) * * *
    (3) Registered identification numbers shall be subject to 
cancellation if the Commission fails to receive prompt notification of 
any change in name, business address, or legal business status of a 
person or firm to whom a registered identification number has been 
assigned, by application duly executed in the form set out in paragraph 
(d) of this section, reflecting the current name, business address, and 
legal business status of the person or firm.
* * * * *

[[Page 7519]]

    (d) Form to apply for a registered identification number or to 
update information pertaining to an existing number (the form is 
available upon request from the Commission's Los Angeles Regional 
Office, 10877 Wilshire Blvd., Suite 700, Los Angeles, CA 90024, or on 
the Internet at http://www.ftc.gov):

BILLING CODE 6750-01-P
       

[[Page 7520]]

[GRAPHIC] [TIFF OMITTED] TR13FE98.004



BILLING CODE 6750-01-C

[[Page 7521]]

    10. In Sec. 303.33, the section heading and paragraphs (a)(3), 
(a)(4) introductory text, and (a)(4)(i) are revised to read as follows:


Sec. 303.33  Country where textile fiber products are processed or 
manufactured.

    (a) * * *
    (3) Each textile fiber product made in the United States, either in 
whole or in part of imported materials, shall contain a label 
disclosing these facts; for example:

Made in USA of imported fabric
    or
Knitted in USA of imported yarn

and
    (4) Each textile fiber product partially manufactured in a foreign 
country and partially manufactured in the United States shall contain 
on a label the following information:
    (i) The manufacturing process in the foreign country and in the 
USA; for example:

Imported cloth, finished in USA
    or
Sewn in USA of imported components
    or
Made in (foreign country), finished in USA
    or
Scarf made in USA of fabric made in China
    or
Comforter Filled, Sewn and Finished in the U.S. With Shell Made in 
China'
* * * * *
    11. Section 303.38(b) is revised to read as follows:


Sec. 303.38  Continuing guaranty filed with Federal Trade Commission.

* * * * *
    (b) Prescribed form for a continuing guaranty:

BILLING CODE 6750-01-P

[[Page 7522]]

[GRAPHIC] [TIFF OMITTED] TR13FE98.005




[[Page 7523]]


BILLING CODE 6750-01-C
* * * * *
    12. Section 303.40 is revised to read as follows:


Sec. 303.40  Use of terms in written advertisements that imply presence 
of a fiber.

    The use of terms in written advertisements, including 
advertisements disseminated through the Internet and similar electronic 
media, that are descriptive of a method of manufacture, construction, 
or weave, and that by custom and usage are also indicative of a textile 
fiber or fibers, or the use of terms in such advertisements that 
constitute or connote the name or presence of a fiber or fibers, shall 
be deemed to be an implication of fiber content under section 4(c) of 
the Act, except that the provisions of this section shall not be 
applicable to non-deceptive shelf or display signs in retail stores 
indicating the location of textile fiber products and not intended as 
advertisements.
    13. In Sec. 303.42, the second sentence of paragraph (a) is revised 
to read as follows:


Sec. 303.42  Arrangement of information in advertising textile fiber 
products.

    (a) * * * In making the required disclosure of the fiber content of 
the product, the generic names of fibers present in an amount 5 percent 
or more of the total fiber weight of the product, together with any 
fibers disclosed in accordance with Sec. 303.3(a), shall appear in 
order of predominance by weight, to be followed by the designation 
``other fiber'' or ``other fibers'' if a fiber or fibers required to be 
so designated are present.
* * * * *
    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-3495 Filed 2-12-98; 8:45 am]
BILLING CODE 6750-01-P