[Federal Register Volume 67, Number 22 (Friday, February 1, 2002)]
[Rules and Regulations]
[Pages 4901-4904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2434]


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FEDERAL TRADE COMMISSION

16 CFR Part 303


Rules and Regulations Under the Textile Fiber Products 
Identification Act

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``Commission'') announces 
amendments to rule 7 of the Rules and Regulations Under the Textile 
Fiber Products Identification Act (``Textile Rules''), to designate a 
new generic fiber name and establish a new generic fiber definition for 
a fiber manufactured by Cargill Dow, LLC (``Cargill Dow'') of 
Minnetonka, Minnesota. The amendments create a new subsection (y) to 
Rule 7 that establishes the name ``PLA'' for a fiber that Cargill Dow 
designates by the registered name ``Natureworks.''

EFFECTIVE DATE: February 1, 2002.

FOR FURTHER INFORMATION CONTACT: Neil Blickman, Attorney, Division of 
Enforcement, Federal Trade Commission, Washington, DC 20580; (202) 326-
3038.

SUPPLEMENTARY INFORMATION:

I. Background

A. Statutory and Regulatory Framework

    Section 4(b)(1) of the Textile Fiber Products Identification Act 
(``Act'') declares that a textile product will be misbranded unless it 
is labeled to show, among other elements, the percentages, by weight, 
of the constituent fibers in the product, designated by their generic 
names and in order of predominance by weight. 15 U.S.C. 70b(b)(1). 
Section 4(c) of the Act provides that the same information required by 
section 4(b)(1) (except the percentages) must appear in written 
advertisements if any disclosure or implication of fiber content is 
made regarding a covered textile product. 15 U.S.C. 70b(c). Section 
7(c) directs the Commission to promulgate such rules, including the 
establishment of generic names of manufactured fibers, as are necessary 
to enforce the Act's directives. 15 U.S.C. 70e(c).
    Rule 6 of the Textile Rules requires manufacturers to use the 
generic names of the fibers contained in their textile fiber products 
in making required disclosures of the fiber content of the products. 16 
CFR 303.6. Rule 7 sets forth the generic names and definitions that the 
Commission has established for synthetic fibers. 16 CFR 303.7. Rule 8 
sets forth the procedures for establishing new generic names. 16 CFR 
303.8.

B. Procedural History

    On August 28, 2000, Cargill Dow applied to the Commission for a new 
fiber name and definition.\1\ Its application states that PLA fibers 
are synthetic but are derived from natural renewable resources 
(agricultural crops such as corn).\2\ It maintained that PLA can 
combine certain advantages of natural fibers with those of certain 
synthetic fibers. Cargill Dow contended that its proprietary 
Natureworks PLA fiber, and PLA that may be made using alternative 
processes, have unique properties that, along with PLA's unique 
fundamental chemistry, differentiate PLA fibers from all other 
recognized and listed synthetic or natural fibers.
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    \1\ This petition and additional information that Cargill Dow 
submitted are on the rulemaking record of this proceeding. This 
material, as well as the comments that were filed in this 
proceeding, are available for public inspection in accordance with 
the Freedom of Information Act, 5 U.S.C. 552, and the Commission's 
Rules of Practice, 16 CFR 4.11, at the Consumer Response Center, 
Public Reference Section, Room 130, Federal Trade Commission, 600 
Pennsylvania Avenue, NW., Washington, DC. The comments that were 
filed are found under the Rules and Regulations Under the Textile 
Fiber Products Identification Act, 16 CFR part 303, Matter No. 
P948404, ``Cargill Dow Generic Fiber Petition Rulemaking.'' The 
comments also are available for viewing in electronic form at 
www.ftc.gov>>.
    \2\ PLA also is the acronym for the polymer from which the fiber 
is manufactured, namely polylactic acid or polylactide.
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    Contending that the unique chemistry of fibers made from PLA is 
inadequately described under existing generic names listed in the 
Textile Rules, Cargill Dow petitioned the Commission to establish a new 
generic name and definition. After an initial analysis, the Commission 
announced, on October 30, 2000, that it had issued Cargill Dow the 
designation ``CD 0001'' for temporary use in identifying PLA fiber 
pending a final determination as to the merits of the application for a 
new generic name and definition. The Commission staff further analyzed 
the application, and on November 17, 2000 (65 FR 69486), the Commission 
published a Notice of Proposed Rulemaking (``NPR'') detailing the 
technical aspects of Cargill Dow's fiber, and requesting public comment 
on Cargill Dow's application. On January 29, 2001, the comment period 
closed.

[[Page 4902]]

II. Description of the Fiber and Solicitation of Comments in the 
NPR

A. The Commission's Criteria for Granting a New Generic Fiber Name and 
Definition, and Related Issues

    In the NPR, the Commission solicited comment on whether Cargill 
Dow's application meets the Commission's three criteria for granting 
petitions for new generic names:
    1. The fiber for which a generic name is requested must have a 
chemical composition radically different from other fibers, and that 
distinctive chemical composition must result in distinctive physical 
properties of significance to the general public.
    2. The fiber must be in active commercial use or such use must be 
immediately foreseen.
    3. The grant of the generic name must be of importance to the 
consuming public at large, rather than to a small group of 
knowledgeable professionals such as purchasing officers for large 
government agencies.\3\
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    \3\ The Commission first announced these criteria on December 
11, 1973 (38 FR 34112), and later clarified and reaffirmed them on 
December 6, 1995 (60 FR 62352), May 23, 1997 (62 FR 28342), and 
January 6, 1998 (63 FR 447 and 63 FR 449).
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    In the NPR, the Commission noted that repeat units of PLA are 
linked by ester groups, which means that PLA fiber is a polyester. The 
Commission agreed with Cargill Dow, however, that PLA does not fit into 
Rule 7's current definition of polyester. Therefore, the Commission 
requested public comment on whether to: (1) Broaden Rule 7's definition 
of polyester to include PLA fiber; (2) create a separate subcategory 
and definition for PLA fiber within Rule 7's definition of polyester; 
or (3) add a new generic fiber name and definition to Rule 7 for PLA 
fiber.

B. The NPR

1. Fiber Description and Proposed Name and Definition
    The NPR provided a detailed description, taken from Cargill Dow's 
application, of PLA's chemical composition and physical and chemical 
properties.\4\ Cargill Dow explained that PLA fibers typically are made 
using lactic acid as the starting material for polymer manufacture. The 
lactic acid comes from fermenting various sources of natural sugars. 
These sugars can come from annually renewable agricultural crops such 
as corn or sugar beets. Cargill Dow maintained that PLA's fundamental 
polymer chemistry allows control of certain fiber properties and makes 
the fiber suitable for a wide variety of technical textile fiber 
applications, especially apparel and performance apparel applications. 
Of most significance to consumers, Cargill Dow maintained that PLA 
fibers exhibit: (1) Low moisture absorption and high wicking, offering 
benefits for sports and performance apparel and products; (2) low 
flammability and smoke generation; (3) high resistance to ultra violet 
(UV) light, a benefit for performance apparel as well as outdoor 
furniture and furnishings applications; (4) a low index of refraction, 
which provides excellent color characteristics; and (5) lower specific 
gravity, making PLA lighter in weight than other fibers. In addition to 
coming from an annually renewable resource base, Cargill Dow stated 
that PLA fibers are readily melt-spun, offering manufacturing 
advantages that will result in greater consumer choice.
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    \4\ 65 FR 69486, at 69487-69491 (Nov. 17, 2000). For brevity's 
sake, the Commission is providing a simplified description of the 
fiber in this notice, and refers those who wish to see detailed 
technical information about the fiber to the earlier description in 
the NPR.
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    In the NPR, the Commission proposed the following fiber name and 
definition for PLA, which Cargill Dow had suggested:

    Synterra. A manufactured fiber in which the polymer is produced 
either (a) by the condensation of lactic acid or (b) by ring opening 
of the cyclic dimer, lactide, in both cases where at least 85% of 
the primary component is derived from a renewable resource as an 
integral part of the polymer chain.

In proposing this definition, the Commission noted Cargill Dow's 
statement that PLA used to make the fiber can be polylactic acid or 
polylactide. According to the company, although the lactide 
intermediate route used by Cargill Dow has proven most effective, 
direct condensation of lactic acid also will result in PLA.
2. Discussion of the Public Comments
    The NPR elicited eight comments, including one from Cargill Dow.\5\ 
Four commenters, Dystar UK Ltd, the National Corn Grower's Association, 
the Interface Research Corporation, and the Woolmark Company, as well 
as Cargill Dow, fully supported amending the Textile Rules to create a 
new, separate category in Rule 7 for PLA fiber and establishing a new 
generic fiber name and definition for Cargill Dow's fiber, as proposed 
by the Commission.\6\ Two other commenters supported creating a new 
name and definition for PLA fiber, but had comments about the name and 
definition proposed in the NPR, as discussed below. Only one commenter, 
FSA, opposed creating a new name and definition for PLA.
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    \5\ (1) American Fiber Manufacturers Association, Inc. 
(``AFMA''); (2) Dystar UK Ltd; (3) Keller and Heckman LLP on behalf 
of Cargill Dow; (4) National Corn Growers Association; (5) Interface 
Research Corporation; (6) Woolmark Company; (7) Finnish Standards 
Association (``FSA''); and (8) European Commission (``EC'').
    \6\ Cargill Dow's comment provides the Commission with the 
results of the consumer focus group research it sponsored. The 
report demonstrated that the focus group participants believed it 
would be most appropriate to place PLA in a separate fiber category.
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    FSA stated that PLA's physical properties and processing behavior 
indicate that it should be regarded as merely an advanced type of 
polyester with several benefits for the environment. In the NPR, 
although the Commission noted that the repeat units of PLA are linked 
by ester groups like polyester fibers, the Commission tentatively 
concluded that PLA fiber did not fit into the current definition for 
polyester in Rule 7.\7\ PLA is an aliphatic polyhydroxycarboxylic acid, 
unlike other polyester fibers. In addition, PLA has a distinctly lower 
melting point and specific gravity than polyester fibers. It also 
appears to have better flame resistance qualities than polyester 
fibers. In light of PLA's unique chemical and physical properties, as 
well as seven other public comments, including the petitioner's, that 
supported creating a separate category in Rule 7 for PLA fiber, the 
Commission has determined not to amend the Rule to broaden the current 
definition for polyester in section 7(c) of the Rule to include PLA 
fiber.
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    \7\ 65 FR 69486 (Nov. 17, 2000).
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    With respect to the proposed name ``synterra,'' AFMA commented that 
as a result of two other commercial names now in use, consumer 
confusion could occur if the Commission adopted the proposed name. AFMA 
pointed out that ``sontara'' and ``sensura'' are trade names currently 
used by DuPont and Wellman Fibers, respectively, that apply to fibers, 
fabrics, and end-product uses similar to the anticipated uses for PLA 
fiber. The EC also commented that the proposed name, ``synterra,'' 
lacks sufficient reference to the chemical composition or physical 
properties of the fiber, and gives the impression of being a commercial 
trade name.
    Finally, with respect to the new generic fiber definition, AFMA 
commented that the definition established by the Commission should be 
limited to a description of the fiber's chemical composition and should 
not include the method of manufacture.

[[Page 4903]]

3. Discussion of the Three Criteria for Granting New Generic Names
a. Distinctive Chemical Composition and Physical Properties of 
Importance to the Public
    The materials Cargill Dow submitted show that PLA fiber is based 
upon a distinctive chemical structure that is not encompassed by any 
existing definition in Rule 7. PLA's distinctive chemical structure 
results in a fiber that exhibits: low moisture absorption and high 
wicking, low flammability, high resistance to ultra violet light, a low 
index of refraction, and stability with respect to laundering and dry 
cleaning. In addition, the fiber comes from a renewable resource base. 
These properties are very important to those members of the general 
public who, for example, desire sports or performance apparel that is 
water-resistant and washable, or desire furnishings with low 
flammability. Thus, Cargill Dow's application meets this first 
criterion.
b. Active Commercial Use
    Cargill Dow's petition stated that fibers produced from PLA have 
been made into finished goods that are ready to commercialize, and 
several are in test markets. When it filed its petition, Cargill Dow 
was in the process of building a plant in Blair, Nebraska, capable of 
producing approximately 30 million pounds per year of PLA. Counsel for 
Cargill Dow has informed Commission staff that the plant soon will be 
operational. Such a level of production for distribution satisfies this 
second criterion.
c. Importance to the Consuming Public
    The Commission agrees with Cargill Dow that the granting of a 
generic name to describe PLA is of importance to the general public, 
and not just a few knowledgeable professionals such as purchasing 
officers for large government agencies. A new generic name will enable 
consumers to identify textile fiber products containing PLA (such as 
sports and performance apparel) that exhibit significant water-
resistance, softer feel or ``hand,'' elasticity, shape retention, and 
improved comfort. Thus, Cargill Dow's application satisfies this third 
criterion.
4. Conclusion
    Based on the foregoing, the Commission finds that Cargill Dow's 
fiber, PLA, is of a distinctive chemical composition not encompassed by 
any of the Textile Rules' existing generic definitions for manufactured 
fibers, that its physical properties are important to the public, that 
the fiber is in active commercial use, and that the granting of a new 
generic name and definition is important to the consuming public at 
large.
    In light of the comments it received, the Commission has determined 
to adopt the generic name ``PLA'' to identify Cargill Dow's new 
manufactured fiber. The name ``PLA'' is used throughout Cargill Dow's 
application to identify its Natureworks fiber, and there is a precedent 
in the Rule, namely ``PBI,'' for adopting an acronym as a generic fiber 
name (16 CFR 303.7(u)). In addition, the Commission is not aware of any 
other aliphatic hydroxycarboxylic acid derived polymer currently being 
used to manufacture textile fibers. Accordingly, to avoid consumer 
confusion, and in the absence of any other suggested generic fiber 
names from the commenters or the petitioner, the Commission has 
determined to designate the generic name ``PLA'' for Cargill Dow's 
Natureworks fiber.
    Further, the Commission agrees that it would be inappropriate to 
include methods of manufacture in the new generic fiber definition of 
PLA. There is no precedent for doing so in section 303.7 of the Rule, 
and, in the Commission's view, including methods of manufacture in the 
generic fiber definition would unduly limit industry research and 
innovation. Therefore, as a logical outgrowth of the fiber definition 
proposed in the NPR, the Commission has determined to define PLA 
generically in terms of its chemical composition.
    Accordingly, in light of the materials and information submitted by 
Cargill Dow, as well as the public comments received during this 
proceeding, the Commission amends Rule 7 of the Textile Rules by adding 
the following new name and definition for Cargill Dow's fiber: PLA. A 
manufactured fiber in which the fiber-forming substance is composed of 
at least 85% by weight of lactic acid ester units derived from 
naturally occurring sugars.\8\
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    \8\ The Commission notes that the definition of PLA it is 
adopting is consistent in form with, for example, the definition of 
Azlon, which is defined as a manufactured fiber in which the fiber-
forming substance is composed of any regenerated naturally occurring 
proteins (16 CFR 303.7(g)).
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III. Effective Date

    The Commission is making the amendments effective on February 1, 
2002, as permitted by 5 U.S.C. 553(d), because the amendments do not 
create new obligations under the Rule; rather, they merely create a 
fiber name and definition that the public may use to comply with the 
Rule.

IV. Regulatory Flexibility Act

    In the NPR, the Commission tentatively concluded that the 
provisions of the Regulatory Flexibility Act relating to an initial 
regulatory analysis, 5 U.S.C. 603-604, did not apply to the proposal 
because the amendments, if promulgated, would not have a significant 
economic impact on a substantial number of small entities. The 
Commission believed that the proposed amendments would impose no 
additional obligations, penalties, or costs. The amendments simply 
would allow covered companies to use a new generic name for a new fiber 
that may not appropriately fit within current generic names and 
definitions, and would impose no additional labeling requirements. To 
ensure, however, that no substantial economic impact was overlooked, 
the Commission solicited public comment in the NPR on the effects of 
the proposed amendments on costs, profits, competitiveness of, and 
employment in small entities. 65 FR 69486, at 69491 (Nov. 17, 2000).
    No comments were received on this issue. Accordingly, the 
Commission hereby certifies, pursuant to the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), that the amendments promulgated today will not 
have a significant economic impact on a substantial number of small 
entities.

V. Paperwork Reduction Act

    These amendments do not constitute ``collection[s] of information'' 
under the Paperwork Reduction Act of 1995, Pub. L. 104-13, 109 Stat. 
163, 44 U.S.C. Chapter 35 (as amended), and its implementing 
regulations, 5 CFR 1320 et seq. Those procedures for establishing 
generic names that do constitute collections of information, 16 CFR 
303.8, have been submitted to OMB, which has approved them and assigned 
them control number 3084-0101.

List of Subjects in 16 CFR Part 303

    Labeling, Textile, Trade practices.

VI. Text of Amendments

    For reasons set forth in the preamble, 16 CFR Part 303 is amended 
as follows:

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: Sec. 7(c) of the Textile Fiber Products 
Identification Act (15 U.S.C. 70e(c)).

    2. In Sec. 303.7, paragraph (y) is added, to read as follows:

[[Page 4904]]

Sec. 303.7  Generic names and definitions for manufactured fibers.

* * * * *
    (y) PLA. A manufactured fiber in which the fiber-forming substance 
is composed of at least 85% by weight of lactic acid ester units 
derived from naturally occurring sugars.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-2434 Filed 1-31-02; 8:45 am]
BILLING CODE 6750-01-P