[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Proposed Rules]
[Pages 13550-13553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5757]


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FEDERAL TRADE COMMISSION

16 CFR Part 301

RIN 3084-AB26


Fur Products Labeling Act

AGENCY: Federal Trade Commission (FTC or Commission).

ACTION: Advance notice of proposed rulemaking; request for comment.

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SUMMARY: In December 2010, Congress passed the Truth in Fur Labeling 
Act (TFLA), which amends the Fur Products Labeling Act (Fur Act) by: 
(1) Eliminating the Commission's discretion to exempt fur products of 
relatively small quantity or value from disclosure requirements; and 
(2) providing that the Fur Act will not apply to certain fur products 
obtained through trapping or hunting and sold in face to face 
transactions. TFLA also directs the Commission to review and allow 
comment on the Fur Products Name Guide (Name Guide). Accordingly, the 
Commission publishes this Advance Notice of Proposed Rulemaking (ANPR) 
and request for comment. In addition to seeking comment on the Name 
Guide, the Commission, as part of its systematic review of all current 
FTC rules and guides, requests comment on all of its Fur Act 
regulations (Fur Rules or Rules).

DATES: Written comments must be received by May 16, 2011.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form by following the instructions in the 
SUPPLEMENTARY INFORMATION section below. Comments in electronic form 
should be submitted by using the following Web link: https://ftcpublic.commentworks.com/ftc/furrulesreview (and following the 
instructions on the Web-based form). Comments filed in paper form 
should be mailed or delivered to the following address: Federal Trade 
Commission, Office of the Secretary, Room H-113 (Annex O), 600 
Pennsylvania Avenue, NW., Washington, DC 20580, in the manner detailed 
in the SUPPLEMENTARY INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Matthew Wilshire, (202) 326-2976, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Fur Act and Rules

    The Fur Act prohibits misbranding and false advertising of fur 
products, and requires labeling of most fur products. 15 U.S.C. 69 et 
seq. Pursuant to this Act, the Commission promulgated the Fur Rules to 
establish disclosure requirements that assist consumers in making 
informed purchasing decisions. 16 CFR part 301. Specifically, the Fur 
Act and Rules require fur manufacturers, dealers, and retailers to 
place labels on products made entirely or partly of fur disclosing: (1) 
The animal's name as provided in the Name Guide; (2) the presence of 
any used, bleached, dyed, or otherwise artificially colored fur; (3) 
that the garment is composed of paws, tails, bellies, or waste fur, if 
that is the case; (4) the name or Registered Identification Number of 
the manufacturer or other party responsible for the garment; and (5) 
the garment's country of origin. 15 U.S.C. 69b(2); 16 CFR 301.2(a). In 
addition, manufacturers must include an item number or mark on the 
label for identification purposes. 16 CFR 301.40. The Fur Rules also 
provide requirements for advertising fur products. 16 CFR 301.38. 
Finally, to assist the Commission in enforcing these requirements, the 
Rules contain recordkeeping requirements. 16 CFR 301.37; 301.41.
    Prior to amendment by TFLA, the Fur Act authorized the Commission 
to exempt fur products of ``relatively small quantity or values from 
labeling requirements. 15 U.S.C. 69(d). Exercising this soon-to-expire 
authority, the Fur Rules contain a de minimis exemption'' that 
provides:

    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. * * * 
16 CFR 301.39(a).

Thus, prior to TFLA's effective date, retailers can lawfully sell 
garments containing fur or fur trim with a component value of $150 or 
less without a fur-content label.

B. TFLA

    On December 18, 2010, the President signed TFLA into law. That Act 
contains two amendments to the Fur Act. First, it eliminates the 
provision in Section 2(d) of the Fur Act that empowered the Commission 
to exempt fur products ``of relatively small quantity or value of the 
fur or used fur contained therein 15 U.S.C. 69(d). This amendment is 
effective 90 days from TFLA's enactment--March 18, 2011. Public Law 
111-113, Sec.  2. Second, TFLA provides a new exemption for furs sold 
directly by trappers and hunters to end-use customers in certain face-
to-face transactions (``hunter/trapper exemptions):

    No provision of [the Fur Act] shall apply to a fur product--(1) 
the fur of which was obtained from an animal through trapping or 
hunting; and (2) when sold in a face to face transaction at a place 
such as a residence, craft fair, or other location used on a 
temporary or short term basis, by the person who trapped or hunted 
the animal, where the revenue from the sale of apparel or fur 
products is not the primary source of income of such person. Pub. L. 
No. 111-113, Sec.  3.

    TFLA also directs the Commission to initiate a review and 
opportunity to comment on the Name Guide. TFLA gives the Commission 90 
days from enactment to commence the review.

II. Future Rule Amendments

    TFLA's amendments will require conforming changes to the Fur Rules. 
Specifically, there will no longer be a statutory basis for the Fur 
Rules' de minimis exemption, and previously exempted fur products will 
require labels. Therefore, the Commission must delete the exemption 
from its Rules. In addition, the Commission will propose revisions 
making clear that the Fur Rules do not apply to products covered by 
TFLA hunter/trapper exemption.
    Accordingly, the Commission will issue a Notice of Proposed 
Rulemaking that will propose changes in light of TFLA and may propose 
other changes in response to comments solicited by this document. 
Meanwhile, fur products previously covered by the de minimis exemption 
will be subject to the Fur Act's disclosure requirements, as of March 
18, 2011, even though the exemption will remain in the Fur Rules until 
the Commission issues final amendments. Congress has rescinded the 
Commission's authority to exempt such products, and, therefore, there 
is no longer a legal basis for the de minimis exemption.

III. Regulatory Review Program

    In light of TFLA's directive, and consistent with the Commission's 
policy to periodically review its rules and guides, the Commission 
solicits comments on the Fur Rules in general and the Name Guide in 
particular. In addition to comments regarding the Name Guide, the 
Commission seeks comment on, among other things, the economic impact 
of, and the continuing need for, the Fur Rule provisions; the benefits 
of the Rules to consumers; and the burdens the Rules place on those 
subject to its requirements. The Commission seeks comment on the 
specific questions listed below in Section IV.

IV. Request for Comment

    The Commission solicits comment on the following specific questions 
related to the Fur Rules:


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    (1) Is there a continuing need for the Rules as currently 
promulgated? Why or why not?
    (2) What benefits have the Rules provided to consumers? What 
evidence supports the asserted benefits?
    (3) What modifications, if any, should the Commission make to 
the Rules to increase their benefits to consumers?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits 
of the Rules for consumers?
    (c) How would these modifications affect the costs and benefits 
of the Rules for businesses, particularly small businesses?
    (4) What impact have the Rules had on the flow of truthful 
information to consumers and on the flow of deceptive information to 
consumers?
    (5) What significant costs have the Rules imposed on consumers? 
What evidence supports the asserted costs?
    (6) What modifications, if any, should be made to the Rules to 
reduce the costs imposed on consumers?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits 
of the Rules for consumers?
    (c) How would these modifications affect the costs and benefits 
of the Rules for businesses, particularly small businesses?
    (7) What benefits, if any, have the Rules provided to 
businesses, and in particular to small businesses? What evidence 
supports the asserted benefits?
    (8) What modifications, if any, should be made to the Rules to 
increase its benefits to businesses, and particularly to small 
businesses?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits 
of the Rules for consumers?
    (c) How would these modifications affect the costs and benefits 
of the Rules for businesses?
    (9) What significant costs, including costs of compliance, have 
the Rules imposed on businesses, particularly small businesses? What 
evidence supports the asserted costs?
    (10) What modifications, if any, should be made to the Rules to 
reduce the costs imposed on businesses, and particularly on small 
businesses?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits 
of the Rules for consumers?
    (c) How would these modifications affect the costs and benefits 
of the Rules for businesses?
    (11) Provide any evidence concerning consumer perception of the 
fur names required by the Name Guide. Does this evidence indicate 
that the Rules should be modified? If so, why, and how? If not, why 
not?
    (12) Provide any evidence concerning whether the Commission 
should alter the Name Guide to include additional fur names or to 
eliminate certain names already listed. Does this evidence indicate 
that the Rules should be modified? If so, why, and how? If not, why 
not?
    (13) What evidence is available concerning the degree of 
industry compliance with the Rules? Does this evidence indicate that 
the Rules should be modified? If so, why, and how? If not, why not?
    (14) Are any of the Rules' requirements no longer needed? If so, 
explain. Please provide supporting evidence.
    (15) What potentially unfair or deceptive practices concerning 
the labeling and advertising of fur products, if any, are not 
covered by the Rules?
    (a) What evidence demonstrates the existence of such practices?
    (b) With reference to such practices, should the Rules be 
modified? If so, why, and how? If not, why not?
    (16) Should the Rules continue to require that fur products 
manufactured for use in pairs or groups be firmly attached to each 
other when delivered to the purchaser-consumer or be individually 
labeled? Why or why not? Please provide any supporting evidence.
    (17) What modifications, if any, should be made to the Rules to 
account for changes in relevant technology or economic conditions?
    (a) What evidence supports the proposed modifications?
    (b) How would these modifications affect the costs and benefits 
of the Rules for consumers and businesses, particularly small 
businesses?
    (18) Do the Rules overlap or conflict with other Federal, State, 
or local laws or regulations? If so, how?
    (a) What evidence supports the asserted conflicts?
    (b) With reference to the asserted conflicts, should the Rules 
be modified? If so, why, and how? If not, why not?
    (19) Are there foreign or international laws, regulations, or 
standards with respect to the fur labeling that the Commission 
should consider as it reviews the Rules? If so, what are they?
    (a) Should the Rules be modified in order to harmonize with 
these foreign or international laws, regulations, or standards? If 
so, why, and how? If not, why not?
    (b) How would such harmonization affect the costs and benefits 
of the Rules for consumers and businesses, particularly small 
businesses?

    Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Fur Rules 
Review, Matter No. P074201'' to facilitate the organization of 
comments. We must receive your comment by May 16, 2011. Please note 
that your comment--including your name and your State--will be placed 
on the public record of this proceeding, including on the publicly 
accessible FTC Web site, at http:[sol][sol]www.ftc.gov/os/
publiccomments.shtm.
    Because comments will be made public, they should not include any 
sensitive personal information, such as any individual's Social 
Security Number; date of birth; driver's license number or other State 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include ``trade secret or any commercial 
or financial information which is obtained from any person and which is 
privileged or confidential'' as provided in Section 6(f) of the Federal 
Trade Commission Act (AFTC Act), 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for which 
confidential treatment is requested must be filed in paper form, must 
be clearly labeled AConfidential, and must comply with FTC Rule 
4.9(c).\1\
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    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted using the following Web link: 
https:[sol][sol]ftcpublic.commentworks.com/ftc/furrulesreview (and 
following the instructions on the Web-based form). To ensure that the 
Commission considers an electronic comment, you must file it on the 
Web-based form at the Web link 
https:[sol][sol]ftcpublic.commentworks.com/ftc/furrulesreview. If this 
notice of proposed rulemaking appears at 
http:[sol][sol]www.regulations.gov/search/Regs/home.html#home, you may 
also file an electronic comment through that Web site. The Commission 
will consider all comments that regulations.gov forwards to it. You may 
also visit the FTC Web site at http:[sol][sol]www.ftc.gov to read the 
notice of proposed rulemaking and the news release describing it.
    A comment filed in paper form should include the ``Fur Rules 
Review, Matter No. P074201'' reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex 
O), 600 Pennsylvania Avenue, NW., Washington, DC 20580. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because

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U.S. postal mail in the Washington area and at the Commission is 
subject to delay due to heightened security precautions.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives, whether filed in paper or 
electronic form. Comments received will be available to the public on 
the FTC Web site, to the extent practicable, at 
http:[sol][sol]www.ftc.gov/os/publiccomments.shtm. As a matter of 
discretion, the FTC makes every effort to remove home contact 
information for individuals from the public comments it receives before 
placing those comments on the FTC Web site. More information, including 
routine uses permitted by the Privacy Act, may be found in the FTC's 
privacy policy, at http:[sol][sol]www.ftc.gov/ftc/privacy.htm.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-5757 Filed 3-11-11; 8:45 am]
BILLING CODE 6750-01-P