Rules and Regulations Under the Textile Fiber Products Identification Act, 18766-18774 [2014-07518]
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18766
Federal Register / Vol. 79, No. 65 / Friday, April 4, 2014 / Rules and Regulations
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Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
action on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Small agricultural service firms,
including shippers, exporters, and
carriers, are defined by the Small
Business Administration (SBA) as those
having annual receipts of less than
$7,000,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000
(13 CFR 121.201).
The industry estimates there are
approximately 7,500 apple producers in
the U.S. The National Agricultural
Statistics Service reports the 2012 apple
crop was valued at nearly $3.1 billion.
Assuming a normal distribution, most
apple producers can be classified as
small entities. According to industry
statistics, there are approximately 60
apple exporters subject to regulation
under the Act. Foreign Agricultural
Service data estimates the value of fresh
apple exports to Canada at
approximately $190 million. Assuming
a normal distribution, the majority of
apple exporters are small businesses.
Based on the above calculations, it can
be concluded that the majority of apple
producers and exporters may be
classified as small entities.
This rule is issued under the authority
of the Export Apple Act, as amended (7
U.S.C. 581–590). This rule revises
‘‘Regulations Issued Under Authority of
the Export Apple Act’’ (7 CFR part 33).
In accordance with the provisions of
section 10009 of the Agricultural Act of
2014, this action exempts apples
shipped to Canada in bulk containers
from the minimum requirements and
inspection provisions issued under the
Act. This action also adds the definition
of ‘‘bulk container’’ as a container that
contains a quantity of apples weighing
more than 100 pounds.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
requirements have been previously
approved by the Office of Management
and Budget (OMB) and assigned OMB
No. 0581–0143, (Export Fruit
Regulations). No changes in those
requirements as a result of this action
are necessary. Should any changes
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become necessary, they would be
submitted to OMB for approval.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
apple shippers, exporters, or carriers.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this interim rule.
Interested persons are invited to
submit comments on this interim rule,
including the regulatory and
informational impacts of this action on
small businesses. Any comments
received will be considered prior to
finalization of this rule.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) This rule has to be
implemented because of amendments
by the Agricultural Act of 2014 to the
Act; (2) this rule provides a 60-day
comment period, and any comments
received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 33
Apples, Exports, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 33 is amended as
follows:
PART 33—REGULATIONS ISSUED
UNDER AUTHORITY OF THE EXPORT
APPLE ACT
1. The authority citation for 7 CFR
part 33 continues to read as follows:
■
Authority: 48 Stat. 124; 7 U.S.C. 581–590.
2. Section 33.8 is added to read as
follows:
■
§ 33.8
Bulk container.
Bulk container means a container that
contains a quantity of apples weighing
more than 100 pounds.
3. In § 33.12, paragraph (d) is added to
read as follows:
■
§ 33.12
Apples not subject to regulation.
*
*
*
*
*
(d) Apples shipped to Canada in bulk
containers.
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Dated: March 12, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–07543 Filed 4–3–14; 8:45 am]
BILLING CODE P
FEDERAL TRADE COMMISSION
16 CFR Part 303
Rules and Regulations Under the
Textile Fiber Products Identification
Act
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Final rule.
AGENCY:
The Commission amends the
rules and regulations under the Textile
Fiber Products Identification Act
(‘‘Textile Rules’’ or ‘‘Rules’’) to
incorporate the updated International
Organization for Standardization
(‘‘ISO’’) standard 2076:2010(E); allow
certain hang-tags that do not disclose
the product’s full fiber content; better
address electronic commerce by
amending the definition of the terms
‘‘invoice’’ and ‘‘invoice or other paper’’;
update the guaranty provisions by,
among other things, replacing the
requirement that suppliers provide a
guaranty signed under penalty of
perjury with a certification, and revising
the form used to file continuing
guaranties with the Commission under
the Textile, Fur, and Wool Acts
accordingly; and clarify several other
provisions.
SUMMARY:
The amended Rules are effective
on May 5, 2014. The incorporation by
reference of the ISO standard
2076:2010(E) is approved by the
Director of the Federal Register as of
May 5, 2014.
ADDRESSES: 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:
Robert M. Frisby, Attorney, (202) 326–
2098, and Amanda B. Kostner, Attorney,
(202) 326–2880, Federal Trade
Commission, Division of Enforcement,
Bureau of Consumer Protection, 600
Pennsylvania Avenue NW., Washington,
DC 20580.
SUPPLEMENTARY INFORMATION:
DATES:
I. Introduction
The Textile Fiber Products
Identification Act (‘‘Textile Act’’) 1 and
1 15
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Rules require marketers to, among other
things, attach a label to each covered
textile product disclosing: (1) The
generic names and percentages by
weight of the constituent fibers in the
product; (2) the name under which the
manufacturer or other responsible
company does business or, in lieu
thereof, the company’s registered
identification number (‘‘RN number’’);
and (3) the name of the country where
the product was processed or
manufactured.2 As part of its ongoing
regulatory review program, the
Commission published an Advance
Notice of Proposed Rulemaking
(‘‘ANPR’’) in November 2011 seeking
comment on the economic impact of,
and the continuing need for, the Textile
Rules; the benefits of the Rules to
consumers; and the burdens the Rules
place on businesses.3 The ANPR also
sought comment on specific issues,
including whether the Commission
should amend the Rules to incorporate
the revised version of ISO standard
entitled ‘‘Textiles—Man-made fibres—
Generic names,’’ 2076:1999(E); clarify
disclosure requirements for products
containing elastic material and
trimmings; clarify disclosure
requirements for written advertising;
and modify the Rules’ guaranty
provisions.
The Commission received 17
comments in response to the ANPR.4
Based on these comments, the
Commission issued a Notice of
Proposed Rulemaking (‘‘NPRM’’)
proposing several amendments
addressing fiber content disclosures,
country-of-origin disclosures, ecommerce and guaranties, and the Act’s
coverage and exemptions.5
The Commission received seven
comments 6 in response to the NPRM,
including four from trade associations
representing industries affected by the
Textile Rules 7 and one each from the
2 See
15 U.S.C. 70b(b).
FR 68690 (Nov. 7, 2011).
4 The ANPR comments are posted at https://
www.ftc.gov/policy/public-comments/initiative-401.
5 78 FR 29263 (May 20, 2013).
6 The NPRM comments are posted at https://
www.ftc.gov/policy/public-comments/initiative-485.
The Commission has assigned each comment a
number appearing after the name of the commenter
and the date of submission. This notice cites
comments using the last name of the individual
submitter or the name of the organization, followed
by the number assigned by the Commission.
7 Seven associations filed a joint comment (8): the
American Apparel and Footwear Association
(‘‘AAFA’’), American Fiber Manufacturers
Association, Inc. (‘‘AFMA’’), Canadian Apparel
Federation (‘‘CAF’’), National Council of Textile
Organizations (‘‘NCTO’’), National Retail Federation
(‘‘NRF’’), U.S. Association of Importers of Textiles
and Apparel (‘‘USA–ITA’’), and Retail Industry
Leaders Association (‘‘RILA’’). Two of these
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European Union,8 a retailer,9 and an
individual.10 The joint comment filed
by AAFA, AFMA, CAF, NCTO, NRF,
USA–ITA, and RILA and the comment
filed by Trumbull supported the
Commission’s proposals to amend
§ 303.7 to incorporate the latest ISO
standard on generic fiber names and to
amend § 303.17(b) to allow certain hangtags that do not provide full fiber
content disclosures. These two
comments did not address the
Commission’s other proposals. Three
commenters, AAFA, NRF, and
Shopbop.com, opposed the
Commission’s proposal to amend
§§ 303.37 and 303.38(a) and (b) to
provide that continuing guaranties
expire after one year, although NRF
supported the Commission’s proposal to
replace the requirements in §§ 303.37
and 303.38(b) that suppliers sign
guaranties under penalty of perjury.
These three comments did not address
the Commission’s other proposals. The
Hosiery Association urged the
Commission to eliminate the
requirement that certain labels stating
fiber content disclose ‘‘exclusive of
decoration.’’ The comment indicated
that this disclosure is costly and
unnecessary. This comment argued that
consumers will know that the content
disclosure refers to the basic product
and not the decoration; however, the
comment did not submit any evidence
regarding consumer perception of such
labels. The European Commission posed
questions and sought clarification
regarding the Rules’ guaranty provisions
and country-of-origin disclosure
requirements.11 Neither the Hosiery
Association nor the European
Commission appeared to directly
address the Commission’s proposals.
II. Amendments
Based on its careful consideration of
the record, the Commission amends the
Rules’ fiber content disclosures,
country-of-origin disclosures, provisions
addressing e-commerce and guaranties,
and exemptions as explained below.
A. Fiber Content Disclosures
The Commission proposed the
following amendments to the Rules’
fiber content disclosures: (1) Revising
§ 303.7 to incorporate the updated ISO
industry associations also filed separate comments:
AAFA (9) and NRF (7). The Hosiery Association (2)
also filed a comment.
8 European Union (4).
9 Shopbop.com (6).
10 Trumbull, Agathon Associates (3).
11 The Commission plans to address these
questions when it updates its consumer and
business education materials to reflect the
amendments to the Rules.
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standard establishing generic fiber
names for manufactured fibers; (2)
clarifying § 303.12(a) concerning
disclosures involving trimmings; (3)
revising § 303.17(b) to allow certain
hang-tags disclosing fiber names and
trademarks, and performance
information, without disclosing the
product’s full fiber content; and (4)
clarifying § 303.35, describing products
containing virgin or new wool, and
§§ 303.41 and 303.42, addressing fiber
content disclosures in advertising.
All of the comments addressing the
proposed amendments to §§ 303.7 and
303.17(b) supported the amendments.
For example, the joint comment stated
that the incorporation of the updated
ISO standard in § 303.7 would add
clarity, afford significant efficiencies,
and reduce costs. Moreover, it stated
that the associations did not anticipate
problems based on differences between
ISO and § 303.7 definitions. Based on
these comments, and for the reasons set
forth in the NPRM, the Commission
adopts the proposed amendment to
§ 303.7.
The joint comment also supported the
proposed amendment to § 303.17(b). It
stated that, by allowing hang-tags
providing fiber information without
disclosing the product’s full fiber
content, the amendment would afford
consumers access to important fiber
performance information at the point-ofsale and reduce the cost of providing
such information. It also agreed with the
Commission’s proposal to require that
any such hang-tag disclose that it does
not provide the product’s full fiber
content, if the product contains any
fiber other than the fiber identified on
the hang-tag. The joint comment
explained that the proposed disclosure
requirement is an appropriate and
useful action to prevent deception
regarding fiber content. Based on the
comments supporting this proposal, and
for the reasons set forth in the NPRM,
the Commission adopts the proposed
amendment to § 303.17(b).
None of the comments addressed the
proposed amendments to §§ 303.12(a),
303.35, 303.41, or 303.42, all of which
involved clarifications rather than
substantive changes to the Rules.
Accordingly, the Commission adopts all
of these proposed amendments without
change for the reasons explained in the
NPRM.
B. Country-of-Origin Disclosures
The Commission proposed updating
§ 303.33(d) and (f). Specifically, the
Commission proposed to update and
clarify § 303.33(d) to state that an
imported product’s country-of-origin as
determined under the laws and
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regulations enforced by Customs shall
be the country where the product was
processed or manufactured. The
Commission also proposed to update
§ 303.33(f) by dropping the outdated
reference to the Treasury Department
and instead refer to any Tariff Act and
the regulations promulgated thereunder.
These amendments would revise the
Rules to clearly reflect the
Commission’s longstanding policy of
ensuring the consistency of the Textile
Rules and Customs regulations.
None of the comments addressed the
proposed amendments to § 303.33.
Accordingly, the Commission adopts
these proposed amendments without
change for the reasons explained in the
NPRM.
The European Commission posed
several questions regarding the Rules’
country-of-origin disclosure
requirements. The Commission plans to
address these questions when it updates
its consumer and business education
materials to reflect the amendments to
the Rules.
C. E-Commerce and Textile Guaranties
To better address electronic
commerce and concerns about the
Rules’ continuing guaranty provisions,
the Commission proposed amending the
definition of the terms invoice and
invoice or other paper in § 303.1(h) and
the continuing guaranty provisions in
§§ 303.37 and 303.38. Specifically, the
Commission proposed to amend
§ 303.1(h) 12 to: (1) Replace the word
‘‘paper’’ with the word ‘‘document’’; (2)
state explicitly that such documents can
be issued electronically; and (3)
acknowledge that ESIGN 13 allows for
the preservation of records ‘‘in a form
that is capable of being accurately
reproduced for later reference, whether
by transmission, printing, or
otherwise.’’ 14 The Commission also
proposed amending §§ 303.37 and
303.38(b) to replace the requirement
that guarantors sign continuing
guaranties under penalty of perjury with
a requirement that they acknowledge
that providing a false guaranty is
unlawful, and certify that they will
actively monitor and ensure compliance
with the Textile Act and Rules. Finally,
the Commission proposed amending
§§ 303.37 and 303.38(a) and (b) of the
Rules to provide that continuing
guaranties are effective for one year
unless revoked earlier.15
12 This amendment would also require parallel
revisions to §§ 303.21, 303.31, 303.36, 303.38(c),
and 303.44.
13 15 U.S.C. 7001 et seq.
14 15 U.S.C. 7001(d)(1).
15 The Commission also proposed to revise FTC
Form 31–A set forth in § 303.38 so that it is
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None of the comments addressed the
proposed amendments to §§ 303.1(h),
303.21, 303.31, 303.36, and 303.38(c).
Accordingly, the Commission adopts all
of these proposed amendments without
change for the reasons explained in the
NPRM.
NRF favored the Commission’s
proposal to replace the requirement in
§§ 303.37 and 303.38(b) that guarantors
sign under penalty of perjury with the
certification requirement described
above. None of the other comments
addressed this proposal. Accordingly,
the Commission adopts this proposed
amendment for the reasons explained in
the NPRM.
Three commenters, AAFA, NRF, and
Shopbop.com, opposed the
Commission’s proposal to amend
§§ 303.37 and 303.38(a) and (b) to
provide that continuing guaranties
remain in effect for one year unless
revoked earlier. None of the comments
supported this proposal.
AAFA strongly disagreed with the
Commission’s assertion that requiring
annual renewal of continuing guaranties
would impose minimal costs on
industry. One AAFA member company
reported spending five to eight hours on
each continuing guaranty that it files.
AAFA explained that most companies
file dozens of continuing guaranties and
many file hundreds. As a result, AAFA
argued, the requirement may be
unmanageable for many companies.
AAFA also noted that filing guaranties
is not the only relevant cost. It stated
that vendors face a ‘‘clerical nightmare
of keeping up with the guaranties’’ and
buyers have difficulty obtaining
guaranties from the Commission in a
timely fashion.
Similarly, NRF argued that the annual
renewal requirement would add
administrative costs for buyers and
guarantors without making guaranties
more reliable. It stated that, over the
course of a retailer’s relationship with a
large network of vendors, even the
addition of a one-page form annually is
consistent with the guaranty provisions as
amended. Because this form is also used to provide
guaranties under the Fur and Wool Acts and
references these Acts, and because there is no
reason to treat Fur and Wool guaranties differently
than Textile guaranties, the Commission proposed
to revise the form’s references to Fur and Wool
guaranties in the same way. The Commission
explained this proposal in its Supplemental Notice
of Proposed Rulemaking for the Fur Rules, 78 FR
36693 at 36695–36696 (June 19, 2013), and in its
Notice of Proposed Rulemaking for the Wool Rules,
78 FR 57808 at 57812–57813 (Sept. 20, 2013).
Section 301.48(a)(3) of the Fur Rules and
§ 300.33(b) of the Wool Rules provide that the
prescribed form for continuing guaranties filed with
the Commission is found in § 303.38(b) of the
Textile Rules. See also Wool Products Labeling Act
of 1939, 15 U.S.C. 68 et seq. and the Fur Products
Labeling Act, 15 U.S.C. 69 et seq.
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a major commitment which will have a
significant impact on retailers and the
rest of the supply chain.16
Like AAFA, Shopbop.com strongly
opposed this proposal. It disagreed with
the Commission’s assertion that the
annual renewal requirement would
increase the reliability of guaranties. It
argued that the mere yearly signing of
the same form is unlikely to receive
significant additional attention from a
guarantor. Additionally, Shopbop.com
argued that the requirement would
impose significant costs on buyers that
purchase products from a large number
of sellers, such as most large retailers. It
asserted that the process of obtaining
guaranties can be extremely timeconsuming and costly, and that a buyer
can have thousands of sellers that it
would need to contact individually.
Finally, it noted that none of the
comments filed in response to the ANPR
advocated this amendment and that the
Commission did not cite evidence from
its enforcement record or empirical
studies supporting the imposition of
this requirement.
Two of the above comments disputed
the Commission’s assertion that an
annual renewal requirement would
increase the reliability of continuing
guaranties, and all three disputed the
Commission’s assertion that the
requirement would not impose
significant compliance costs on
industry. As noted above, none of the
comments supported the proposal.
Based on these comments, the
Commission lacks sufficient evidence to
conclude that the proposal would
increase the reliability of continuing
guaranties. Assuming, arguendo, that
the requirement would increase the
reliability of continuing guaranties, the
Commission lacks sufficient evidence to
conclude that the benefits of imposing
this requirement would exceed the
costs. Accordingly, the Commission has
decided not to adopt this proposed
amendment.
Nonetheless, the Commission
continues to have concerns that
continuing guaranties remaining in
effect indefinitely or until revoked may
become less reliable over time,
especially after the employees who
originally provided the guaranty to a
buyer or filed it with the Commission
no longer work for the guarantor. If the
Commission obtains evidence that
continuing guaranties have become less
reliable after this amendment takes
effect, it will revisit this issue and
16 NRF also reiterated its support for amending
the Rules to include an alternative to guaranties for
purchasers that obtain textile products directly from
overseas suppliers that cannot provide guaranties.
The Commission addressed this issue in the NPRM.
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consider amending the Rules’
continuing guaranty provisions
accordingly.
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D. Coverage and Exemptions From the
Act and Rules
The Commission proposed clarifying
§ 303.45 so that paragraph (a) identifies
the textile fiber product categories
subject to the Act and regulations, with
certain exceptions identified in
paragraph (b) that are excluded from the
Act’s requirements. New paragraph (b)
provides that all textile fiber products
other than those identified in paragraph
(a) are excluded. It also identifies a
number of other exempted products,
some of which fall within the general
product categories listed in paragraph
(a). The Commission also proposed
revising current paragraphs (b) and (c)
to reflect the above change and
redesignating them as paragraphs (c)
and (d), respectively. None of the
comments addressed the proposed
amendments to § 303.45. Accordingly,
the Commission adopts all of these
proposed amendments without change
for the reasons explained in the NPRM.
III. Regulatory Flexibility Act
Requirements
The Regulatory Flexibility Act
(‘‘RFA’’) 17 requires that the Commission
conduct an initial and final analysis of
the anticipated economic impact of the
amendments on small entities. Section
605 of the RFA18 provides 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.
The Commission believes that the
amendments will not have a significant
economic impact upon small entities
that manufacture or import textile
products, although they may affect a
substantial number of small businesses.
The amendments: (a) Clarify the Rules,
including §§ 303.1(h),19 303.12(a),
303.33(d) and (f), 303.35, 303.41(a),
303.42(a), and 303.45; (b) amend § 303.7
to incorporate the updated version of
ISO 2076, thereby establishing the
generic names for the manufactured
fibers set forth in the current ISO
standard; (c) amend § 303.17(b) to allow
manufacturers and importers to disclose
fiber names and trademarks and
information about fiber performance on
certain hang-tags affixed to textile fiber
products without including the
product’s full fiber content information
17 5
U.S.C. 601–612.
U.S.C. 605.
19 This amendment also involves parallel
revisions to §§ 303.21, 303.31, 303.36, 303.38(c),
and 303.44.
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on the hang-tag; and (d) amend
§§ 303.36, 303.37, and 303.38 to clarify
and update the Rules’ guaranty
provisions by, among other things,
replacing the requirement that suppliers
that provide a guaranty sign under
penalty of perjury with a certification
requirement for continuing guaranties.
Therefore, the Commission certifies that
amending the Rules will not have a
significant economic impact on a
substantial number of small businesses.
A. Need for and Objectives of the
Amendments
The objective of the amendments is to
clarify the Rules; incorporate the
updated version of ISO 2076, thereby
establishing the generic names for the
manufactured fibers set forth in the
current ISO standard; allow
manufacturers and importers to disclose
fiber names and trademarks and
information about fiber performance on
certain hang-tags affixed to textile fiber
products without including the
product’s full fiber content information
on the hang-tag; and clarify and update
the Rules’ guaranty provisions by,
among other things, replacing the
requirement that suppliers that provide
a guaranty sign under penalty of perjury
with a certification requirement. The
Textile Act authorizes the Commission
to implement its requirements through
the issuance of rules.
The amendments will clarify and
update the Rules, and provide covered
entities with additional labeling options
without imposing significant new
burdens or additional costs. For
example, businesses that prefer not to
affix a hang-tag disclosing a fiber
trademark without disclosing the
product’s full fiber content need not do
so. As revised, the Rules’ continuing
guaranty provisions will continue to
provide for a simple one-page form
including information very similar, if
not identical, to that currently required.
B. Significant Issues Raised in Public
Comments
None of the comments disputed the
Initial Regulatory Flexibility Analysis in
the NPRM, with the exception of the
three comments objecting to the
proposal to amend §§ 303.37 and
303.38(a) and (b) to provide that
continuing guaranties are effective for
one year unless revoked earlier. The
comments questioned the Commission’s
assertion that the proposed amendment
would enhance the reliability of
guaranties and contended that it would
impose substantial unnecessary costs on
industry. For the reasons explained
above, the Commission has decided not
to adopt this proposal.
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C. Small Entities to Which the
Amendments Will Apply
The Rules apply to various segments
of the textile fiber product industry,
including manufacturers and
wholesalers of textile apparel products.
Under the Small Business Size
Standards issued by the Small Business
Administration, textile apparel
manufacturers qualify as small
businesses if they have 500 or fewer
employees. Clothing wholesalers qualify
as small businesses if they have 100 or
fewer employees. The Commission’s
staff has estimated that approximately
22,218 textile fiber product
manufacturers and importers are
covered by the Rules’ disclosure
requirements.20 A substantial number of
these entities likely qualify as small
businesses. The Commission estimates
that the amendments will not have a
significant impact on small businesses
because they do not impose any
significant new obligations on them.
D. Projected Reporting, Recordkeeping,
and Other Compliance Requirements,
Including Classes of Covered Small
Entities and Professional Skills Needed
To Comply
As explained earlier in this document,
the amendments clarify the Rules;
incorporate the updated version of ISO
2076, thereby establishing the generic
names for the manufactured fibers set
forth in the current ISO standard; allow
manufacturers and importers to disclose
fiber names and trademarks and
information about fiber performance on
certain hang-tags affixed to textile fiber
products without including the
product’s full fiber content information
on the hang-tag; and clarify and update
the Rules’ guaranty provisions by,
among other things, replacing the
requirement that suppliers that provide
a guaranty sign under penalty of perjury
with a certification requirement. The
small entities potentially covered by
these amendments will include all such
entities subject to the Rules. The
professional skills necessary for
compliance with the Rules as modified
by the amendments would include
office and administrative support
supervisors to determine label content
and clerical personnel to draft and
obtain labels and keep records.
E. Significant Alternatives to the
Amendments
The Commission has not proposed
any specific small entity exemption or
20 Federal Trade Commission: Agency
Information Collection Activities; Proposed
Collection; Comment Request, 76 FR 77230 (Dec.
12, 2011).
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other significant alternatives, as the
amendments simply clarify the Rules;
incorporate the updated version of ISO
2076, thereby establishing the generic
names for the manufactured fibers set
forth in the current ISO standard; allow
manufacturers and importers to disclose
fiber names and trademarks and
information about fiber performance on
certain hang-tags affixed to textile fiber
products without including the
product’s full fiber content information
on the hang-tag; and clarify and update
the Rules’ guaranty provisions by,
among other things, replacing the
requirement that suppliers that provide
a guaranty sign under penalty of perjury
with a certification requirement. Under
these limited circumstances, the
Commission does not believe a special
exemption for small entities or
significant compliance alternatives are
necessary or appropriate to minimize
the compliance burden, if any, on small
entities while achieving the intended
purposes of the amendments.
TKELLEY on DSK3SPTVN1PROD with RULES
IV. Paperwork Reduction Act
The Rules contain various ‘‘collection
of information’’ (e.g., disclosure and
recordkeeping) requirements for which
the Commission has obtained OMB
clearance under the Paperwork
Reduction Act (‘‘PRA’’).21 As discussed
above, the amendments: (a) Clarify the
Rules, including §§ 303.1(h),22
303.12(a), 303.33(d) and (f), 303.35,
303.41(a), 303.42(a), and 303.45; (b)
revise § 303.7 to incorporate the
updated version of ISO 2076, thereby
establishing the generic names for the
manufactured fibers set forth in the
current ISO standard; (c) amend
§ 303.17(b) to allow manufacturers and
importers to disclose fiber names and
trademarks and information about fiber
performance on certain hang-tags
affixed to textile fiber products without
including the product’s full fiber
content information on the hang-tag;
and (d) amend §§ 303.36, 303.37, and
303.38 to clarify and update the Rules’
guaranty provisions by, among other
things, replacing the requirement that
suppliers provide a guaranty signed
21 44 U.S.C. 3501 et seq. The Commission recently
published its PRA burden estimates for the current
information collection requirements under the
Rules. See Federal Trade Commission: Agency
Information Collection Activities; Proposed
Collection; Comment Request, 76 FR 77230 (Dec.
12, 2011) and Federal Trade Commission: Agency
Information Collection Activities; Submission for
OMB Review; Comment Request, 77 FR 10744 (Feb.
23, 2012). On March 26, 2012, OMB granted
clearance through March 31, 2015, for these
requirements and the associated PRA burden
estimates. The OMB control number is 3084–0101.
22 This amendment would also require parallel
revisions to §§ 303.21, 303.31, 303.36, 303.38(c),
and 303.44.
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under penalty of perjury with a
certification requirement.
None of the comments disputed the
PRA analysis in the NPRM, with the
exception of the three comments
objecting to the proposal to amend
§§ 303.37 and 303.38(a) and (b) to
provide that continuing guaranties are
effective for one year unless revoked
earlier. The comments questioned the
Commission’s assertion that the
proposed amendment would enhance
the reliability of guaranties and
contended that it would impose
substantial unnecessary costs on
industry. For the reasons explained
above, the Commission has decided not
to adopt this proposal. In the
Commission’s view, the amendments it
has adopted do not impose any
additional significant collection of
information requirements. For example,
businesses that prefer not to affix a
hang-tag disclosing a fiber name or
trademark without disclosing the
product’s full fiber content need not do
so.
List of Subjects in 16 CFR Part 303
Advertising, Incorporation by
reference, Labeling, Recordkeeping,
Textile fiber products.
For the reasons set forth in the
preamble, the Federal Trade
Commission amends Title 16, chapter I,
of the Code of Federal Regulations, 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: 15 U.S.C. 70 et seq.
2. Amend § 303.1 by revising
paragraph (h) to read as follows:
■
§ 303.1
Terms defined.
*
*
*
*
*
(h) The terms invoice and invoice or
other document mean an account, order,
memorandum, list, or catalog, which is
issued to a purchaser, consignee, bailee,
correspondent, agent, or any other
person, electronically, in writing, or in
some other form capable of being read
and preserved in a form that is capable
of being accurately reproduced for later
reference, whether by transmission,
printing, or otherwise, in connection
with the marketing or handling of any
textile fiber product transported or
delivered to such person.
*
*
*
*
*
■ 3. Amend § 303.7 by revising the
introductory text to read as follows:
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§ 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 2076:2010(E),
‘‘Textiles—Man-made fibres—Generic
names.’’ International Organization for
Standardization ISO 2076:2010(E),
‘‘Textiles—Man-made fibres—Generic
names, Fifth edition, 2010–01–15 is
incorporated by reference into this
section with the approval of the Director
of the Federal Register under 5 U.S.C.
552(a) and 1 CFR part 51. To enforce
any edition other than that specified in
this section, the Federal Trade
Commission must publish notice of
change in the Federal Register and the
material must be available to the public.
All approved material is available for
inspection at the Federal Trade
Commission, 600 Pennsylvania Ave.
NW., Room 130, Washington, DC 20580,
(202) 326–2222, and is available from
the American National Standards
Institute, 11 West 42nd St., 13th floor,
New York, NY 10036. It is also available
for inspection at the National Archives
and Records Administration (NARA).
For information on the availability of
this material at NARA, call 202–741–
6030, or go to: https://www.archives.gov/
federal_register/code_of_federal_
regulations/ibr_locations.html.
*
*
*
*
*
■ 4. Amend § 303.12 by revising
paragraph (a) to read as follows:
§ 303.12 Trimmings of household textile
articles.
(a) Pursuant to section 12 of the Act,
trimmings incorporated in articles of
wearing apparel and other household
textile articles are exempt from the Act
and regulations, except for decorative
trim, decorative patterns and designs,
and elastic materials in findings
exceeding the surface area thresholds
described in paragraphs (a)(3) and (b) of
this section. Trimmings may, among
other forms of trim, include:
(1) Rickrack, tape, belting, binding,
braid, labels (either required or nonrequired), collars, cuffs, wrist bands, leg
bands, waist bands, gussets, gores,
welts, and findings, including
superimposed garters in hosiery, and
elastic materials and threads inserted in
or added to the basic product or garment
in minor proportion for holding,
reinforcing or similar structural
purposes;
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(2) Decorative trim, whether applied
by embroidery, overlay, applique, or
attachment; and
(3) Decorative patterns or designs
which are an integral part of the fabric
out of which the household textile
article is made. Provided, that such
decorative trim or decorative pattern or
design, as specified in paragraphs (a)(2)
and (3) of this section, does not exceed
15 percent of the surface area of the
household textile article. If no
representation is made as to the fiber
content of the decorative trim or
decoration, as provided for in
paragraphs (a)(2) and (3) of this section,
and the fiber content of the decorative
trim or decoration differs from the fiber
content designation of the basic fabric,
the fiber content designation of the basic
fabric shall be followed by the statement
‘‘exclusive of decoration.’’
*
*
*
*
*
■ 5. Revise § 303.17(b) to read as
follows:
§ 303.17 Use of fiber trademarks and
generic names on labels.
TKELLEY on DSK3SPTVN1PROD with RULES
*
*
*
*
*
(b) Where a generic name or a fiber
trademark is used on any label
providing required information, a full
fiber content disclosure shall be made in
accordance with the Act and regulations
the first time the generic name or fiber
trademark appears on the label. Where
a fiber generic name or trademark is
used on any hang-tag attached to a
textile fiber product that has a label
providing required information and the
hang-tag provides non-required
information, such as a hang-tag stating
only a fiber generic name or trademark
or providing information about a
particular fiber’s characteristics, the
hang-tag need not provide a full fiber
content disclosure; however, if the
textile fiber product contains any fiber
other than the fiber identified by the
fiber generic name or trademark, the
hang-tag must disclose clearly and
conspicuously that it does not provide
the product’s full fiber content; for
example:
‘‘This tag does not disclose the
product’s full fiber content.’’ or
‘‘See label for the product’s full fiber
content.’’
*
*
*
*
*
■ 6. Amend § 303.21 by revising
paragraphs (a)(3) and (b) to read as
follows:
§ 303.21 Marking of samples, swatches, or
specimens and products sold therefrom.
(a) * * *
(3) If such samples, swatches, or
specimens are not used to effect sales to
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ultimate consumers and are not in the
form intended for sale or delivery to, or
for use by, the ultimate consumer, and
are accompanied by an invoice or other
document showing the required
information.
(b) Where properly labeled samples,
swatches, or specimens are used to
effect the sale of articles of wearing
apparel or other household textile
articles which are manufactured
specifically for a particular customer
after the sale is consummated, the
articles of wearing apparel or other
household textile articles need not be
labeled if they are of the same fiber
content as the samples, swatches, or
specimens from which the sale was
effected and an invoice or other
document accompanies them showing
the information otherwise required to
appear on the label.
■ 7. Revise § 303.31 to read as follows:
§ 303.31
Invoice in lieu of label.
Where a textile fiber product is not in
the form intended for sale, delivery to,
or for use by the ultimate consumer, an
invoice or other document may be used
in lieu of a label, and such invoice or
other document shall show, in addition
to the name and address of the person
issuing the invoice or other document,
the fiber content of such product as
provided in the Act and regulations as
well as any other required information.
■ 8. Amend § 303.33 by revising
paragraphs (d) and (f) to read as follows:
18771
10. Amend § 303.36 by revising the
introductory text of paragraph (a) and
paragraphs (a)(2) and (b), to read as
follows:
■
§ 303.36
Form of separate guaranty.
(a) The following are suggested forms
of separate guaranties under section 10
of the Act which may be used by a
guarantor residing in the United States
on or as part of an invoice or other
document relating to the marketing or
handling of any textile fiber products
listed and designated therein, and
showing the date of such invoice or
other document and the signature and
address of the guarantor.
*
*
*
*
*
(2) Guaranty based on guaranty.
Based upon a guaranty received, we
guaranty that the textile fiber products
specified herein are not misbranded nor
falsely nor deceptively advertised or
invoiced under the provisions of the
Textile Fiber Products Identification Act
and rules and regulations thereunder.
Note: The printed name and address on the
invoice or other document will suffice to
meet the signature and address requirements.
(b) The mere disclosure of required
information including the fiber content
of a textile fiber product on a label or
on an invoice or other document
relating to its marketing or handling
shall not be considered a form of
separate guaranty.
■ 11. Revise § 303.37 to read as follows:
§ 303.33 Country where textile fiber
products are processed or manufactured.
§ 303.37 Form of continuing guaranty from
seller to buyer.
*
Under section 10 of the Act, a seller
residing in the United States may give
a buyer a continuing guaranty to be
applicable to all textile fiber products
sold or to be sold. The following is the
prescribed form of continuing guaranty
from seller to buyer:
We, the undersigned, guaranty that all
textile fiber products now being sold or
which may hereafter be sold or
delivered to llllllll are not,
and will not be misbranded or falsely or
deceptively advertised or invoiced
under the provisions of the Textile Fiber
Products Identification Act and rules
and regulations thereunder. We
acknowledge that furnishing a false
guaranty is an unlawful unfair and
deceptive act or practice pursuant to the
Federal Trade Commission Act, and
certify that we will actively monitor and
ensure compliance with the Textile
Fiber Products Identification Act and
rules and regulations thereunder during
the duration of this guaranty.
Dated, signed, and certified this ll
day of ll, 20l, at llllllll
(City), llllllll (State or
*
*
*
*
(d) The country of origin of an
imported textile fiber product as
determined under the laws and
regulations enforced by United States
Customs and Border Protection shall be
considered to be the country where such
textile fiber product was processed or
manufactured.
*
*
*
*
*
(f) Nothing in this section shall be
construed as limiting in any way the
information required to be disclosed on
labels under the provisions of any Tariff
Act of the United States or regulations
promulgated thereunder.
■ 9. Revise § 303.35 to read as follows:
§ 303.35
Use of terms ‘‘virgin’’ or ‘‘new.’’
The terms virgin or new as descriptive
of a textile fiber product, or any fiber or
part thereof, shall not be used when the
product, fiber or part so described is not
composed wholly of new or virgin fiber
which has never been reclaimed from
any spun, woven, knitted, felted,
bonded, or similarly manufactured
product.
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Territory) llllllll (name
under which business is conducted.)
I certify that the information supplied
in this form is true and correct.
Signature of Proprietor, Principal
Partner, or Corporate Official
lllllllllllllllllllll
TKELLEY on DSK3SPTVN1PROD with RULES
Name (Print or Type) and Title
lllllllllllllllllllll ■ 12. Amend § 303.38 by revising
paragraphs (b) and (c) to read as follows:
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§ 303.38 Continuing guaranty filed with
Federal Trade Commission.
*
*
*
*
*
(b) Prescribed form for a continuing
guaranty:
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(c) Any person who has a continuing
guaranty on file with the Commission
may, during the effective dates of the
guaranty, give notice of such fact by
setting forth on the invoice or other
document covering the marketing or
handling of the product guaranteed the
following: Continuing guaranty under
the Textile Fiber Products Identification
Act filed with the Federal Trade
Commission.
*
*
*
*
*
■ 13. Amend § 303.41 by revising
paragraph (a) to read as follows:
§ 303.41 Use of fiber trademarks and
generic names in advertising.
(a) In advertising textile fiber
products, the use of a fiber trademark or
a generic fiber name shall require a full
disclosure of the fiber content
information required by the Act and
regulations in at least one instance in
the advertisement.
*
*
*
*
*
■ 14. Amend § 303.42 by revising
paragraph (a) to read as follows:
§ 303.42 Arrangement of information in
advertising textile fiber products.
(a) Where a textile fiber product is
advertised in such manner as to require
disclosure of the information required
by the Act and regulations, all parts of
the required information shall be stated
in immediate conjunction with each
other in legible and conspicuous type or
lettering of equal size and prominence.
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 § 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. The
advertisement need not state the
percentage of each fiber.
*
*
*
*
*
■ 15. Revise § 303.44 to read as follows:
TKELLEY on DSK3SPTVN1PROD with RULES
§ 303.44 Products not intended for uses
subject to the Act.
Textile fiber products intended for
uses not within the scope of the Act and
regulations or intended for uses in other
textile fiber products which are
exempted or excluded from the Act
shall not be subject to the labeling and
invoicing requirements of the Act and
regulations: Provided, an invoice or
other document covering the marketing
or handling of such products is given,
which indicates that the products are
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not intended for uses subject to the
Textile Fiber Products Identification
Act.
■ 16. Revise § 303.45 to read as follows:
§ 303.45
the Act.
Coverage and exclusions from
(a) The following textile fiber
products are subject to the Act and
regulations in this part, unless excluded
from the Act’s requirements in
paragraph (b) of this section:
(1) Articles of wearing apparel;
(2) Handkerchiefs;
(3) Scarfs;
(4) Beddings;
(5) Curtains and casements;
(6) Draperies;
(7) Tablecloths, napkins, and doilies;
(8) Floor coverings;
(9) Towels;
(10) Wash cloths and dish cloths;
(11) Ironing board covers and pads;
(12) Umbrellas and parasols;
(13) Batts;
(14) Products subject to section 4(h) of
the Act;
(15) Flags with heading or more than
216 square inches (13.9 dm2) in size;
(16) Cushions;
(17) All fibers, yarns and fabrics
(including narrow fabrics except
packaging ribbons);
(18) Furniture slip covers and other
covers or coverlets for furniture;
(19) Afghans and throws;
(20) Sleeping bags;
(21) Antimacassars and tidies;
(22) Hammocks; and
(23) Dresser and other furniture scarfs.
(b) Pursuant to section 12(b) of the
Act, all textile fiber products other than
those identified in paragraph (a) of this
section, and the following textile fiber
products, are excluded from the Act’s
requirements:
(1) Belts, suspenders, arm bands,
permanently knotted neckties, garters,
sanitary belts, diaper liners, labels
(either required or non-required)
individually and in rolls, looper clips
intended for handicraft purposes, book
cloth, artists’ canvases, tapestry cloth,
and shoe laces.
(2) All textile fiber products
manufactured by the operators of
company stores and offered for sale and
sold exclusively to their own employees
as ultimate consumers.
(3) Coated fabrics and those portions
of textile fiber products made of coated
fabrics.
(4) Secondhand household textile
articles which are discernibly
secondhand or which are marked to
indicate their secondhand character.
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(5) Non-woven products of a
disposable nature intended for one-time
use only.
(6) All curtains, casements, draperies,
and table place mats, or any portions
thereof otherwise subject to the Act,
made principally of slats, rods, or strips,
composed of wood, metal, plastic, or
leather.
(7) All textile fiber products in a form
ready for the ultimate consumer
procured by the military services of the
United States which are bought
according to specifications, but shall not
include those textile fiber products sold
and distributed through post exchanges,
sales commissaries, or ship stores;
provided, however, that if the military
services sell textile fiber products for
nongovernmental purposes the
information with respect to the fiber
content of such products shall be
furnished to the purchaser thereof who
shall label such products in conformity
with the Act and regulations before such
products are distributed for civilian use.
(8) All hand woven rugs made by
Navajo Indians which have attached
thereto the ‘‘Certificate of Genuineness’’
supplied by the Indian Arts and Crafts
Board of the United States Department
of Interior. The term Navajo Indian
means any Indian who is listed on the
register of the Navajo Indian Tribe or is
eligible for listing thereon.
(c) The exclusions provided for in
paragraph (b) of this section shall not be
applicable:
(1) if any representations as to the
fiber content of such products are made
on any label or in any advertisement
without making a full and complete
fiber content disclosure on such label or
in such advertisement in accordance
with the Act and regulations in this part
with the exception of those products
excluded by paragraph (b)(5) of this
section; or
(2) If any false, deceptive, or
misleading representations are made as
to the fiber content of such products.
(d) The exclusions from the Act
provided in paragraph (b) of this section
are in addition to the exemptions from
the Act provided in section 12(a) of the
Act and shall not affect or limit such
exemptions.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014–07518 Filed 4–3–14; 8:45 am]
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Agencies
[Federal Register Volume 79, Number 65 (Friday, April 4, 2014)]
[Rules and Regulations]
[Pages 18766-18774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07518]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 303
Rules and Regulations Under the Textile Fiber Products
Identification Act
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission amends the rules and regulations under the
Textile Fiber Products Identification Act (``Textile Rules'' or
``Rules'') to incorporate the updated International Organization for
Standardization (``ISO'') standard 2076:2010(E); allow certain hang-
tags that do not disclose the product's full fiber content; better
address electronic commerce by amending the definition of the terms
``invoice'' and ``invoice or other paper''; update the guaranty
provisions by, among other things, replacing the requirement that
suppliers provide a guaranty signed under penalty of perjury with a
certification, and revising the form used to file continuing guaranties
with the Commission under the Textile, Fur, and Wool Acts accordingly;
and clarify several other provisions.
DATES: The amended Rules are effective on May 5, 2014. The
incorporation by reference of the ISO standard 2076:2010(E) is approved
by the Director of the Federal Register as of May 5, 2014.
ADDRESSES: 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: Robert M. Frisby, Attorney, (202) 326-
2098, and Amanda B. Kostner, Attorney, (202) 326-2880, Federal Trade
Commission, Division of Enforcement, Bureau of Consumer Protection, 600
Pennsylvania Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Textile Fiber Products Identification Act (``Textile Act'') \1\
and
[[Page 18767]]
Rules require marketers to, among other things, attach a label to each
covered textile product disclosing: (1) The generic names and
percentages by weight of the constituent fibers in the product; (2) the
name under which the manufacturer or other responsible company does
business or, in lieu thereof, the company's registered identification
number (``RN number''); and (3) the name of the country where the
product was processed or manufactured.\2\ As part of its ongoing
regulatory review program, the Commission published an Advance Notice
of Proposed Rulemaking (``ANPR'') in November 2011 seeking comment on
the economic impact of, and the continuing need for, the Textile Rules;
the benefits of the Rules to consumers; and the burdens the Rules place
on businesses.\3\ The ANPR also sought comment on specific issues,
including whether the Commission should amend the Rules to incorporate
the revised version of ISO standard entitled ``Textiles--Man-made
fibres--Generic names,'' 2076:1999(E); clarify disclosure requirements
for products containing elastic material and trimmings; clarify
disclosure requirements for written advertising; and modify the Rules'
guaranty provisions.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 70 et seq.
\2\ See 15 U.S.C. 70b(b).
\3\ 76 FR 68690 (Nov. 7, 2011).
---------------------------------------------------------------------------
The Commission received 17 comments in response to the ANPR.\4\
Based on these comments, the Commission issued a Notice of Proposed
Rulemaking (``NPRM'') proposing several amendments addressing fiber
content disclosures, country-of-origin disclosures, e-commerce and
guaranties, and the Act's coverage and exemptions.\5\
---------------------------------------------------------------------------
\4\ The ANPR comments are posted at https://www.ftc.gov/policy/public-comments/initiative-401.
\5\ 78 FR 29263 (May 20, 2013).
---------------------------------------------------------------------------
The Commission received seven comments \6\ in response to the NPRM,
including four from trade associations representing industries affected
by the Textile Rules \7\ and one each from the European Union,\8\ a
retailer,\9\ and an individual.\10\ The joint comment filed by AAFA,
AFMA, CAF, NCTO, NRF, USA-ITA, and RILA and the comment filed by
Trumbull supported the Commission's proposals to amend Sec. 303.7 to
incorporate the latest ISO standard on generic fiber names and to amend
Sec. 303.17(b) to allow certain hang-tags that do not provide full
fiber content disclosures. These two comments did not address the
Commission's other proposals. Three commenters, AAFA, NRF, and
Shopbop.com, opposed the Commission's proposal to amend Sec. Sec.
303.37 and 303.38(a) and (b) to provide that continuing guaranties
expire after one year, although NRF supported the Commission's proposal
to replace the requirements in Sec. Sec. 303.37 and 303.38(b) that
suppliers sign guaranties under penalty of perjury. These three
comments did not address the Commission's other proposals. The Hosiery
Association urged the Commission to eliminate the requirement that
certain labels stating fiber content disclose ``exclusive of
decoration.'' The comment indicated that this disclosure is costly and
unnecessary. This comment argued that consumers will know that the
content disclosure refers to the basic product and not the decoration;
however, the comment did not submit any evidence regarding consumer
perception of such labels. The European Commission posed questions and
sought clarification regarding the Rules' guaranty provisions and
country-of-origin disclosure requirements.\11\ Neither the Hosiery
Association nor the European Commission appeared to directly address
the Commission's proposals.
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\6\ The NPRM comments are posted at https://www.ftc.gov/policy/public-comments/initiative-485. The Commission has assigned each
comment a number appearing after the name of the commenter and the
date of submission. This notice cites comments using the last name
of the individual submitter or the name of the organization,
followed by the number assigned by the Commission.
\7\ Seven associations filed a joint comment (8): the American
Apparel and Footwear Association (``AAFA''), American Fiber
Manufacturers Association, Inc. (``AFMA''), Canadian Apparel
Federation (``CAF''), National Council of Textile Organizations
(``NCTO''), National Retail Federation (``NRF''), U.S. Association
of Importers of Textiles and Apparel (``USA-ITA''), and Retail
Industry Leaders Association (``RILA''). Two of these industry
associations also filed separate comments: AAFA (9) and NRF (7). The
Hosiery Association (2) also filed a comment.
\8\ European Union (4).
\9\ Shopbop.com (6).
\10\ Trumbull, Agathon Associates (3).
\11\ The Commission plans to address these questions when it
updates its consumer and business education materials to reflect the
amendments to the Rules.
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II. Amendments
Based on its careful consideration of the record, the Commission
amends the Rules' fiber content disclosures, country-of-origin
disclosures, provisions addressing e-commerce and guaranties, and
exemptions as explained below.
A. Fiber Content Disclosures
The Commission proposed the following amendments to the Rules'
fiber content disclosures: (1) Revising Sec. 303.7 to incorporate the
updated ISO standard establishing generic fiber names for manufactured
fibers; (2) clarifying Sec. 303.12(a) concerning disclosures involving
trimmings; (3) revising Sec. 303.17(b) to allow certain hang-tags
disclosing fiber names and trademarks, and performance information,
without disclosing the product's full fiber content; and (4) clarifying
Sec. 303.35, describing products containing virgin or new wool, and
Sec. Sec. 303.41 and 303.42, addressing fiber content disclosures in
advertising.
All of the comments addressing the proposed amendments to
Sec. Sec. 303.7 and 303.17(b) supported the amendments. For example,
the joint comment stated that the incorporation of the updated ISO
standard in Sec. 303.7 would add clarity, afford significant
efficiencies, and reduce costs. Moreover, it stated that the
associations did not anticipate problems based on differences between
ISO and Sec. 303.7 definitions. Based on these comments, and for the
reasons set forth in the NPRM, the Commission adopts the proposed
amendment to Sec. 303.7.
The joint comment also supported the proposed amendment to Sec.
303.17(b). It stated that, by allowing hang-tags providing fiber
information without disclosing the product's full fiber content, the
amendment would afford consumers access to important fiber performance
information at the point-of-sale and reduce the cost of providing such
information. It also agreed with the Commission's proposal to require
that any such hang-tag disclose that it does not provide the product's
full fiber content, if the product contains any fiber other than the
fiber identified on the hang-tag. The joint comment explained that the
proposed disclosure requirement is an appropriate and useful action to
prevent deception regarding fiber content. Based on the comments
supporting this proposal, and for the reasons set forth in the NPRM,
the Commission adopts the proposed amendment to Sec. 303.17(b).
None of the comments addressed the proposed amendments to
Sec. Sec. 303.12(a), 303.35, 303.41, or 303.42, all of which involved
clarifications rather than substantive changes to the Rules.
Accordingly, the Commission adopts all of these proposed amendments
without change for the reasons explained in the NPRM.
B. Country-of-Origin Disclosures
The Commission proposed updating Sec. 303.33(d) and (f).
Specifically, the Commission proposed to update and clarify Sec.
303.33(d) to state that an imported product's country-of-origin as
determined under the laws and
[[Page 18768]]
regulations enforced by Customs shall be the country where the product
was processed or manufactured. The Commission also proposed to update
Sec. 303.33(f) by dropping the outdated reference to the Treasury
Department and instead refer to any Tariff Act and the regulations
promulgated thereunder. These amendments would revise the Rules to
clearly reflect the Commission's longstanding policy of ensuring the
consistency of the Textile Rules and Customs regulations.
None of the comments addressed the proposed amendments to Sec.
303.33. Accordingly, the Commission adopts these proposed amendments
without change for the reasons explained in the NPRM.
The European Commission posed several questions regarding the
Rules' country-of-origin disclosure requirements. The Commission plans
to address these questions when it updates its consumer and business
education materials to reflect the amendments to the Rules.
C. E-Commerce and Textile Guaranties
To better address electronic commerce and concerns about the Rules'
continuing guaranty provisions, the Commission proposed amending the
definition of the terms invoice and invoice or other paper in Sec.
303.1(h) and the continuing guaranty provisions in Sec. Sec. 303.37
and 303.38. Specifically, the Commission proposed to amend Sec.
303.1(h) \12\ to: (1) Replace the word ``paper'' with the word
``document''; (2) state explicitly that such documents can be issued
electronically; and (3) acknowledge that ESIGN \13\ allows for the
preservation of records ``in a form that is capable of being accurately
reproduced for later reference, whether by transmission, printing, or
otherwise.'' \14\ The Commission also proposed amending Sec. Sec.
303.37 and 303.38(b) to replace the requirement that guarantors sign
continuing guaranties under penalty of perjury with a requirement that
they acknowledge that providing a false guaranty is unlawful, and
certify that they will actively monitor and ensure compliance with the
Textile Act and Rules. Finally, the Commission proposed amending
Sec. Sec. 303.37 and 303.38(a) and (b) of the Rules to provide that
continuing guaranties are effective for one year unless revoked
earlier.\15\
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\12\ This amendment would also require parallel revisions to
Sec. Sec. 303.21, 303.31, 303.36, 303.38(c), and 303.44.
\13\ 15 U.S.C. 7001 et seq.
\14\ 15 U.S.C. 7001(d)(1).
\15\ The Commission also proposed to revise FTC Form 31-A set
forth in Sec. 303.38 so that it is consistent with the guaranty
provisions as amended. Because this form is also used to provide
guaranties under the Fur and Wool Acts and references these Acts,
and because there is no reason to treat Fur and Wool guaranties
differently than Textile guaranties, the Commission proposed to
revise the form's references to Fur and Wool guaranties in the same
way. The Commission explained this proposal in its Supplemental
Notice of Proposed Rulemaking for the Fur Rules, 78 FR 36693 at
36695-36696 (June 19, 2013), and in its Notice of Proposed
Rulemaking for the Wool Rules, 78 FR 57808 at 57812-57813 (Sept. 20,
2013). Section 301.48(a)(3) of the Fur Rules and Sec. 300.33(b) of
the Wool Rules provide that the prescribed form for continuing
guaranties filed with the Commission is found in Sec. 303.38(b) of
the Textile Rules. See also Wool Products Labeling Act of 1939, 15
U.S.C. 68 et seq. and the Fur Products Labeling Act, 15 U.S.C. 69 et
seq.
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None of the comments addressed the proposed amendments to
Sec. Sec. 303.1(h), 303.21, 303.31, 303.36, and 303.38(c).
Accordingly, the Commission adopts all of these proposed amendments
without change for the reasons explained in the NPRM.
NRF favored the Commission's proposal to replace the requirement in
Sec. Sec. 303.37 and 303.38(b) that guarantors sign under penalty of
perjury with the certification requirement described above. None of the
other comments addressed this proposal. Accordingly, the Commission
adopts this proposed amendment for the reasons explained in the NPRM.
Three commenters, AAFA, NRF, and Shopbop.com, opposed the
Commission's proposal to amend Sec. Sec. 303.37 and 303.38(a) and (b)
to provide that continuing guaranties remain in effect for one year
unless revoked earlier. None of the comments supported this proposal.
AAFA strongly disagreed with the Commission's assertion that
requiring annual renewal of continuing guaranties would impose minimal
costs on industry. One AAFA member company reported spending five to
eight hours on each continuing guaranty that it files. AAFA explained
that most companies file dozens of continuing guaranties and many file
hundreds. As a result, AAFA argued, the requirement may be unmanageable
for many companies. AAFA also noted that filing guaranties is not the
only relevant cost. It stated that vendors face a ``clerical nightmare
of keeping up with the guaranties'' and buyers have difficulty
obtaining guaranties from the Commission in a timely fashion.
Similarly, NRF argued that the annual renewal requirement would add
administrative costs for buyers and guarantors without making
guaranties more reliable. It stated that, over the course of a
retailer's relationship with a large network of vendors, even the
addition of a one-page form annually is a major commitment which will
have a significant impact on retailers and the rest of the supply
chain.\16\
---------------------------------------------------------------------------
\16\ NRF also reiterated its support for amending the Rules to
include an alternative to guaranties for purchasers that obtain
textile products directly from overseas suppliers that cannot
provide guaranties. The Commission addressed this issue in the NPRM.
---------------------------------------------------------------------------
Like AAFA, Shopbop.com strongly opposed this proposal. It disagreed
with the Commission's assertion that the annual renewal requirement
would increase the reliability of guaranties. It argued that the mere
yearly signing of the same form is unlikely to receive significant
additional attention from a guarantor. Additionally, Shopbop.com argued
that the requirement would impose significant costs on buyers that
purchase products from a large number of sellers, such as most large
retailers. It asserted that the process of obtaining guaranties can be
extremely time-consuming and costly, and that a buyer can have
thousands of sellers that it would need to contact individually.
Finally, it noted that none of the comments filed in response to the
ANPR advocated this amendment and that the Commission did not cite
evidence from its enforcement record or empirical studies supporting
the imposition of this requirement.
Two of the above comments disputed the Commission's assertion that
an annual renewal requirement would increase the reliability of
continuing guaranties, and all three disputed the Commission's
assertion that the requirement would not impose significant compliance
costs on industry. As noted above, none of the comments supported the
proposal. Based on these comments, the Commission lacks sufficient
evidence to conclude that the proposal would increase the reliability
of continuing guaranties. Assuming, arguendo, that the requirement
would increase the reliability of continuing guaranties, the Commission
lacks sufficient evidence to conclude that the benefits of imposing
this requirement would exceed the costs. Accordingly, the Commission
has decided not to adopt this proposed amendment.
Nonetheless, the Commission continues to have concerns that
continuing guaranties remaining in effect indefinitely or until revoked
may become less reliable over time, especially after the employees who
originally provided the guaranty to a buyer or filed it with the
Commission no longer work for the guarantor. If the Commission obtains
evidence that continuing guaranties have become less reliable after
this amendment takes effect, it will revisit this issue and
[[Page 18769]]
consider amending the Rules' continuing guaranty provisions
accordingly.
D. Coverage and Exemptions From the Act and Rules
The Commission proposed clarifying Sec. 303.45 so that paragraph
(a) identifies the textile fiber product categories subject to the Act
and regulations, with certain exceptions identified in paragraph (b)
that are excluded from the Act's requirements. New paragraph (b)
provides that all textile fiber products other than those identified in
paragraph (a) are excluded. It also identifies a number of other
exempted products, some of which fall within the general product
categories listed in paragraph (a). The Commission also proposed
revising current paragraphs (b) and (c) to reflect the above change and
redesignating them as paragraphs (c) and (d), respectively. None of the
comments addressed the proposed amendments to Sec. 303.45.
Accordingly, the Commission adopts all of these proposed amendments
without change for the reasons explained in the NPRM.
III. Regulatory Flexibility Act Requirements
The Regulatory Flexibility Act (``RFA'') \17\ requires that the
Commission conduct an initial and final analysis of the anticipated
economic impact of the amendments on small entities. Section 605 of the
RFA\18\ provides 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.
---------------------------------------------------------------------------
\17\ 5 U.S.C. 601-612.
\18\ 5 U.S.C. 605.
---------------------------------------------------------------------------
The Commission believes that the amendments will not have a
significant economic impact upon small entities that manufacture or
import textile products, although they may affect a substantial number
of small businesses. The amendments: (a) Clarify the Rules, including
Sec. Sec. 303.1(h),\19\ 303.12(a), 303.33(d) and (f), 303.35,
303.41(a), 303.42(a), and 303.45; (b) amend Sec. 303.7 to incorporate
the updated version of ISO 2076, thereby establishing the generic names
for the manufactured fibers set forth in the current ISO standard; (c)
amend Sec. 303.17(b) to allow manufacturers and importers to disclose
fiber names and trademarks and information about fiber performance on
certain hang-tags affixed to textile fiber products without including
the product's full fiber content information on the hang-tag; and (d)
amend Sec. Sec. 303.36, 303.37, and 303.38 to clarify and update the
Rules' guaranty provisions by, among other things, replacing the
requirement that suppliers that provide a guaranty sign under penalty
of perjury with a certification requirement for continuing guaranties.
Therefore, the Commission certifies that amending the Rules will not
have a significant economic impact on a substantial number of small
businesses.
---------------------------------------------------------------------------
\19\ This amendment also involves parallel revisions to
Sec. Sec. 303.21, 303.31, 303.36, 303.38(c), and 303.44.
---------------------------------------------------------------------------
A. Need for and Objectives of the Amendments
The objective of the amendments is to clarify the Rules;
incorporate the updated version of ISO 2076, thereby establishing the
generic names for the manufactured fibers set forth in the current ISO
standard; allow manufacturers and importers to disclose fiber names and
trademarks and information about fiber performance on certain hang-tags
affixed to textile fiber products without including the product's full
fiber content information on the hang-tag; and clarify and update the
Rules' guaranty provisions by, among other things, replacing the
requirement that suppliers that provide a guaranty sign under penalty
of perjury with a certification requirement. The Textile Act authorizes
the Commission to implement its requirements through the issuance of
rules.
The amendments will clarify and update the Rules, and provide
covered entities with additional labeling options without imposing
significant new burdens or additional costs. For example, businesses
that prefer not to affix a hang-tag disclosing a fiber trademark
without disclosing the product's full fiber content need not do so. As
revised, the Rules' continuing guaranty provisions will continue to
provide for a simple one-page form including information very similar,
if not identical, to that currently required.
B. Significant Issues Raised in Public Comments
None of the comments disputed the Initial Regulatory Flexibility
Analysis in the NPRM, with the exception of the three comments
objecting to the proposal to amend Sec. Sec. 303.37 and 303.38(a) and
(b) to provide that continuing guaranties are effective for one year
unless revoked earlier. The comments questioned the Commission's
assertion that the proposed amendment would enhance the reliability of
guaranties and contended that it would impose substantial unnecessary
costs on industry. For the reasons explained above, the Commission has
decided not to adopt this proposal.
C. Small Entities to Which the Amendments Will Apply
The Rules apply to various segments of the textile fiber product
industry, including manufacturers and wholesalers of textile apparel
products. Under the Small Business Size Standards issued by the Small
Business Administration, textile apparel manufacturers qualify as small
businesses if they have 500 or fewer employees. Clothing wholesalers
qualify as small businesses if they have 100 or fewer employees. The
Commission's staff has estimated that approximately 22,218 textile
fiber product manufacturers and importers are covered by the Rules'
disclosure requirements.\20\ A substantial number of these entities
likely qualify as small businesses. The Commission estimates that the
amendments will not have a significant impact on small businesses
because they do not impose any significant new obligations on them.
---------------------------------------------------------------------------
\20\ Federal Trade Commission: Agency Information Collection
Activities; Proposed Collection; Comment Request, 76 FR 77230 (Dec.
12, 2011).
---------------------------------------------------------------------------
D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements, Including Classes of Covered Small Entities and
Professional Skills Needed To Comply
As explained earlier in this document, the amendments clarify the
Rules; incorporate the updated version of ISO 2076, thereby
establishing the generic names for the manufactured fibers set forth in
the current ISO standard; allow manufacturers and importers to disclose
fiber names and trademarks and information about fiber performance on
certain hang-tags affixed to textile fiber products without including
the product's full fiber content information on the hang-tag; and
clarify and update the Rules' guaranty provisions by, among other
things, replacing the requirement that suppliers that provide a
guaranty sign under penalty of perjury with a certification
requirement. The small entities potentially covered by these amendments
will include all such entities subject to the Rules. The professional
skills necessary for compliance with the Rules as modified by the
amendments would include office and administrative support supervisors
to determine label content and clerical personnel to draft and obtain
labels and keep records.
E. Significant Alternatives to the Amendments
The Commission has not proposed any specific small entity exemption
or
[[Page 18770]]
other significant alternatives, as the amendments simply clarify the
Rules; incorporate the updated version of ISO 2076, thereby
establishing the generic names for the manufactured fibers set forth in
the current ISO standard; allow manufacturers and importers to disclose
fiber names and trademarks and information about fiber performance on
certain hang-tags affixed to textile fiber products without including
the product's full fiber content information on the hang-tag; and
clarify and update the Rules' guaranty provisions by, among other
things, replacing the requirement that suppliers that provide a
guaranty sign under penalty of perjury with a certification
requirement. Under these limited circumstances, the Commission does not
believe a special exemption for small entities or significant
compliance alternatives are necessary or appropriate to minimize the
compliance burden, if any, on small entities while achieving the
intended purposes of the amendments.
IV. Paperwork Reduction Act
The Rules contain various ``collection of information'' (e.g.,
disclosure and recordkeeping) requirements for which the Commission has
obtained OMB clearance under the Paperwork Reduction Act (``PRA'').\21\
As discussed above, the amendments: (a) Clarify the Rules, including
Sec. Sec. 303.1(h),\22\ 303.12(a), 303.33(d) and (f), 303.35,
303.41(a), 303.42(a), and 303.45; (b) revise Sec. 303.7 to incorporate
the updated version of ISO 2076, thereby establishing the generic names
for the manufactured fibers set forth in the current ISO standard; (c)
amend Sec. 303.17(b) to allow manufacturers and importers to disclose
fiber names and trademarks and information about fiber performance on
certain hang-tags affixed to textile fiber products without including
the product's full fiber content information on the hang-tag; and (d)
amend Sec. Sec. 303.36, 303.37, and 303.38 to clarify and update the
Rules' guaranty provisions by, among other things, replacing the
requirement that suppliers provide a guaranty signed under penalty of
perjury with a certification requirement.
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\21\ 44 U.S.C. 3501 et seq. The Commission recently published
its PRA burden estimates for the current information collection
requirements under the Rules. See Federal Trade Commission: Agency
Information Collection Activities; Proposed Collection; Comment
Request, 76 FR 77230 (Dec. 12, 2011) and Federal Trade Commission:
Agency Information Collection Activities; Submission for OMB Review;
Comment Request, 77 FR 10744 (Feb. 23, 2012). On March 26, 2012, OMB
granted clearance through March 31, 2015, for these requirements and
the associated PRA burden estimates. The OMB control number is 3084-
0101.
\22\ This amendment would also require parallel revisions to
Sec. Sec. 303.21, 303.31, 303.36, 303.38(c), and 303.44.
---------------------------------------------------------------------------
None of the comments disputed the PRA analysis in the NPRM, with
the exception of the three comments objecting to the proposal to amend
Sec. Sec. 303.37 and 303.38(a) and (b) to provide that continuing
guaranties are effective for one year unless revoked earlier. The
comments questioned the Commission's assertion that the proposed
amendment would enhance the reliability of guaranties and contended
that it would impose substantial unnecessary costs on industry. For the
reasons explained above, the Commission has decided not to adopt this
proposal. In the Commission's view, the amendments it has adopted do
not impose any additional significant collection of information
requirements. For example, businesses that prefer not to affix a hang-
tag disclosing a fiber name or trademark without disclosing the
product's full fiber content need not do so.
List of Subjects in 16 CFR Part 303
Advertising, Incorporation by reference, Labeling, Recordkeeping,
Textile fiber products.
For the reasons set forth in the preamble, the Federal Trade
Commission amends Title 16, chapter I, of the Code of Federal
Regulations, as follows:
PART 303--RULES AND REGULATIONS UNDER THE TEXTILE FIBER PRODUCTS
IDENTIFICATION ACT
0
1. The authority citation for part 303 continues to read as follows:
Authority: 15 U.S.C. 70 et seq.
0
2. Amend Sec. 303.1 by revising paragraph (h) to read as follows:
Sec. 303.1 Terms defined.
* * * * *
(h) The terms invoice and invoice or other document mean an
account, order, memorandum, list, or catalog, which is issued to a
purchaser, consignee, bailee, correspondent, agent, or any other
person, electronically, in writing, or in some other form capable of
being read and preserved in a form that is capable of being accurately
reproduced for later reference, whether by transmission, printing, or
otherwise, in connection with the marketing or handling of any textile
fiber product transported or delivered to such person.
* * * * *
0
3. Amend Sec. 303.7 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 2076:2010(E), ``Textiles--Man-made fibres--
Generic names.'' International Organization for Standardization ISO
2076:2010(E), ``Textiles--Man-made fibres--Generic names, Fifth
edition, 2010-01-15 is incorporated by reference into this section with
the approval of the Director of the Federal Register under 5 U.S.C.
552(a) and 1 CFR part 51. To enforce any edition other than that
specified in this section, the Federal Trade Commission must publish
notice of change in the Federal Register and the material must be
available to the public. All approved material is available for
inspection at the Federal Trade Commission, 600 Pennsylvania Ave. NW.,
Room 130, Washington, DC 20580, (202) 326-2222, and is available from
the American National Standards Institute, 11 West 42nd St., 13th
floor, New York, NY 10036. It is also available for inspection at the
National Archives and Records Administration (NARA). For information on
the availability of this material at NARA, call 202-741-6030, or go to:
https://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
* * * * *
0
4. Amend Sec. 303.12 by revising paragraph (a) to read as follows:
Sec. 303.12 Trimmings of household textile articles.
(a) Pursuant to section 12 of the Act, trimmings incorporated in
articles of wearing apparel and other household textile articles are
exempt from the Act and regulations, except for decorative trim,
decorative patterns and designs, and elastic materials in findings
exceeding the surface area thresholds described in paragraphs (a)(3)
and (b) of this section. Trimmings may, among other forms of trim,
include:
(1) Rickrack, tape, belting, binding, braid, labels (either
required or non-required), collars, cuffs, wrist bands, leg bands,
waist bands, gussets, gores, welts, and findings, including
superimposed garters in hosiery, and elastic materials and threads
inserted in or added to the basic product or garment in minor
proportion for holding, reinforcing or similar structural purposes;
[[Page 18771]]
(2) Decorative trim, whether applied by embroidery, overlay,
applique, or attachment; and
(3) Decorative patterns or designs which are an integral part of
the fabric out of which the household textile article is made.
Provided, that such decorative trim or decorative pattern or design, as
specified in paragraphs (a)(2) and (3) of this section, does not exceed
15 percent of the surface area of the household textile article. If no
representation is made as to the fiber content of the decorative trim
or decoration, as provided for in paragraphs (a)(2) and (3) of this
section, and the fiber content of the decorative trim or decoration
differs from the fiber content designation of the basic fabric, the
fiber content designation of the basic fabric shall be followed by the
statement ``exclusive of decoration.''
* * * * *
0
5. Revise Sec. 303.17(b) to read as follows:
Sec. 303.17 Use of fiber trademarks and generic names on labels.
* * * * *
(b) Where a generic name or a fiber trademark is used on any label
providing required information, a full fiber content disclosure shall
be made in accordance with the Act and regulations the first time the
generic name or fiber trademark appears on the label. Where a fiber
generic name or trademark is used on any hang-tag attached to a textile
fiber product that has a label providing required information and the
hang-tag provides non-required information, such as a hang-tag stating
only a fiber generic name or trademark or providing information about a
particular fiber's characteristics, the hang-tag need not provide a
full fiber content disclosure; however, if the textile fiber product
contains any fiber other than the fiber identified by the fiber generic
name or trademark, the hang-tag must disclose clearly and conspicuously
that it does not provide the product's full fiber content; for example:
``This tag does not disclose the product's full fiber content.'' or
``See label for the product's full fiber content.''
* * * * *
0
6. Amend Sec. 303.21 by revising paragraphs (a)(3) and (b) to read as
follows:
Sec. 303.21 Marking of samples, swatches, or specimens and products
sold therefrom.
(a) * * *
(3) If such samples, swatches, or specimens are not used to effect
sales to ultimate consumers and are not in the form intended for sale
or delivery to, or for use by, the ultimate consumer, and are
accompanied by an invoice or other document showing the required
information.
(b) Where properly labeled samples, swatches, or specimens are used
to effect the sale of articles of wearing apparel or other household
textile articles which are manufactured specifically for a particular
customer after the sale is consummated, the articles of wearing apparel
or other household textile articles need not be labeled if they are of
the same fiber content as the samples, swatches, or specimens from
which the sale was effected and an invoice or other document
accompanies them showing the information otherwise required to appear
on the label.
0
7. Revise Sec. 303.31 to read as follows:
Sec. 303.31 Invoice in lieu of label.
Where a textile fiber product is not in the form intended for sale,
delivery to, or for use by the ultimate consumer, an invoice or other
document may be used in lieu of a label, and such invoice or other
document shall show, in addition to the name and address of the person
issuing the invoice or other document, the fiber content of such
product as provided in the Act and regulations as well as any other
required information.
0
8. Amend Sec. 303.33 by revising paragraphs (d) and (f) to read as
follows:
Sec. 303.33 Country where textile fiber products are processed or
manufactured.
* * * * *
(d) The country of origin of an imported textile fiber product as
determined under the laws and regulations enforced by United States
Customs and Border Protection shall be considered to be the country
where such textile fiber product was processed or manufactured.
* * * * *
(f) Nothing in this section shall be construed as limiting in any
way the information required to be disclosed on labels under the
provisions of any Tariff Act of the United States or regulations
promulgated thereunder.
0
9. Revise Sec. 303.35 to read as follows:
Sec. 303.35 Use of terms ``virgin'' or ``new.''
The terms virgin or new as descriptive of a textile fiber product,
or any fiber or part thereof, shall not be used when the product, fiber
or part so described is not composed wholly of new or virgin fiber
which has never been reclaimed from any spun, woven, knitted, felted,
bonded, or similarly manufactured product.
0
10. Amend Sec. 303.36 by revising the introductory text of paragraph
(a) and paragraphs (a)(2) and (b), to read as follows:
Sec. 303.36 Form of separate guaranty.
(a) The following are suggested forms of separate guaranties under
section 10 of the Act which may be used by a guarantor residing in the
United States on or as part of an invoice or other document relating to
the marketing or handling of any textile fiber products listed and
designated therein, and showing the date of such invoice or other
document and the signature and address of the guarantor.
* * * * *
(2) Guaranty based on guaranty. Based upon a guaranty received, we
guaranty that the textile fiber products specified herein are not
misbranded nor falsely nor deceptively advertised or invoiced under the
provisions of the Textile Fiber Products Identification Act and rules
and regulations thereunder.
Note: The printed name and address on the invoice or other
document will suffice to meet the signature and address
requirements.
(b) The mere disclosure of required information including the fiber
content of a textile fiber product on a label or on an invoice or other
document relating to its marketing or handling shall not be considered
a form of separate guaranty.
0
11. Revise Sec. 303.37 to read as follows:
Sec. 303.37 Form of continuing guaranty from seller to buyer.
Under section 10 of the Act, a seller residing in the United States
may give a buyer a continuing guaranty to be applicable to all textile
fiber products sold or to be sold. The following is the prescribed form
of continuing guaranty from seller to buyer:
We, the undersigned, guaranty that all textile fiber products now
being sold or which may hereafter be sold or delivered to ------------
---- are not, and will not be misbranded or falsely or deceptively
advertised or invoiced under the provisions of the Textile Fiber
Products Identification Act and rules and regulations thereunder. We
acknowledge that furnishing a false guaranty is an unlawful unfair and
deceptive act or practice pursuant to the Federal Trade Commission Act,
and certify that we will actively monitor and ensure compliance with
the Textile Fiber Products Identification Act and rules and regulations
thereunder during the duration of this guaranty.
Dated, signed, and certified this ---- day of ----, 20--, at ------
---------- (City), ---------------- (State or
[[Page 18772]]
Territory) ---------------- (name under which business is conducted.)
I certify that the information supplied in this form is true and
correct.
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Signature of Proprietor, Principal Partner, or Corporate Official
-----------------------------------------------------------------------
Name (Print or Type) and Title
0
12. Amend Sec. 303.38 by revising paragraphs (b) and (c) to read as
follows:
Sec. 303.38 Continuing guaranty filed with Federal Trade Commission.
* * * * *
(b) Prescribed form for a continuing guaranty:
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[[Page 18773]]
[GRAPHIC] [TIFF OMITTED] TR04AP14.030
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[[Page 18774]]
(c) Any person who has a continuing guaranty on file with the
Commission may, during the effective dates of the guaranty, give notice
of such fact by setting forth on the invoice or other document covering
the marketing or handling of the product guaranteed the following:
Continuing guaranty under the Textile Fiber Products Identification Act
filed with the Federal Trade Commission.
* * * * *
0
13. Amend Sec. 303.41 by revising paragraph (a) to read as follows:
Sec. 303.41 Use of fiber trademarks and generic names in advertising.
(a) In advertising textile fiber products, the use of a fiber
trademark or a generic fiber name shall require a full disclosure of
the fiber content information required by the Act and regulations in at
least one instance in the advertisement.
* * * * *
0
14. Amend Sec. 303.42 by revising paragraph (a) to read as follows:
Sec. 303.42 Arrangement of information in advertising textile fiber
products.
(a) Where a textile fiber product is advertised in such manner as
to require disclosure of the information required by the Act and
regulations, all parts of the required information shall be stated in
immediate conjunction with each other in legible and conspicuous type
or lettering of equal size and prominence. 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. The
advertisement need not state the percentage of each fiber.
* * * * *
0
15. Revise Sec. 303.44 to read as follows:
Sec. 303.44 Products not intended for uses subject to the Act.
Textile fiber products intended for uses not within the scope of
the Act and regulations or intended for uses in other textile fiber
products which are exempted or excluded from the Act shall not be
subject to the labeling and invoicing requirements of the Act and
regulations: Provided, an invoice or other document covering the
marketing or handling of such products is given, which indicates that
the products are not intended for uses subject to the Textile Fiber
Products Identification Act.
0
16. Revise Sec. 303.45 to read as follows:
Sec. 303.45 Coverage and exclusions from the Act.
(a) The following textile fiber products are subject to the Act and
regulations in this part, unless excluded from the Act's requirements
in paragraph (b) of this section:
(1) Articles of wearing apparel;
(2) Handkerchiefs;
(3) Scarfs;
(4) Beddings;
(5) Curtains and casements;
(6) Draperies;
(7) Tablecloths, napkins, and doilies;
(8) Floor coverings;
(9) Towels;
(10) Wash cloths and dish cloths;
(11) Ironing board covers and pads;
(12) Umbrellas and parasols;
(13) Batts;
(14) Products subject to section 4(h) of the Act;
(15) Flags with heading or more than 216 square inches (13.9 dm\2\)
in size;
(16) Cushions;
(17) All fibers, yarns and fabrics (including narrow fabrics except
packaging ribbons);
(18) Furniture slip covers and other covers or coverlets for
furniture;
(19) Afghans and throws;
(20) Sleeping bags;
(21) Antimacassars and tidies;
(22) Hammocks; and
(23) Dresser and other furniture scarfs.
(b) Pursuant to section 12(b) of the Act, all textile fiber
products other than those identified in paragraph (a) of this section,
and the following textile fiber products, are excluded from the Act's
requirements:
(1) Belts, suspenders, arm bands, permanently knotted neckties,
garters, sanitary belts, diaper liners, labels (either required or non-
required) individually and in rolls, looper clips intended for
handicraft purposes, book cloth, artists' canvases, tapestry cloth, and
shoe laces.
(2) All textile fiber products manufactured by the operators of
company stores and offered for sale and sold exclusively to their own
employees as ultimate consumers.
(3) Coated fabrics and those portions of textile fiber products
made of coated fabrics.
(4) Secondhand household textile articles which are discernibly
secondhand or which are marked to indicate their secondhand character.
(5) Non-woven products of a disposable nature intended for one-time
use only.
(6) All curtains, casements, draperies, and table place mats, or
any portions thereof otherwise subject to the Act, made principally of
slats, rods, or strips, composed of wood, metal, plastic, or leather.
(7) All textile fiber products in a form ready for the ultimate
consumer procured by the military services of the United States which
are bought according to specifications, but shall not include those
textile fiber products sold and distributed through post exchanges,
sales commissaries, or ship stores; provided, however, that if the
military services sell textile fiber products for nongovernmental
purposes the information with respect to the fiber content of such
products shall be furnished to the purchaser thereof who shall label
such products in conformity with the Act and regulations before such
products are distributed for civilian use.
(8) All hand woven rugs made by Navajo Indians which have attached
thereto the ``Certificate of Genuineness'' supplied by the Indian Arts
and Crafts Board of the United States Department of Interior. The term
Navajo Indian means any Indian who is listed on the register of the
Navajo Indian Tribe or is eligible for listing thereon.
(c) The exclusions provided for in paragraph (b) of this section
shall not be applicable:
(1) if any representations as to the fiber content of such products
are made on any label or in any advertisement without making a full and
complete fiber content disclosure on such label or in such
advertisement in accordance with the Act and regulations in this part
with the exception of those products excluded by paragraph (b)(5) of
this section; or
(2) If any false, deceptive, or misleading representations are made
as to the fiber content of such products.
(d) The exclusions from the Act provided in paragraph (b) of this
section are in addition to the exemptions from the Act provided in
section 12(a) of the Act and shall not affect or limit such exemptions.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-07518 Filed 4-3-14; 8:45 am]
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