Rules and Regulations Under the Textile Fiber Products Identification Act, 18766-18774 [2014-07518]

Agencies

• FEDERAL TRADE COMMISSION

[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]


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FEDERAL TRADE COMMISSION

16 CFR Part 303


Rules and Regulations Under the Textile Fiber Products 
Identification Act

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Final rule.

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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.
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    \1\ 15 U.S.C. 70 et seq.
    \2\ See 15 U.S.C. 70b(b).
    \3\ 76 FR 68690 (Nov. 7, 2011).
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    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\
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    \4\ The ANPR comments are posted at https://www.ftc.gov/policy/public-comments/initiative-401.
    \5\ 78 FR 29263 (May 20, 2013).
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    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\
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    \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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    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.
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    \17\ 5 U.S.C. 601-612.
    \18\ 5 U.S.C. 605.
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    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.
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    \19\ This amendment also involves parallel revisions to 
Sec. Sec.  303.21, 303.31, 303.36, 303.38(c), and 303.44.
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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.
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    \20\ Federal Trade Commission: Agency Information Collection 
Activities; Proposed Collection; Comment Request, 76 FR 77230 (Dec. 
12, 2011).
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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.
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    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.
-----------------------------------------------------------------------

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:
BILLING CODE 6750-01-P

[[Page 18773]]

[GRAPHIC] [TIFF OMITTED] TR04AP14.030

BILLING CODE 6750-01-C

[[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]
BILLING CODE 6750-01-P