federal register February 13,1998 Friday Fur ProductsLabelingAct;FinalRule the WoolProductsLabelingAct,and Textile FiberProductsIdentificationAct, 16 CFRParts1,300,301,and303 Commission Federal Trade Part II 7507 7508 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations

FEDERAL TRADE COMMISSION Finally, the Commission removes U.S.C. 69f(b), the Commission has Subpart D from its General Procedures. issued implementing regulations, the 16 CFR Parts 1, 300, 301, and 303 DATES: The amended Rules are effective Textile Rules, 16 CFR Part 303; the on March 16, 1998. The incorporation Wool Rules, 16 CFR Part 300; and the Rules and Regulations Under the by reference of the ISO standard is Fur Rules, 16 CFR Part 301, Textile Fiber Products Identification approved by the Director of the Federal respectively. Act, the Wool Products Labeling Act, Register as of March 16, 1998. On February 12, 1996, the and the Fur Products Labeling Act ADDRESS: Requests for copies of the Commission published a Notice of AGENCY: Federal Trade Commission. amended Rules should be sent to the Proposed Rulemaking requesting public comment on various possible ACTION: Final rule. Public Reference Branch, Room 130, Federal Trade Commission, amendments to the Textile Rules SUMMARY: The Federal Trade Washington, DC 20580. (Textile NPR) (61 FR 5340). On Commission (Commission or FTC) FOR FURTHER INFORMATION CONTACT: December 24, 1996, the Commission amends the Rules and Regulations Edwin Rodriguez, Attorney, Division of published two Notices of Proposed Under the Textile Fiber Products Enforcement, Federal Trade Rulemaking, requesting public comment Identification Act (Textile Rules); the Commission, Sixth St. & Pennsylvania on various possible amendments to the Rules and Regulations under the Wool Ave., NW, Washington, DC 20580 (202) Wool Rules (Wool NPR) (61 FR 67739) Products Labeling Act (Wool Rules); the 326–3147, or Bret S. Smart, Program and the Fur Rules (Fur NPR) (61 FR Rules and Regulations under the Fur Advisor, Los Angeles Regional Office, 67748). The 1996 NPRs followed a May Products Labeling Act (Fur Rules); and Federal Trade Commission, 10877 6, 1994 request for comments issued as General Procedures, Subpart D, Wilshire Blvd., Suite 700, Los Angeles, part of the FTC’s ongoing regulatory Administration of the Wool Products CA 90024 (310) 824–4314. review program (59 FR 23645–46). In this notice, the Commission announces Labeling Act of 1939, Fur Products SUPPLEMENTARY INFORMATION: Labeling Act, and Textile Fiber Products several amendments to the Textile, Identification Act. I. Background Wool, and Fur Rules, adopted as a result The Commission amends the Textile The Textile Fiber Products of those prior proceedings. The and Wool Rules to: Allow the listing of Identification Act (Textile Act), 15 comments, described below, are on the generic fiber names for fibers that have U.S.C. 70, and the Wool Products public record and available for a functional significance and constitute Labeling Act (Wool Act), 15 U.S.C. 68, inspection during business hours in the less than 5% of the total fiber weight of require marketers of covered textile and Public Reference Branch, Room 130, covered products, without requiring wool products to mark each product Federal Trade Commission, Sixth St. disclosure of the functional significance with: (1) The generic names and and Pennsylvania Ave., N.W., of such fibers; eliminate the requirement percentages by weight of the constituent Washington, DC 20580. The comments that the front side of a label bear the fibers present in the product, in the are cited in this notice by number and words ‘‘Fiber Content on Reverse Side’’ order of predominance by weight; (2) a shortened form of the name of the when the fiber content disclosure is on the name under which the manufacturer commenting party. the back of the label; streamline and or other responsible company does In response to the Textile NPR, 24 simplify the requirements for placing business or, in lieu thereof, the RN comments were filed by 23 parties, information on labels; incorporate by issued to the company by the including manufacturers, trade reference the generic fiber names and Commission; and (3) the name of the associations, and governmental 1 definitions for manufactured fibers in country where the product was entities. In response to the Wool NPR, International Organization for processed or manufactured. The Fur nine comments were filed by eight trade Standardization (ISO) Standard 2076: Products Labeling Act (Fur Act), 15 associations and governmental entities, 1989, ‘‘Textiles—Man-made fibres— U.S.C. 69, requires marketers of covered six of which had also responded to the Generic names’’; and modify the fur products to mark each product to 1 The parties commenting on the Textile NPR are definitions of terms such as ‘‘mail order show: (1) the name of the animal that listed below, with the number assigned to each catalog,’’ ‘‘mail order promotional produced the fur; (2) that the fur comment by the Office of the Secretary and a material,’’ and ‘‘invoice,’’ to include product contains or is composed of used shortened form of the name used to cite to the those generated and disseminated fur, when such is the fact; (3) that the comment hereafter: (1) The Polyester Council of America (PCA); (2) Association of Specialists in electronically through the Internet or E- fur product contains or is composed of Cleaning and Restoration (ASCR); (3) American mail. bleached, dyed, or otherwise artificially Fiber Manufacturers Association (AFMA); (4) The Wool Rules have been modified colored fur, when such is the fact; (4) Monsanto Company (Monsanto); (5) American to add examples of fiber labeling for that the fur product is composed in Polyolefin Association, Inc. (APA); (6) National Association of Hosiery Manufacturers (NAHM); (7) articles made from the hair of certain whole or in substantial part of paws, J.C. Penney; (8) Ross & Hardies; (9) United States cross-bred, wool-bearing animals. In tails, bellies, or waste fur, when such is Association of Importers of Textiles and Apparel addition, the Commission amends the the fact; (5) the name under which the (USA–ITA); (10) Wrangler, Inc. (Wrangler); (11) Textile, Wool, and Fur Rules to specify manufacturer or other responsible Acrylic Council (Acrylic); (12) American Textile Manufacturers Institute (ATMI); (13) Fruit of the that a Commission registered company does business or, in lieu Loom; (14) Department of the Treasury, U.S. identification number (RN) will be thereof, the RN issued to the company Customs Service (Customs); (15) Courtaulds Fibers, subject to cancellation if, after a change by the Commission; and (6) the name of Inc. (Courtaulds); (16) Cotton Incorporated (Cotton); in the material information contained the country of origin of any imported (17) American Apparel Manufacturers Association (AAMA); (18) Mexico, Subsecretaria de on the RN application, a new furs used in the fur product. The Negociaciones Comerciales Internacionales application that reflects current Textile, Wool, and Fur Acts also contain (Mexico); (19) Pillowtex Corporation (Pillowtex); business information is not promptly advertising and recordkeeping (20) National Cotton Council of America (NCCA); received by the Commission. The provisions. Pursuant to section 7(c) of (21) Courtaulds Fibers, Inc. (Courtaulds 2); (22) Pittsfield Weaving Company, Inc. (Pittsfield); (23) Commission amends the Fur Rules to the Textile Act, 15 U.S.C. 70e(c); section Industry Canada Consumer Products Directorate increase the cost figure for exemption 6(a) of the Wool Act, 15 U.S.C. 68d(a); (Industry Canada); (24) Senator Strom Thurmond from the Rules from $20 to $150. and section 8(b) of the Fur Act, 15 (Sen. Thurmond). Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7509

Textile NPR.2 One comment was filed in (for example, ‘‘4% spandex, for information would be beneficial to response to the Fur NPR.3 elasticity’’). Section 3(b) of the Wool consumers. Rules, 16 CFR 300.3(b), contains a II. Fiber Content Identification Labeling A few comments also recommended similar provision for non-wool fibers in that the Commission amend the Rules to A. Fibers Present in Amounts of Less a wool product. The Commission allow the listing of names of non-wool Than 5% proposed amending both Rules to fibers with no functional significance Under the Textile and Wool Acts, a permit the use of generic fiber names for and present in amounts less than 5%.12 covered product is misbranded if it does fibers that have a functional significance Because the prohibition on naming not show on a stamp, tag, label or by and are present in amounts less than these fibers is statutory, however, the other means the generic name and 5%, without requiring disclosure of the Commission cannot adopt the suggested percentage of each fiber or combination functional significance. amendment. The Commission will Many comments supported the consider whether to recommend that of fibers present in the amount of 5% or 7 more of the total fiber weight of the Commission’s proposed amendment, Congress amend the Textile and Wool stating that it would benefit both product.4 The Textile Act permits the Acts in this manner.13 consumers and businesses by making use of a generic fiber name for a fiber labels shorter.8 Two comments in The Wool Rules also have been present in an amount less than 5% only response to the Wool NPR opposed the amended to add a definition of the term when the fiber has a clearly established amendment,9 asserting that it could ‘‘trimmings.’’ Section 300.24 of the and definite functional significance result in consumer confusion and even Rules (redesignated herein as § 300.23) when present in the amount contained deception as to the value of small refers to ‘‘trimmings,’’ which, if they do in the textile product.5 When such a amounts of certain fibers in a garment.10 not contain wool, are generally exempt fiber or combination of fibers does not The Commission has decided to from the fiber content disclosure have a functional significance, it must amend the Textile and Wool Rules by requirement. Unlike the Textile Rules, be identified as ‘‘other fiber’’ or ‘‘other however, the Wool Rules do not define 6 deleting the requirement to disclose fibers.’’ Section 3 of the Textile Rules, functional significance. Eliminating the the term. The lack of a definition has 16 CFR 303.3, implements this requirement will benefit industry by sometimes resulted in problems, such as provision of the Textile Act, also stating, shortening and simplifying labels. It the retention of imports at the border by in subsection (b), that when will also eliminate the problem of Customs officials or the refusal of manufacturers or other parties wish to imported products often being delayed delivery of goods by retailers, pending disclose the presence of such a fiber by at borders for relabeling because labels a resolution of the meaning of the term generic or fiber trademark name, the fail to disclose the functional ‘‘trimmings’’ with respect to products fiber content disclosure must include significance of fibers present in amounts covered by the Wool Rules. This the functional significance of the fiber of less than 5%.11 The amendment will problem has been remedied by adding a not harm consumers, who often know definition to the Wool Rules (§ 300.1(k)) 2 The parties commenting on the Wool NPR are the functional significance of fibers used that is cross-referenced to the definition listed below, with the number assigned to the of ‘‘trimmings’’ contained in the Textile comment by the Office of the Secretary and a in small amounts, such as spandex. shortened form of the name used to cite to the Manufacturers may, of course, Rules. This cross-reference does not comment hereafter: (1) American Fiber voluntarily disclose the functional constitute a change in § 300.24 Manufacturers Association (AFMA); (2) The Wool significance of such fibers when the (redesignated as § 300.23); it merely Bureau, Inc. (Wool Bureau); (3) United States codifies the advice that has consistently Association of Importers of Textiles and Apparel (USA–ITA); (4) and (4A) Northern Textile 7 J.C. Penney (7) p.1; USA–ITA (9) p.2 and (3- been given to industry by Commission Association and Cashmere & Camel Hair wool) p.2; Wrangler (10) p.1; ATMI (12) p.1 and (5- staff. Manufacturers Institute (NTA–CCMI); (5) American wool) p.1; Fruit of the Loom (13) p.1; AAMA (17) Textile Manufacturers Institute (ATMI); (6) p.1 and (7-wool) p.1; Mexico (18) p.1; NCC (20) p.1. B. ‘‘Fiber Content on Reverse Side’’ Department of the Treasury, U.S. Customs Service 8 J.C. Penney (7) p.3; AAMA (17) p.1. Disclosure Requirement (Customs); (7) American Apparel Manufacturers 9 Wool Bureau (2-wool) pp.1–2; NTA–CCMI (4- Association (AAMA); (8) Industry Canada wool) p.2. The Textile and Wool Rules require Consumer Products Directorate (Industry Canada). 10 NTA–CCMI (4), p.2, provided an example of a that, with certain exceptions, all three (To distinguish between the Textile comments and garment labeled ‘‘78% wool, 20% nylon, 2% the Wool comments, the term ‘‘wool’’ will be used disclosures—fiber content, company cashmere,’’ also bearing a prominent sleeve tag name or RN, and country of origin—be with the comment number whenever the Wool stating only ‘‘Cashmere Blend.’’ Such labeling, comments are referenced.) however, would appear to be a violation of 3 (1) Fur Information Council of America (FICA). § 300.8(d) which provides that ‘‘[w]here a generic 12 NAHM (6) p.1; J.C. Penney (7) p.1; Fruit of the 4 15 U.S.C. 70b(b)(1) & (2); 15 U.S.C. 68b(a)(2). name * * * is used on any label, whether required Loom (13) p.1. NAHM stated that because of The Textile Act exempts certain textile products, or nonrequired, a full and complete fiber content technological advances, such as the production of including the ‘‘outer coverings of furniture.’’ 15 disclosure with percentages shall be made on such ‘‘microfibers,’’ fibers present in small amounts U.S.C. 70j(a)(2). The Wool Act exempts carpets and label * * *.’’ It may also violate § 300.8(f) which sometimes impart a ‘‘ ‘hand’ or feel to a product that upholsteries. 15 U.S.C. 68j. ASCR (2), pp.1–3, states that ‘‘[n]o * * * generic name or word * * * are significant to the consumer.’’ The Commission recommended that the Textile Act be amended to shall be used on any label or elsewhere on the notes that fibers present in amounts less than 5% require fiber content identification labeling for the product in such a manner as to be false, deceptive, that impart special characteristics to a textile cover fabric of textile upholstered furniture, in or misleading as to fiber content * * *.’’ NTA– product may, in fact, have a functional significance order to harmonize with Canada and to provide CCMI (4A), at p.2, advocates prohibition of the enabling them to be listed on the label. information to consumers and upholstery cleaners naming of specialty fibers, such as ‘‘cashmere’’ or 13 Canada permits naming fibers that do not have relevant to the selection, use, and care of such ‘‘camel hair,’’ when they are present in quantities a functional significance and are present in small furniture. Because the exemption for furniture of less than 5%. The Commission believes that this amounts. Industry Canada (23) suggested, at p.2, upholstery is statutory, the Commission cannot proposal would be contrary to the intent of the that the proposed amendment to this section of the require fiber content labeling for upholstery. Of Wool Act, which requires disclosure of any amount Rules would not harmonize with Canadian textile course, manufacturers and sellers that wish to of wool in a product. labeling regulations which state that ‘‘a fibre provide fiber content information can do so 11 Mexico (18) recommended at p.2 that the term present in an amount less than 5% by mass must voluntarily. ‘‘functional significance’’ be defined to avoid be stated by generic name or as ‘other fibre’.’’ The 5 The Wool Act requires disclosure of any amount import/export access problems. A functionally Commission notes that although the requirements of wool even if under 5%. It does not, however, significant fiber is a fiber that has an established of the two countries are not identical, allow fiber names for other textile fibers present in quality or trait—such as strength or elasticity— manufacturers can easily comply with both by amounts of less than 5%. when the presence of the fiber in a textile product listing a fiber that is not functionally significant and 6 15 U.S.C. 70b(b)(1) & (2). imparts that same quality or trait to the product. present in an amount less than 5% as ‘‘other fiber.’’ 7510 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations made on the front of the label.14 A without diminishing the value of fiber for fibers that are in fact innovations in proviso to this requirement, however, information to consumers. Other fiber technology.21 Several comments states that the fiber content disclosure streamlining amendments regarding the supported Commission recognition of may be placed on the back of a cloth arrangement of information on the label names recognized by the ISO for label—sewn to the product at one end will give added flexibility. Because all manufactured fibers.22 The comments so that both sides of the label are readily of the required disclosures must be also advocated that the Commission accessible to the prospective conspicuous and accessible, there is retain its own petition procedure for purchaser—‘‘if the front side of such little likelihood that the amendment new manufactured fiber names.23 label clearly and conspicuously shows will result in harm to consumers.19 The Commission has decided to the wording ‘Fiber Content on Reverse amend the Textile Rules to incorporate C. Recognition of ISO Standard for Side.’ ’’ In the 1996 NPRs, the by reference the generic fiber names and Generic Fiber Names Commission proposed eliminating the definitions for manufactured fibers in ‘‘Fiber Content on Reverse Side’’ Section 7(c) of the Textile Act, 15 ISO Standard 2076: 1989, ‘‘Textiles— disclosure requirement. U.S.C. 70e(c), authorizes and directs the Man-made fibres—Generic names.’’ 24 Many comments supported the Commission ‘‘to make such rules and Incorporating the ISO standard will Commission’s proposal, noting that regulations, including the establishment increase international harmonization consumers are accustomed to looking on of generic names of manufactured and benefit manufacturers. A both sides of a double-sided label for fibers * * * as may be necessary and manufacturer or other marketer of a information about a textile product, and proper for administration and fiber not listed in § 7 of the Textile that consumers would be protected as enforcement.’’ Section 7 of the Textile Rules but recognized in ISO’s 1989 long as the fiber identification Rules, 16 CFR 303.7, sets out the generic standard need not petition the information is ‘‘conspicuous and names and definitions for manufactured Commission for recognition of the fiber accessible.’’ 15 Some asserted that fibers currently recognized by the name, but may simply use the ISO because the amendment would decrease Commission. (The Wool Rules, 16 CFR established name.25 In addition, the amount of information required on 300.8(b), cross reference § 7 of the manufacturers may use ISO alternative labels, it would reduce the size of labels Textile Rules for purposes of fiber fiber names for names currently and perhaps reduce the cost of labeling identification.) If a company develops a recognized by the Commission. For for manufacturers and the cost of textile new fiber and wishes to use a new example, ‘‘viscose,’’ a name recognized products to consumers.16 In addition, generic name, the manufacturer or by ISO, may be used as an alternative the amendment would increase NAFTA producer of the fiber must file a written generic fiber name for some forms of harmonization by eliminating words application with the Commission, under ‘‘rayon.’’ 26 ‘‘Elastane’’ may be used as that must be translated into French and procedures set forth in 16 CFR 303.8, an alternative to ‘‘spandex.’’ 27 As a Spanish to meet the requirements of requesting the establishment of a new result, manufacturers will have more Canada and Mexico.17 Industry Canada generic name for the fiber. The flexibility in labeling products for both stated that ‘‘[t]he flexibility provided by Commission proposed amending the domestic and international sale. the amendment would more closely Textile Rules to allow the use of a The Commission believes that align the US requirements with those of generic name for a manufactured fiber, consumers will not be harmed by its Canada.’’ 18 if the name and fiber were recognized recognition of the ISO standard. The Commission has decided to by an appropriate international Although the immediate result may be amend the Textile and Wool Rules to standards-setting organization, such as a few new and unfamiliar names on eliminate the requirement that the front the ISO. textile labels, consumers will learn side of the label state ‘‘Fiber Content on The comments supported the these fiber names quickly, just as they Reverse Side’’ and to allow fiber content Commission’s proposed amendment, have learned the names of new fibers information to appear on the reverse asserting that it could expedite the use recognized by the Commission through side of any kind of label, not just cloth of new fiber names on packaging and its own petition process.28 Because most labels. The Rules further clarify that the labeling, to the benefit of both 20 required information may appear on the manufacturers and consumers. The 21 NAHM (6) p.3. 22 care label, required by the Commission’s comments also stated that the proposed AFMA (3) p.5; J.C. Penney (7) p.6; Fruit of the amendment would continue to ensure Loom (13) p.4. Trade Regulation Rule on the Care 23 that generic fiber names are used only AFMA (3) p.5. Labeling of Textile Wearing Apparel 24 A revision of ISO 2076 is under consideration and Certain Piece Goods, 16 CFR Part at this time. The Commission understands that the 423, a practice already common in the 19 Mexico (18) stated, at p.2, that in order to revised standard will not become effective until accord with Annex 311 of NAFTA and to avoid sometime next year. When the revised standard is industry. The Commission believes that problems with Customs, the Commission should finalized, the Commission will amend the Textile the amendment will allow make it clear that ‘‘conspicuous and accessible’’ Rules to incorporate the new standard by reference. manufacturers greater flexibility, means that the label is capable of being easily seen 25 Ten fiber names not previously recognized by with normal handling of the good. The Commission the Commission are listed in the 1989 ISO believes that section 303.16(b) of the Textile Rules, Standard. Recognition of new fiber names added by 14 16 CFR 303.16(b); 16 CFR 300.10(a). as amended herein, which requires the disclosures ISO in the future will not be automatic. However, 15 J.C. Penney (7) pp.2–3; USA–ITA (9) p.5 and (3- to be ‘‘set forth in such a manner as to be clearly the Commission may accommodate future changes wool) p.2; Wrangler (10) p.1; ATMI (12) pp.1–2 and legible, conspicuous, and readily accessible to the in the ISO Standard by amending the Textile Rules (5-wool) p.2; Fruit of the Loom (13) p.1; AAMA (17) prospective purchaser,’’ is sufficiently clear. Similar to incorporate the new Standard without going p.1 and (7-wool) p.2; NCC (20) p.1; Pittsfield (22) language is contained in section 300.10(a) of the through the petition process. p.1; Industry Canada (23) p.2 and (8-wool) p.2; Wool Rules. Disclosures that cannot be easily seen 26 USA–ITA (9) recommended, at p.8, that the Wool Bureau (2-wool) p.2. NTA–CCMI (4) opposed with normal handling are not ‘‘conspicuous and name ‘‘viscose’’ be allowed. the proposal, stating, at p. 3, that a ‘‘conspicuous readily accessible.’’ 27 AFMA (3) p. 5 and (1-wool), p.5, stated that the and accessible’’ standard may be inadequate to 20 AFMA (3) p.5; NAHM (6) p.3; J.C. Penney (7) name ‘‘elastane’’ is commonly used worldwide for protect consumers from deception. p.6; USA–ITA (9) p.8; ATMI (12) p.6; Fruit of the this fiber. 16 J.C. Penney (7) p.2; Wrangler (10) p.1; ATMI Loom (13) p.4; AAMA (17) p.2; NCC (20) p.1. 28 For example, last year the Commission (12) pp.1–2; Fruit of the Loom (13) p.1; AAMA (17) Industry Canada (23) stated, at p.4, that the recognized ‘‘lyocell’’ as a new subclass of rayon. 61 p.1 and (7-wool) p.2; Pittsfield (22) p.1. procedures in the proposed amendment ‘‘are FR 16385 (April 15, 1996). More recently, the 17 AAMA (17) p.1 and (7-wool) p.2. consistent with those in Canada, and we would Commission recognized ‘‘elastoester’’ as a new 18 Industry Canada (23) p.2 and (8-wool) p.2. encourage their adoption.’’ generic fiber. 62 FR 28342 (May 23, 1997). Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7511 of the fibers recognized by the ISO but In the Wool NPR, the Commission of cross-breeding between two wool- not previously recognized by the noted that it had been informed that producing animals. Relevant examples Commission are not widely used in animals are being bred for new specialty have been added to those already listed consumer textile products, the number fibers. For example, breeders have at the end of this section. of new names appearing on consumer crossed female cashmere goats with E. Abbreviations for Generic Fiber labels probably will be small. Of course, angora males to produce an animal it will be in the interests of any called a ‘‘cashgora.’’ 31 Apparently, Names manufacturer or distributor marketing products made with this fiber are In the 1996 Textile and Wool NPRs, fibers or fiber names that are new and already on the market. The Commission the Commission sought comment on a unfamiliar to American consumers to sought comment as to whether it should proposal to allow abbreviations for some provide some kind of consumer amend the Wool Rules to include other common fiber names. While a number education about the nature and specialty fibers, such as ‘‘cashgora.’’ of industry members supported the idea, properties of the fiber or the fact that the The Commission received only two others opposed it as potentially name is the equivalent of a name comments on this question. The confusing to consumers. Moreover, already familiar to consumers. Northern Textile Association and the there was a lack of consensus as to The Commission will retain its own Cashmere & Camel Hair Manufacturers which fiber names should be list of manufactured fiber names. This Institute, commenting jointly, opposed abbreviated and what abbreviations will enable manufacturers that use amendment of the Wool Rules to would be clear and appropriate. Most generic names recognized by the include specialty fibers other than importantly, however, neither Canada Commission, but not recognized by ISO, ‘‘mohair’’ and ‘‘cashmere.’’ They stated nor Mexico allow abbreviations of fiber to continue to use those fiber names. that the Institute has analyzed these names; 34 nor do these governments The Commission will also retain its animal hair fibers and concluded that foresee that fiber abbreviations will be petition procedure to allow the physical properties of ‘‘cashgora’’ feasible in the near future. Because there manufacturers to apply to the have not been sufficiently described or would be little benefit to U.S. textile Commission for the recognition of new delineated to warrant inclusion as a 32 producers if abbreviations were not generic fiber names not recognized by specialty fiber under the Wool Rules. allowed by all of the NAFTA trading ISO. The American Fiber Manufacturers No comments were filed by industry 29 partners, the Commission is not Association requested that the members involved in the cross breeding amending the rules to allow fiber Commission consider shortening or of goats or the production and abbreviations at this time. The expediting its petition process. The marketing of products made with the Commission will re-examine this issue Commission recognizes that the petition resultant fibers. if, in the future, the Subcommittee on process can be lengthy because fiber Canada noted that although its Labelling of Textile and Apparel Goods name petitions often raise difficult, regulations do not recognize ‘‘cashgora’’ of the NAFTA Committee on Standards- technical issues. The Commission does as a generic fiber name, it has issued Related Measures determines that not believe that any changes to its administrative interpretations abbreviations are feasible in all of the procedural Rules are necessary, but will permitting the identification of fiber NAFTA countries. endeavor to shorten the time for review obtained from this cross-bred goat as of fiber name petitions that may be filed ‘‘Cashgora hair,’’ ‘‘Cashgora fibre,’’ ‘‘fur III. Identification Numbers of in the future. Moreover, in the future, fibre,’’ or ‘‘wool’’. Similarly, Canada Manufacturers or Other Responsible the Commission recommends that permits identification of fiber from the Parties manufacturers seeking recognition of paco-vicuna (a cross-breed between the new fiber names first seek recognition alpaca and the vicuna) as ‘‘Paco-vicuna A. Interchangeable Use of RNs among from the ISO. While FTC recognition of hair,’’ ‘‘Paco-vicuna fibre,’’ ‘‘fur fibre,’’ NAFTA Countries new fibers recognized by ISO in the or ‘‘wool’’.33 To further the goal of label The Textile, Wool, and Fur Acts future will not be automatic, it can be harmonization, the Commission has require that covered products bear a accomplished easily by amending the decided to follow the Canadian stamp, tag, or label showing the name, Textile Rules to incorporate the most approach. Section 300.8(g) of the Wool or other identification issued and recent ISO standard. Rules states: registered by the Commission, of the The term fur fiber may be used to describe D. New Specialty Wool Fibers manufacturer of the product or one or the hair or fur fiber or mixtures thereof of any more persons subject to the Acts.35 animal or animals other than the sheep, Wool Act Section 2(b) defines wool as Pursuant to its Rules, the Commission ‘‘the fiber from the fleece of the sheep lamb, Angora goat, Cashmere goat, camel, issues registered numbers (RNs) to or lamb or hair of the Angora or alpaca, llama and vicuna. If the name, qualified applicants residing in the Cashmere goat (and may also include symbol, or depiction of any animal producing the hair or fur fiber is used on the United States.36 Canada has a similar the so-called specialty fibers from the stamp, tag, label, or other means of system of ‘‘CA’’ numbers. Mexico does hair of the camel, alpaca, llama, and identification applied or affixed to the wool not at this time have a system of vicuna) * * *.’’ The Wool Rules allow product, the percentage by weight of such registered numbers for members of the mohair or cashmere fiber to be hair or fur fiber in the total fiber weight of textile industry. Mexico issues tax identified as ‘‘wool’’ or by the terms the wool product shall be separately stated in numbers to identify manufacturers and ‘‘mohair’’ or ‘‘cashmere’’ respectively.30 the required fiber content disclosure. sellers of all products; however, this The Commission believes that this system was created for a different 29 AFMA (3) p.5 and (1-wool) p.6. section of the Wool Rules already 30 purpose and is not comparable to the Section 19(a) of the Wool Rules, 16 CFR permits the identification of hair or fiber 300.19(a), states: ‘‘In setting forth the required fiber RN and CA identification systems. content of a product containing hair of the Angora obtained from animals that are the result goat known as mohair or containing hair or fleece 34 Industry Canada (23) p.3 and (8-wool) p. 3; of the Cashmere goat known as cashmere, the term 31 See P. Tortora, Understanding Textiles, Fourth Mexico (18) p.3. ‘mohair’ or ‘cashmere,’ respectively, may be used Edition at 106–107 (1992). 35 15 U.S.C. 70b(b)(3); 15 U.S.C. 68b(a)(2)(C); 15 for such fiber in lieu of the word ‘wool,’ provided 32 NTA–CCMI (4-wool) p.4. the respective percentage of each such fiber U.S.C. 69b(2)(E). designated as ‘mohair’ or ‘cashmere’ is given.’’ 33 Industry Canada (8-wool) p.4. 36 16 CFR 303.20; 16 CFR 300.4; 16 CFR 301.26. 7512 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations

In the 1996 NPRs, the Commission name, business address, and/or Uruguay Round Agreements Act sought comment on the advantages, company type (e.g., from proprietorship (URAA).44 Section 33(a)(3) of the Textile disadvantages, and feasibility of sharing to corporation) without notifying the Rules and § 25a(a)(3) of the Wool Rules registered number databases among the FTC about the change(s). As a result, the state that a textile product ‘‘made in the NAFTA countries, or simply RN database currently contains much United States, either in whole or part of recognizing numbers registered in outdated information, which diminishes imported materials shall contain a label another NAFTA country, so that its utility to the public. For this reason, disclosing these facts; for example: manufacturers and importers who wish the Commission proposed amending the ‘Made in USA of imported fabric.’ ’’ The to use registered numbers, instead of three Rules to add a provision that URAA, on the other hand, provides that their names, would not have to register would subject an RN to cancellation if, the country of origin for certain in more than one country. The after a change in the material categories of textile products—flat Commission did not propose specific information contained on the RN goods, such as sheets, towels, amendments to its Rules because application, a new application reflecting comforters, handkerchiefs, scarves, and statutory amendments would be needed current business information is not napkins—is the country in which the before it could do so. promptly received by the Commission. fabric is created, not the country where Many of the comments supported The comments generally supported further processing of the fabric takes sharing registered identification the Commission’s proposal,41 and the place.45 Customs has incorporated this information among the NAFTA Commission has determined to ‘‘fabric rule’’ into its rulings countries because it would reduce incorporate this provision in the three implementing the general labeling administrative burdens and costs,37 Rules. The Commission believes that requirements of Section 304 of the Tariff possibly resulting in savings to this provision is necessary to ensure the Act.46 For the affected products, a consumers.38 The comments also continuing utility of the RN database. In country of origin statement that asserted that sharing information could addition to containing outdated identifies fabric as ‘‘imported,’’ but does result in smaller labels, by eliminating addresses, the RN database contains not name the country in which the multiple numbers, and ease the tracking numerous entries for firms that are no fabric was created—such as, ‘‘Made in of responsible parties across borders.39 longer in business. U.S.A. of imported fabric’’—will not Some noted that sharing information is The RN database is now available at satisfy Customs’ labeling requirements feasible in light of communications the FTC’s web site on the Internet.42 resulting from the new textile origin technologies now available, such as the Firms are urged to look up this service rules under the URAA. Internet.40 to check whether the information Country of origin disclosures must The Commission believes that an concerning their RN is current, and, if comply with the requirements of both integrated identification information necessary, submit an update. The form FTC and Customs laws and regulations. system or, alternatively, mutually to apply for an RN or to update an Since the Textile NPR was published, recognized identification systems, is a existing RN also is available on the Commission staff has met with Customs desirable goal for the future. It will Internet. The revised form appears in staff, as well as industry representatives, pursue discussion of this issue with the the Textile Rules at § 303.20(d). It has and any apparent inconsistency has NAFTA trading partners through the been removed from the Wool and Fur now been resolved. A U.S. manufacturer Subcommittee on Labelling of Textile Rules, with the relevant sections cross- can comply with both requirements by and Apparel Goods. If appropriate in the referenced to the Textile Rules. identifying the country of origin of the future, it will recommend to Congress IV. Country of Origin Labeling imported fabric and the fact that the that the Textile, Wool, and Fur Acts be ultimate product was made in the U.S. amended to allow for implementation of A. Consistency Between FTC and U.S. For example, a scarf of Chinese silk that such a system. Customs Service Requirements is cut, dyed, and hemmed in the U.S. could be labeled: ‘‘Scarf made in USA B. Require RN Holders to Update The Textile and Wool Acts require of fabric made in China.’’ This label Registration Information identification of the country where the product was processed or provides consumers with accurate RNs are subject to cancellation manufactured.43 In the Textile NPR, the information on the origin of the product, whenever they are procured or used Commission noted a possible as required by the Textile Act. It also improperly or contrary to the inconsistency between FTC identifies the origin of the fabric, requirements of the Acts and Rules, or requirements and U.S. Customs Service consistent with the new URAA origin when otherwise deemed necessary in rulings, effective on July 1, 1996, rules.47 Sections 33 of the Textile Rules the public interest. The RN application implementing Section 334 of the form states that RN holders are obligated 44 19 U.S.C. 3592. 45 to notify the Commission about changes 41 Customs (14) p. 2–3. The textile product NAHM (6) p.2; J.C. Penney (7) p.2; USA–ITA categories for which the country of origin is the in the material information contained (9) p.7 and (3-wool) p.4. One comment objected to country in which the fabric is created are listed at on the application. Nonetheless, many the cancellation provision as too drastic. The 19 U.S.C. 3592(b)(2)(A) and 19 CFR 102.21(c)(3)(ii). RN holders have changed their business Commission notes, however, that adverse 19 CFR 102.21(e) sets out specific rules for each consequences following a cancellation would be tariff classification. minimal. The canceled number would not be 46 37 NAHM (6) p.2; J.C. Penney (7) p.2, 4; USA–ITA Customs (14) stated, at p.3, that ‘‘the origin reassigned for some extended period of time, and rules set forth in section 334 * * * govern the (9) pp.6–7 and (3-wool), pp.3–4; Wrangler (10) p.1; could be reinstated when the firm furnishes the origin determinations for purposes of the labeling ATMI (12) p.2 and (5-wool) pp.2–3; Fruit of the required updated information. requirements under 19 U.S.C. 1304 for textile and Loom (13) p.2; AAMA (17) p.2 and (7-wool) p.2; 42 The Commission’s web site address is http:// apparel products.’’ The Tariff Act requires that NCC (20) p.1; Pittsfield (22) p.2. On the other hand, www.ftc.gov. Industry Canada has made CA every article of foreign origin imported into the the Fur Information Council (FICA) (1-fur), numbers available on its web site at http:// United States must be marked to indicate to an responding to the Fur Rules NPR, stated that it strategis.ic.gc.ca/cpd. ultimate purchaser the English name of the country believes the current system is adequate and there 43 15 U.S.C. 70b(b)(4) & (5); 15 U.S.C. 68b(a)(2)(D). of origin of the article. is no need to develop an integrated system. The Fur Act generally requires that country of 47 The labeling requirements under the Tariff Act, 38 Fruit of the Loom (13) p.2; Pittsfield (22) p.2. origin be identified only for imported furs. 15 19 U.S.C. 1304, apply only to imported articles of 39 J.C. Penney (7) p.4; ATMI (12) p.2; Fruit of the U.S.C. 69b(2)(F). Regulations implementing these foreign origin; in this case, only the fabric (not the Loom (13) p.2. requirements are found at 16 CFR 303.33; 16 CFR scarf itself) is imported and remains of foreign 40 J.C. Penney (7) p.2, 4. 300.25a; and 16 CFR 301.12. origin under the new URAA textile origin rules. Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7513 and 25a (now redesignated as section countries were suggested. The be adequate to inform the consumer of 25) of the Wool Rules have been Commission believes that, as country of the origin of the product.59 amended to add clarifying examples.48 origin designations, ‘‘CAN’’ and ‘‘MEX’’ V. Placement of Label and Disclosures; Rulings issued by Customs regarding clearly indicate ‘‘Canada’’ and Label Attachment country of origin marking pursuant to ‘‘Mexico.’’ It notes, however, that at the URAA indicate that Customs will present U.S. Customs rulings do not For a textile product with a neck, the permit disclosures that comply with the permit these abbreviations.53 If in the Textile and Wool Acts,60 as well as the Textile Act, including the requirement future, Customs regulations are changed Textile and Wool Rules, 16 CFR to identify the processing and to permit these abbreviations, the 303.15(b) and 300.5(b), require that a manufacturing of textiles that takes Commission will add ‘‘CAN’’ and label be affixed to the inside center of place in the United States.49 ‘‘MEX’’ to its Textile, Wool, and Fur the neck midway between the shoulder seams.61 Both Rules allow for some B. Use of Abbreviations and Symbols in Rules as examples of acceptable country abbreviations. flexibility by permitting a label Country of Origin Labeling containing the country of origin, fiber A few comments supported allowing The Textile, Wool, and Fur Rules content, and RN or name of the the use of symbols for the phrases permit the use of abbreviations that company to appear in another ‘‘made in’’ or ‘‘product of’’ in country of ‘‘unmistakably indicate the name of a conspicuous location on the inside or origin labeling.54 Others opposed the country,’’ such as ‘‘Gt. Britain’’ for 55 the outside of the garment, if the 50 use of symbols, or considered them ‘‘Great Britain.’’ The abbreviation 56 country of origin also is disclosed on a ‘‘USA’’ for ‘‘United States’’ is acceptable unnecessary. Customs noted that in label affixed to the inside center of the and used throughout the examples given general its regulations do not require neck or in close proximity. In this event, for country of origin disclosures. In the ‘‘made in’’ or ‘‘product of’’ to appear the country of origin would appear 1996 NPRs, the Commission sought before the name of the country of origin. twice on the product. One comment comment on the use of abbreviations for The exception to this occurs when the recommended that the Rules be its NAFTA trading partners, such as name of a country or place other than amended to eliminate this ‘‘CAN’’ for ‘‘Canada’’ and ‘‘MEX’’ for the actual country of origin also appears redundancy.62 ‘‘Mexico.’’ The Commission also sought on an imported article or its container. The Commission has decided to adopt comment on the viability, benefits, and In this instance, the words ‘‘made in’’ or the suggested amendment and to costs of allowing the use of symbols for ‘‘product of,’’ or other words of similar streamline and simplify the label the phrases ‘‘made in’’ or ‘‘product of’’ meaning, are required to prevent placement requirements. The three in country of origin disclosures. purchasers from being misled as to the required disclosures may appear either 57 Comments addressing this issue origin of the product. When that on the same label or on separate labels. generally supported the use of requirement is triggered, the use of a In a garment with a neck, the country abbreviations to identify the NAFTA symbol to denote ‘‘made in’’ or ‘‘product of origin must continue to appear on the countries.51 Some specifically supported of’’ would not satisfy Customs marking front side of a label in the neck, midway 58 the use of ‘‘CAN’’ and ‘‘MEX,’’ 52 and no requirements. between the shoulder seams or in close alternative abbreviations for these The Textile, Wool, and Fur Rules do proximity thereto. This requirement not strictly require use of the words fulfills the Congressional intent of 48 Sections 303.33(a)(3) and 300.25(a)(3) also have ‘‘made in’’ or ‘‘product of.’’ In those providing a standard and prominent been amended to correct a misplaced comma that instances where more than one country may have caused confusion by distorting the location for the country of origin. If the meaning of these provisions. is mentioned on a label, as in the fiber content and manufacturer 49 Customs has approved the following country of examples discussed in section IV.A. identification appear on labels located origin markings that identify the processing or above, such words (or words describing somewhere other than the neck, manufacturing in the United States in addition to more specifically the processing done in however, the country of origin no longer the country of origin of the fabric: ‘‘Comforter Made in China Further Processed in U.S.’’ and ‘‘Comforter a particular country) are probably has to be repeated on the additional Made in China Sewn in the U.S.’’ (HQ 559625, Jan. necessary to convey the required label or labels. In addition, the fiber 19, 1996); ‘‘Comforter Filled, Sewn and Finished in information to the consumer. Where content and the name or RN of the the U.S. With Shell Made in China’’ (HQ 559627, only one country is named on the label, June 27, 1996); ‘‘Made in China Sewn and Stuffed responsible company may appear on the in the U.S.’’ and ‘‘Sewn and Stuffed in the U.S./ such words may not be needed. In that reverse side of a label. All disclosures Made in China’’ (HQ 559736, Apr. 11, 1996). For instance, the use of a symbol, such as a must be clear, conspicuous and readily handkerchiefs and bandannas made in the United flag, next to the name of a country may accessible to the consumer. Thus, the States from imported greige goods, Customs has ruled that ‘‘Fabric Made in [name of country]/ Commission is substituting a Finished in USA’’ is an acceptable marking (HQ 53 Customs (14) p. 5, citing C.S.D. 80–52 (July 23, performance standard for the formerly 559760, July 19, 1996). Customs stated in the same 1979); C.S.D. 89–57 (Dec. 27, 1988); T.D. 56545 (4) somewhat rigid requirements about the ruling that the use of additional references to U.S. (Oct. 21, 1965); and Continental Mexican Rubber placement of information on textile processing, such as ‘‘Manufactured in USA from Co. v. United States, Abstract No. 39882, 1 CCR 489 Fabric Made in [name of country]’’ is a matter (Nov. 17, 1938). (The abbreviation ‘‘Mex’’ may be labels. within the jurisdiction of the FTC. used to indicate Mexico as the country of origin 50 16 CFR 303.33(e); 16 CFR 300.25a(e); 16 CFR only if it is used in conjunction with the name of 59 Customs (14) p. 6 and (6-wool) p. 3 states that 301.12(e)(1). the Mexican city and state in which the good this disclosure would satisfy its marking originates.) Customs also noted that, pursuant to 19 51 NAHM (6) p. 2; J.C. Penney (7) p. 2; USA–ITA requirements. U.S.C. 1625, any interested party may request (9) p. 7–8 and (3-wool) p. 5; Fruit of the Loom (13) 60 15 U.S.C. 70b(j); 15 U.S.C. 68b(f). reconsideration of these rulings. p. 3; AAMA (17) p. 2 and (7-wool) p. 1; Pittsfield 61 ATMI (12) requested, at p. 4, that the Rules not 54 (22) p. 2–3. Abbreviations for country of origin were NAHM (6) p. 2–3; Fruit of the Loom (13) p. 3; require the label to be placed in the neckline opposed by Wrangler (10) p. 2 and ATMI (12) p. 5 Pittsfield (22) p. 2–3. because consumers often complain about irritation and (5-wool), p. 2. Mexico (18) stated, at p. 3, that 55 Wrangler (10) p. 2; ATMI (12) p. 5 and (5-wool) from labels. Because the requirement is statutory, ‘‘[t]he current Mexican Textile Standard, NOM 004– p. 2; AAMA (17) p. 3 and (7-wool) p. 2. the Commission cannot amend the Rules in this SCFI–1994, does not allow the use of abbreviations 56 USA–ITA (9) p. 8 and (3-wool) p. 5. regard. The amendments to the Rules, however, for country of origin names.’’ 57 Customs (14) p. 6 and (6-wool) p. 3. The special clarify that the only disclosure required to be 52 Fruit of the Loom (13) p. 3; AAMA (17) pp. 2– requirements for such products are found at 19 CFR placed in the neck is the country of origin of the 3 and (7-wool) p. 1; USA–ITA (9) pp. 7–8 and (3- 134.46 (amended by TD–72) and 134.47. product. wool) p. 5. 58 Customs (14) p. 7–8 and (6-wool) p. 3. 62 J.C. Penney (7) p. 2. 7514 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations

The Textile, Wool, and Fur Rules do fiber identification on permanent labels RNs and filing continuing guaranties 70 not require permanent labels for the for textile items with certain kinds of with the Commission. Because these disclosures mandated by the Textile, care instructions. 68 This could be provisions merely duplicate information Wool, and Fur Acts. They merely accomplished easily by placing the fiber already contained in the Textile, Wool, require that the label be sufficiently identification on the permanent care and Fur Rules, the Commission is durable to remain affixed to the product label, as many garment manufacturers removing Subpart D from the CFR. until purchased by the consumer. The already are doing. IX. Regulatory Flexibility Act Textile and Wool NPRs sought comment VI. Internet Promotions and Electronic on whether those Rules should be The Regulatory Flexibility Act (RFA), Transactions amended to require a permanent label. 5 U.S.C. 601–12, requires that the Some comments supported requiring Definitions of ‘‘mail order catalog’’ agency conduct an analysis of the a permanent label for these disclosures and ‘‘mail order promotional material’’ anticipated economic impact of the because: in the Textile and Wool Rules have been proposed amendments on small (1) Fiber content information is often modified to recognize that such direct businesses.71 The purpose of a necessary for post point-of-purchase sales materials are now being regulatory flexibility analysis is to reasons, such as determining the proper disseminated on the Internet. Therefore, ensure that the agency considers impact care method to be used, the recycling of the statutory requirement that country on small entities and examines textile products, and identifying fiber of origin be disclosed in catalogs also alternatives that could achieve the allergies; (2) a permanent country of applies to catalogs appearing on the regulatory purpose while minimizing origin label might make it more difficult Internet. Section 303.40 of the Textile burdens on small entities. Section 605 to illegally relabel and trans-ship textile Rules, addressing use of terms in of the RFA, 5 U.S.C. 605, provides, goods; and (3) permanent manufacturer written advertisements that imply the however, that such an analysis is not identification information would help presence of a particular fiber, has been required if the agency head certifies that consumers in the event of a product modified to include advertisements the regulatory action will not have a defect or a product recall.63 Other disseminated through the Internet or significant economic impact on a comments opposed amending the Rules similar electronic media. Finally, substantial number of small entities. to require a permanent label, stating that definition of the term ‘‘invoice,’’ used Because the Textile, Wool, and Fur the Rules have worked well to date throughout the Textile and Wool Rules, Acts, and the three sets of regulations without such a requirement and that has been revised to recognize that these issued thereunder, cover the textile fiber product construction documents may now be generated and manufacture, sale, offering for sale, and considerations may prevent the use of disseminated electronically. distribution of textile, wool, and fur products, respectively, the Commission permanent labels for some products.64 VII. Increase in Cost Figure for The Commission has decided not to believes that any amendments to the Exemption Under the Fur Rules amend these Rules to require a Textile, Wool, and Fur Rules may affect permanent label for the disclosures The Fur Rules, 16 CFR 301.39, a substantial number of small required by the Textile, Wool and Fur provide for an exemption from some of businesses. Unpublished data prepared Acts. Permanent labels are already the requirements of the Fur Act and by the U.S. Census Bureau under widely used to make the required Rules for fur trim or other fur items for contract to the Small Business disclosures. U.S. Customs notes that its which the cost to the manufacturer, or Administration (SBA) show that there laws require country of origin labels to the manufacturer’s selling price, does are many apparel manufacturers, be permanently affixed to imported not exceed $20. Because this amount covered by the Wool and/or Textile articles of wearing apparel.65 Because of was last adjusted for inflation in 1969, Rules, that are considered to be small the Fur NPR sought comment on an businesses under applicable SBA size the Customs requirement, many 72 manufacturers sew in labels with the appropriate increase to this amount. The standards. For example, there are 288 information required by the Fur Information Council of America, the manufacturers of men’s and boys’ suits Commission’s Rules.66 In addition, only party to comment on the Fur Rules, and coats (SIC Code 2311), more than many manufacturers elect to place fiber urged that the amount be raised to $145, 75% of which are small businesses. information on the permanent care label to account both for inflation and for the There are 488 manufacturers of men’s that must be affixed to textile apparel increasing cost of fur due to increase in and boys’ shirts (SIC Code 2321), 75% products.67 Because U.S. Customs demand. 69 of which are small businesses. More requirements and voluntary industry The Commission has determined to than 1,000 establishments manufacture practice often provide consumers with raise the exemption figure to $150. women’s, misses’’, and juniors’ suits, the benefits of a permanent label, the Given the increases in fur prices since skirts, and coats (SIC Code 2337), most Commission has decided not to impose 1969, as pointed out by the Fur 70 A continuing guaranty is a guaranty from a any additional requirement at this time. Information Council, it appears that this seller to a buyer that textile, wool, or fur products In considering proposed changes to its amount would ensure that only items that it sells are labeled in compliance with the Care Labeling Rule, however, the substantially made of fur would be relevant statute and regulations. 16 CFR 303.37– Commission will consider requiring subject to the Fur Rules. 303.38; 16 CFR 300.33; and 16 CFR 301.48. A continuing guaranty can be filed with the FTC in VIII. Administration of the Textile, the form that appears in the Textile Rules, 63 ATMI (12) p. 2, 4 and (5-wool) p. 4; Fruit of Wool, and Fur Rules § 303.38(b); the form has been removed from the the Loom (13) p. 3–4; Pittsfield (22) p. 1–2; NTA– Wool and Fur Rules, which are simply cross- CCMI (4) p. 3. Subpart D of the Commission’s referenced to the Textile Rules. 64 USA–ITA (9) p. 5 and (3-wool) pp. 2–3; AAMA procedural rules, 16 CFR 1, sets forth 71 The RFA addresses the impact of rules on (17) p. 2 and (7-wool) p. 3; Industry Canada (23) p. ‘‘small entities,’’ defined as ‘‘small businesses,’’ 3 and (8-wool) p. 4. procedures with respect to requesting ‘‘small governmental entities,’’ and ‘‘small [not-for- 65 Customs (14) p. 2 and (6-wool) pp. 1–2. profit] organizations.’’ 5 U.S.C. 601. The Textile, 66 USA-ITA (9) p. 5 and (3-wool) pp. 2–3. 68 An Advance Notice of Proposed Rulemaking on Wool, and Fur Rules do not apply to the latter two 67 Trade Regulation Rule on Care Labeling of the Care Labeling Rule was published in 60 FR types of entities. Textile Wearing Apparel and Certain Piece Goods, 67102 (Dec. 28, 1995). 72 SBA’s revised small business size standards 16 CFR 423.1(a). 69 FICA (1-fur) p. 2. are published at 13 CFR Part 121 (1997). Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7515 of which are small businesses. More not impose any significant economic the Textile Rules requesting the than 1,400 establishments manufacture costs on industry members. establishment of generic names for women’s shirts and blouses (SIC Code The addition to the Textile and Wool textile fibers; (2) petitions under the 2331), about 95% of which are small Rules of clarifying examples of country Wool Rules concerning whether or not businesses. There are 181 of origin disclosures that comply with representations of the fiber content of a establishments manufacturing fur goods both Commission and Customs law is class of articles are commonly made, or (SIC Code 2371), all of which are small not a substantive amendment to the whether or not the textile content of businesses. Other small businesses are Rules. It merely provides guidance as to certain products is insignificant or involved in the distribution and sale of how firms affected by both sets of inconsequential; and (3) petitions for an products subject to one or more of these regulations, including recent Customs exemption under the Fur Act. A Notice rules. regulations adopted pursuant to section soliciting public comments on In the 1996 NPRs, the Commission 334 of the URAA, can easily craft extending these clearances through stated its preliminary conclusion that disclosures to comply with both. December 31, 1999, was published in the proposed amendments would not The increase from $20 to $150 of the the Federal Register last year. 61 FR have a significant economic impact cost figure exempting certain fur 43764, 43766–67 (Aug. 26, 1996). upon such entities. Comments received products from some requirements of the The amendments adopted herein will during the 1994 regulatory review of the Fur Rules constitutes an inflationary lower the paperwork burden associated Textile, Wool, and Fur Rules indicated and market adjustment that will slightly with the current Rules. Eliminating that the current costs of complying with reduce compliance costs and burdens certain disclosures (the functional the Rules and their enabling statutes are for members of this industry. The significance of named fibers present in minimal. Comments received in change, while likely important to some small amounts; the words ‘‘Fiber response to the 1996 NPRs indicated firms, is not expected to have a Content on Reverse Side;’’ and the that the proposed amendments would significant impact on the fur industry. repetition of the country of origin on not increase costs and might result in Finally, amendment of the Textile and certain kinds of labels) from the Textile some small savings to the industry. Wool Rules to recognize that and Wool Rules will allow for greater Elimination of required disclosures of: promotions and transactions can take flexibility in labeling and will reduce (1) Functional significance of named place by means of computers does not labeling burdens. The incorporation into fibers present in less than 5% of product impose significant economic costs on the Textile Rules of ISO Standard 2076: weight and (2) ‘‘Fiber Content on the industry. It merely updates the 1989, ‘‘Textiles—Man-made fibres— Reverse Side,’’ in the Textile and Wool Rules to reflect the fact that printed Generic names’’ will reduce labeling Rules, do not place any additional materials, such as catalogs and invoices, burdens by increasing international burdens or costs on manufacturers or can now be generated and transmitted harmonization. In addition, it will sellers. By reducing the size of labels electronically. obviate the need for some petitions to and enabling more efficient labeling of On the basis of available information, the Commission to recognize additional products traded within NAFTA the Commission certifies that the generic fiber names, thus lowering countries, these amendments likely will amendments to the Textile, Wool, and paperwork burdens. result in slight cost reduction. Similarly, Fur Rules, announced herein, will not The amendments to the Textile, Wool, eliminating the repetition of country of have a significant economic impact on and Fur Rules regarding the cancellation origin and the streamlining of label a substantial number of small of RN numbers does not impose a placement requirements also may businesses. Therefore, a final regulatory paperwork burden on holders of RNs. reduce the size of labels and simplify flexibility analysis is not necessary or The Rules, at 16 CFR 303.20, 16 CFR labeling requirements, resulting in slight appropriate. 300.4, and 16 CFR 301.26, already cost savings. The incorporation into the require companies to notify the FTC X. Paperwork Reduction Act Textile Rules of ISO Standard 2076: about changes in business names, 1989, ‘‘Textiles—Man-made fibres— The Textile, Wool, and Fur Rules addresses, company type, etc. The Generic names’’ will benefit contain various collection of current proposal merely adds the manufacturers and sellers by increasing information requirements for which the element of cancellation by the international harmonization. It will Commission has obtained clearance Commission if these requirements are obviate the need for some petitions to under the Paperwork Reduction Act not met. Neither the initial filing the Commission to recognize additional (PRA), 44 U.S.C. 3501 et seq., Office of procedures nor the requirement to generic fiber names, resulting in some Management and Budget (OMB) Control update the information are new and cost savings to both government and Numbers 3084–1010, 3084–0100, 3084– therefore, no ‘‘burden’’ is imposed. industry. 0099. These requirements relate to the More importantly, the underlying Amending the Textile, Wool, and Fur accurate disclosure of material certification itself does not meet the Rules to clarify that an RN is subject to information about textile, wool, and fur definition of ‘‘information’’ contained in cancellation if, after a change in the products, including fiber or fur content the PRA. In implementing the material information contained on the and country of origin. The Rules also Paperwork Reduction Act of 1995, OMB RN application, a new application require manufacturers and other attempted to clarify the exemption for reflecting current business information marketers of covered products to ‘‘certifications’’ in both the Notice of is not promptly received by the maintain records that support claims on Proposed Rulemaking, 60 FR 30438, Commission, is a clarifying provision labels. Most of the disclosure 30439 (June 8, 1995), and the Final that does not impose new obligations on requirements and all of the Rule, 61 FR 44978, 44979 (Aug. 9, 1995) businesses. Furthermore, while recordkeeping requirements are (‘‘the exemption applies when the Commission cancellation of an specifically mandated by the Textile, certification is used to identify an identification number would require a Wool, and Fur Acts. See 15 U.S.C. 70b, individual in a ‘routine, non-intrusive, business to re-apply, this may be done 70d; 15 U.S.C. 68b, 68d; 15 U.S.C. 69b, non-burdensome way’.’’) This language simply by submitting the identifying 69f, respectively. reflects current guidance in OMB/ information already called for in the The Commission has also obtained OIRA’s Information Collection Review Rules. Therefore, the amendments will OMB clearance for: (1) Petitions under Handbook (1989), which discusses 7516 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations exempt categories of inquiry (5 CFR § 300.1 Terms defined. part, or when otherwise deemed 1320.3(h)(1)–(10)) that are not deemed * * * * * necessary in the public interest. to constitute ‘‘information.’’ (h) The terms mail order catalog and Registered identification numbers shall Certifications, as well as other forms of mail order promotional material mean be subject to cancellation if the acknowledgments, comprise one of any materials, used in the direct sale or Commission fails to receive prompt these categories.73 Such inquiries are direct offering for sale of wool products, notification of any change in name, considered to be routine because that are disseminated to ultimate business address, or legal business response to the requests rarely requires consumers in print or by electronic status of a person or firm to whom a examination of records, usually does not means, other than by broadcast, and that registered identification number has require consideration about the correct solicit ultimate consumers to purchase been assigned, by application duly answer, and usually is provided on a such wool products by mail, telephone, executed in the form set out in form supplied by the government. See electronic mail, or some other method paragraph (e) of this section, reflecting OMB/OIRA Handbook, p. 29. without examining the actual product the current name, business address, and Accordingly, OMB’s regulations exempt purchased. legal business status of the person or certifications from the clearance * * * * * firm. requirement, provided that no (j) The terms invoice and invoice or * * * * * information need be reported beyond other paper have the meaning set forth (e) The form to apply for a registered certain basic identifying information.74 in § 303.1(h) of this chapter. identification number or to update List of Subjects in 16 CFR Parts 1, 300, (k) The term trimmings has the information pertaining to an existing 301, and 303 meaning set forth in § 303.12 of this number is found in § 303.20(d) of this chapter. Chapter. The form is available upon Furs, Incorporation by reference, 3. Section 300.3(b) is revised to read request from the Commission’s Los Labeling, Textile fiber products as follows: Angeles Regional Office, 10877 Wilshire identification, Trade practices, Wool Blvd., Suite 700, Los Angeles, CA products. § 300.3 Required label information. 90024, or on the Internet at http:// For the reasons set forth above, the * * * * * www.ftc.gov. Commission amends 16 CFR Part 1, 16 (b) In disclosing the constituent fibers 5. Section 300.5(b) is revised to read CFR Part 300, 16 CFR Part 301, and 16 in information required by the Act and as follows: CFR Part 303, as follows: regulations in this part or in any non- required information, no fiber present in § 300.5 Required label and method of PART 1ÐGENERAL PROCEDURES the amount of less than 5 percent shall affixing. be designated by its generic name or * * * * * 1. The authority citation for Part 1 (b) Each wool product with a neck continues to read as follows: fiber trademark but shall be designated as ‘‘other fiber,’’ except that the must have a label disclosing the country Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. percentage of wool or recycled wool of origin affixed to the inside center of 46), unless otherwise noted. shall always be stated, in accordance the neck midway between the shoulder seams or in close proximity to another Subpart D (§§ 1.31±1.34) [Removed] with section 4(a)(2)(A) of the Act. When more than one of such fibers, other than label affixed to the inside center of the 2. Subpart D—Administration of the wool or recycled wool, are present in neck. The fiber content and RN or name Wool Products Labeling Act of 1939, amounts of less than 5 percent, they of the company may be disclosed on the Fur Products Labeling Act, and Textile shall be designated in the aggregate as same label as the country of origin or on Fiber Products Identification Act, ‘‘other fibers.’’ Provided, however, that another conspicuous and readily containing §§ 1.31, 1.32, 1.33, and 1.34, nothing in this section shall prevent the accessible label or labels on the inside is removed. disclosure of any fiber present in the or outside of the garment. On all other product which has a clearly established wool products, the required information PART 300ÐRULES AND and definite functional significance shall be disclosed on a conspicuous and REGULATIONS UNDER THE WOOL when present in the amount stated, as readily accessible label or labels on the PRODUCTS LABELING ACT OF 1939 for example: inside or outside of the product. The country of origin disclosure must 1. The authority citation for Part 300 ‘‘98% wool always appear on the front side of the 2% nylon.’’ continues to read as follows: label. Other required information may Authority: 15 U.S.C. 68 et seq. and 15 4. In § 300.4, the section heading and appear either on the front side or the U.S.C. 70 et seq. paragraphs (c) and (e) are revised to read reverse side of a label, provided that the 2. Section 300.1 is amended by as follows, and the form following information is conspicuous and readily revising paragraph (h) and adding paragraph (e) is removed: accessible. paragraphs (j) and (k) to read as follows: § 300.4 Registered identification numbers. * * * * * 6. The last sentence of section * * * * * 73 Specifically, the first category consists of: 300.8(g) is revised to read as follows: ‘‘affidavits, oaths, affirmations, certifications, (c) Registered identification numbers receipts, changes of address, consents, or shall be used only by the person or firm § 300.8 Use of fiber trademark and generic acknowledgments.’’ 5 CFR 1320(h)(1). to whom they are issued, and such names. 74 The information required on an RN application numbers are not transferable or * * * * * includes only the following: name of applicant firm, address of applicant, type of company, type of assignable. Registered identification (g) * * * The following are examples business, products, certification that the listed numbers shall be subject to cancellation of fiber content disclosures under this products are subject to the Textile, Wool, or Fur whenever any such number was paragraph: Acts, the name and title of the person completing procured or has been used improperly the application, and the date. The form also 60% Wool includes spaces to enter, at the option of the or contrary to the requirements of the 40% Fur Fiber applicant, telephone and fax numbers, web site Acts administered by the Federal Trade or address, and E-mail address. Commission, and regulations in this 60% Wool Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7517

30% Fur Fiber or § 301.39 Exempted fur products. 10% Angora Rabbit ‘‘Sewn in USA of imported components’’ (a) If the cost of any fur trim or other or or manufactured fur or furs contained in a 100% Cashgora Hair ‘‘Made in (foreign country), finished in USA’’ or or fur product, exclusive of any costs 100% Paco-Vicuna Hair ‘‘Scarf made in USA of fabric made in China’’ incident to its incorporation therein, does not exceed one hundred fifty 7. Section 300.10 is revised to read as or dollars ($150) to the manufacturer of the follows: ‘‘Comforter Filled, Sewn and Finished in the U.S. With Shell Made in China’’ finished fur product, or if a § 300.10 Disclosure of information on * * * * * manufacturer’s selling price of a fur labels. 10. Section 300.33(b) is revised to product does not exceed one hundred (a) Subject to the provisions of read as follows, and the form following fifty dollars ($150), and the provisions § 300.5(b), the required information may paragraph (b) is removed: of paragraphs (b) and (c) of this section appear on any label or labels attached to are met, the fur product shall be the product, including the care label § 300.33 Continuing guaranty filed with exempted from the requirements of the required by 16 CFR Part 423, provided Federal Trade Commission. Act and regulations in this part; all the pertinent requirements of the Act * * * * * provided, however, that if the fur and regulations in this part are met and (b) The prescribed form for a product is made of or contains any used so long as the combination of required continuing guaranty is found in fur, or if the fur product itself is or information and non-required § 303.38(b) of this chapter. The form is purports to be the whole skin of an information is not misleading. All parts available on request from the Federal animal with the head, ears, paws and of the required information shall be set Trade Commission’s Los Angeles tail, such as a choker or scarf, the fur forth in such a manner as to be clearly Regional Office, 10877 Wilshire Blvd., product is to be labeled, invoiced and legible, conspicuous, and readily Suite 700, Los Angeles, CA 90024. advertised in accordance with the accessible to the prospective purchaser. * * * * * requirements of the Act and regulations All parts of the required fiber content in this part, regardless of the cost of the information shall appear in type or PART 301ÐRULES AND fur used in the fur product or the lettering of equal size and REGULATIONS UNDER THE FUR manufacturer’s selling price. * ** conspicuousness. PRODUCTS LABELING ACT * * * * * (b) Subject to the provisions of (c) If a fur product is exempt under § 300.8, any non-required information or 1. The authority citation for Part 301 continues to read as follows: this section and the manufacturer’s representations placed on the product selling price exceeds one hundred fifty shall not minimize, detract from, or Authority: 15 U.S.C. 69 et seq. dollars ($150), the manufacturer’s or conflict with required information and 2. In § 301.26, the section heading and wholesaler’s invoice shall carry shall not be false, deceptive, or paragraphs (b)(2) and (d) are revised to information indicating such fur product misleading. read as follows, and the form following is exempt from the provisions of the Act § 300.21 [Removed] paragraph (d) is removed: and regulations in this part; as for example: ‘‘FPL EXEMPT.’’ §§ 300.22 through 300.25b [Redesignated § 301.26 Registered identification numbers. 4. The heading of § 301.48 and as §§ 300.21 through 300.25a] paragraph (a)(3) are revised to read as 8. Section 300.21 is removed, and * * * * * follows, and the form following §§ 300.22, 300.23, 300.24, 300.25, (b)(1) * * * paragraph (a)(3) is removed: 300.25a, and 300.25b are redesignated (2) Registered identification numbers as 300.21, 300.22, 300.23, 300.24, shall be subject to cancellation if the § 301.48 Continuing guaranty filed with 300.25, and 300.25a, respectively. Federal Trade Commission fails to Federal Trade Commission. 9. Newly redesignated § 300.25 is receive prompt notification of any * * * * * amended by revising paragraphs (a)(3), change in name, business address, or (a)(3) The prescribed form for a (a)(4) introductory text, and (a)(4)(i) to legal business status of a person or firm continuing guaranty is found in read as follows: to whom a registered identification § 303.38(b) of this chapter. The form is number has been assigned, by available on request from the Federal § 300.25 Country where wool products are application duly executed in the form Trade Commission’s Los Angeles processed or manufactured. set out in paragraph (d) of this section, Regional Office, 10877 Wilshire Blvd., (a) * * * reflecting the current name, business Suite 700, Los Angeles, CA 90024. (3) Each wool product made in the address, and legal business status of the * * * * * United States, either in whole or in part person or firm. of imported materials, shall contain a PART 303ÐRULES AND label disclosing these facts; for example: * * * * * (d) The form to apply for a registered REGULATIONS UNDER THE TEXTILE ‘‘Made in USA of imported fabric’’ identification number or to update FIBER PRODUCTS IDENTIFICATION or information pertaining to an existing ACT ‘‘Knitted in USA of imported yarn’’ and number is found in § 303.20(d) of this 1. The authority citation for Part 303 (4) Each wool product partially chapter. The form is available upon continues to read as follows: manufactured in a foreign country and request from the Commission’s Los partially manufactured in the United Angeles Regional Office, 10877 Wilshire Authority: 15 U.S.C. 70 et seq. States shall contain on a label the Blvd., Suite 700, Los Angeles, CA 2. Footnote 1 of Part 303 is removed. following information: 90024, or on the Internet at http:// 3. In § 303.1, paragraphs (h) and (u) (i) The manufacturing process in the www.ftc.gov. are revised to read as follows: foreign country and in the USA; for 3. In § 301.39, the first sentence of example: paragraph (a) and paragraph (c) are § 303.1 Terms defined. ‘‘Imported cloth, finished in USA’’ revised to read as follows: * * * * * 7518 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations

(h) The terms invoice and invoice or establishes the generic names for 8. In § 303.16, paragraphs (a) other paper mean an account, order, manufactured fibers, together with their introductory text, (a)(1), (b), and (c) are memorandum, list, or catalog, which is respective definitions, set forth in this revised to read as follows: issued to a purchaser, consignee, bailee, section and the generic names for correspondent, agent, or any other manufactured fibers, together with their § 303.16 Arrangement and disclosure of information on labels. person, in writing or in some other form respective definitions, set forth in capable of being read and preserved in International Organization for (a) Subject to the provisions of a tangible form, in connection with the Standardization (ISO) Standard 2076: § 303.15(b), information required by the marketing or handling of any textile 1989, ‘‘Textiles—Man-made fibres— Act and regulations in this Part may fiber product transported or delivered to Generic names.’’ This incorporation by appear on any label or labels attached to such person. reference was approved by the Director the textile fiber product, including the of the Federal Register in accordance care label required by 16 CFR Part 423, * * * * * provided all the pertinent requirements (u) The terms mail order catalog and with 5 U.S.C. 552(a) and 1 CFR part 51. of the Act and regulations in this Part mail order promotional material mean Copies may be obtained from the are met and so long as the combination any materials, used in the direct sale or American National Standards Institute, of required information and non- direct offering for sale of textile 11 West 42nd St., 13th floor, New York, required information is not misleading. products, that are disseminated to N.Y. 10036. Copies may be inspected at The required information shall include ultimate consumers in print or by the Federal Trade Commission, room the following: electronic means, other than by 130, 6th St. & Pennsylvania Ave., NW, (1) The generic names and broadcast, and that solicit ultimate Washington, DC, or at the Office of the percentages by weight of the constituent consumers to purchase such textile Federal Register, 800 North Capitol St., fibers present in the textile fiber products by mail, telephone, electronic NW, Suite 700, Washington, DC. product, excluding permissive mail, or some other method without * * * * * ornamentation, in amounts of 5 percent examining the actual product 6. Section 303.8(a) introductory text is or more and any fibers disclosed in purchased. revised to read as follows: 4. Section 303.3 is revised to read as accordance with § 303.3(a) shall appear follows: § 303.8 Procedure for establishing generic in order of predominance by weight names for manufactured fibers. with any percentage of fiber or fibers § 303.3 Fibers present in amounts of less (a) Prior to the marketing or handling required to be designated as ‘‘other than 5 percent. of a manufactured fiber for which no fiber’’ or ‘‘other fibers’’ appearing last. (a) Except as permitted in sections generic name has been established or * * * * * 4(b)(1) and 4(b)(2) of the Act, as otherwise recognized by the (b) All parts of the required amended, no fiber present in the Commission, the manufacturer or information shall be set forth in such a amount of less than 5 percent of the producer thereof shall file a written manner as to be clearly legible, total fiber weight shall be designated by application with the Commission, conspicuous, and readily accessible to its generic name or fiber trademark in requesting the establishment of a the prospective purchaser. All parts of disclosing the constituent fibers in generic name for such fiber, stating the fiber content information shall required information, but shall be therein: appear in type or lettering of equal size designated as ‘‘other fiber.’’ When more * * * * * and conspicuousness. than one of such fibers are present in a 7. Section 303.15(b) is revised to read (c) Subject to the provisions of product, they shall be designated in the as follows: § 303.17, any non-required information aggregate as ‘‘other fibers.’’ Provided, or representations placed on the product however, that nothing in this section § 303.15 Required label and method of shall not minimize, detract from, or affixing. shall be construed as prohibiting the conflict with required information and disclosure of any fiber present in a * * * * * shall not be false, deceptive, or textile fiber product which has a clearly (b) Each textile fiber product with a misleading. established and definite functional neck must have a label disclosing the country of origin affixed to the inside * * * * * significance when present in the 9. Section 303.20 is amended by center of the neck midway between the amount contained in such product, as adding paragraph (b)(3) and revising shoulder seams or in close proximity to for example: paragraph (d) to read as follows: another label affixed to the inside center 96 percent Acetate 4 percent Spandex. of the neck. The fiber content and RN § 303.20 Registered identification or name of the company may be numbers. (b) In making such disclosure, all of disclosed on the same label as the * * * * * the provisions of the Act and country of origin or on another (b)(1) * * * regulations in this part setting forth the conspicuous and readily accessible label (3) Registered identification numbers manner and form of disclosure of fiber or labels on the inside or outside of the shall be subject to cancellation if the content information, including the garment. On all other textile products, Commission fails to receive prompt provisions of §§ 303.17 and 303.41 of the required information shall be notification of any change in name, this part relating to the use of generic disclosed on a conspicuous and readily business address, or legal business names and fiber trademarks, shall be accessible label or labels on the inside status of a person or firm to whom a applicable. or outside of the product. The country registered identification number has 5. Section 303.7 is amended by of origin disclosure must always appear been assigned, by application duly revising the introductory text to read as on the front side of the label. Other executed in the form set out in follows: required information may appear either paragraph (d) of this section, reflecting § 303.7 Generic names and definitions for on the front side or the reverse side of the current name, business address, and manufactured fibers. a label, provided that the information is legal business status of the person or Pursuant to the provisions of section conspicuous and readily accessible. firm. 7(c) of the Act, the Commission hereby * * * * * * * * * * Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7519

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

BILLING CODE 6750±01±P 7520 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations

BILLING CODE 6750±01±C Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7521

10. In § 303.33, the section heading and or and paragraphs (a)(3), (a)(4) (4) Each textile fiber product partially Comforter Filled, Sewn and Finished in the introductory text, and (a)(4)(i) are manufactured in a foreign country and U.S. With Shell Made in China’ revised to read as follows: partially manufactured in the United * * * * * States shall contain on a label the 11. Section 303.38(b) is revised to § 303.33 Country where textile fiber following information: products are processed or manufactured. read as follows: (i) The manufacturing process in the (a) * * * foreign country and in the USA; for § 303.38 Continuing guaranty filed with (3) Each textile fiber product made in example: Federal Trade Commission. the United States, either in whole or in part of imported materials, shall contain Imported cloth, finished in USA * * * * * a label disclosing these facts; for or Sewn in USA of imported components (b) Prescribed form for a continuing example: or guaranty: Made in USA of imported fabric Made in (foreign country), finished in USA BILLING CODE 6750±01±P or or Knitted in USA of imported yarn Scarf made in USA of fabric made in China 7522 Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations Federal Register / Vol. 63, No. 30 / Friday, February 13, 1998 / Rules and Regulations 7523

BILLING CODE 6750±01±C presence of a fiber or fibers, shall be product, the generic names of fibers * * * * * deemed to be an implication of fiber present in an amount 5 percent or more 12. Section 303.40 is revised to read content under section 4(c) of the Act, of the total fiber weight of the product, as follows: except that the provisions of this section together with any fibers disclosed in § 303.40 Use of terms in written shall not be applicable to non-deceptive accordance with § 303.3(a), shall appear advertisements that imply presence of a shelf or display signs in retail stores in order of predominance by weight, to fiber. indicating the location of textile fiber be followed by the designation ‘‘other The use of terms in written products and not intended as fiber’’ or ‘‘other fibers’’ if a fiber or fibers advertisements, including advertisements. required to be so designated are present. advertisements disseminated through 13. In § 303.42, the second sentence of * * * * * the Internet and similar electronic paragraph (a) is revised to read as By direction of the Commission. media, that are descriptive of a method follows: of manufacture, construction, or weave, Donald S. Clark, and that by custom and usage are also § 303.42 Arrangement of information in Secretary. advertising textile fiber products. indicative of a textile fiber or fibers, or [FR Doc. 98–3495 Filed 2–12–98; 8:45 am] the use of terms in such advertisements (a) * * * In making the required BILLING CODE 6750±01±P that constitute or connote the name or disclosure of the fiber content of the