Federal Register / Vol. 67, No. 101 / Friday, May 24, 2002 / Proposed Rules 36551 (c) Assessments. The Board of the Textile Fiber Products Identification manufactured olefin textile fiber with a Governors will assess the Federal Act (‘‘Textile Rules’’) to establish a new cross-linked polymer network structure. Reserve Banks for any amount that the generic fiber subclass name and Dow stated that CEF meets the broad Board pays to the FDIC due to any definition as an alternative to the definition of olefin fiber in the Textile excess loss in accordance with section generic name ‘‘olefin’’ for a specifically Rules, 16 CFR 303.7(m). According to 10B(b) of the Federal Reserve Act (12 proposed subclass of olefin fibers Dow, however, CEF differs from U.S.C. 347b(b)). Each Federal Reserve manufactured by the Dow Chemical commercially available olefin fibers Bank shall be assessed that portion of Company (‘‘Dow’’), of Midland, because of its elasticity and wide the amount that the Board of Governors Michigan. Dow suggested the name temperature tolerance, which make it a pays to the FDIC that is attributable to ‘‘lastol’’ for the fiber, which it described good choice for easy-care stretch apparel an extension of credit by that Federal as an elastic, cross-linked olefin fiber applications. Reserve Bank, up to 1 percent of its capable of retaining its shape at high As a result of CEF’s fiber structure, capital as reported at the beginning of temperatures and referred to as ‘‘CEF.’’ Dow maintained that CEF has the the calendar year in which the DATES: Comments will be accepted following distinctive properties: (1) assessment is made. The Board of through August 12, 2002. Stretch and recovery power that is far Governors will assess all of the Federal ADDRESSES: Comments should be superior to that of any olefin fiber; (2) Reserve Banks for the remainder of the submitted to: Office of the Secretary, shape retention at temperatures in amount it pays to the FDIC in the ratio Federal Trade Commission, Room 159, excess of 170°C, which enables CEF to that the capital of each Federal Reserve 600 Pennsylvania Ave., NW., survive rigorous manufacturing and Bank bears to the total capital of all Washington DC 20580. Comments consumer care processes; and (3) Federal Reserve Banks at the beginning should be identified as ‘‘16 CFR Part chemical resistance to solvents that of the calendar year in which the 303—Textile Rule 8 Dow Comment— typically dissolve conventional olefins. assessment is made, provided, however, P948404.’’ Dow asserted that olefin, widely that if any assessment exceeds 50 FOR FURTHER INFORMATION CONTACT: recognized as a dependable carpet fiber percent of the total capital and surplus Neil Blickman, Attorney, Division of that has no stretch or elastic recovery of all Federal Reserve Banks, whether to and poor high temperature stability, is distribute the excess over such 50 Enforcement, Bureau of Consumer Protection, Federal Trade Commission, an inappropriate categorization for the percent shall be made at the discretion elastic olefin fiber, CEF, which is of the Board of Governors. Washington, DC 20580; (202) 326–3038. SUPPLEMENTARY INFORMATION: targeted for apparel applications. § 201.51 Interest rates applicable to credit According to Dow, CEF will offer extended by a Federal Reserve Bank. I. Background consumers a wider choice in garments (a) Primary credit. The rates for Rule 6 of the Textile Rules (16 CFR containing stretch fabric. Dow contends, primary credit provided to depository 303.6) requires manufacturers to use the in essence, that it would be confusing to institutions under § 201.4(a) are: [The generic names of the fibers contained in consumers if CEF is called simply chart will appear in the final rule.] their textile products in making fiber ‘‘olefin.’’ (b) Secondary credit. An interest rate content disclosures on labels, as Dow, therefore, petitioned the 50 basis points above the rate for required by the Textile Fiber Products Commission to establish the generic primary credit in § 201.51 will apply to Identification Act (‘‘Textile Act’’), 15 name ‘‘lastol’’ as an alternative to, and secondary credit extended to depository U.S.C. 70b(b)(1). Rule 7 of the Textile a subclass of, ‘‘olefin.’’ In addition, Dow institutions under § 201.4(c). Rules (16 CFR 303.7) sets forth the proposed that the Commission add the (c) Seasonal credit. The rate for generic names and definitions that the following sentence to the current seasonal credit extended to depository Commission has established for definition of olefin in Rule 7(m) to institutions under § 201.4(b) is a flexible synthetic fibers. Rule 8 (16 CFR 303.8) define CEF and similar fibers as a rate that takes into account rates on describes the procedures for subclass of olefin: market sources of funds. establishing new generic names. Where the fiber is a manufactured cross- By order of the Board of Governors of the Dow applied to the Commission on linked elastic fiber in which a) the fiber- Federal Reserve System, May 16, 2002. October 18, 2001, for a new olefin fiber forming substance is a synthetic polymer, subclass name and definition, and Jennifer J. Johnson, with low but significant crystallinity, supplemented its application with composed of at least 99 percent by weight of Secretary of the Board. additional information and test data on ethylene and at least one other olefin unit, [FR Doc. 02–12781 Filed 5–23–02; 8:45 am] December 12, 2001, January 16, 2002, and b) the fiber exhibits substantial elasticity BILLING CODE 6210–01–P and March 19, 2002.1 Dow stated that its and heat resistance properties not present in new cross-linked elastic fiber, CEF, is a traditional olefin fibers, the term lastol may be used as a generic description of the fiber. FEDERAL TRADE COMMISSION 1 Dow’s petition and supplements thereto are on The effect of Dow’s proposed the rulemaking record of this proceeding. This 16 CFR Part 303 material, as well as any comments filed in this amendment would be to allow use of proceeding, will be available for public inspection the name ‘‘lastol’’ as an alternative to Rules and Regulations Under the in accordance with the Freedom of Information Act, the generic name ‘‘olefin’’ for the 5 U.S.C. 552, and the Commission’s Rules of subcategory of olefin fibers meeting the Textile Fiber Products Identification Practice, 16 CFR 4.11, at the Consumer Response Act Center, Public Reference Section, Room 130, further criteria contained in the Federal Trade Commission, 600 Pennsylvania sentence added by the proposed AGENCY: Federal Trade Commission. Avenue, N.W., Washington, D.C. Any comments amendment. ACTION: Notice of proposed rulemaking. that are filed will be found under the Rules and Regulations Under the Textile Fiber Products After an initial analysis with the SUMMARY: The Federal Trade Identification Act, 16 CFR Part 303, Matter No. assistance of a textile expert, the P948404, ‘‘Dow Generic Fiber Petition Commission has determined that Dow’s Commission (‘‘Commission’’) solicits Rulemaking.’’ The comments and petition also may comments on whether to amend Rule be viewed on the Commission’s website at proposed new fiber technically falls 7(m) of the Rules and Regulations Under www.ftc.gov. within Rule 7(m)’s definition of VerDate May<14>2002 13:37 May 23, 2002 Jkt 197001 PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 E:\FR\FM\24MYP1.SGM pfrm17 PsN: 24MYP1 36552 Federal Register / Vol. 67, No. 101 / Friday, May 24, 2002 / Proposed Rules ‘‘olefin.’’ 2 The Commission has further to establish a generic fiber subclass of distinctive features resulting from determined that Dow’s application for a ‘‘polyester,’’ 67 FR 7104 (Feb. 15, 2002), physical characteristics of the fiber and new subclass name and definition the Commission further articulated that its method of manufacture, which meets merits further consideration. a new generic fiber subclass may be the above standard for allowing Accordingly, the Commission has appropriate in cases where the proposed designation by the subclass name issued Dow the designation ‘‘DCC 0001’’ subclass fiber: (1) Has the same general ‘‘lastol.’’ Alternatively, CEF may fit for temporary use in identifying CEF chemical composition as an established within the current definition of olefin in fiber pending a final determination on generic fiber category; (2) has distinctive Rule 7(m), with or without need for the merits of the application for a new properties of importance to the general clarification. This notice of proposed generic fiber subclass name and public as a result of a new method of rulemaking, therefore, suggests three definition. A final determination will be manufacture or substantially approaches to resolve the situation, and based on whether the record in this differentiated physical characteristics, requests comment from the public on proceeding indicates that Dow meets the such as fiber structure; and (3) the the relative merits of each: Commission’s criteria for issuing new distinctive feature(s) make the fiber 1. Amend Rule 7(m) to broaden its fiber subclass names and definitions, as suitable for uses for which other fibers definition for olefin to better describe described in Part II, below. under the established generic name the allegedly unique molecular structure would not be suited, or would be and physical characteristics of CEF and II. Invitation to Comment significantly less well suited.4 any similar fibers (without creating a The Commission is soliciting Within the established 24 generic new subclass for CEF); comment on Dow’s application names for manufactured fibers, there are 2. Amend Rule 7(m)’s definition for generally, and on whether the three cases where such generic name olefin by creating a separate subclass application meets the Commission’s alternatives may be used: (1) Pursuant to name and definition for CEF and other criteria for granting applications for new Rule 7(d), 16 CFR 303.7(d), within the similar qualifying fibers within the generic fiber subclass names.