FTC Has Delayed Enforcement of Labeling Rules for "Apparel with Fur"
The Federal Trade Commission has announced that as long as certain conditions are met, it is delaying enforcement of the March 18 elimination of the fur-content labeling and disclosure exemption for apparel that contains small quantities or values of fur (“apparel with fur”). This forbearance should permit retailers to exhaust existing inventories and avoid substantial losses.
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(The Truth in Fur Labeling Act (TFLA), which was enacted on December 18, 2010, amended the Fur Products Labeling Act (Fur Act) to eliminate on or after March 18, 2011 the exemption for products containing fur or fur trim with a component value of $150 or less from fur-content labeling (the de minimis exemption). See ITT’s Online Archives or 01/06/11 news, 11010625, for BP summary of the TFLA.)
Trade Concerned About Ability to Label Products Already in Commerce
Since TFLA’s passage, industry members expressed concern that compliance with the March 18 deadline would cause significant economic loss as they would not be able to accurately label products already in the stream of commerce.
FTC Will Not Enforce Labeling If Product Was Delivered to Retailer by March 18, Etc.
While compliance with the letter of the law is important, the FTC also recognizes that new obligations may sometimes create significant burdens on parties that have relied in good faith on previous requirements. Therefore, the FTC will not take any steps to enforce Fur Act labeling requirements against any retailer covered by the exemption as long as: (1) the product containing a de minimis amount of fur was delivered to the retailer on or before March 18, 2011 and sold by March 18, 2012; and (2) the product is not mislabeled under the old requirements.
During Grace Period, Retailers Encouraged to Use Hang Tags, Other Methods
During this forbearance period, the FTC encourages retailers to communicate fur content information in other ways. As Congress recognized in passing TFLA, consumers want to know whether a garment contains fur. Where re-labeling is impractical, the Commission recommends that retailers add hang tags to items or otherwise clearly and conspicuously disclose that items contain fur and, if known, the fur name as provided in the Commission’s Fur Name Guide. These alternative disclosures should balance the Commission’s interest in full compliance with the law with the legitimate concerns raised by industry.
(See ITT’s Online Archives or 03/14/11 news, 11031427, for BP summary of the “apparel with fur” label exemption ending March 18 and FTC seeking comments on its Fur Rules and Fur Products Name Guide by May 16, 2011.)