FTC Proposing Changes to Rules on Textile Fiber Labeling

These amendments are being proposed as part of the FTC’s regulatory review process. The agency requested comments on possible changes to its textile labeling regulations in November 2011 (see 11110325). The proposed rule has not yet been published in the Federal Register.

Fiber Content Disclosures

The FTC is proposing to amend its rules on fiber content disclosures by incorporating the updated ISO standard on generic fiber names; allowing hang tags that don’t disclose a product’s full fiber content; and clarifying several terms related to fiber content disclosures found in the regulations.

Adopt revised ISO standard. The textile labeling rules since 2000 have incorporate the ISO standard on “Textiles—Man-made fibres—Generic names” (ISO 2076:1999(E)). The standard has been revised since its incorporation into the regulations, and is now out of date. Accordingly, the FTC is proposing to incorporate the revised standard, ISO 2076:2010(E) into 16 CFR 303.7 (“generic names and definitions for manufactured fibers”).

The United States Association of Importers of Textiles and Apparel (USA-ITA) suggested automatically incorporating future changes to the ISO standard so that the FTC wouldn’t have to amend its regulations each time the standard changes. The FTC declined to adopt the proposal, however, because the Textile Act requires the commission to establish generic names.

Disclosure requirements for hang-tags. In response to comments, the FTC is proposing to allow hang-tags that do not disclose a product’s full fiber content. According to several trade associations, fiber content disclosures on hang-tags is an unnecessary burden, because the information is already available on the label. The FTC did propose to require that hang-tags that do not disclose full fiber content include a statement that clarifies that the full-fiber content is not being disclosed.

Clarifications. The proposed rule would also amend the FTC’s regulations to clarify terms and application of the rules to: trimmings (16 CFR 302.12); new or virgin fiber (16 CFR 305.35); advertising disclosures (16 CFR 303.41(a) and 303.42).

Country of Origin Disclosures Would Refer to CBP Regs

The FTC is proposing to amend its regulations on country of origin disclosures to clearly say that a product’s country of origin for textile labeling purposes is determined under customs laws and regulations. The proposed rule would amend 16 CFR 303.33(d) to say an imported product’s country of origin “as determined under the laws and regulations enforced by Customs” is the country where the product was processed or manufactured.

The proposed rule would also change outdated references to the Treasury Department and instead refer to “any Tariff Act and the regulations promulgated thereunder.”

Concern on Guaranties from Foreign Firms, but No Change to Rules

Several commenters said they were concerned about provisions of the regulations that authorize textile guaranties from U.S. residents, but that do not authorize guaranties from non-U.S. residents. Over 90 percent of apparel is imported, said the USA-ITA, which makes it difficult for some buyers to obtain a guaranty.

The FTC said it shared these concerns, but said a January policy statement that said it will not bring enforcement actions for false marketing when the retailer can’t obtain a guaranty resolves the situation (see 13010412). The FTC otherwise declined to propose amendments to its regulations on the subject.

(See the FTC’s notice for more proposed changes, including a revised definition of invoice to clarify that electronic recordkeeping is allowed; removing penalty-of-perjury language from its regulation on guaranties; requiring guaranties to be renewed annually; etc.)