FTC Updates Wool Labeling Rules
The Federal Trade Commission is amending its regulations on wool labeling, as part of a broader effort to modernize its labeling rules that has already seen changes for textiles and fur products. The final rule, which has yet to be published in the Federal Register but was made available by the FTC on the agency’s website, was approved by the FTC on May 28 in a unanimous 5-0 vote. The new regulations relax fiber content disclosure requirements on hang tags, clarify definitions on cashmere and virgin or new wool, update the definition of country of origin to match CBP’s interpretation, and make changes to guaranty provisions. However, just as with the textile and fur labeling changes, the FTC's proposal to require annual renewal of continuing guaranties is not being adopted at this time.
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The final rule will take effect 30 days after it is published in the Federal Register. International Trade Today will provide an update when that occurs.
Fiber Content Disclosures
Just as it did for textile products in March (see 14031429), the FTC is amending its rules on fiber content disclosures for wool products 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 wool rules include a reference to the textile rules’ definitions for generic names of manufactured fibers. Those textile labeling rules have since 2000 incorporated the ISO standard. The standard has since changed, and was out-of-date, so the FTC updated the ISO standard in the textile regulations in March. The FTC said that the textile rule change automatically applies to the wool rules.
Disclosure requirements for hang tags. In another change that mirrors the textile rules, the FTC will allow hang tags that do not disclose a product’s full fiber content. According to several trade associations, fiber content disclosures on hang tags are an unnecessary burden, because the information is already available on the label. The FTC is also requiring 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 amends the FTC’s wool rules to update definitions for cashmere, and virgin or new wool.
Country of Origin Disclosures Now Refer to CBP Regs
The FTC is amending its regulations on country of origin disclosures for wool products to clearly say that a product’s country of origin for textile labeling purposes is determined under customs laws and regulations. The proposed rule amends 16 CFR 300.25(d) to say an imported product’s country of origin “as determined under the laws and regulations enforced by U.S. Customs and Border Protection” is the country where the product was processed or manufactured.
The final rule also changes outdated references to the Treasury Department and instead refers to “any Tariff Act and the regulations promulgated thereunder.”
Changes to Continuing Guaranty Provisions
The proposed rule also make changes to its wool labeling regulations related to continuing guaranties. The changes replace the requirement that filers sign under penalty of perjury with a certification requirement. However, in the only change from its proposed rule, the FTC is not adopting a provision that would have required continuing guaranties to be renewed every year. Comments on this proposed change and on a similar proposal to change the textile regulations and fur regulations (see 14050726) “unanimously opposed the requirement as unreasonably burdensome,” said the FTC.