[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Proposed Rules]
[Pages 13550-13553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5757]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 301
RIN 3084-AB26
Fur Products Labeling Act
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Advance notice of proposed rulemaking; request for comment.
-----------------------------------------------------------------------
[[Page 13551]]
SUMMARY: In December 2010, Congress passed the Truth in Fur Labeling
Act (TFLA), which amends the Fur Products Labeling Act (Fur Act) by:
(1) Eliminating the Commission's discretion to exempt fur products of
relatively small quantity or value from disclosure requirements; and
(2) providing that the Fur Act will not apply to certain fur products
obtained through trapping or hunting and sold in face to face
transactions. TFLA also directs the Commission to review and allow
comment on the Fur Products Name Guide (Name Guide). Accordingly, the
Commission publishes this Advance Notice of Proposed Rulemaking (ANPR)
and request for comment. In addition to seeking comment on the Name
Guide, the Commission, as part of its systematic review of all current
FTC rules and guides, requests comment on all of its Fur Act
regulations (Fur Rules or Rules).
DATES: Written comments must be received by May 16, 2011.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form by following the instructions in the
SUPPLEMENTARY INFORMATION section below. Comments in electronic form
should be submitted by using the following Web link: https://ftcpublic.commentworks.com/ftc/furrulesreview (and following the
instructions on the Web-based form). Comments filed in paper form
should be mailed or delivered to the following address: Federal Trade
Commission, Office of the Secretary, Room H-113 (Annex O), 600
Pennsylvania Avenue, NW., Washington, DC 20580, in the manner detailed
in the SUPPLEMENTARY INFORMATION section below.
FOR FURTHER INFORMATION CONTACT: Matthew Wilshire, (202) 326-2976,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Background
A. The Fur Act and Rules
The Fur Act prohibits misbranding and false advertising of fur
products, and requires labeling of most fur products. 15 U.S.C. 69 et
seq. Pursuant to this Act, the Commission promulgated the Fur Rules to
establish disclosure requirements that assist consumers in making
informed purchasing decisions. 16 CFR part 301. Specifically, the Fur
Act and Rules require fur manufacturers, dealers, and retailers to
place labels on products made entirely or partly of fur disclosing: (1)
The animal's name as provided in the Name Guide; (2) the presence of
any used, bleached, dyed, or otherwise artificially colored fur; (3)
that the garment is composed of paws, tails, bellies, or waste fur, if
that is the case; (4) the name or Registered Identification Number of
the manufacturer or other party responsible for the garment; and (5)
the garment's country of origin. 15 U.S.C. 69b(2); 16 CFR 301.2(a). In
addition, manufacturers must include an item number or mark on the
label for identification purposes. 16 CFR 301.40. The Fur Rules also
provide requirements for advertising fur products. 16 CFR 301.38.
Finally, to assist the Commission in enforcing these requirements, the
Rules contain recordkeeping requirements. 16 CFR 301.37; 301.41.
Prior to amendment by TFLA, the Fur Act authorized the Commission
to exempt fur products of ``relatively small quantity or values from
labeling requirements. 15 U.S.C. 69(d). Exercising this soon-to-expire
authority, the Fur Rules contain a de minimis exemption'' that
provides:
If the cost of any fur trim or other manufactured fur or furs
contained in a fur product, exclusive of any costs incident to its
incorporation therein, does not exceed one hundred fifty dollars
($150) to the manufacturer of the finished fur product, or if a
manufacturer's selling price of a fur product does not exceed one
hundred fifty dollars ($150), and the provisions of paragraphs (b)
and (c) of this section are met, the fur product shall be exempted
from the requirements of the Act and Regulations in this part. * * *
16 CFR 301.39(a).
Thus, prior to TFLA's effective date, retailers can lawfully sell
garments containing fur or fur trim with a component value of $150 or
less without a fur-content label.
B. TFLA
On December 18, 2010, the President signed TFLA into law. That Act
contains two amendments to the Fur Act. First, it eliminates the
provision in Section 2(d) of the Fur Act that empowered the Commission
to exempt fur products ``of relatively small quantity or value of the
fur or used fur contained therein 15 U.S.C. 69(d). This amendment is
effective 90 days from TFLA's enactment--March 18, 2011. Public Law
111-113, Sec. 2. Second, TFLA provides a new exemption for furs sold
directly by trappers and hunters to end-use customers in certain face-
to-face transactions (``hunter/trapper exemptions):
No provision of [the Fur Act] shall apply to a fur product--(1)
the fur of which was obtained from an animal through trapping or
hunting; and (2) when sold in a face to face transaction at a place
such as a residence, craft fair, or other location used on a
temporary or short term basis, by the person who trapped or hunted
the animal, where the revenue from the sale of apparel or fur
products is not the primary source of income of such person. Pub. L.
No. 111-113, Sec. 3.
TFLA also directs the Commission to initiate a review and
opportunity to comment on the Name Guide. TFLA gives the Commission 90
days from enactment to commence the review.
II. Future Rule Amendments
TFLA's amendments will require conforming changes to the Fur Rules.
Specifically, there will no longer be a statutory basis for the Fur
Rules' de minimis exemption, and previously exempted fur products will
require labels. Therefore, the Commission must delete the exemption
from its Rules. In addition, the Commission will propose revisions
making clear that the Fur Rules do not apply to products covered by
TFLA hunter/trapper exemption.
Accordingly, the Commission will issue a Notice of Proposed
Rulemaking that will propose changes in light of TFLA and may propose
other changes in response to comments solicited by this document.
Meanwhile, fur products previously covered by the de minimis exemption
will be subject to the Fur Act's disclosure requirements, as of March
18, 2011, even though the exemption will remain in the Fur Rules until
the Commission issues final amendments. Congress has rescinded the
Commission's authority to exempt such products, and, therefore, there
is no longer a legal basis for the de minimis exemption.
III. Regulatory Review Program
In light of TFLA's directive, and consistent with the Commission's
policy to periodically review its rules and guides, the Commission
solicits comments on the Fur Rules in general and the Name Guide in
particular. In addition to comments regarding the Name Guide, the
Commission seeks comment on, among other things, the economic impact
of, and the continuing need for, the Fur Rule provisions; the benefits
of the Rules to consumers; and the burdens the Rules place on those
subject to its requirements. The Commission seeks comment on the
specific questions listed below in Section IV.
IV. Request for Comment
The Commission solicits comment on the following specific questions
related to the Fur Rules:
[[Page 13552]]
(1) Is there a continuing need for the Rules as currently
promulgated? Why or why not?
(2) What benefits have the Rules provided to consumers? What
evidence supports the asserted benefits?
(3) What modifications, if any, should the Commission make to
the Rules to increase their benefits to consumers?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits
of the Rules for consumers?
(c) How would these modifications affect the costs and benefits
of the Rules for businesses, particularly small businesses?
(4) What impact have the Rules had on the flow of truthful
information to consumers and on the flow of deceptive information to
consumers?
(5) What significant costs have the Rules imposed on consumers?
What evidence supports the asserted costs?
(6) What modifications, if any, should be made to the Rules to
reduce the costs imposed on consumers?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits
of the Rules for consumers?
(c) How would these modifications affect the costs and benefits
of the Rules for businesses, particularly small businesses?
(7) What benefits, if any, have the Rules provided to
businesses, and in particular to small businesses? What evidence
supports the asserted benefits?
(8) What modifications, if any, should be made to the Rules to
increase its benefits to businesses, and particularly to small
businesses?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits
of the Rules for consumers?
(c) How would these modifications affect the costs and benefits
of the Rules for businesses?
(9) What significant costs, including costs of compliance, have
the Rules imposed on businesses, particularly small businesses? What
evidence supports the asserted costs?
(10) What modifications, if any, should be made to the Rules to
reduce the costs imposed on businesses, and particularly on small
businesses?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits
of the Rules for consumers?
(c) How would these modifications affect the costs and benefits
of the Rules for businesses?
(11) Provide any evidence concerning consumer perception of the
fur names required by the Name Guide. Does this evidence indicate
that the Rules should be modified? If so, why, and how? If not, why
not?
(12) Provide any evidence concerning whether the Commission
should alter the Name Guide to include additional fur names or to
eliminate certain names already listed. Does this evidence indicate
that the Rules should be modified? If so, why, and how? If not, why
not?
(13) What evidence is available concerning the degree of
industry compliance with the Rules? Does this evidence indicate that
the Rules should be modified? If so, why, and how? If not, why not?
(14) Are any of the Rules' requirements no longer needed? If so,
explain. Please provide supporting evidence.
(15) What potentially unfair or deceptive practices concerning
the labeling and advertising of fur products, if any, are not
covered by the Rules?
(a) What evidence demonstrates the existence of such practices?
(b) With reference to such practices, should the Rules be
modified? If so, why, and how? If not, why not?
(16) Should the Rules continue to require that fur products
manufactured for use in pairs or groups be firmly attached to each
other when delivered to the purchaser-consumer or be individually
labeled? Why or why not? Please provide any supporting evidence.
(17) What modifications, if any, should be made to the Rules to
account for changes in relevant technology or economic conditions?
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the costs and benefits
of the Rules for consumers and businesses, particularly small
businesses?
(18) Do the Rules overlap or conflict with other Federal, State,
or local laws or regulations? If so, how?
(a) What evidence supports the asserted conflicts?
(b) With reference to the asserted conflicts, should the Rules
be modified? If so, why, and how? If not, why not?
(19) Are there foreign or international laws, regulations, or
standards with respect to the fur labeling that the Commission
should consider as it reviews the Rules? If so, what are they?
(a) Should the Rules be modified in order to harmonize with
these foreign or international laws, regulations, or standards? If
so, why, and how? If not, why not?
(b) How would such harmonization affect the costs and benefits
of the Rules for consumers and businesses, particularly small
businesses?
Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Fur Rules
Review, Matter No. P074201'' to facilitate the organization of
comments. We must receive your comment by May 16, 2011. Please note
that your comment--including your name and your State--will be placed
on the public record of this proceeding, including on the publicly
accessible FTC Web site, at http:[sol][sol]www.ftc.gov/os/
publiccomments.shtm.
Because comments will be made public, they should not include any
sensitive personal information, such as any individual's Social
Security Number; date of birth; driver's license number or other State
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. Comments also
should not include any sensitive health information, such as medical
records or other individually identifiable health information. In
addition, comments should not include ``trade secret or any commercial
or financial information which is obtained from any person and which is
privileged or confidential'' as provided in Section 6(f) of the Federal
Trade Commission Act (AFTC Act), 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter for which
confidential treatment is requested must be filed in paper form, must
be clearly labeled AConfidential, and must comply with FTC Rule
4.9(c).\1\
---------------------------------------------------------------------------
\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR
4.9(c).
---------------------------------------------------------------------------
Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted using the following Web link:
https:[sol][sol]ftcpublic.commentworks.com/ftc/furrulesreview (and
following the instructions on the Web-based form). To ensure that the
Commission considers an electronic comment, you must file it on the
Web-based form at the Web link
https:[sol][sol]ftcpublic.commentworks.com/ftc/furrulesreview. If this
notice of proposed rulemaking appears at
http:[sol][sol]www.regulations.gov/search/Regs/home.html#home, you may
also file an electronic comment through that Web site. The Commission
will consider all comments that regulations.gov forwards to it. You may
also visit the FTC Web site at http:[sol][sol]www.ftc.gov to read the
notice of proposed rulemaking and the news release describing it.
A comment filed in paper form should include the ``Fur Rules
Review, Matter No. P074201'' reference both in the text and on the
envelope, and should be mailed or delivered to the following address:
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex
O), 600 Pennsylvania Avenue, NW., Washington, DC 20580. The FTC is
requesting that any comment filed in paper form be sent by courier or
overnight service, if possible, because
[[Page 13553]]
U.S. postal mail in the Washington area and at the Commission is
subject to delay due to heightened security precautions.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives, whether filed in paper or
electronic form. Comments received will be available to the public on
the FTC Web site, to the extent practicable, at
http:[sol][sol]www.ftc.gov/os/publiccomments.shtm. As a matter of
discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC Web site. More information, including
routine uses permitted by the Privacy Act, may be found in the FTC's
privacy policy, at http:[sol][sol]www.ftc.gov/ftc/privacy.htm.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-5757 Filed 3-11-11; 8:45 am]
BILLING CODE 6750-01-P