FTC Announces Changes to Textile Labeling Rules

The FTC Announces Changes to Textile Labeling Rules, addressing fiber content and country-of-origin disclosures.FTC Label Changes

The Rules implement the Textile Fiber Products Identification Act, which requires that certain textiles sold in the United States carry labels disclosing the generic names and percentages by weight of the fibers in the product, the manufacturer or marketer name, and the country where the product was processed or manufactured.

In May 2013, the FTC proposed changes to the Rules and sought public comment. Based on comments received, the agency proposed amendments to the Rules and sought public comments. After weighing the comments it received, the Commission approved the changes announced today, including amendments that would:

  • incorporate the updated International Organization for Standardization standard establishing generic fiber names for manufactured fibers;
  • allow certain hang-tags disclosing fiber names and trademarks, and performance information, without the need to disclose the product’s full fiber content;
  • clarify that an imported product’s country of origin is the country where it was processed or manufactured, as determined under laws and regulations enforced by U.S. Customs and Border Protection;
  • better address electronic commerce with revised definitions of “invoice” and “invoice or other paper,”
  • replace the requirement that guarantors sign continuing guarantees under penalty of perjury with a requirement that they acknowledge that providing a false guaranty is unlawful, and certify that they will actively monitor and ensure compliance with the applicable law; and
  • clarify the provision identifying textile fiber product categories and products that are exempt from the Act’s requirements.

Based on the comments received, the Commission decided not to adopt its proposal to make continuing guaranties effective for one year unless revoked earlier. Thus, continuing guaranties filed with the Commission will remain effective until revoked.

The Commission vote to publish the Federal Register Notice amending the Rules and Regulations under the Textile Fiber Products Identification Act was 4-0. It will be published in the Federal Register soon. The amended Rules will become effective 30 days after the Federal Register Notice is posted.

Unsure how this might impact your product or future product development? Contact us today to see how we can help. info@jacobysolutions.com or 866-873-7335 ext. 101

Marketer of Outdoor Accessories Agrees to Drop Made in the USA Claims

A marketer of iPhone accessories, bottle holders, lens cleaners, dog collars, leashes, and other outdoor Made In Usa Stamp Shows Product Or Produce Of Americaaccessories has agreed to settle Federal Trade Commission charges that it falsely claimed certain of its products were “Made in the USA,” or “Truly Made in the USA” even though the products contained substantial foreign content.

The proposed settlement prohibits the company from deceiving consumers about the degree to which its products are made in the United States.

Based in Logan Utah, E.K. Ekcessories, Inc. sells merchandise directly to consumers on its website, ekusa.com, and through online sellers such as Amazon and REI.

The company claimed on its website that “For 28 years E.K. Ekcessories has been producing superior quality made accessories in our 60,000 sq. ft. facility in Logan, Utah;” and “Our source of pride and satisfaction abounds from a true ‘Made in USA’ product.”  In fact, the company imports many of its products and components, according to the complaint.  The FTC also alleged that the company distributed deceptive promotional materials for its products to third-party retailers such as Amazon and REI.

The FTC alleged that E.K. Ekcessories, Inc. violated the Federal Trade Commission Act by making false and unsupported statements that its products were all or virtually all made in the United States.

Under the proposed order, the company is prohibited from claiming that any product is made in the United States unless that product is all or virtually all made in the United States.  The company also is prohibited from making any misleading claims about a product’s country of origin and from providing deceptive promotional material to third-party retailers, or otherwise providing the “means or instrumentalities” for others to make deceptive U.S.-origin claims.  The company also is required to contact all distributors who bought or received products between January 1, 2010 and May 1, 2013, and provide them with a notice and a copy of the order.

According to the Commission’s 1997 U.S. Origin Claims Enforcement Policy Statement, for a product to be advertised or labeled as “Made in the U.S.A,” the product must be “all or virtually all” made in the United States – that is, all significant parts and processing must be of U.S. origin, and the product should contain no (or negligible) foreign content.