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FTC Amends Regulations under the Fur Products Labeling Act

FTC Amends Regulations under the Fur Products Labeling Act

2014-06-05

Source:FTC

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The Federal Trade Commission (FTC) has amended its Regulations under the Fur Products Labeling Act (Fur Rules). The amendments update the Fur Products Name Guide, provide businesses with more flexibility in labeling, incorporate provisions of the Truth in Fur Labeling Act of 2010, and revise the Rules’ guaranty provisions to mirror those for textile products.

As part of its regulatory review program, the FTC began a review of the Name Guide in March 2011, sought public comments on the Fur Rules, and announced upcoming changes to the Fur Rules, as required by Congress. The Commission held a public hearing on all aspects of the Name Guide, sought public comment on its proposed changes, and proposed changes to the guaranty provisions of the Rules under the Textile Fiber Products Identification Act. The final amendments to the Regulation were published in the Federal Register on May 7, 2014.

Effective Date: The amendments to the Regulations will become effective November 19, 2014.

Overview of Revisions:

? The amended Fur Rules retain “Asiatic Raccoon” in the Name Guide for labeling fur products from the species nyctereutes procyonoides.

? The Commission has determined that the “sides” and “flanks” disclosures do not provide consumers with meaningful information; therefore, they have eliminated that requirement to disclose.

? Label Size Requirements: The FTC is removing the requirement that labels measure 1.75 inches by 2.75 inches, as this size is impractical for smaller items. Therefore, the Regulation no longer has label dimensions requirements, but only require that disclosures be “conspicuous and of such durability as to remain attached to the product throughout any distribution, sale or resale, and until sold and delivered to the ultimate consumer.”

? Label Text Requirements: The Commission:

o replaces the old requirement of12-point or “pica” type font-size with a requirement to disclose information “in such a manner as to be clearly legible, conspicuous, and readily accessible to the prospective purchaser”;

o Removes limits on information appearing on the front of the label, thereby allowing entities to include true and non-deceptive information on either side; and

o No longer requires a particular order for the FTC disclosures.

? Labels for Items Sold in Pairs or Groups: Commission eliminates the requirement to “firmly attached to each other when marketed and delivered in the channels of trade and to the purchaser” and incorporates the Textile Rules’ provision allowing a single label for items “marketed or handled in pairs or ensembles,” regardless of whether they are attached to each other at the point-of-sale.

? The Truth in Fur Labeling Act of 2010 (TFLA)’s amendments to the Fur Act require conforming changes to the Fur Rules. Accordingly, the Commission replaces the de minimis exemption with TFLA’s a hunter/trapper exemption.

? The FTC has determined that it no longer needs the assignment of an “item number or mark” to furs and to disclose it on invoices and labels. Therefore, the Commission eliminates this provision.

? The Commission adopts provisions to facilitate electronic guaranties:

o 1- It changes the term “invoice” in and the phrase “invoice or other paper” in to “invoice or other document.”

o 2- The FTC amends the requirement to include, as the Textile Rules currently do, a statement that the guarantor’s printed name and address will satisfy the signature requirement for separate guaranties.

o 3- The Commission deletes text that required guaranties to show “the date of shipment of the merchandise.” This change will further conform to the textile guaranty provisions.

o 4- The FTC adopts the definition of “invoice” and “invoice or other document” proposed in the Textile NPRM. This definition clarifies that “invoices,” which guarantors often use to transmit separate guaranties, include documents transmitted and stored electronically.

Note that the full FTC final rule should be reviewed for full details. The rule can be accessed at: http://www.ftc.gov/system/files/documents/federal_register_notices/2014/05/140507furlabelingfrn.pdf

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