[Federal Register Volume 76, Number 215 (Monday, November 7, 2011)]
[Proposed Rules]
[Pages 68690-68694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28631]
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FEDERAL TRADE COMMISSION
16 CFR Part 303
Rules and Regulations Under the Textile Fiber Products
Identification Act
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Advance notice of proposed rulemaking; request for public
comment.
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SUMMARY: The Commission systematically reviews all its rules and guides
to ensure that they continue to achieve their intended purpose without
unduly burdening commerce. As part of this systematic review, the
Commission requests public comment on the overall
[[Page 68691]]
costs, benefits, necessity, and regulatory and economic impact of the
FTC's Rules and Regulations pursuant to the Textile Fiber Products
Identification Act. The Commission specifically requests comment on
whether it should: Modify the provision addressing generic fiber names
so that the reference to the international standard for manufactured
fibers reflects the updated standard; clarify the provisions addressing
textile products containing elastic material and ``trimmings''; address
the use of multiple languages in making required disclosures; clarify
disclosure requirements applicable to written advertising, including
Internet advertising; clarify or revise the list of exclusions from the
Textile Fiber Products Identification Act; add or clarify definitions
of terms set forth in the Rules; and modify its consumer and business
education materials and continue printing paper copies of these
materials. In addition, the Commission seeks comment on: the benefits
and costs of the requirement of the Textile Fiber Products
Identification Act that, under certain circumstances, businesses use
identification issued by the FTC; and the extent to which retailers
obtain guarantees and continuing guarantees for textile products and
whether the extent or manner of importation indicates that the
guarantee provisions of the Act and Rules should be modified.
DATES: Comments must be received on or before January 3, 2012.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Textile Rules, 16 CFR
Part 303, Project No. P948404'' on your comment, and file your comment
online at https://ftcpublic.commentworks.com/ftc/textilerulesanpr by
following the instructions on the web-based form. If you prefer to file
your comment on paper, mail or deliver your comment to the following
address: Federal Trade Commission, Office of the Secretary, Room H-113
(Annex G), 600 Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Robert M. Frisby, Attorney, (202) 326-
2098, or Edwin Rodriguez, Attorney, (202) 326-3147, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
600 Pennsylvania Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Textile Fiber Products Identification Act (``Textile Act''), 15
U.S.C. 70-70k, requires marketers to attach a label to each covered
textile product disclosing: (1) The generic names and percentages by
weight of the constituent fibers in the product; (2) the name under
which the manufacturer or other responsible company does business or,
in lieu thereof, the registered identification number (``RN number'')
of such company; and (3) the name of the country where the product was
processed or manufactured. The Textile Act also contains advertising
and record-keeping provisions.
Section 7(c) of the Textile Act authorizes the Commission to ``make
such rules and regulations, including the establishment of generic
names of manufactured fibers * * * as may be necessary and proper for
administration and enforcement.'' 15 U.S.C. 70e(c). Pursuant to the
Textile Act, the Commission promulgated the Rules and Regulations Under
the Textile Fiber Products Identification Act (``Textile Rules'' or
``Rules''), 16 CFR Part 303.
The Commission completed its last review of the Rules in 1998, and
modified the Rules nine times during the period 1998 to 2009.
Specifically, as a result of the 1998 review, the Commission, among
other things, streamlined the labeling requirements and approved
additional generic fiber names through the incorporation of ISO 2076:
1998, ``Textiles--Man-made fibres--Generic Names'' in Section 303.7.\1\
Later in 1998, the Commission amended the Rules to update Commission
addresses.\2\ In 2000, it amended the Rules to revise the RN number
application process, to reference an updated version of ISO 2076 (ISO
2076: 1999(E)--the standard currently set forth in Section 303.7), and
to clarify the country-of-origin disclosure requirements.\3\ In 2005,
the Commission amended the Rules to implement changes mandated by
Congress to the country-of-origin disclosure requirements for socks.\4\
In addition, during the 1998-2009 period, the Commission amended the
Rules five times in response to petitions from textile fiber
manufacturers to recognize new generic fiber names or subclasses
thereof.\5\
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\1\ Federal Trade Commission: Rules and Regulations Under the
Textile Fiber Products Identification Act, the Wool Products
Labeling Act, and the Fur Products Labeling Act: Final Rule, 63 FR
7508 (Feb. 13, 1998).
\2\ Federal Trade Commission: Miscellaneous Rules: Final Rule,
63 FR 71582 (Dec. 29, 1998).
\3\ Federal Trade Commission: Rules and Regulations Under the
Textile Fiber Products Identification Act; Rules and Regulations
Under the Wool Products Labeling Act of 1939, Final Rule, 65 FR
75154 (Dec. 1, 2000).
\4\ Federal Trade Commission: Rules and Regulations Under the
Textile Fiber Products Identification Act: Final Rule, 70 FR 73369
(Dec. 12, 2005).
\5\ Federal Trade Commission: Rules and Regulations Under the
Textile Fiber Products Identification Act: Final Rule, 63 FR 36171
(Jul. 2, 1998) (new generic fiber names ``melamine'' and
``fluoropolymer''); Federal Trade Commission: Rules and Regulations
Under the Textile Fiber Products Identification Act: Final Rule, 67
FR 4901 (Feb. 1, 2002) (new generic fiber name ``PLA''); Federal
Trade Commission: Rules and Regulations Under the Textile Fiber
Products Identification Act: Final Rule, 67 FR 70835 (Nov. 27, 2002)
(new generic fiber name ``elasterell-p'' as subclass of generic
fiber name ``polyester''); Federal Trade Commission: Rules and
Regulations Under the Textile Fiber Products Identification Act:
Final Rule, 68 FR 3813 (Jan. 27, 2003) (new generic fiber name
``lastol'' as subclass of generic fiber name ``olefin''); Federal
Trade Commission: Rules and Regulations Under the Textile Fiber
Products Identification Act: Final Rule, 74 FR 13099 (Mar. 26, 2009)
(new generic fiber name ``triexta'' as subclass of generic fiber
name ``polyester'').
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II. Regulatory Review Program
Since 1992, the Commission's regulatory review program has
systematically reviewed Commission regulations to ensure that they
continue to achieve their intended goals without unduly burdening
commerce. The Commission schedules its regulations and guides for
review on a ten-year cycle; i.e., all rules and guides are scheduled to
be reviewed ten years after implementation and ten years after the
completion of each review. The Commission publishes this schedule
annually, with adjustments in response to public input, changes in the
marketplace, and resource demands.\6\
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\6\ Federal Trade Commission: Notice Announcing Ten-year
Regulatory Review Schedule and Request for Public Comment on the
Federal Trade Commission's Regulatory Review Program, 76 FR 41150
(Jul. 13, 2011).
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When the Commission reviews a rule or guide, it publishes a notice
in the Federal Register seeking public comment on the continuing need
of the rule or guide as well as its costs and benefits to consumers and
businesses. Based on this feedback, the Commission may modify or repeal
the rule or guide to address public concerns or changed conditions, or
to reduce undue regulatory burden. Therefore, the Commission now
solicits comments on, among other things, the economic impact of, and
the continuing need for, the Textile Rules; the benefits of the Rules
to consumers purchasing products covered by them; and the burdens the
Rules place on businesses.\7\
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\7\ See questions 1 through 12 in Section IV below.
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[[Page 68692]]
III. Specific Issues of Interest to the Commission
As part of this process, the Commission seeks comment on several
specific issues stemming from informal inquiries received by Commission
staff. These inquiries suggest that clarification or modification of
certain Rule provisions, as well as the Commission's consumer and
business education materials explaining them, could improve industry
and consumer understanding of the requirements of the Textile Act and
the Rules or otherwise improve the Rules. Such improvements could
foster greater compliance with the Rules and help the FTC implement the
Textile Act more effectively. These issues are explained below.
First, the International Standards Organization developed ISO 2076:
2010, an updated version of ISO 2076: 1999(E), ``Textiles--Man-made
fibres--Generic Names,'' referenced in Section 303.7. This development
may warrant modifying Section 303.7 to incorporate the updated version
of ISO 2076.
Second, inquiries regarding the disclosure requirements for
products containing elastic material and trimmings suggest a possible
need to clarify Sections 303.10 and 303.12 of the Rules.\8\ For
example, Section 303.10 requires disclosure of elastic material fiber
content, yet Section 303.12 states that trimmings (for which the
disclosure requirements do not apply) may include elastic material
added to a product in minor proportion for holding, reinforcing or
similar structural purposes. The Rules do not define or elaborate on
the term ``minor proportion.'' In addition, Section 303.12 lists
product components or parts that may qualify as trim without otherwise
defining the term ``trimmings.''
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\8\ Section 303.1(n) defines ``elastic material'' as a fabric
composed of yarn consisting of an elastomer or a covered elastomer.
The Textile Act does not apply to trimmings, 15 U.S.C. 70j(a)(5),
but does not define the term.
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Third, inquiries regarding the disclosure of fiber content
percentages in multiple languages also suggest a possible need to
clarify the Rules. Section 303.4 requires label disclosures in English.
Labels may include disclosures in other languages; however, Section
303.16(c) provides that such ``non-required'' information ``shall not
minimize, detract from, or conflict with required information and shall
not be false, deceptive, or misleading.'' Commission staff have
received reports that some labels provide fiber content information in
English plus other languages. The Commission seeks comment on the
voluntary practice of disclosing required information in multiple
languages. In particular, the Commission seeks comment on whether
voluntary multilingual labeling practices cause consumer confusion, and
if so, how to avoid such confusion while providing the benefits of
disclosures in multiple languages.
Fourth, inquiries regarding the disclosure requirements applicable
to written advertising, including Internet advertising,\9\ set forth in
Sections 303.41 and 303.42, suggest a possible need for clarification.
For example, the Rules do not require the disclosure of fiber content
percentages in advertising but perhaps could state this more
clearly.\10\
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\9\ Internet advertisers must comply with the Rules' advertising
disclosure requirements. In 2009, the Commission announced four law
enforcement actions involving the use of the word ``bamboo'' in lieu
of the generic fiber name ``rayon'' in Internet advertising for
textile products, in violation of the Textile Rules. See http://www.ftc.gov/opa/2009/08/bamboo.shtm. Last year, the Commission sent
warning letters to 78 retailers of textile products, including many
on-line marketers, addressing the use of ``bamboo'' in lieu of the
generic fiber name ``rayon.'' See http://www.ftc.gov/opa/2010/02/bamboo.shtm.
\10\ The Textile Act addresses this issue clearly. It requires
disclosure of fiber content information in certain advertising,
``except that the percentages of the fiber present in the textile
fiber product need not be stated.'' 15 U.S.C. 70b(c).
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Fifth, inquiries regarding whether the Textile Act and Rules apply
to certain products suggest a possible need to clarify Section 303.45.
That section excludes all textile fiber products from the operation of
the Textile Act except for those products specifically listed as
covered under the Rules.\11\ The Commission's education materials
provide additional guidance on the Rules' coverage by identifying
specific items that fall into product categories covered by the Textile
Act and Rules, such as ``bedding'' and ``floor coverings,'' and by
identifying specific items not covered by the Textile Act and
Rules.\12\ The Commission is considering clarifying or modifying the
Rules to indicate with greater specificity the products either covered
by or excluded from the requirements of the Textile Act and Rules.
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\11\ The Textile Act and Rules apply to textile fiber products
with certain exceptions. Covered products include household textile
articles made from yarn or fabric and fibers used or intended for
use in such articles. The Textile Act provides that the term
``household textile articles'' means articles of wearing apparel,
costumes and accessories, draperies, floor coverings, furnishings,
beddings, and other textile goods of a type customarily used in a
household regardless of where used in fact. See 15 U.S.C. 70(g) and
(h). Thus, whether the Textile Act and Rules apply to a particular
textile product may depend in part on whether it is customarily used
in a household. In addition, the Commission has authority to exclude
products which have an insignificant or inconsequential textile
fiber content and products for which a fiber content disclosure is
unnecessary to protect the ultimate consumer. See 15 U.S.C. 70j(b).
\12\ See ``Threading Your Way Through the Labeling Requirements
Under the Textile and Wool Acts'' at http://business.ftc.gov/documents/bus21-threading-your-way-through-labeling-requirements-under-textile-and-wool-acts.
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Sixth, the Rules include a number of undefined textile-related
terms. The Commission seeks comment on whether it needs to add or
clarify any definitions.
Seventh, the Commission seeks comment on whether it needs to
clarify or otherwise modify its consumer and business education
materials addressing the Rules. It also seeks comment on whether it
should continue to print paper copies of its consumer and business
education materials.
In addition, the Commission seeks comment on the benefits and costs
of the Textile Act requirement that businesses identify themselves on
labels using either their names or identifiers issued by the FTC (i.e.,
RN numbers).\13\ Specifically, the Commission seeks comment on whether
allowing alternative identifiers, such as numbers issued by other
nations (e.g., Canadian CA numbers), would benefit businesses without
imposing costs on consumers and law enforcement that outweigh those
benefits.\14\
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\13\ See 15 U.S.C. 70b(b)(3).
\14\ See questions 13 through 23 in Section IV below.
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Finally, the Commission seeks comment on the extent to which
retailers obtain guarantees and continuing guarantees. It also seeks
comment on the costs of obtaining guarantees for textile products and
whether changes in the extent and manner of importation indicate that
the guarantee provisions of the Act and Rules should be modified.
IV. Request for Comment
The Commission solicits comments on the following specific
questions related to the Textile Rules.
(1) Is there a continuing need for the Rules as currently
promulgated? Why or why not?
(2) What benefits have the Rules provided to, or what significant
costs have the Rules imposed on, consumers? Provide any evidence
supporting your position.
(3) What modifications, if any, should the Commission make to the
Rules to increase their benefits or reduce their costs to consumers?
(a) Provide any evidence supporting your proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rules
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for consumers and businesses, particularly small businesses?
(4) What impact have the Rules had in promoting the flow of
truthful information to consumers and preventing the flow of deceptive
information to consumers? Provide any evidence supporting your
position.
(5) What benefits, if any, have the Rules provided to, or what
significant costs, including costs of compliance, have the Rules
imposed on businesses, particularly small businesses? Provide any
evidence supporting your position.
(6) What modifications, if any, should be made to the Rules to
increase their benefits or reduce their costs to businesses,
particularly small businesses?
(a) Provide any evidence supporting your proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(7) Provide any evidence 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?
(8) Provide any evidence concerning whether any of the Rules'
provisions are no longer necessary. Explain why these provisions are
unnecessary.
(9) What potentially unfair or deceptive practices concerning
textile labeling, not covered by the Rules, are occurring in the
marketplace?
(a) Provide any evidence, such as empirical data, consumer
perception studies, or consumer complaints, demonstrating the extent of
such practices.
(b) Provide any evidence demonstrating whether such practices cause
consumer injury.
(c) With reference to such practices, should the Rules be modified?
If so, why and how? If not, why not?
(10) What modifications, if any, should be made to the Rules to
account for current or impending changes in technology or economic
conditions?
(a) Provide any evidence supporting the proposed modifications.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(11) Do the Rules overlap or conflict with other Federal, state, or
local laws or rules, such as those enforced by U.S. Customs and Border
Protection? If so, how?
(a) Provide any evidence supporting your position.
(b) With reference to the asserted conflicts, should the Rules be
modified? If so, why and how? If not, why not?
(c) Provide any evidence concerning whether the Rules have assisted
in promoting national consistency with respect to textile labeling and
advertising.
(12) Are there foreign or international laws, regulations, or
standards with respect to textile labeling or advertising 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
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?
(c) Provide any evidence supporting your position.
(13) Should the Commission modify Section 303.7 to address the
development of ISO 2076: 2010, ``Textiles--Man-made fibres--Generic
names,'' an updated version of ISO 2076: 1999(E), ``Textiles--Man-made
fibres--Generic Names,'' referenced in Section 303.7? If so, why and
how? If not, why not?
(a) Provide any evidence supporting your position.
(b) How would the modification affect the costs and benefits of the
Rules for consumers and businesses, particularly small businesses?
(14) Should the Commission modify Section 303.1(n), 303.10, or
303.12 to clarify the disclosure requirements relating to products
containing elastic material? If so, why and how? If not, why not?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(15) Should the Commission modify Section 303.12 to revise the
description and list of examples of ``trimmings''? If so, why and how?
If not, why not?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(16) Should the Commission modify Section 303.16(c) or consider any
additional measures regarding non-required information such as the
voluntary use of multilingual labels? In particular, do multilingual
labels pose the potential to confuse consumers and, if so, how could
such confusion be avoided while providing the benefits of disclosures
in multiple languages?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(17) Should the Commission modify Section 303.41 or 303.42 to
clarify or otherwise revise the disclosure requirements applicable to
written advertising, including Internet advertising? If so, why and
how? If not, why not?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(18) Should the Commission modify Section 303.45 to clarify or
otherwise revise the list of exclusions from the Textile Act and Rules?
If so, why and how? If not, why not?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(19) Should the Commission modify the Rules to add or clarify
definitions of terms set forth in the Rules? If so, why and how? If
not, why not?
(a) Provide any evidence supporting your position.
(b) How would these modifications affect the costs and benefits of
the Rules for consumers and businesses, particularly small businesses?
(20) Is our business compliance guidance and consumer education
about the Rules useful? Can it be improved? If so, how?
(a) Should the Commission consider consumer education or other
measures to help non-English-speaking consumers obtain the information
that must be disclosed under the Textile Act and Rules?
(b) Should the Commission print copies of consumer education
materials, or is a pdf at http://www.business.ftc.gov sufficient for
your needs?
(21) Regarding the Textile Act requirement in 15 U.S.C. 70b(b)(3)
that businesses identify themselves on labels using either their names
or identifiers issued by the FTC, what are the benefits and costs of
allowing businesses to use alternative identifiers, such as numbers
issued by other nations? Provide any evidence supporting your position.
(22) To what extent do retailers obtain valid separate or
continuing guarantees that comply with the requirements of the Textile
Act and Rules, i.e. guarantees signed by a person residing
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in the United States and, in the case of continuing guarantees, signed
under the penalty of perjury?
(a) Do retailers who obtain such guarantees obtain them for all,
most, some, or few of the textile products they sell?
(b) Why do retailers decline to obtain such guarantees?
(c) Have changes in technology, such as the use of electronic
documents, affected the ability of retailers to obtain valid separate
or continuing guarantees? If so, why and how? If not, why not?
(d) Provide any evidence concerning the extent to which retailers
obtain such guarantees and the reasons why retailers decline to obtain
them.
(23) What proportion of textile products sold in the U.S. are
imported? What proportion of imported products are imported directly by
retailers? What proportion are imported by businesses located in the
United States for resale or distribution to retailers? How have these
proportions changed since the Textile Act and Rules became effective?
(a) Have changes in the extent or manner in which textile products
are imported affected the ability of retailers to obtain valid separate
or continuing guarantees? If so, does the ability of retailers to
obtain such guarantees differ depending on whether the textile products
are imported directly by retailers versus imported by businesses for
resale or distribution to retailers?
(b) Provide any evidence concerning the costs of obtaining valid
guarantees for imported textile products and the impact of such costs
on the ability of retailers to obtain valid guarantees.
(c) Do changes in the extent or manner in which textile products
are imported indicate that the Textile Act and Rules should be
modified? If so, why and how? If not, why not?
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before January 3, 2012.
Write ``Textile Rules, 16 CFR Part 303, Project No. P948404'' on your
comment. Your comment--including your name and your state--will be
placed on the public record of this proceeding, including, to the
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the
Commission tries to remove individuals' home contact information from
comments before placing them on the Commission Web site. Because your
comment will be made public, you are solely responsible for making sure
that your comment doesn't include any sensitive personal information,
such as anyone'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. You are also solely responsible for making sure that
your comment doesn't include any sensitive health information, like
medical records or other individually-identifiable health information.
In addition, don't include any ``[t]rade 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 FTC
Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In
particular, don't include competitively-sensitive information such as
costs, sales statistics, inventories, formulas, patterns, devices,
manufacturing processes, or customer names.
If you want the Commission to give your comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you must follow the procedure explained in
FTC Rule 4.9(c), 16 CFR 4.9(c).\15\ Your comment will be kept
confidential only if the FTC General Counsel, in his or her sole
discretion, grants your request in accordance with the law and the
public interest.
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\15\ In particular, the written request for confidential
treatment that accompanies the comment must include the factual and
legal basis for the request and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule
4.9(c), 16 CFR 4.9(c).
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Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/textilerulesanpr by following the instructions on the web-based
form. If this Notice appears at http://www.regulations.gov/#!home, you
also may file a comment through that Web site.
If you file your comment on paper, write ``Textile Rules, 16 CFR
Part 303, Project No. P948404'' on your comment and on the envelope and
mail or deliver it to the following address: Federal Trade Commission,
Office of the Secretary, Room H-113 (Annex G), 600 Pennsylvania Avenue
NW., Washington, DC 20580. If possible, submit your paper comment to
the Commission by courier or overnight service.
Visit the Commission Web site at http://www.ftc.gov to read this
Notice and the news release describing it. 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 on or before January 3, 2012. You can find more
information, including routine uses permitted by the Privacy Act, in
the Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
List of Subjects in 16 CFR Part 303
Advertising, Labeling, Recordkeeping, Textile fiber products.
Authority: 15 U.S.C. 70 et seq.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-28631 Filed 11-4-11; 8:45 am]
BILLING CODE 6750-01-P