[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)] [Proposed Rules] [Pages 15724-15725] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-7468] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION 16 CFR Parts 24, 231, 247 Request for Comments Concerning Guides for the Luggage and Related Products Industry, Guides for Shoe Content Labeling and Advertising, and Guides for the Ladies' Handbag Industry AGENCY: Federal Trade Commission. ACTION: Request for public comments. ----------------------------------------------------------------------- SUMMARY: The Federal Trade Commission (the ``Commission'') is requesting public comments on its Guides for the Luggage and Related Products Industry, its Guides for Shoe Content Labeling and Advertising, and its Guides for the Ladies' Handbag Industry. The Commission is also requesting comments about the overall costs and benefits of the Guides and their overall regulatory and economic impact as a part of its systematic review of all current Commission Rules and Guides. DATES: Written comments will be accepted until May 26, 1995. ADDRESSES: Comments should be directed to: Secretary, Federal Trade Commission, Room H-159, Sixth and Pennsylvania Ave., NW., Washington, DC 20580. Comments about the Guides for the Luggage and Related Products Industry should be identified as ``16 CFR Part 24--Comment.'' Comments about the Guides for Shoe Content Labeling and Advertising should be identified as ``16 CFR Part 231--Comment.'' Comments about the Guides for the Ladies' Handbag Industry should be identified as ``16 CFR Part 247--Comment.'' Comments about more than one of the guides should be identified by including reference to all relevant parts, for example ``16 CFR Parts 24, 231 and 247.'' FOR FURTHER INFORMATION CONTACT: Susan E. Arthur, Attorney, Federal Trade Commission, Dallas Regional Office, 100 N. Central Expressway, Suite 500, Dallas, Texas 75201. (214) 767-5503. SUPPLEMENTARY INFORMATION: A. Background The Commission has determined, as part of its oversight responsibilities, to review its Rules and Guides periodically. These reviews will seek information about the costs and benefits of the Commission's Rules and Guides and their regulatory and economic impact. The information obtained will assist the Commission in identifying Rules and Guides that warrant modification or recision. At this time the Commission solicits written public comments concerning the Commission's Guides for the Luggage and Related Products Industry (``Luggage Guides''), 16 CFR Part 24, the Commission's Guides for Shoe Content Labeling and Advertising (``Shoe Content Guides''), 16 CFR Part 231, and the Commission's Guides for the Ladies' Handbag Industry (``Handbag Guides'') 16 CFR Part 247. These Guides are being reviewed together because they all pertain to goods which are frequently made of leather or of material with the appearance of leather. These three Guides, like the other industry Guides issued by the Commission, ``are administrative interpretation of laws administered by the Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. They provide the basis for voluntary and simultaneous abandonment of unlawful practices by members of industry.'' 16 CFR 1.5. Conduct inconsistent with the Guides may result in corrective action by the Commission under applicable statutory provisions. The Commission promulgates industry Guides ``when it appears to the Commission that guidance as to the legal requirements applicable to particular practices would be beneficial in the public interest and would serve to bring about more widespread and equitable observance of laws administered by the Commission.'' 16 CFR 1.6. 1. Luggage Guides The Luggage Guides concern potential deception in the sale, offering for sale, and distribution of luggage and related products, such as trunks, instrument cases, brief cases, billfolds, wallets, key cases, jewel boxes, travel kits, camera bags and similar products. These Guides list disclosures that should be made for products made of split leather, imitation leather, or processed leather, and for products which contain backing material. The Guides address representations that products are made from the skin of fictitious animals and [[Page 15725]] the use of words, terms, depictions, or devices that may indicate that a product is made of any material when it is not. According to the Guides, industry members should not represent that a product is wholly of a particular composition when it is not, or that a product is leather when it contains ground, pulverized or shredded leather. Additionally, representations should not be made that a product is colored, finished, or dyed with aniline dye or otherwise dyed, embossed, grained, processed, finished or stitched in a certain manner when it is not. The Guides also discuss representations about the hardware, box, or frame of covered products. Use of the terms ``waterproof,'' ``dustproof,'' ``warpproof,'' ``scuffproof,'' and ``scratchproof'' is also covered by the Luggage Guides. 2. Shoe Content Guides The Shoe Content Guides contain guidance for labeling and advertising shoe content. The Guides address use of the term ``leather'' on labels and labeling disclosures for simulated or imitation leather, concealed innersoles, split leather, embossed or processed leather, and ground or shredded leather. With regard to advertising, the Guides state that disclosures should be made in advertisements which depict non-leather parts of shoes or slippers which appear to be made of leather. The Guides contain guidance for use of the term ``leather'' in advertisements and for disclosures to be used with terms suggestive of leather. The Guides state that words or terms should not be used which would convey the impression that shoes or slippers are made of a certain material when they are not. 3. Handbag Guides The Handbag Guides concern the potential misrepresentation of any feature of ladies' handbags and similar articles. The Guides provide guidance with respect to the disclosures which should be made regarding product composition and address the use of representations that a product is colored, finished, or dyed with aniline dye or otherwise dyed, embossed, grained, processed, finished or stitched in a certain manner when the claims are not true. Use of the terms ``scuffproof,'' ``scratchproof,'' ``scuff resistant,'' and ``scratch resistant'' is also covered by the Ladies' Handbag Guides. The Guides also state that members of the industry should not make deceptive representations about the price of their products. In addition, the Handbag Guides discuss the issues of price discrimination, and discrimination in promotional allowances and services. The Guides state that industry members should neither grant nor knowingly induce or receive terms of trade in these respects that are improperly discriminatory. The Commission is concerned, however, that these interpretive statements in large part may be needlessly duplicative of sections (a) and (f) of the Robinson-Patman Act with respect to price discrimination, and duplicative of the so-called Fred Meyer Guides, which interpret sections (d) and (e) of the Robinson- Patman Act and section 5 of the Federal Trade Commission Act, with respect to discriminatory promotional allowances and services. See Guides for Advertising Allowances and Other Merchandising Payments and Services, 16 CFR part 240. Moreover, it is possible that general issues of price discrimination are best clarified through statements of general policy, such as that contained in the Fred Meyer Guides, rather than through industry-specific statements such as the Handbag Guides. B. Questions for Comment The Commission solicits comments on the following questions with respect to the Luggage Guides, the Shoe Content Guides, and the Handbag Guides: (1) Is there a continuing need for the Guides? (a) What benefits have the Guides provided to purchasers of the products or services affected by the Guides? (b) Have the Guides imposed costs on purchasers? (2) What changes, if any, should be made to the Guides to increase the benefits of the Guides to purchasers? (a) How would these changes affect the costs the Guides impose on firms subject to their requirements? (b) Would it be useful to the affected industries if the Luggage Guides, the Shoe Content Guides, and the Handbag Guides were combined into one set of industry guides that address all of these products or leather products in general? (3) What significant burdens or costs, including costs of adherence, have the Guides imposed on firms subject to their requirements? (a) Have the Guides provided benefits to such firms? (4) What changes, if any, should be made to the Guides to reduce the burdens of costs imposed on firms subject to their requirements? (a) How would these changes affect the benefits provided by the Guides? (5) Do the Guides overlap or conflict with other federal, state, or local laws or regulations? (6) Since the Guides were issued, what effects, if any, have changes in relevant technology or economic conditions had on the Guides? (7) Do members of the ladies' handbag industry require these industry-specific Guides for information about the standards applicable to price discrimination and discriminatory promotional allowances, or could equally helpful guidance be obtained from more general sources such as the Fred Meyer Guides? Authority: 15 U.S.C. 41-58. List of Subjects in 16 CFR Parts 24, 231, and 247 Advertising, Distribution, Labeling, Ladies' handbags, Luggage and related products, Price discrimination, Promotional allowances, Shoes, Trade practice. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 95-7468 Filed 3-24-95; 8:45 am] BILLING CODE 6750-01-M