[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]



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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.

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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