[Federal Register Volume 61, Number 100 (Wednesday, May 22, 1996)]
[Rules and Regulations]
[Pages 25560-25561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12817]



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FEDERAL TRADE COMMISSION

16 CFR Part 405


Trade Regulation Rule on Misbranding and Deception as to Leather 
Content of Waist Belts

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission announces the removal of the 
Trade Regulation Rule concerning Misbranding and Deception as to 
Leather Content of Waist Belts (Leather Belt Rule or Rule), 16 CFR Part 
405. The Commission has reviewed the rulemaking record and determined 
that the Leather Belt Rule is no longer necessary. The proposed Guides 
for Select Leather and Imitation Leather Products will cover belts and 
the benefits of the Rule are retained through the inclusion of belts in 
the proposed Guides. Repealing the Leather Belt Rule eliminates 
unnecessary duplication. Further, if necessary, the Commission can 
address misrepresentations involving leather belts on a case-by-case 
basis, administratively under Section 5 of the Federal Trade Commission 
Act (FTC Act), 15 U.S.C. 45, or through enforcement actions under 
Section 13(b), 15 U.S.C. 53(b), in federal district court. Such actions 
can provide additional guidance to industry members on what practices 
are unfair or deceptive.

EFFECTIVE DATE: May 22, 1996.

ADDRESSES: Requests for copies of the Statement of Basis and Purpose 
should be sent to the FTC's Public Reference Branch, Room 130, 6th 
Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; (202) 
326-2222; TTY for the hearing impaired (202) 326-2502.

FOR FURTHER INFORMATION CONTACT:
Lemuel Dowdy or Edwin Rodriguez, Attorneys, Federal Trade Commission, 
Division of Enforcement, Bureau of Consumer Protection, Sixth Street 
and Pennsylvania Avenue, NW, Washington, DC 20580, (202) 326-2981 or 
(202) 326-3147.

SUPPLEMENTARY INFORMATION: 

Statement of Basis and Purpose

I. Background

    The Trade Regulation Rule concerning Misbranding and Deception as 
to Leather Content of Waist Belts, 16 CFR Part 405, was promulgated on 
June 27, 1964, to remedy deceptive practices involving 
misrepresentations about the leather content of waist belts that are 
not offered for sale as part of a garment. The Rule prohibits 
representations that belts are made from the hide or skin of an animal 
when such is not the case, or that belts are made of a specified animal 
hide or skin when such is not the case. In addition, the Rule requires 
that belts made of split leather, and ground, pulverized or shredded 
leather bear a label or tag disclosing the kind of leather of which the 
belt is composed. The Rule also requires that non-leather belts having 
the appearance of leather bear a tag or label disclosing their 
composition or disclosing that they are not leather.
    As part of its continuing review of its trade regulation rules to 
determine their current effectiveness and impact, the Commission 
published a Federal Register notice on March 27, 1995, 60 FR 15725, 
asking questions about the benefits and burdens of the Rule to 
consumers and industry. On the same date, the Commission published a 
Federal Register notice, 60 FR 15724, soliciting comment on its 
Industry Guides for luggage, shoes, and ladies' handbags.\1\ After 
reviewing the comments received in response to these two notices, on 
September 18, 1995, the Commission published an Advance Notice of 
Proposed Rulemaking (ANPR) seeking comment on its proposal to repeal 
the Leather Belt Rule, 60 FR 48070. On the same day, the Commission 
published two other notices, one announcing the rescission of the three 
separate guides for luggage, shoes, and handbags, 60 FR 48027, and the 
second seeking comment on one set of proposed, consolidated guidelines, 
entitled the Guides for Select Leather and Imitation Leather Products, 
60 FR 48056. The ANPR proposing the repeal of the Rule stated that, 
because the proposed Guides would cover belts, the Commission had 
tentatively determined that a separate Leather Belt Rule was no longer 
necessary.
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    \1\ See Guides for the Luggage and Related Products Industry, 16 
CFR Part 24; Guides for Shoe Content Labeling and Advertising, 16 
CFR Part 231; and Guides for the Ladies' Handbag Industry, 16 CFR 
Part 247.
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    The Commission received two comments in response to the ANPR.\2\ 
One of these comments supported retention of the existing Leather Belt 
Rule because the commenter believed that rescission of the Rule may 
decrease the accuracy of the labeling of waist belts.\3\ The other 
comment supported consolidating the Rule into one set of guidelines 
governing disclosures of the content of leather products.\4\
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    \2\ The comments were submitted by Larry E. Gundersen (1), a 
consumer, and Humphreys Inc. (2), a manufacturer of leather belts.
    \3\ Gundersen (1).
    \4\ Humphreys Inc. (2).
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    After reviewing the comments submitted, on March 5, 1996, the 
Commission published a Notice of Proposed Rulemaking (NPR), 61 FR 8499, 
initiating a rulemaking proceeding to consider whether the Leather Belt 
Rule should be repealed or remain in effect. The Commission stated it 
would hold a public hearing for the presentation of testimony, if there 
was interest. No one requested that the Commission hold a hearing. In 
response to the NPR, the Commission received one comment, which 
expressed no objection to the repeal of the Leather Belt Rule.\5\
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    \5\ This comment was submitted by Luggage and Leather Goods 
Manufacturers of America, Inc. (LLGMA). The comment also expressed 
no objection to the inclusion of belts in the Guides for Select 
Leather and Imitation Leather Products and stated that LLGMA would 
publish the Guides in its magazine when they are adopted.
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II. Basis for Repeal of Rule

    The Commission has decided to repeal the Leather Belt Rule for the 
reasons discussed in the NPR. In sum, the Commission has determined 
that the benefits of the Rule are retained through the inclusion of 
belts in the proposed Guides for Select Leather and Imitation Leather 
Products. While repealing the Rule would eliminate the Commission's 
ability to obtain civil penalties for any future misrepresentations of 
the leather content of belts, the Commission has determined that this 
action would not seriously jeopardize the Commission's ability to act 
effectively to prevent the mislabeling of leather belts. Any 
significant problems that might arise could be addressed on a case-by-
case basis, administratively under Section 5 of the FTC Act, 15 U.S.C. 
45, or through enforcement actions under Section 13(b), 15 U.S.C. 
53(b), in federal district court. Prosecuting serious or knowing 
misrepresentations in district court allows the Commission to seek 
injunctive relief as well as equitable

[[Page 25561]]

remedies, such as redress or disgorgement. Any necessary administrative 
or district court actions would also serve to provide industry members 
with additional guidance about what practices are unfair or deceptive.
    In addition, the Commission has concluded that including belts in 
the proposed Guides and eliminating the Rule reduces duplication and 
streamlines the regulatory scheme, thereby responding to President 
Clinton's National Regulatory Reinvention Initiative, which, among 
other things, urges agencies to eliminate obsolete or unnecessary 
regulations. Accordingly, the Commission has determined that a separate 
Leather Belt Rule is not necessary and hereby announces the repeal of 
the Rule.

III. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-11, requires an 
analysis of the anticipated impact of the repeal of the Rule on small 
businesses. The reasons for repeal of the Rule have been explained in 
this Notice. Repeal of the Rule would appear to have little or no 
effect on small business. The Commission did not receive any 
information in response to the ANPR and NPR that supports a different 
conclusion. Moreover, the commission is not aware of any existing 
federal laws and regulations that would conflict with repeal of the 
Rule. For these reasons, the Commission certifies, pursuant to Section 
605 of the RFA, 5 U.S.C. 605, that this action will not have a 
significant economic impact on a substantial number of small entities.

IV. Paperwork Reduction Act

    The Leather Belt Rule imposes third-party disclosure requirements 
that constitute ``information collection requirements'' under the 
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Accordingly, repeal of 
the Rule would eliminate any burdens on the public imposed by these 
disclosure requirements.

List of Subjects in 16 CFR Part 405

    Advertising, Clothing, Labeling, Leather and leather products 
industry, Trade practices.

PART 405--[REMOVED]

    The Commission, under authority of Section 18 of the Federal Trade 
Commission Act, 15 U.S.C. 57a, amends chapter 1 of title 16 of the Code 
of Federal Regulations by removing Part 405.

    Authority: 15 U.S.C. 41-58.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-12817 Filed 5-21-96; 8:45 am]
BILLING CODE 6750-01-M