SEC. 2. FINDINGS.
The Congress finds that—
(1) the Secretary of Labor has conducted 3 de-
tailed studies that document the fact that abusive
and exploitative child labor exists worldwide;
(2) the Secretary of Labor has also determined,
through the studies referred to in paragraph (1),
that child laborers are often forced to work beyond
their physical capacities, under conditions that
threaten their health, safety, and development, and
are denied basic educational opportunities;
(3) in most instances, countries that have abu-
sive and exploitative child labor also experience a
high adult unemployment rate;
(4) the International Labor Organization (com-
monly known as the ‘‘ILO’’) estimates that—
(A) approximately 250,000,000 children
between the ages of 5 and 14 are working in
developing countries; and
(B) many of those children manufacture
wearing apparel or sporting goods that are of-
fered for sale in the United States;
(5) consumers in the United States spend bil-
lions of dollars each year on wearing apparel and
sporting goods;
(6) consumers in the United States have the
right to information on whether the articles of wear-
ing apparel (including any section of that wearing
apparel) or sporting goods that they purchase are
made without abusive and exploitative child labor;
(7) the rugmark labeling and monitoring system
is a successful model for eliminating abusive and ex-
ploitative child labor in the rug industry;
(8) the labeling of wearing apparel or sporting
goods would provide the information referred to in
paragraph (6) to consumers; and
(9) it is important to recognize United States
businesses that have effective programs to ensure
that products sold in the United States are not
made with abusive and exploitative child labor.
TITLE I—CHILD LABOR FREE
LABELING STANDARDS
SEC. 101. CHILD LABOR FREE LABELING STANDARDS.
(a) ESTABLISHMENT OF LABELING STANDARDS.—
(1) IN
GENERAL.—Not later than 180 days
after the date of enactment of this Act, the Sec-
retary of Labor, in consultation with the Child
Labor Free Commission established under section
201, shall issue regulations to ensure that a label
using the terms ‘‘Not Made With Child Labor’’,
‘‘Child Labor Free’’, or any other term or symbol re-
ferring to child labor does not make a false state-
ment or suggestion that the article or section of
wearing apparel or sporting good was not made with
child labor. The regulations developed under this
section shall encourage the use of an easily identifi-
able symbol or term indicating that the article or
section of wearing apparel or sporting good was not
made with child labor.
(2) NOTIFICATION ON USE.—
(A) IN GENERAL.—A producer, importer,
exporter, distributor, or other person intending
to use any label referred to in paragraph (1)
shall submit a notification to the Commission
for review under subparagraph (C).
(B) NOTIFICATION.—The notification re-
ferred to in subparagraph (A) shall include in-
formation concerning the source of the article
or section of wearing apparel or sporting good
to which the label will be affixed, including—
(i) the country in which the article or
section of wearing apparel or sporting good
is manufactured;
(ii) the name and location of the man-
ufacturer; and
(iii) 
information 
concerning 
any
outsourcing by the manufacturer in the
manufacture of the article or section of
wearing apparel or sporting good.
(C) REVIEW OF NOTIFICATION.—Upon re-
ceipt of the notification, the Commission shall
review the notification and inform the Secretary
of Labor concerning the findings of the review.
The permission of the Secretary of Labor shall
be required for the use of the label. The Sec-
retary of Labor, in consultation with the Com-
mission, shall establish procedures for granting
permission to use a label under this subpara-
graph.
(3) FEE.—The Secretary of Labor is authorized
to charge a fee to cover the expenses of the Commis-
sion in reviewing a notification under paragraph (2).
The level of fees charged under this subparagraph
shall not exceed the administrative costs incurred in
reviewing a notification. Fees collected under this
paragraph shall be available to the Secretary of
Labor for expenses incurred in the review and re-
sponse of the Commission under this subsection.
(4) APPLICABILITY.—The regulations issued
under paragraph (1) shall apply to any label con-
tained in—
(A) an article or section of wearing apparel
or sporting good that is exported from or of-
fered for sale in the United States;
(B) any packaging thereof; or
(C) any advertising for an article or sec-
tion of wearing apparel or sporting good re-
ferred to in subparagraph (A).
(5) EFFECTIVE DATE.—The regulations issued
under paragraph (1) shall take effect on the date
that is 180 days after the date of publication as
final regulations.
(b) VIOLATION OF SECTION 5 OF THE FEDERAL
TRADE COMMISSION ACT.—It is a violation of section 5
of the Federal Trade Commission Act (15 U.S.C. 45) for
any producer, importer, exporter, distributor, or seller of
any article or section of wearing apparel or sporting good
that is exported from or offered for sale in the United
States—
(1) to falsely indicate on the label of that article
or section of wearing apparel or sporting good, the
packaging of the article or section of wearing ap-
parel or sporting good, or any advertising for the ar-
of such Act, or under subparagraph (C) for a continuing
failure that is considered to be a violation of this section
by reason of section 101(b) of such Act, if that violation—
‘‘(aa) is a knowing or willful violation, the
amount of a civil penalty for the violation shall be
determined under clause (ii); or
‘‘(bb) is not a knowing or willful violation, no
penalty shall be assessed against the person, part-
nership, or corporation that committed the violation.
‘‘(II) For purposes of this subparagraph, if in an ac-
tion referred to in subclause (I), if the Commission asserts
that a violation is a knowing and willful violation, the de-
fendant shall bear the burden of proving otherwise.
‘‘(ii) The amount of a civil penalty for a violation
under clause (i)(I)(aa) that is committed shall be—
‘‘(I) for an initial violation, an amount equal to
the greater of—
‘‘(aa) 2 times the retail value of the arti-
cles of wearing apparel or sporting goods mis-
labeled; or
‘‘(bb) $200,000; and
‘‘(II) for any subsequent violation, an amount
equal to the greater of—
‘‘(aa) 4 times the retail value of the arti-
cles of wearing apparel or sporting goods mis-
labeled; or
‘‘(bb) $400,000.’’.
(d) SPECIAL FUND TO ASSIST CHILDREN.—
(1) CREATION OF FUND.—There is established
in the United States Treasury a special fund to be
known as the ‘‘Free the Children Fund’’.
(2) DEPOSITS INTO FUND.—An amount equal
to the amount of penalties collected under this sec-
tion shall be deposited into the special fund. The
Secretary of the Treasury shall, upon request of the
Secretary of Labor, make the amounts deposited
into the special fund available to the Secretary of
Labor for use by the Secretary of Labor for edu-
cational and other programs described in paragraph
(3).
(3) AUTHORIZATION.—Amounts deposited into
the special fund are authorized to be appropriated
annually for educational and other programs with
the goal of eliminating child labor.
(e) OTHER INDUSTRIES.—The Commission may, as
appropriate, develop labeling standards similar to the la-
beling standards developed under this section for any in-
dustry that is not otherwise covered under this Act and
recommend to the Secretary of Labor that those standards
be promulgated. If the standards are promulgated by the
Secretary of Labor—
(1) the provisions of this Act and the amend-
ments made by this Act shall apply to the labeling
covered by those standards in the same manner as
they apply to any other standards promulgated by
the Secretary of Labor under this section; and
(2) it shall be a violation of section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) for
any producer, importer, exporter, distributor, or sell-
er of any good that is covered under the labeling
standards and that is exported from or offered for
sale in the United States—
(A) to falsely indicate on the label of that
good, the packaging thereof, or any related ad-
vertising that the good was not made with child
labor; or
(B) to otherwise falsely claim or suggest
that the good was not made with child labor.
SEC. 102. REVIEW OF PETITIONS BY THE CHILD LABOR
FREE COMMISSION.
(a) IN GENERAL.—In addition to the procedures es-
tablished under section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45), the Child Labor Free Commis-
sion established under section 201 shall assist the Federal
Trade Commission by reviewing petitions under this sec-
tion.
(b) CONTENTS OF PETITIONS.—A petition under this
section shall—
(1) be submitted in such form and in such man-
ner as the Federal Trade Commission, in consulta-
tion with the Secretary of Labor and the Child
Labor Free Commission, shall prescribe;
(2) contain the name of the—
(A) petitioner; and
(B) person or entity involved in the alleged
violation of the labeling standards under section
101; and
(3) provide a detailed explanation of the alleged
violation, including all available evidence.
(c) REVIEW BY COMMISSION.—
(1) IN
GENERAL.—The Commission shall, to
the maximum extent practicable, not later than 90
days after receiving a petition, review the petition to
determine whether there appears to have been a vio-
lation of the labeling standards.
(2) ACTION BY THE FEDERAL TRADE COMMIS-
SION.—
(A) IN GENERAL.—Upon completion of a
review conducted under paragraph (1), the
Commission shall forward the petition to the
Secretary of Labor, together with a report by
the Commission containing a determination by
the Commission concerning the merits of the
petition, including whether a violation of the la-
beling standards occurred and whether there
appears to have been a knowing and willful
(within the meaning of section 5(m)(1)(D)(i) of
the Federal Trade Commission Act, as added
by section 101(c) of this Act) or repeated viola-
tion of those standards.
(B) DUTIES
OF
THE
SECRETARY
OF
LABOR.—Upon receipt of the petition and re-
port, the Secretary of Labor shall—
(i) forward a copy of the petition and
report to the Federal Trade Commission
for review by the Federal Trade Commis-
sion; and
(ii) review the petition and report.
(3) TEMPORARY WITHDRAWAL OF PERMISSION;
ORDER TO CEASE AND DESIST.—
(A) TEMPORARY WITHDRAWAL OF PERMIS-
SION.—If the Secretary of Labor determines,
on the basis of the report referred to in para-
graph (2), that there is a substantial likelihood
that a violation of the labeling standards pro-
mulgated under section 101 has occurred, the
Secretary of Labor may temporarily withdraw
the 
permission 
granted 
under 
section
101(a)(2)(C) and inform the Federal Trade
Commission of the action and the reason for
the action.
(B) ORDER TO CEASE AND DESIST.—If the
Federal Trade Commission concurs with a de-
termination of the Child Labor Free Commis-
sion in the report referred to in subparagraph
(A) that a violation of the labeling standards
has occurred, the Federal Trade Commission
shall take such action as may be necessary
under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) to cause the person or entity
in violation of the labeling standards under sec-
tion 101 to cease and desist from violating
those standards immediately upon that concur-
rence.
TITLE II—CHILD LABOR FREE
COMMISSION
SEC. 201. ESTABLISHMENT OF COMMISSION.
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the ‘‘Child Labor Free Commis-
sion’’.
(b) MEMBERSHIP.—
(1) COMPOSITION.—The Commission shall be
composed of 17 members, of whom—
(A) 1 shall be the Secretary of Commerce
or a designee of the Secretary of Commerce;
(B) 1 shall be the Secretary of the Treas-
ury or a designee of the Secretary of the Treas-
ury;
(C) 1 shall be the United States Trade
Representative or a designee of the United
States Trade Representative;
(D) 1 shall be the Secretary of Labor or
a designee of the Secretary of Labor, who shall
serve as the Chairperson of the Commission;
(E) 3 shall be representatives of non-
governmental organizations that work toward
the eradication of abusive and exploitative child
labor and in the promotion of human rights,
appointed by the Secretary of Labor;
(F) 3 shall be representatives of labor or-
ganizations, appointed by the Secretary of
Labor;
(G) 3 shall be representatives of the wear-
ing apparel industry, appointed by the Sec-
retary of Labor;
(H) 3 shall be representatives of the sport-
ing goods industry, appointed by the Secretary
of Labor; and
(I) 1 additional member shall be appointed
by the Secretary of Labor.
(2) DATE.—The appointments of the members
of the Commission shall be made not later than 60
days after the date of enactment of this Act.
(c) PERIOD OF APPOINTMENT; VACANCIES.—
(1) PERIOD OF APPOINTMENT.—Each member
of the Commission shall serve for a term of 4 years,
except that in appointing the initial members of the
Commission, the Secretary of Labor shall stagger
the terms of the non-Federal members.
(2) VACANCIES.—Any vacancy in the Commis-
sion shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(d) INITIAL MEETING.—Not later than 30 days after
the date on which all members of the Commission have
been appointed, the Commission shall hold its first meet-
ing.
(e) MEETINGS.—The Commission shall meet at the
call of the Chairperson or at the request of a majority
of the members.
(f) QUORUM.—A majority of the members of the
Commission shall constitute a quorum, but a lesser num-
ber of members may hold hearings or other meetings.
SEC. 202. DUTIES OF THE COMMISSION.
The Commission shall—
(1) assist the Secretary of Labor in developing
labeling standards under section 101; and
(2) assist the Secretary of Labor in developing
and implementing a system to ensure compliance
with the labeling standards established under section
101, including—
(A) receiving, reviewing, and making rec-
ommendations for the resolution of petitions re-
ceived under section 102 that allege noncompli-
ance with the labeling standards under section
101;
(B) making recommendations to the Sec-
retary of Labor for the removal of labels subject
to the standards under section 101 that are
found to be in violation of those standards;
(C) assisting the Secretary of Labor in de-
veloping and implementing a system to promote
the increased use of the labeling standards
under section 101;
(D) publishing, not less frequently than
annually, a list of persons and entities that
have notified the Commission of their intent to
use a label under section 101(a)(2); and
(E) publishing, not less frequently than
annually, a list of persons and entities found to
be in violation of any provision of this Act; and
(3) not later than 1 year after the date of the
establishment of the Commission, commence a study
into the feasibility of developing an easily identifi-
able labeling standard that the Secretary of Labor
may issue to encourage the use of voluntary labels
that ensure consumers that an article of wearing ap-
parel or sporting good was made without the use of
sweatshop or exploited adult labor.
SEC. 203. POWERS OF THE COMMISSION.
(a) HEARINGS.—The Commission may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission
considers advisable to carry out the duties of the Commis-
sion under this title.
services, funds, facilities, staff, and other support services
as may be necessary for the performance of its functions.
TITLE III—RECOGNITION OF EX-
EMPLARY 
CORPORATE 
EF-
FORTS
SEC. 301. ANNUAL REPORT.
Not later than 1 year after the date of enactment
of this Act, and annually thereafter, the Secretary of
Labor shall issue a report concerning companies that are
making exemplary progress in ensuring that products
made, sold, or distributed by those companies are not
made with abusive and exploitative child labor.
SEC. 302. ADDITIONAL METHODS.
In addition to the reports made under section 301,
the Secretary of Labor in consultation with the Commis-
sion shall develop and implement other methods of provid-
ing recognition for exemplary programs carried out by
companies to ensure that products made, sold, or distrib-
uted by those companies are not made with abusive and
exploitative child labor.
TITLE IV—DEFINITIONS
SEC. 401. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
(1) CHILD.—The term ‘‘child’’ means—
(A) an individual who has not attained the
age of 15 years, as measured by the Julian cal-
endar; or
(B) an individual who has not attained the
age of 14 years, as measured by the Julian cal-
endar, in the case of an individual who resides
in a country that, by law, defines a child as
such an individual.
(2) COMMISSION.—The term ‘‘Commission’’
means the Child Labor Free Commission established
under section 201.
(3) LABEL.—The term ‘‘label’’ means a display
of written, printed, or graphic matter on or affixed
to an article of wearing apparel or a sporting good
or on the packaging of the article or a sporting good
that meets the standards described in section
101(a).
(4) MADE WITH CHILD LABOR.—
(A) IN GENERAL.—A manufactured article
or section of wearing apparel or a sporting good
shall be considered to have been made with
child labor if the article or section—
(i) was fabricated, assembled, or proc-
essed in whole or in part; or
(ii) contains any part that was fab-
ricated assembled, or processed in whole or
in part,
by any child described in subparagraph (B).
(B) COVERED CHILDREN.—A child is de-
scribed in this subparagraph if that child en-
gaged in the fabrication, assembly, or process-
ing of the article or section—
(i) in exchange for remuneration
(without regard to whom the remuneration
is paid), subsistence, goods or services, or
any combination thereof;
(ii) under circumstances tantamount
to involuntary servitude; or
(iii) under—
(I) exposure to toxic substances
or working conditions that otherwise
pose serious health hazards; or
(II) working conditions that re-
sult in the child’s being deprived of
basic educational opportunities.
(5) PRODUCER.—The term ‘‘producer’’ includes
a contractor or subcontractor of a manufacturer of
all or part of a good.
(6) SPORTING
GOOD.—The term ‘‘sporting
good’’ shall have the meaning provided that term by
the Secretary of Labor.
(7) WEARING
APPAREL.—The term ‘‘wearing
apparel’’ shall have the meaning provided that term
by the Secretary of Labor.
Æ