[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26937]
[[Page Unknown]]
[Federal Register: October 31, 1994]
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FEDERAL TRADE COMMISSION
[File No. 922 3236]
Hyde Athletic Industries, Inc.; Proposed Consent Agreement With
Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Corrections in Analysis To Aid Public Comment.
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SUMMARY: This document contains a corrected version of the Analysis to
Aid Public Comment which was published on Friday, September 23, 1994
(59 FR 48892), in connection with a consent agreement accepted subject
to final approval by the Federal Trade Commission. The consent
agreement would settle alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition by
prohibiting a Massachusetts footwear marketer from, among other things,
misrepresenting the extent to which any footwear is made in the United
States. It would also require the respondent to maintain materials
relied upon for any country of origin representations and to distribute
copies of the Commission order to its operating divisions and certain
company officials. The corrected version of the Analysis to Aid Public
Comment is attached.
FOR FURTHER INFORMATION CONTACT:
C. Steven Baker, Chicago Regional Office, Federal Trade Commission, 55
East Monroe St., Suite 1437, Chicago IL 60603. (312) 353-8156.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from respondent Hyde
Athletic Industries, Inc.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
This matter concerns country of origin claims made by the
respondent for its ``Saucony'' brand footwear, which appeared in
respondent's advertising and on labeling for certain of its footwear.
The Commission's complaint charges that respondent represented that
Saucony footwear is made in the United States, that is, that all or
virtually all of the component parts of the footwear are made in the
United States, and all or virtually all of the labor in assembling the
footwear is performed in the United States. The complaint alleges that
this claim is false and misleading because a substantial amount of
Saucony footwear is assembled in foreign countries of foreign component
parts, and a substantial amount of Saucony footwear assembled in the
United States consists largely of foreign component parts.
The proposed consent order contains provisions designed to remedy
the violations charged and to prevent the respondent from engaging in
similar acts and practices in the future. Part I of the proposed order
prohibits the respondent from misrepresenting, directly or by
implication, the extent to which any footwear is made in the United
States. This Part provides, however, that ``Made in the USA'' claims
will not violate the order if all or virtually all of the parts and
labor are of domestic origin. This Part also contains a safe harbor
provision that specifies language respondent can use when making a
country of origin disclosure for footwear that is made or assembled in
one country in whole or in part of materials made in another country.
Part II of the proposed consent order provides that the respondent
may continue to deplete its existing inventory of footwear and footwear
packaging printed or labeled prior to the date of service of this
order, provided that the respondent itself does not sell or distribute
that inventory more than ninety (90) days after the date of service of
the order.
The remaining parts of the proposed consent order require the
respondent to maintain materials relied upon in disseminating any
country of origin representations, to distribute copies of the order to
each of its operating divisions and to certain company officials, to
notify the Commission of certain changes in corporate structure, and to
file one or more compliance reports.
The standard set forth in the complaint and proposed order for an
unqualified ``Made in the USA'' (or the like) claim is that all or
virtually all of the parts and labor used in the manufacture of the
product must be of domestic origin. This standard is consistent with
Commission case precedent,\1\ certain other statutes enforced by the
Commission,\2\ and extrinsic evidence obtained by the Commission
regarding consumer perceptions of ``Made in USA'' claims. The
Commission would be interested in receiving any information relevant to
its standard for ``Made in USA'' claims, including information on the
competitive and other effects of this standard and on consumer
perceptions of country of origin claims.
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\1\See, e.g., Windsor Pen Corp., 64 F.T.C. 454 (1964); Joseph H.
Meyer Bros., 47 F.T.C. 49 (1950); Vulcan Lamp Works, Inc., 32 F.T.C.
7 (1940). The Commission's advisory opinions have also set forth
this standard. See, e.g., Advisory Opinion No. 215, Misrepresenting
Hoist as ``Made in U.S.A.,'' 73 F.T.C. 1321 (1968).
\2\Wool Products Labeling Act, 15 U.S.C. Secs. 68-68j (1973 &
Supp. 1994); Textile Fiber Products Identification Act, 15 U.S.C.
Secs. 70-70k (1972 & Supp. 1994).
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The purpose of this analysis is to facilitate public comment on the
proposed consent order. It is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
Donal S. Clark,
Secretary.
[FR Doc. 94-26937 Filed 10-28-94; 8:45 am]
BILLING CODE 6750-01-M
