[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
