[Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
[Notices]
[Pages 48162-48163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23078]
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FEDERAL TRADE COMMISSION
``Made in USA'' Consumer Perception Study Information Collection
Requirements
AGENCY: Federal Trade Commission.
ACTION: Notice of application to OMB under the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.) for clearance of information collections to
gather information on consumer perception and attitudes regarding
``Made in USA'' and other country of origin advertising and labeling
claims.
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SUMMARY: OMB clearance is being sought for two questionnaires to be
used in connection with a survey to gather information regarding ``Made
in USA'' and other country of origin claims in advertising and labeling
of products. Section 5 of the Federal Trade Commission Act, 15 U.S.C.
45, directs the Commission to prevent ``deceptive acts and practices.''
Under this general authority, the Commission has prohibited deceptive
``Made in USA'' claims in product advertising and labeling. The
Commission's longstanding standard in this area is that a manufacturer
can make an unqualified ``Made in USA'' claim only if the product is
``wholly of domestic origin.'' See, e.g., Windsor Pen Corp., 64 F.T.C.
454 (1964).
Recently, the Commission sought public comments on a proposed
consent agreement prohibiting unqualified ``Made in USA'' claims for
both imported products and products assembled in the United States from
domestic and foreign components. In response, the Commission received
150 comments, many of which urged reconsideration of the standard,
stating that it is too stringent, does not reflect current consumer
perceptions in today's globalized economy, and is inconsistent with
other government standards. At the same time, Congress has shown
interest in this issue, most notably by passing the 1994 Crime Bill,
which provides that certain ``Made in USA'' labels must comply with the
Commission's standards under Section 5 of the FTC Act. On July 11,
1995, the Commission announced that it would re-examine the standard by
(1) conducting a comprehensive review of consumers' perceptions of
``Made in USA'' and
[[Page 48163]]
similar claims and (2) holding a public workshop to examine issues
relevant to the standard.
The proposed survey is necessary to assist the Commission in
evaluating its existing standard, determining whether it should be
changed, and formulating a new standard if appropriate. The
Commission's existing ``Made in USA'' policy is supported by a 1991
study showing that approximately 77% of consumers who were asked about
an unqualified ``Made in USA'' claim interpreted the claim to mean that
``all or nearly all'' parts and labor are domestic. The test involved
two different products and asked questions of 400 participants.
While the test results appear to support the Commission's existing
policy, evidence also suggests that consumer perceptions are influenced
by the nature of the claims and the product being tested. Therefore,
the Commission believes that testing different claims and different
products would provide a more complete understanding of consumer
perceptions of country of origin claims. In addition, including a
larger number of consumers in the survey will provide a broader basis
from which to evaluate consumer perceptions. Finally, consumer
perceptions may have changed--even since 1991--due to the rapid
globalization of our economy. These changes may have occurred to
differing extents for different products.
Accordingly, the survey is designed to expand the Commission's
knowledge by eliciting, for several different products, current
consumer perceptions of country of origin claims, including ``Made in
USA claims.'' Although consumer perceptions and attitudes are not the
only factors to consider in determining the appropriate standard for
law enforcement in this area, they are extremely important because they
help to identify which claims deceive consumers. The survey data will
also be used to assist the Commission in preparing for the upcoming
public workshop and ensuring that the workshop is as useful,
productive, and focused as possible.
The FTC is seeking clearance for two questionnaires to be used in
connection with the survey. Both questionnaires will be used to
interview adult consumers in shopping malls around the country. Using
the first questionnaire, approximately 1,200 consumers will be shown
advertisements and/or product labels and then asked questions
concerning product claims. This questionnaire consists of approximately
30 questions and will take an estimated ten minutes to complete, for a
total burden estimate of 200 hours.
The second questionnaire will be used to ask an additional 400
consumers different questions about product claims. It consists of
approximately 15 questions and will take an estimated ten minutes to
complete, for a total burden estimate of 67 hours.
DATES: Comments on this clearance application must be submitted on or
before October 18, 1995.
ADDRESSES: Send comments both to the Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 3228, Washington, DC 20503, Attn: Desk Officer
for the Federal Trade Commission and to the Office of the General
Counsel, Federal Trade Commission, Washington, DC 20580. Copies of the
application may be obtained from the Public Reference Section, Room
130, Federal Trade Commission, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Robert Easton, Special Assistant, Division of Enforcement, Bureau of
Consumer Protection, Federal Trade Commission, Washington, DC 20580
(202) 326-3029.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-23078 Filed 9-15-95; 8:45 am]
BILLING CODE 6750-01-M
