Page images
PDF
EPUB

in U.S.A.' although a legend 'Assembled in U.S.A. of [name of country] components' would be proper."

[33 F.R. 5661, Apr. 12, 1968]

§ 15.216

Affirmative misrepresentation as to origin of photographic accessories.

(a) The Commission rendered an advisory opinion in regard to the proper labeling of the origin of photographic accessories which are imported in whole or in part from a foreign country.

(b) In the opinion the Commission ruled upon the following three questions which were presented to it. First, what percentage of foreign made components can a product contain and still be properly labeled as "Made in U.S.A."? Second, in the absence of a "Made in U.S.A." claim, when is it necessary to disclose the foreign country of origin of an imported product? Third, does the Commission have any specific regulations as to size, material, and location whenever it is necessary to disclose the origin of an imported product?

(c) In response to the first question, the Commission said: "* * * the 'Made in U.S.A.' mark would constitute an affirmative representation that the product was made in its entirety in the United States. If the product did in fact contain foreign made components of a substantial nature, it would be improper to label the finished product as 'Made in U.S.A.' without a clear and conspicuous disclosure indicating the identity of the imported components and the foreign country of origin thereof."

(d) With respect to the second question, the Commission stated that it is somewhat hypothetical in that it does not involve a specific proposed course of action, and therefore it is not the proper subject for an advisory opinion.

(e) In regard to the third and final question, the Commission stated that it had no specific regulations as to the exact size, etc., of the disclosure. The Commission said that it would have to state the rule in general terms because the facts of each case may be different. The basic requirement, the Commission said, is that the disclosure must be of such conspicuousness as to be likely observed by prospective purchasers making casual inspection of the merchandise and of such degree of permanency So as to remain thereon until consummation of the consumer sale thereof.

[33 FR. 5661, Apr. 12, 1968]

§ 15.217

Manufacturer may not mark "Made in U.S.A." on imported blades. of cutlery finished and assembled in the United States.

(a) The Commission issued another advisory opinion in a series concerning commodities of partial or total foreign origin.

(b) The Commission advised a manufacturer in this country, the applicant for an advisory opinion, that he may not mark "Made in U.S.A." on imported blades of cutlery to be finished and assembled in the United States. The Commission noted that a blade is a significant component of cutlery. The Commission called attention to the danger that the contemplated marking might violate section 5 of the Federal Trade Commission Act.

[33 F.R. 5790, Apr. 16, 1968]

§ 15.218 Country of origin labeling on food machinery containing imported

components.

(a) The Commission rendered an advisory opinion in regard to representations concerning the origin of goods. which are produced domestically but which contain imported components.

(b) Specifically, the Commission ruled that food machinery may not be represented affirmatively as being of domestic origin unless it is made in its entirety in the United States.

(c) Under the factual situation presented to the Commission, the requesting party proposes to produce a food machine here in the United States which will contain some components imported from a foreign country. Specifically, the requesting party wanted to know what percentage of the machine must be made in the United States before it can be affirmatively represented as an American-made product.

(d) Although the Commission ruled that such a machine could not be affirmatively represented as being of domestic origin, it further stated the ruling does not prevent the vendor from making a factual disclosure of the percentage of American-made parts as contrasted with the percentage imported, should the vendor desire to make such a representation. [33 F.R. 5790, Apr. 16, 1968]

§ 15.219 Disclosure of foreign origin of contents on package bearing name suggesting domestic origin.

(a) The Commission issued an advisory opinion dealing with the failure to

disclose the foreign origin of imported switch plates. The package containing the switch plates was labeled with a company name suggesting that the product was of domestic origin.

(b) Under these circumstances, the Commission required that the foreign origin of the product be disclosed in conjunction with the company name. [33 F.R. 5791, Apr. 16, 1968]

§ 15.220 Foreign country of origin disclosure on imported tools.

(a) The Commission rendered an advisory opinion in regard to the proper labeling of the country of origin of certain imported tools.

(b) Specifically, the requesting party wanted to know whether it would be necessary to disclose the country of origin on the tools and in advertising.

(c) In the advisory opinion which was issued, the Commission concluded that it would be necessary to disclose the foreign country of origin of the tools in a clear and conspicuous manner at the point of sale. It also ruled that it would not be necessary to disclose the origin of the tools in advertising.

[33 F.R. 5791, Apr. 16, 1968]

§ 15.221 Foreign country of origin disclosure on imported metal spring clamps.

(a) The Commission rendered an advisory opinion in regard to the proper marking of metal spring clamps imported from a foreign country. The clamps are to be imported in bulk, repackaged and resold in the United States. They will be used to hold glass to the backing of frames, on cardboards and other accessories, in temporary bookbindings, office ledgers, etc.

(b) The Commission advised the person requesting the advisory opinion that it would be necessary to mark the imported clamps with the foreign country of origin in a clear and conspicuous

manner.

[33 F.R. 5791, Apr. 16, 1968]

§ 15.222 Disclosure of foreign origin of component part of ice cream spade assembled in this country.

(a) The Commission was requested to render an advisory opinion with respect to the necessity for disclosing the country of origin of the imported metal portion of an ice cream spade manufactured in this country.

(b) The opinion advised that in the Commission's view the country of origin of the imported metal portion of the ice cream spade should be disclosed wherever the name of the company appears and that it should be disclosed in a clear and conspicuous manner on the package or the ice cream spade itself. [33 F.R. 5791, Apr. 16, 1968]

§ 15.223 Necessity for disclosing foreign country of origin of imported gloves. (a) The Commission was requested to furnish an advisory opinion as to the necessity for disclosing the country of origin of imported gloves which will be packaged in this country.

(b) The opinion advised that in the Commission's view it will be necessary to disclose the country of origin of the gloves in a clear and conspicuous manner at the point of sale.

[33 F.R. 5791, Apr. 16, 1968]

§ 15.224 Domestic origin marking for product containing foreign made components.

(a) The Commission issued an advisory opinion dealing with the propriety of using the marking "MADE IN U.S.A." on a product, a significant component of which is in fact manufactured or produced in a foreign country.

(b) The Commission was of the opinion that the proposed marking would constitute an affirmative claim that the product was entirely of domestic origin and such claim would be manifestly incorrect and actionable.

(c) An article assembled or processed in the United States as described, however, might properly be marked "MADE IN U.S.A." if the marking is accompanied by appropriate qualifying words (e.g. "of 'X' country components" or "of 'X' country materials") provided this additional disclosure is made as conspicuously as the claim "MADE IN U.S.A." and in close proximity thereto.

[33 F.R. 5943, Apr. 18, 1968; 33 F.R. 8446, June 7, 1968]

§ 15.225 Labeling of material composed of leather fibers imported in their entirety.

(a) The Commission rendered an advisory opinion in regard to the legality of the following five terms to label material composed of pulverized leather: (1) Pulverized Leather.

(2) Reconstituted Leather.

(3) Imported Bonded Leather-Fibres.

(4) Bonded Leather-Fibres.

(5) 100 percent Leather-Fibres. (b) Imported from Europe, the material will be sold to manufacturers of luggage, handbags and various other leather goods. The pulverized leather will be bonded with an adhesive and coated either with some type of lacquer or vinyl coating.

(c) In its opinion, the Commission ruled that it had no objection to labels which describe the material as "Pulverized Leather" or "Bonded LeatherFibres." It rejected, however, the term "Reconstituted Leather" since the word "Reconstituted" creates the impression that the material is leather which has been reprocessed in some manner, when in fact it is nothing more than pulverized leather held together by an adhesive.

(d) With respect to the third proposed label, the Commission expressed the opinion that it would be deceptive to use the word "imported" without disclosing the specific country of origin of the material. Even though the word "imported" is not used, the Commission said that it would still be necessary to disclose the origin of the material since it is entirely imported.

(e) According to its opinion, the Cemmission also ruled that it would be improper to represent that the material consists of "100 percent" leather fibers, since it contains a substantial amount of adhesive as well as being coated either with a lacquer or vinyl coating. The requesting party was further advised, however, that there would be no objection to using a percentage figure which factually portrays the amount of pulverized leather present in the material.

(f) With further reference to the fifth and final proposed label, the Commission stated that the words "Leather-Fibres" either standing alone, or when coupled with the leather appearance of the material, could create the impression that the material is wholly the hide of an animal or at least something more than pulverized leather. To dispel this erroneous impression, the Commission said it would be necessary to use qualifying language, such as "Bonded LeatherFibres," "Leather fibers and an adhesive," etc., in connection with the words "Leather-Fibres."

(g) Finally, if the seller decided not to reveal the composition of the material, the Commission pointed out that it would be necessary to disclose that it is not

99-134-69—11

leather by such language as "Not Leather," "Imitation Leather," or "Simulated Leather". The reason for this, the Commission said, is that the material has the appearance of leather, and in order to remove the potential deception inherent through its appearance it is necessary to disclose the fact that it is not leather.

155

[33 F.R. 5943, Apr. 18, 1968]

§ 15.226 Necessity for disclosing foreign country of origin of imported honing

stones.

(a) The Commission was requested to furnish an advisory opinion as to the necessity for disclosing the country of origin of imported honing stones which will be affixed to plastic handles in this country. The name of the applicant, an American company, would appear on the handle.

(b) The opinion advised that in the Commission's view the country of origin of the honing stone must be disclosed in a clear and conspicuous manner on the product itself.

[33 F.R. 5944, Apr. 18, 1968]

§ 15.227 Necessity for disclosing foreign country of origin of repackaged imported nails.

(a) The Commission was requested to furnish an advisory opinion as to the necessity for disclosing the country of origin of imported nails, which will be imported in bulk and repackaged in this country.

(b) The opinion advised that in the Commission's view the country of origin of these nails must be disclosed in a clear and conspicuous manner on the package in which they are sold and that neither directly nor indirectly could the importer imply that the nails are made in the United States.

[33 F.R. 5944, Apr. 18, 1968]

§ 15.228 Country of origin labeling on bubble-packed imported switchplates.

(a) The Commission was requested to render an advisory opinion in regard to the proper marking of the origin of imported switchplates, which are to be packaged in a plastic bubble sealed to a display card for resale to the general public.

(b) In the opinion the Commission advised the requesting party that it would be necessary to clearly and con

spicuously disclose the foreign country of origin of the imported switchplates on the front of the display card. [33 F.R. 5944, Apr. 18, 1968]

§ 15.229

Country of origin disclosure of imported braids used in production of braided rugs.

(a) The Commission was requested to render an advisory opinion with respect to the necessity of disclosing the country of origin of imported braids which are stitched together in the United States to produce a braided rug.

(b) The opinion advised that in the Commission's view there should be a clear and conspicuous disclosure that the rugs were assembled and sewn in the United States of imported materials. [33 F.R. 5944, Apr. 18, 1968]

§ 15.230 Foreign country of origin disclosure on mounting cards displaying imported eyelashes.

(a) The Commission was requested to render an advisory opinion concerning the proper labeling as to the foreign country of origin of imported false eyelashes. All of the other components, such as the mounting card, directions for use, plastic box, adhesive, etc., will be made and printed in the United States.

(b) In its opinion the Commission conIcluded that it would be necessary to disclose the foreign country of origin of the imported eyelashes. The Commission also said that it would be acceptable for the disclosure to be made on the back of the mounting card, provided the disclosure is prominent and conspicuous. [33 F.R. 5944, Apr. 18, 1968]

§ 15.231 Foreign country of origin disclosure on containers of repackaged imported chemicals.

(a) An advisory opinion was rendered by the Federal Trade Commission in regard to the question of whether it is necessary to disclose the foreign country of origin on containers of imported chemicals which are repackaged in the United States.

(b) In the opinion, the Commission advised the requesting party that it would be necessary to disclose the foreign country of origin of the imported chemicals on the repackaged containers in a clear and conspicuous manner. [33 F.R. 6157, Apr. 23, 1968]

§ 15.232 Foreign country of origin disclosure of imported knife blades.

(a) The Commission rendered an advisory opinion concerning the proper marking of the origin of knife blades imported from a foreign country. The imported blades will be assembled with handles of domestic origin.

(b) The Commission advised the party seeking the opinion that it would be necessary to make clear and conspicuous disclosure of the foreign country of origin of the imported blades. [33 F.R. 6157, Apr. 23, 1968]

§ 15.233 Foreign country of origin disclosure of imported radios at point of sale.

(a) The Commission rendered an advisory opinion in regard to the question of whether it is necessary to disclose the foreign country of origin on the container of an imported two-way radio. The equipment itself will be stamped or labeled to denote the foreign country of origin.

(b) Citing the general rule in matters of this nature, the Commission stated that a clear and conspicuous disclosure of the foreign origin of the product must be made at the point of sale. This means, the Commission added, that it may be necessary to make the disclosure on each individual container, if the prospective purchaser does not have the opportunity to inspect the merchandise prior to the purchase thereof in order to be apprised of its origin.

[33 F.R. 6157, Apr. 23, 1968]

§ 15.234 Labeling partially imported product as "Made in U.S.A."

(a) The Commission rendered an advisory opinion in regard to the question of whether it would be permissible to label the container of a polishing cloth as "Made in U.S.A." if approximately 38 percent of the cost of the finished product is imported from a foreign country, the remainder being of domestic origin.

(b) The polishing cloth is composed of two separate cloths sewn together, one which is impregnated and is used for polishing and the other is untreated flannel which is used as a finishing-off cloth. It is the impregnated cloth which will be imported, and the untreated flannel will be obtained from a domestic source. Because the greater portion of the cost of the finished product is of domestic origin,

the requesting party seeking the opinion wanted to know whether it would be proper to label the container as "Made in U.S.A."

(c) In its advisory opinion, the Commission said: “* *the claim, 'Made in U.S.A.,' would constitute an affirmative representation that the entire polishing cloth was of domestic origin. Since a substantial portion of the finished product is of foreign manufacture, it would be improper to label the container as 'Made in U.S.A.' However, if you wish to do so, you may make the following claim: 'Made in U.S.A. of impregnated cloth imported from *

[ocr errors]

[33 F.R. 6157, Apr. 23, 1968]

§ 15.235 American manufacturer may not place labels "Made in U.S.A." on garments manufactured in this country from imported cloth.

(a) The Commission issued another advisory opinion among several dealing with products of foreign origin or containing significant components originating in foreign countries.

(b) In reply to a request, the Commission advised an American manufacturer that he may not place labels "Made in U.S.A." on garments manufactured in this country from cloth produced in a foreign country. The Commission noted that the cloth is a significant component of the finished garment. The Commission stated that "Made in U.S.A." means made in the United States of America completely and accordingly cannot be applied where a significant component originates in a foreign country. The Commission suggested that such labels on the proposed garments might violate section 5 of the Federal Trade Commission Act. [33 F.R. 6158, Apr. 23, 1968]

§ 15.236 Foreign country of origin disclosure of imported picture compo

nents.

(a) The Commission rendered an advisory opinion concerning the proper marking of the origin of various imported picture components. The opinion involved two specific factual situations.

(b) In the first situation, the frame is Imported from one foreign country, the picture motif is from another, and the glass, mat, and other finishing of the product is of U.S. origin. Second, all of

the components are of domestic origin, except the picture motif which is imported.

(c) In the absence of any affirmative representation that the finished product is made in the United States, or any representation that might mislead the public as to the country of origin, the Commission expressed the opinion that, under the facts as presented, the failure to mark the origin of the imported components in either of the two factual situations would not be regarded by the Commission as deceptive. Accordingly, the Commission ruled that no marking is required on the imported components beyond what is imposed by the Bureau of Customs.

[33 F.R. 6158, Apr. 23, 1968]

§ 15.237 Foreign origin disclosure on containers of repackaged toy kits.

(a) The Commission rendered an advisory opinion in regard to the question of whether it is necessary to disclose the foreign origin on the container of various imported toys packaged therein.

(b) Under the factual situation presented to it, the requesting party imports plastic articles in bulk which are, whenever possible, marked as to their foreign origin. Moreover, the imported articles are repackaged in the United States for resale, and sometimes domestically made components are added, and at other times components from another foreign country are also added. The imported components come principally from two foreign countries. There is no fixed percentage of imported components in each kit and the amount may vary as much as 1-75 percent, and only a few of the toy kits contain wholly imported components. The toys are sealed in the container and prospective purchasers cannot examine the goods prior to the purchase thereof in order to be apprised of the foreign origin markings thereon.

(c) Based upon its understanding of the facts and because of the special circumstances presented by the product and the packaging thereof, the Commission expressed the opinion that it would be appropriate to mark the container in substance as follows: "Some items or components of items are made in (name of foreign country) and (name of foreign country)."

[33 F.R. 6534, Apr. 30, 1968]

« PreviousContinue »