What Three Disclosures a U.S. Garment Label Must Carry Under FTC Textile Rules

Garments covered by the Textile Fiber Products Identification Act carry a set of statements the federal government requires. They cover what the fabric is made of, where the product was processed or manufactured, and which company or dealer stands behind it. The Federal Trade Commission sets the detail in its regulations at 16 CFR Part 303.

The FTC amended these rules in 1998 and again in 2014. The 1998 package amended the textile, wool and fur rules together.

Three Disclosures Every Covered Label Must Carry

The FTC says the Textile Fiber Products Identification Act requires certain textiles sold in the United States to carry labels disclosing the generic names and percentages by weight of the fibers, the manufacturer or marketer name, and the country where the product was processed or manufactured.

Fiber content is stated through generic names for each fiber. The rules also control when a minor fiber may be named at all, which the next section covers.

Country of origin has its own rules for imported goods and for Made in U.S.A. wording. The manufacturer or dealer can be identified by a company name or by a registered number, explained further below. The three statutes are amended together, as the 1998 package shows.

The 5 Percent Rule
Under 16 CFR 303.3, a fiber making up less than 5 percent of a product’s total fiber weight cannot be identified by generic name or trademark, unless it has clearly established functional significance at that amount.

How Fibers Under 5 Percent Are Handled

Section 303.3 limits how minor fibers are described. A fiber that makes up less than 5 percent of a product’s total fiber weight may not be identified by its generic name or by a trademark. The rule calls such a fiber ‘other fiber,’ and several minor fibers are grouped together under the plural term.

The rule has a functional exception. A fiber below the 5 percent line may be named if it has functional significance that is clearly established at that amount. The regulation’s example pairs 96 percent acetate with 4 percent spandex. The rest of Part 303 still applies to the label in that case.

The 1998 announcement says generic names may be listed for functionally significant fibers under 5 percent of total fiber weight, without disclosing their function.

The FTC’s 1998 amendments also changed placement. The announcement says labeling information must be ‘clear, conspicuous, and readily accessible to the prospective purchaser.’ The announcement says the FTC is removing the requirement that the front of a label state ‘Fiber Content on Reverse Side’ when fiber content appears on the back.

The 1998 announcement says the name ‘Elastane’ may be used instead of ‘Spandex.’ It also says ‘Viscose’ may be used for some forms of rayon.

Country of Origin and the Made in U.S.A. Wording

For imported products, the label must name the country where the product was processed or manufactured. Section 303.33 says that country is determined under U.S. Customs and Border Protection rules. Foreign colonies, possessions and protectorates are treated as separate countries.

The country must be named in English. Adjectival forms are acceptable, provided they do not refer to a kind or species of product. Clear variant spellings, such as ‘Brasil’ for Brazil, are also acceptable.

A product made completely in the United States from materials made in the United States must be labeled ‘Made in U.S.A.’ or some other clear and equivalent term. Products that combine domestic and foreign work must disclose the imported materials or the foreign processing.

Section 303.33 gives several sample labels. One covers a product sewn in the United States from imported components. Another covers a product knit in the United States and assembled in a named foreign country.

Manufacturers need only track covered materials one step back in the production chain. A yarn maker must identify imported fiber, and a cloth maker must identify imported yarn.

The 1998 announcement says the Textile and Wool Rules added examples of origin disclosures that satisfy both FTC and U.S. Customs Service requirements.

Registered Identification Numbers and the Company Name

The label does not always need to print the company’s full name. A Registered Identification Number, or RN, may be used in place of the manufacturer or dealer name, according to the FTC. The 1998 announcement says manufacturers and dealers may use the RN on labels in that way.

An RN can be canceled if material information changes and a new application reflecting current information is not promptly filed. The FTC added the RN database to its website and encourages registrants to check that their data is accurate.

The 1998 announcement’s title refers to automating the RN process, and the RN provisions appear in the same package that amended the textile, wool and fur rules.

A fiber that makes up less than 5 percent of a product’s total fiber weight may not be identified by its generic name or by a trademark.

From the 1998 Amendments to the 2014 Notice

The FTC dated its 1998 announcement February 13, 1998, and said the amendments were published in the Federal Register that day. The announcement says the amendments streamline disclosure requirements. The Commission voted 5-0 to approve the final rule. The same package raised the fur exemption threshold from $20 to $150.

The 2014 changes followed a notice of proposed rulemaking published May 20, 2013, at 78 FR 29263. The final notice says the Commission received seven comments, four of them from trade associations. Two comments supported the ISO update and the hang-tag change.

On March 14, 2014, the FTC announced the changes. The Commission voted 4-0 to approve publishing the Federal Register notice. The notice was published April 4, 2014, at 79 FR 18766.

The Federal Register gives May 5, 2014 as the effective date. The Director of the Federal Register approved incorporating the ISO standard, ISO 2076:2010(E), as of the same date. The March FTC release had said the amended rules would take effect 30 days after the notice was posted.

The guaranty provisions changed as well. Guarantors no longer sign under penalty of perjury. Instead, they acknowledge that providing a false guaranty is unlawful and certify that they will actively monitor and ensure compliance. Three commenters opposed a proposed one-year expiration for continuing guaranties. The Commission did not adopt that proposal, and the notice says it will revisit the issue if it obtains evidence that continuing guaranties have become less reliable after the amendment takes effect.

Hang Tags, Invoices and Electronic Materials

The 2014 notice allows certain hang tags to show fiber names, trademarks and performance information without listing the full fiber content. The notice also clarifies several other provisions.

The 1998 announcement says the definitions of mail order terms and ‘invoice’ now include materials generated and disseminated electronically, including through the Internet or e-mail.

The 2014 release says the definitions of invoice and of invoice or other paper were revised to better cover electronic commerce. The Federal Register notice also revised the form used to file continuing guaranties.