Home / Knowledge / News / Textiles / FTC protection to retailers repeating marketing claims
FTC protection to retailers repeating marketing claims
01
Feb '13
The Textile Fiber Products Identification Act (“Textile Act”), Wool Products Labeling Act (“Wool Act”), and the Fur Products Labeling Act (“Fur Act”) (collectively, the “Acts”) provide that a retailer can avoid liability for mislabeling or false advertising if the retailer obtains a continuing or separate guaranty from a third party certifying that products it transfers are not misbranded, falsely invoiced, or falsely advertised.  Under the Acts, the guaranty protections are available only if the retailer receives the guaranty in “good faith” and from a “person residing in the United States.”  Wool Act, 15 U.S.C. § 68g (a); Fur Act, 15 U.S.C. § 69h (a); Textile Act, 15 U.S.C. § 70h (a).  Thus, a retailer cannot obtain a guaranty for directly imported textile, wool, and fur products.

Based on its enforcement experience, the Commission finds it in the public interest to provide protections for retailers repeating marketing claims about directly imported products when they rely in good faith on information provided solely by the products’ manufacturers. 

The Commission, therefore, will not initiate an enforcement action against a retailer for violating Section 68a of the Wool Act, Section 69a of the Fur Act, Section 70a of the Textile Act, any Rule implementing those Sections, or any Commission or court order compelling compliance with those Sections or Rules, in connection with the marketing or sale of a product, where the retailer (1) cannot legally obtain a continuing or separate guaranty under the applicable Act; (2) does not embellish or misrepresent claims provided by the manufacturer related to the applicable Act or Rules; and (3) does not market the product as a private label product.  Provided, however, that this policy shall not apply if the retailer knew or should have known that the marketing or sale of the product would violate the applicable Act, Rules, or order.

The policy announced here balances the importance of treating fairly retailers who directly import goods with the Commission’s responsibility to enforce the Acts and Rules.  It provides greater consistency for retailers regardless of whether they directly import products or use third-party domestic importers.  The policy, however, is narrowly tailored to ensure that the Commission retains authority to enforce the Acts and Rules to protect consumers. 

Thus, the policy does not cover retailers that embellish or misrepresent claims a manufacturer provides or those retailers that make their own claims, such as by marketing products as their own.  Moreover, it excludes retailers that knew or should have known that the marketing or sale of a good violates the applicable Act.  In such instances, the retailer is not reasonably relying on representations of third-party suppliers.

Federal Trade Commission


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Urmil Arya

Sushila International, a well established textile organisation established ...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search