Labeling

The Issue:

Diverse and confusing labeling rules remain a trade barrier. Opportunities exist for homogenizing labeling standards and to make sure national and international rules are clear and that the process that develops them is predicatble.

On December 6, 2006, Congress approved H.R. 4583, titled the “Wool Suit Fabric Labeling Fairness and International Standards Conforming Act,” which revised the requirements for labeling certain wool and cashmere products. The Act (which was approved as part of a larger omnibus trade package) amended the wording for the labeling of wool and cashmere products to “facilitate compliance and protect consumers.” The changes took effect on January 1, 2007.

AAFA has written to Representative Blackburn expressing support for this legislation.

The European Union (EU) is trying to determine whether to require labeling and product information for products sold in Europe to use metric-only measurements beginning on January 1, 2010.

In its comments to the EU, AAFA noted that the continuation of the current policy of allowing dual metric/US measurements would benefit both European and U.S. businesses and consumers and help to keep EU and U.S. labeling requirements in harmony. (See AAFA News Release)

Numerous governments, including South Africa, Colombia, and S. Korea, continue to propose new rules on labeling of apparel, footwear, travel goods and other consumer products. Moreover, the US and EU Governments have proposed text to harmonize labeling standards as part of the Doha Round of global trade talks to prevent such non tariff trade barriers in the future.

The Federal Trade Commission (FTC) and the U.S. Trade Representative are working with the Canadian and Mexican governments on a draft agreement that would harmonize the meaning of care label symbols across the three NAFTA countries. A final agreement is expected sometime soon. A similar initiative is occurring under the International Standards Organization (ISO) process, although it has reached stumbling blocks over the insistence of some European countries to use a system trademarked in Europe. A separate initiative may be undertaken to permit the FTC and the Canadian government to recognize each other’s manufacturers’ ID numbers. This initiative requires legislation since the FTC is only statutorily permitted to recognize its own ID scheme. Finally, in response to a legislative mandate, the FTC has issued new labeling guidelines for hosiery that took effect March 2006.

AAFA on the Issue:

AAFA strongly opposes labeling regulations when they act as non tariff barriers, but strongly supports the efforts of the United States and the European Union to harmonize and standardize labeling for apparel, footwear, textile and travel goods products. AAFA submitted comments to the South African government expressing opposition. In response to these comments, the South African government made several modifications.

AAFA is working with the government to ensure new onerous sock labeling rules are the least restrictive possible. AAFA is also working with the FTC to promote harmonization and simplification of labeling rules. In 2005, AAFA and the FTC released the latest edition of the labeling guide, Threading Your Way Through the Labeling Requirements Under the Textile and Wool Acts."

The Latest News:

01.28.08

On February 5, a Maryland lawmaker introduced legislation that would change the fur labeling regulations. Current federal law requires garments valued at over $150 to include labels that include the type of fur used. The proposed legislation would require all manufacturers and retailers to identify both the animal used and the country of origin on all garments, regardless of cost.

The legislation was proposed in light of a Humane Society report released recently that discovered several companies were selling fur coats that were not only mislabeled as “faux fur”, but also included hair from species of dogs. law prohibits the importing of dog and cat fur.

Currently, Massachusetts, New York and Wisconsin all have similar fur regulations as the proposed Maryland legislation while both Delaware and Illinois are also considering adopting the regulations.

01.28.08

The countries of MERCOSUR (the Southern Common Market) -- Argentina, Brazil, Paraguay, and Uruguay -- have adopted new labeling requirements for apparel and textile products. Under the new labeling regulations, subject merchandise will have to include the following information in a label, stamp, decal, print or similar means that is permanent, indelible, legible and clearly visible: (1) name or registered brand and tax identification of the domestic producer or importer; (2) country of origin; (3) fiber content (fibers accounting for less than ten percent of the total may be listed as “other fiber(s)”); (4) care labeling instructions; and (5) size or dimensions, as applicable. This information will have to be presented in the language of the country of consumption but could also be presented in another language(s). The new rules will go into effect July 1, 2008.

While these new labeling rules don't seem egregious, the move by MERCOSUR again highlights the need to support the government's ongoing efforts in the current Doha Round of World Trade Organization (WTO) negotiations to establish international standards for labeling apparel, footwear, textiles and travel goods so labeling regulations cannot be used as unfair barriers to entering markets.

01.07.08

The Humane Society recently conducted an investigation revealing incorrectly labeled fur jackets at a number of major retailers. AAFA would like to remind its members that violations of the Fur Products Labeling Act, including mislabeling of fur jackets, can lead to fines up to $5,000 per violation.

Labeling Issues News Archive