The United States (US) Federal Trade Commission (FTC) announced an Enforcement Policy Statement regarding the Textile Fiber Products Identification Act, the Wool Products Labeling Act, and the Fur Products Labeling Act, concerning treatment of certain retailers that directly import textile, wool, and fur products.
The Textile, Wool and Fur Acts allow retailers to avoid liability for mislabeling or false advertising if they rely in good faith on a “guaranty” from a US supplier that certifies that products the supplier provides are not mislabeled, falsely invoiced, or falsely advertised.
Based on its enforcement experience, the FTC finds it in the public interest to provide greater consistency for retailers, regardless of whether they directly import products or use third-party domestic importers.
The Policy Statement provides that the FTC will not initiate an enforcement action for falsely marketing a textile, wool, or fur product if the retailer:
- cannot legally obtain a continuing or separate guaranty;
- does not embellish or misrepresent claims the manufacturer provides; and
- does not market the product as a private label product.
This policy does not apply, however, if the retailer knew or should have known that the marketing claim was false.
The FTC vote approving the Enforcement Policy Statement was 5-0.
For more on textile labeling, contact Compliance & Risks!
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