Textile_Supporting Statement_2024 - Final

Supporting Statement for Information Collection
Provisions of Rules and Regulations Under the Textile Fiber Products
Identification Act
16 CFR Part 303
(OMB Control #: 3084-0101)
This is a request for approval of a three-year extension of an existing clearance. The
Textile Act Rules and Regulations, 16 CFR part 303 (“Textile Rules” or “Rules”), which
implement the Textile Fiber Products Identification Act, 15 U.S.C. 70 et seq. (“Textile Act” or
“Act”), protect producers and consumers against misbranding and false advertising of textile
fiber products. Among other requirements, the Textile Rules set forth certain disclosure and
recordkeeping requirements. There is no change in the information collection.
1.

Necessity for Collecting the Information

The purpose of the Textile Act and its implementing Textile Rules is to protect
producers and consumers against misbranding and false advertising of textile fiber products.
Section 7(c) of the Act directs the Federal Trade Commission (“FTC” or “Commission”) to
“make such rules and regulations . . . under and in pursuance of the terms of this Act as may be
necessary and proper for administration and enforcement.”
The Textile Rules provide for the collection of information and fall into the following
categories. These category designations will be used throughout this supporting statement.
Labeling and Invoicing
(e.g., 16 CFR 303.2, 303.15, 303.16, 303.17, 303.19, 303.21(b), 303.31, 303.32, and
303.33)
The Rules require each covered product to be labeled or invoiced to provide disclosure
of: (1) fiber contents, (2) the identity of the manufacturer or other marketer of the product, and
(3) country of origin information. The various sections of the Rules that comprise this
category implement Section 4(b) of the Textile Act, which specifically mandates the disclosure
of this information. These disclosures are deemed necessary because they provide material
information about the products; lacking this information, potential purchasers could not make
informed buying decisions.
Recordkeeping
(16 CFR 303.39)
Section 303.39 implements Sections 5 and 6 of the Textile Act. It requires
manufacturers and those marketers who substitute labels (e.g., resellers) to maintain records,

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invoices, and other documents that reflect the basis relied upon in making fiber content and
country of origin disclosures shown on invoices and labels attached to textile products.
Records must be retained for three years “to permit a determination that the requirements of the
Act and Regulations have been met and to establish a traceable line of continuity from raw
material through processing to finished product.” This information collection is necessary to
substantiate the country of origin disclosure and to establish a fiber content line of continuity
from raw material through sale of finished product.
Advertising Disclosures
(16 CFR 303.34, 303.40, 303.41, and 303.42)
Section 303.34 implements Section 4(i) of the Textile Act, which requires each item
description of a covered product offered for sale in catalog or mail order promotional material
to include a clear and conspicuous disclosure of whether “such textile fiber product is
processed or manufactured in the United States of America, or imported, or both.”
Sections 303.40, 303.41, and 303.42 apply in situations where a written advertisement
for a covered product sets forth a “triggering term” (e.g., a fiber trademark or a term implying
fiber content). Where a written advertisement includes such a term, the advertisement must
disclose certain additional information pertaining to fiber content. The Rules implement
Section 4(c) of the Textile Act, which specifically mandates these disclosures in written
advertisements. These disclosures are necessary to preclude misinformation and misleading
representations.
Generic Name Petitions
(16 CFR 303.8)
Section 303.8 provides a mechanism whereby a manufacturer of a new, manufactured
fiber may petition the Commission to include the new fiber among the list of established
generic fibers. The Rules require the petitioner to provide certain information, including the
chemical composition of the new fiber, samples of the fiber, and a statement of the reasons why
the fiber should not be identified by one of the generic names previously established by the
Commission. This information collection is necessary because it provides the Commission
with the scientific and other data required to make an informed decision whether to amend the
list of established generic fibers (i.e., Section 303.7) or to deny the petition and advise the
applicant of the proper method of disclosure using existing, established generic fiber categories.
2.

Use of the Information
Labeling and Invoicing

Potential purchasers, both consumers and businesses, rely upon the disclosed fiber
content and country of origin information to make informed buying decisions in the
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marketplace. Disclosure of company identification is used by the Commission for enforcement
purposes, i.e., to identify the manufacturer of a misbranded item. It is also used by other
companies seeking to identify the manufacturer of a particular item for business reasons.
Recordkeeping
The information collected pursuant to the recordkeeping rule is used by manufacturers
and marketers who choose to substitute labels. The records serve as support for the fiber
content and country of origin claims made on labels and invoices and provide a deterrent
against misbranding. The records are also available to the Commission and may be used in an
inquiry or law enforcement action.
Advertising Disclosures
Consumers who purchase covered products by catalog or other mail order sale do not
always have an opportunity to examine the label on the product before buying it. They often
see the label for the first time only after the sale has been consummated. Consequently, Section
303.34 ensures that, prior to purchase, consumers will be apprised of whether a covered product
offered for sale by catalog or other mail order promotional material is made in the USA, is
imported, or both.
Consumers and other potential purchasers rely upon information contained in written
advertisements. Where such advertisements include a “triggering term,” Sections 303.40,
303.41, and 303.42 ensure that further fiber content disclosures are made to avert the
possibility of deception.
Generic Name Petitions
The information collected pursuant to the section establishing procedures for adopting a
new generic fiber is used by the Commission to determine whether to amend the list of
established generic fibers (i.e., section 303.7), or to deny the petition and advise the applicant of
the proper method of disclosure using existing, established generic fiber categories. In practice,
the information collected is technical in nature and is referred to and used by consultant experts
(e.g., polymer chemists) who aid the Commission in the ultimate disposition of the applicant’s
petition.
3.

Consideration of the Use of Improved Information Technology to Reduce Burden

Generally, this item does not apply to any of the categories of information collection
covered by this submission.

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The Rules requiring labeling and invoicing, recordkeeping, and disclosure in advertising
merely set forth certain performance standards. For example, fiber content labels must clearly
and conspicuously disclose the required information; however, companies may avail
themselves of any improved technology (e.g., in the area of mechanization, typesetting, and
printing) in meeting these performance standards. In addition, covered entities have flexibility
with regard to the placement of information on labels and the attachment of labels to products.
For information that is required to be disclosed on textile product labels, an electronic
disclosure option, pursuant to the Government Paperwork Elimination Act, Pub. L. No. 105277, Title XVII, 112 Stat. 2681-749 (“GPEA”), is impracticable. For non-labeling disclosures,
however, the Commission, in compliance with the Act, has previously amended relevant
Textile Rules definitions so that they are either format-neutral or explicitly recognize and
permit such disclosures in electronic format. See 16 CFR 303.1(h) (“invoice” or “invoice or
other document”– issued “electronically, in writing, or in some other form capable of being
read and preserved in a form that is capable of being accurately reproduced for later reference,
whether by transmission, printing, or otherwise”), (u) (“mail order catalog” or “mail order
material” – materials disseminated “in print or by electronic means”). Likewise, the rules
permit the maintenance of relevant records in any format, including electronic, that a
manufacturer chooses. 16 CFR 303.39.
4.

Efforts to Identify Duplication/Availability of Similar Information

There is no other Federal law or regulation that requires the information collection
contained in the Textile Act or Rules.
The Act and Rules were placed into effect because many companies were not
voluntarily providing material product information or were not providing it in a meaningful,
standardized format that facilitated informed buying decisions in the marketplace. The record
collection and retention requirements do not constitute an “additional burden” to most
companies, because they apply to information that most covered companies would routinely
record and maintain in the normal course of business.
5.

Efforts to Minimize Burden on Small Businesses

The provisions of the Textile Act and the Rules apply to all manufacturers and other
marketers of covered textile fiber products, including small businesses and other small
entities. Under the Act, the Commission has no latitude to treat small businesses differently.
The Act specifically requires “any person” marketing covered products to label, invoice, and
keep records; “person” is defined as “an individual, partnership, corporation, association or
any other form of business enterprise” (emphasis added). Thus, Congress intended to cover
all concerns, of whatever size, engaged in the marketing of textile fiber products. Further, the
Act does not include language allowing the Commission to either exempt a particular category
of firm or set forth a lesser standard of compliance for any category of firm.
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Although there have been no specific efforts to minimize the burden on small
companies in particular, the Rules serve to achieve this end. Small companies that fall within
the sections requiring labeling and invoicing, recordkeeping, and disclosure in advertising are
aided by the fact that their suppliers (e.g., mills, wholesalers) must provide them with accurate
information regarding fiber content and country of origin. Consequently, their burden would
appear to be minimal. In practice, usually only large textile fiber manufacturers submit
petitions for adopting a new generic fiber because only large companies have the necessary
research and development capabilities to develop such a fiber.
6.

Consequences of Conducting Collection Less Frequently

The disclosure of information required by the labeling and invoicing sections applies to
each covered product in the marketplace. If disclosure were not required in every case, the
objective of informing purchasers of important, material information would be defeated.
The recordkeeping requirement applies to manufacturers and those who substitute labels
(e.g., resellers, printers, and screeners) and requires them to record and retain substantiation for
the labeling claims they make concerning covered products. In the absence of this requirement,
the country of origin disclosure often would be unsupported and the chain of fiber content
continuity from raw material through finished product would be lost. This would remove an
important deterrent against misbranding and would complicate any Commission investigation,
inquiry, or enforcement action.
The sections pertaining to disclosure in advertising provide that (1) each mail order and
catalog advertisement must include a country of origin disclosure, and (2) any advertisement
that uses a “triggering term” implying the presence of a particular fiber must disclose the
generic names of all the constituent fibers. If country of origin information were not required
in mail order literature, consumers might not receive any country of origin information until
after they purchased a product. If the “triggering term” requirements for fiber disclosure were
relaxed, the objective of preventing dissemination of misinformation and misleading
representations would be more difficult to accomplish.
The issue of collecting information less frequently does not apply to the sections
pertaining to generic name petitions. These involve one-time submissions that are made
voluntarily by applicant firms.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

The collection of information under the Rules is consistent with all applicable
guidelines contained in 5 CFR 1320.5(d)(2).

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8.

Solicitation of Comments/Consultation Outside the Agency

On January 19, 2024, the Commission staff sought public comment in connection with
the FTC’s latest PRA clearance request for these Rules, in accordance with 5 CFR 1320.8(d).
See 89 Fed. Reg. 3659 (Jan. 19, 2024). The Commission received no germane comments.
Consistent with 5 CFR 1320.12(c), FTC staff is seeking public comment again
contemporaneous with this submission.
9.

Payments or Gifts to Respondents
Not applicable.

10. & 11. Assurances of Confidentiality and Matters of a Sensitive Nature
Actual submission of information pertains only to the generic petition rule. The issue of
confidentiality ordinarily does not apply in this case. Commission Rules treat petitions or
filings for adoption of a new generic fiber name as public material except those for which
confidential classification was sought, which occurs infrequently. 1 The submitter bears the
burden of proving that a document warrants confidentiality under all applicable statutes,
regulations and orders. 2
12. Estimated Annual Hours and Labor Cost Burden
Estimated annual hours burden: 43,234,317 hours (1,180,725 recordkeeping hours +
42,053,592 disclosure hours).
Recordkeeping: FTC staff estimates that approximately 18,165 textile firms are subject
to the Textile Rules’ recordkeeping requirements. Based on an average burden of 65 hours per
firm, the total recordkeeping burden is 1,180,725 hours.
Disclosure: Approximately 9,565 textile firms, producing or importing about 24.4
billion textile fiber products annually, are subject to the Textile Rules’ disclosure requirements. 3
FTC staff estimates the burden of determining label content to be 65 hours per firm per year, or a
16 CFR 4.9(b)(3)(i).
16 CFR 4.9(c).
3
The estimated consumption of garments in the U.S. in 2022 was 22.8 billion. However, FTC staff estimates that
1.2 billion garments are exempt from the Textile Act (i.e., any kind of headwear and garments made from something
other than a textile fiber product, such as leather) or are subject to a special exemption for hosiery products sold in
packages where the label information is contained on the package. Based on available data, FTC staff estimates that
an additional 3.5 billion household textile products (non-garments, such as sheets, towels, blankets) were consumed.
However, approximately 0.7 billion of all of these garments and household products are subject to the Wool Act, not
the Textile Act, because they contain some amount of wool. Thus, the estimated net total products subject to the
Textile Act is 24.4 billion (22.8 − 1.2 + 3.5 = 25.1− 0.7 = 24.4 billion).
1
2

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There are no plans to publish, for statistical use, any information the Rules require.
17.

Display of the Expiration Date for OMB Approval
Not applicable.

18.

Exceptions to the Certification for Paperwork Reduction Act Submissions
Not applicable.

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