Fur Act Regulations_Supporting Statement 2024

Supporting Statement for Information Collection
Provisions of Rules and Regulations Under the
Fur Products Labeling Act
16 CFR Part 301
(OMB Control # 3084-0099)
This is a request for approval of a three-year extension of the existing clearance for the
collection of information under the FTC’s Fur Act Rules and Regulations, 16 CFR part 301 (“Fur
Rules” or “Rules”), which implement the Fur Products Labeling Act, 15 U.S.C. 69 et seq. (“Fur
Act” or “Act”). There is no change in the information collection.
1.

Necessity for Collecting the Information

The purpose of the Fur Act and the FTC’s Fur Rules is to protect consumers and others
against misbranding, false advertising, and false invoicing of fur products and furs.1
The sections of the Rules that provide for the collection of information fall into the
following categories. These category designations will be used throughout this supporting
statement.
Labeling and Invoicing
(e.g., 16 CFR 301.2, 301.27, 301.29, and 301.37)
Section 301.2 generally provides that: (1) “[e]ach and every fur product . . . shall be
labeled and invoiced in conformity with the requirements of the act and rules and regulations”
(emphasis added); and (2) “[e]ach and every fur [i.e., pelts] shall be invoiced in conformity with
the requirements of the act and rules and regulations.”
The various rules require covered products to be labeled/invoiced in a prescribed manner
to disclose: (1) the fur content; (2) the animal name; (3) the country of origin of imported furs;
(4) whether the product is composed of natural or dyed fur; (5) the name or registered
identification number of the manufacturer or other marketer; and (6) certain other related
information. These rules merely implement provisions of the Fur Act. The disclosures are
deemed necessary because they provide material information about the products. Without this
information, potential purchasers cannot make informed buying decisions.
Recordkeeping
(e.g., 16 CFR 301.35, 301.41, and 301.44)

1

The Fur Act states that “[t]he Commission is authorized and directed to prescribe rules and regulations
governing the manner and form of disclosing information required by this [Act], and such further rules and
regulations as might be necessary to and proper for purposes of administration and enforcement of this
[Act].” 15 U.S.C. 69f(b).

Section 8(d)(1) of the Fur Act states that “[e]very manufacturer or dealer in fur products
or furs shall maintain proper records showing the information required by this Act with respect
to all fur products or furs handled by him, and shall preserve such records for at least three
years.” The various sections in this category merely implement this and other specific provisions
of the Act. For example, Sections 301.35 and 301.41 require manufacturers and other marketers
who substitute labels to maintain records, invoices, and other documents that will readily identify
each fur and fur product and reflect all required information (e.g., animal name, country of origin
of imported fur, whether the product is dyed or natural, etc.). In addition, Section 301.44(e)
requires retail furriers and others who make price savings claims in advertisements to maintain
records disclosing the facts upon which the representations are based.
These recordkeeping requirements are necessary to establish a continuous line of product
composition from raw material through sale of finished product in order to substantiate
representations about the fur product, and to support price savings claims made in
advertisements.
Disclosure in Advertisements
(16 CFR 301.38)
In accordance with Sections 3 and 5(a) of the Fur Act, Section 301.38 requires
manufacturers and other marketers of covered fur products to disclose certain information in
advertising. The information must be disclosed in a prescribed manner and is necessary in order
to properly inform prospective purchasers and avoid deception.
Petition for Exemption
(16 CFR 301.19)
Section 301.19 provides that processors (e.g., dressers, dyers) of fur pelts are required to
mark each pelt in a manner indicating whether it is natural or dyed. Paragraph (k) of Section
301.19, however, allows an exemption for pelts that are always dyed or always natural and the
pelts cannot be marked or stamped as the section requires. In this case, the processor may file an
affidavit with the Commission requesting an exemption.
2.

Use of the Information
Labeling and Invoicing

Potential purchasers, both consumers and businesses, rely upon the disclosed information
to make informed buying decisions in the 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 or
distributor of a particular item for business purposes.

2

Recordkeeping
Pursuant to the recordkeeping sections, the information collected is used by
manufacturers and other marketers of covered products to support claims made on labels and
invoices, and to support price savings representations made in advertisements. The records may
be inspected by FTC staff for law enforcement purposes.
Advertising
Consumers and other potential purchasers rely upon disclosures contained in
advertisements. These disclosures are necessary to preclude misinformation and misleading
representations. The records may be inspected by FTC staff for law enforcement purposes.
Petition for Exemption
The Commission would use the information in the affidavit to determine whether the
public interest would be served by allowing the exemption.
3.

Consideration to Use Improved Information Technology to Reduce Burden

For the most part, the Rules merely set forth certain performance standards. For example,
labels must disclose certain required information in a prescribed format; however, companies
may avail themselves of any improved technology (e.g., in the areas of mechanization,
typesetting, and printing) in meeting these performance standards.
Disclosing fur content and other required information to consumers, however, requires
labeling of fur products. As such, providing an option for electronic disclosure pursuant to the
Government Paperwork Elimination Act, Pub. L. No. 105-277, Title XVII, 112 Stat. 2681-749
(GPEA), is impracticable. Nonetheless, the Rules comply with GPEA by permitting invoicing to
be accomplished (see 16 CFR 301.37) and necessary records to be kept (see 16 CFR 301.35,
301.41, and 301.44) without regard to format, so that a regulated entity, if it chooses, may
conduct these activities electronically.
4.

Efforts to Identify Duplication/Availability of Similar Information

There is no other Federal law or regulation that requires the collection of information
contained in the Fur Act or the Rules.
The Act and the Rules were promulgated because companies were not voluntarily
providing material product information in a meaningful, standardized format that facilitated
informed buying decisions in the marketplace. It should be noted that the collection and
recordkeeping provisions simply require retention of information, which most covered
companies would routinely retain in the normal course of business, and the recordkeeping burden

3

for PRA purposes excludes records that would otherwise be kept in the normal course of
business. 5 CFR 1320.3(b)(2).
5.

Efforts to Minimize Burden on Small Businesses

There is no specific exemption or differential treatment for small organizations under
either the Fur Act or Rules. Small businesses (e.g., retailers and dealers) can, however, rely on
invoices and other information provided by the manufacturer or other sources in order to comply
with the labeling, invoicing, advertising, and recordkeeping requirements of the Act. The Act, as
amended in 2010 by the Truth in Fur Labeling Act (“TFLA”), and section 301.39 of the Rules
provide an exemption for furs sold directly by trappers and hunters to customers in certain faceto-face transactions.
6.

Consequences of Conducting Collection Less Frequently

The disclosure of information required by the labeling and invoicing rules applies to each
covered fur product in the marketplace. If disclosures were not required in every case, the
objective of informing purchasers of material information would be defeated.
Recordkeeping requirements apply to manufacturers and those who substitute labels (e.g.,
resellers) and require them to record and retain substantiation for the labeling claims made.
Without such records, it would be impossible to trace the chain of fur content from raw material
to finished product, which means that an important deterrent against misbranding would be
removed.
Advertising disclosure requirements apply to all advertisements for fur products. Less
frequent disclosure would impede the objective of preventing misinformation and
misrepresentation.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

This collection of information is consistent with the guidelines contained in 5 CFR
1320.5.
8.

Consultation Outside the Agency

FTC staff responsible for the administration and enforcement of the Rules has had
repeated contact with industry members and their trade associations, such as the Fur Information
Council of America. Based on recurring contacts with covered companies and the FTC’s own
experience (e.g., from conducting routine compliance investigations), FTC staff concludes that:
(1) companies are aware of the Rules; (2) companies are aware that the FTC will freely provide
copies of the Fur Act and Rules and additional explanatory materials upon request; and (3)
companies consider the Rules to be clear and reasonable.

4

As it has in the past, FTC staff sought public comment in connection with its latest PRA
clearance request for these Rules, in accordance with 5 CFR 1320.8(d). See 89 FR 20970 (Mar.
26, 2024). No germane comments were received. Consistent with 5 CFR 1320.12(c), FTC staff
is doing so again contemporaneously with this submission.
9.

Payments or Gifts to Respondents
Not applicable.

10.

& 11. Assurances of Confidentiality and Matters of a Sensitive Nature
The records involved do not concern matters of a sensitive nature.

12.

Burden Estimate

Estimated Annual Hours Burden: 180,639 hours (45,720 hours for recordkeeping +
134,919 hours for disclosure).
Recordkeeping: The Fur Rules require that retailers, manufacturers, processors, and
importers of furs and fur products keep certain records in addition to those they may keep in the
ordinary course of business. FTC staff estimates that: (1) 500 retailers incur an average
recordkeeping burden of about 18 hours per year (9,000 hours total); (2) 137 manufacturers incur
an average recordkeeping burden of about 60 hours per year (8,220 hours total); and (3) 950
importers of furs and fur products incur an average recordkeeping burden of 30 hours per year
(28,500 hours total). The combined recordkeeping burden for the industry is approximately
45,720 hours annually.
Disclosure: FTC staff estimates that 637 respondents (137 manufacturers + 500 retail
sellers of fur garments) each require an average of 30 hours per year to determine label content
(19,110 hours total), and an average of 30 hours per year to draft and order labels (19,110 hours
total). FTC staff estimates that the total number of garments subject to the fur labeling
requirements annually is approximately 1,840,000.2 FTC staff estimates that for approximately
50 percent of these garments (920,000) labels are attached manually, requiring approximately
four minutes per garment for a total of 61,333 hours annually. For the remaining 920,000, the
process of attaching labels is semi-automated and requires an average of approximately one
2

This estimate is half the prior estimate. FTC staff bases this estimate on an assessment that the overall
market for fur products appears to have halved. For example, the number of fur retailers has declined from
950 to 500. The total number of imported fur garments, fur-trimmed garments, and fur accessories is
3,562,242 annually based on U.S. government import statistics for Harmonized Tariff Schedule (HTS)
Number 4303. However, this figure includes many products that contain fur but are not covered by the Fur
Act and Rules, such as rabbit feet, or purses with fur. Estimated domestic production totals 90,000.

5