Enforcement Policy Statement Regarding Certain Imported Textile, Wool, and Fur Products

Enforcement Policy Statement Regarding Certain
Imported Textile, Wool, and Fur Products
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 ifthe 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 ofthe 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 ofthe 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 o(a
good violates the applicable Act. In such instances, the retailer is not reasonablyrelyin!fon
representations of third-party suppliers.'