Removal of foreign origin disclosure and use of word manufacturing

No. 98. Removal of foreign origin disclosure and use of word manufacturing.

The Commission announced today it had advised a distributor of imported time clocks that the "removal or obliteration of foreign origin disclosures on imported products is under certain circumstances a violation of the Tariff Act which is administered by the Bureau of Customs" and invited the distributor to contact that Bureau on this particular point. The distributor wanted permission to remove the foreign origin label prior to resel1ing the time cloeks in the United States. " Regardless of the position of that Bureau " the Commission added such removal or obliteration in the circumstances you describe may result in a deception of the purchasing publie as to the country of origin" and might be found to be in violation of the FTC Act. Permission was also requested to use the word "manufacturing" in the trade name of the company and in advertising, even though the time clocks are imported in their finished state. The Commission was of the opinion that the use of such word "would have the tendency to lead consumers and others into the belief contrary to fact, that they are dealing directly with the manufacturer and so to mislead or deceive them. In these circumstances, it would not he proper to use the word ' manufacturing or any other word of similar import in your trade name or in your advertising or to otherwise represent your company as a manufacturer.

Final1y, the distributor wanted to know if it would be proper to represent his company as a manufacturer if it performed a sroan part" of the manufacturing process on the time clocks. In regard to this question, the Commission reached the fol1owing conclusion:

The amount of manufacturing which a concern must engage in to justify representing itself as a manufacturer wi1 vary from case to case, depending on the specific circumstances. Your question, however, indicates you intend to operate as a manufacturer only in the technical sense and not jn a substantive way, in an attempt to .i ustify the use of a term not otherwise a correct description of your business. We likewise do not believe jn these circumstances , that it would be proper to represent your company as a manufacturer. " (File No. 673 7010, released Oct. 31 , 1966.