Disclosure of origin of imported components used in manufacture of firearms

No. 320. Disclosure of origin of imported components used in manufacture of firearms.

The Commission rendered an advisory opinion in regard to the question of whether it is necessary to disclose the origin of certain imported components to be used in the manufacture of revolvers and automatic pistols. If such disclosure is required, a question is raised as to the proper location of that disclosure. Specifically, the advisory opinion involved the use of components imported from both Germany and Italy, such as barrels, cylinders, and hammers. The remaining components were of domestic origin.

With respect to the question of whether a disclosure of the origin of the imported components would be required, the Commission said: “In the absence of any evidence to the contrary, the Commission believes that the question of foreign origin dis 1110 FEDERAL. TRADE COMMISSION DECISIONS closure largely depends upon the importance which prospective purchasers would attach to the fact, if known, that.a substantial number of the components of the finished product are of foreign origin. It is the Commission’s judgment that the imported components in both factual situations, namely, the barrels, cylinders, and hammers, represent such an integral and essential part of the finished product that prospective purchasers would in all probability manifest a deep concern over their origin and manufacture. If such is the case, then the failure to reveal the origin of the imported components would play a vital, if not decisive, role in the customers’ selection or purchase. Under these circumstances, the Commission is of the opinion that the failure to. reveal the country of origin of the imported components in both factual situations would likely result in deception to consumers and unfair injury to competitors.”

In regard to the question of whether the disclosure should be made on the product or the container, the Commission cited the well-established general rule that the disclosure should be clear and conspicuous. This means, the Commission said, that it must be placed in a location at the point of sale where it would be readily observed by prospective purchasers making a casual inspection of the merchandise prior to, not after, the purchase thereof. If the merchandise is displayed in such a manner that a disclosure on the product would not be seen prior to the purchase thereof, it would be necessary to place the disclosure on the container. On the other hand, if the merchandise is displayed in a manner which would permit purchasers to observe the disclosure on the product, it would not be necessary to make a disclosure on the container. (File No. 693 7057, released Feb. 7, 1969.)