Labeling of Reconditioned Autcmotive Parts

No. 409. Labeling of Reconditioned Autcmotive Parts. The Commission issued an advisory opinion with respect to labeling requirements applicable to used automotive engine accessories such as alternators, generators, starters, and similar parts which will be marketed in the United States after having been reconditioned in Taiwan with some new American or Taiwanese components such as wire and diodes. ;

It was proposed that scrapped and otherwise used automotive parts would be acquired in the United States and shipped to Taiwan for reconditioning with such new materials as might be necessary, and then returned to the United. States for final assembling and marketing. No information was available as to what percentage of total costs would be accounted for by sHipping, foreign labor, components of a foreign origin, domestic parts, or domestic labor. Under these circumstances the Commission advised in general terms that:

(1) Labeling the reconditioned automotive parts “Made in U.S.A.” would be a deceptive act or practice violative of Section 5, Federal Trade Commission Act.

(2) The Commission would not object to a full disclosure of all relevant facts to purchasers of the merchandise; and (8) Insufficient information had been supplied to permit an informed decision as to whether all reference to origin or place of work done may be omitted entirely ‘from labels on the commodities. 1704 FEDERAL TRADE .COMMISSION : DECISIONS The Commission added that the United States Bureau of Customs should be consulted for applicable regulations affecting such activities. (File No. 703 7065, released Feb. 18, 1970.)