Country of Origin Labeling on Crates Containing Unfinished Imported Raincoats and on Garments After Being…

No. 415. Country of Origin Labeling on Crates Containing Unfinished Imported Raincoats and on Garments After Being Finished in the United States.

‘he Commission rendered an advisory opinion with respect to (1) it requirements for foreign origin disclosure in the labeling on containers of unfinished “Dacron” polyester and rayon raincoat bodies and raincoat carry-bags to be imported from the Orient and (2) the necessity for disclosing the foreign country of origin on labels of the finished garments and bags which are to be sold as a unit to consumers at the retail level.

Under. the proposed operation various sized raincoat bodies will be ‘imported without collars, buttons or buttonholes. Material for the carry-bags, cut to size, will also be imported without buttons or buttonholes. After importation, American made buttons and various styled American made collars will be sewn onto the coat body, and the buttonholes cut out and bound. American made buttons will be sewn onto the carry-bags and the buttonholes cut out and bound. The estimated costs in the operation are $2 as the f.o.b. value of the unfinished garment body and bag material and $1.23 as the cost of domestic labor and material.

The submittal of facts disclosed that the Bureau of Customs would consider importer-finishers as the ultimate purchasers of the unfinished raincoats and bags within the meaning of the amended Tariff Act of 1930, and that an exception from the marking of the country of origin vequirement on each individual raincoat body and carry-bag would be granted so long as the containers in which the unfinished material will be imported are legibly and conspicuously marked as to indicate the foreign country of origin of the contents and so long as Customs Officers at the Port of Entry are satisfied that such containers will reach the ultimate purchasers unopened.

The Commission advised, based on its understanding of the factual submittal, particularly in light of the provisions of Section 4(b) (4) of the Textile Fiber Products Identification Act and the labeling exception granted by the Bureau of Customs, that (1) no additional marking on the containers or unfinished materials therein will be required beyond that requirement imposed by the Bureau of Customs ; (2) that the raincoats to be sold to consumers at the retail level after “1708 FEDERAL TRADE COMMISSION DECISIONS “having been finished in the United States must be labeled so as to ‘clearly:and conspicuously disclose the foreign country of origin of the “imported fabrics; and: (3) in the absence of any affirmative representa‘tion that the finished raincoat carry-bag is made entirely in the United “States it will not.be necessary to disclose the foreign country of origin of the imported fabric thereof. (File No. 703 7079, released April 18, ‘No. 416. Meaning: of Phrase “Leave Your Pocketbook At Home.” The Commission rendered an advisory opinion concerning the proposed use of the phrase “Leave your pocketbook at home” in light of ‘the requirements of the Truth in Lending Act, Section 144, and Regulaition “Z”, promulgated thereunder (12 C.F.R. § 226.10(d) (2)). The phrase in question would be used in television and mail cir‘cular advertising by sellers of clothing at retail on installment sales ‘contracts. It was presented that customers may make the first payment at some future time and that “The customer may take the cloth‘ing with him at the time the purchase is made rather than wait until ‘the first payment has been made. In ninety-nine out of a hundred cases, ‘the purchaser does take the clothing with him at the time the pur‘chase is made.” The Commission advised it. had concluded that the proposed phrase ‘is equivalent to, or synonymous with, a “no down payment” claim. ‘Under these circumstances it would be improper to use the proposed phrase without disclosing the specific credit terms required by Section “226.10(d) (2) of Regulation “Z. Specifically, the advertising must disclose the following credit information whenever no down payment claims are made::

(1) The cash price, (2) The number, amount, and due dates or period of payments sched‘uled to repay the indebtedness if the credit is extended, (3) The annual percentage rate, and (4) The deferred payment price of the article offered for sale. (File No. 708 7082, released April 18, 1970.)