Statements of General Policy or Interpretation, Manufacturer of Consumer Commodities
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SUBCHAPTER E— RULES, REGULATIONS, STATE MENTS OF GENERAL POLICY OR INTERPRE TATION, AND EXEMPTIONS UNDER THE FAIR PACKAGING AND LABELING ACT PART 503— STATEMENTS OF GEN ERAL POLICY OR INTERPRETATION Manufacturer of Consumer Commodities The Federal Trade Commission pro mulgated an interpretation relevant to § 500.5 of the Fair Packaging and Label ing Act regulations on March 7, 1969. This interpretation appeared as § 503.3 of the regulations, in the F ederal R eg ister, Volume 34, No. 45. Subsequent to publication, a new question was sub mitted on behalf of an industrial firm, which requires further interpretation of § 500.5.
Basically, the question is whether, in the case of a parent corporation which wholly owns a subsidiary corporation, each of which has separate corporate identity, the requirement of § 500.5 of the regulations is met when the consumer commodities manufactured by the sub sidiary are labeled to reflect the parent corporation as the manufacturer. Since this question may have signifi cance to industry in general, the Com mission feels it appropriate to promul gate its interpretation of § 500.5 as it relates to the status of a parent corpora tion which wholly owns a manufacturing subsidiary retaining its own corporate identity.
Accordingly, pursuant to the provisions of the Fair Packaging and Labeling Act (sections 4, 6,10, 80 Stat. 1297, 1299,1300, 1301; 15 U.S.C. 1453, 1455, 1456) Sub chapter E, Part 503 is amended by adding to § 503.3 a new paragraph (d) as follows:
§ 503.3 Name and place o f business of m anufacturer, packer, or distributor. * * * * * (d) A corporation which wholly owns a manufacturing subsidiary which re tains its separate corporate identity, is not the manufacturer of the consumer commodities manufactured by the wholly owned subsidiary, but must qualify its name if it elects to use its name on the label. Such qualification may be “Man ufactured for ----------------”, “Distrib uted by----------------”, or “Manufactured b y ---------------- (XYZ, Inc., City, State, Zip Code, a subsidiary of ABC, Inc.)”. Issued: June 30, 1969.
By direction of the Commission. [seal] J oseph W. S hea, Secretary.
[F.R. Doc. 69-7896; Filed, July 2,- 1969; 8:51 a.m.]