Statements of General Policy or Interpretation, Miscellaneous Amendments

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PART 503— STATEMENTS OF GEN­ ERAL POLICY OR INTERPRETATION Miscellaneous Amendments The Federal Trade Commission has previously published several policy ..h ments in the Federal Register respect to coverage and the s k g.

specific items under the Fair ,ate_ ing and Labeling Act. These ments were identified as § 50 • . ters pertaining to coverage u R Fair Packaging and Labeling Act, j • 4723 (Mar. 19, 1968) and as Status of Specific items under _ g773 Packaging and Labeling Act, 3 • • ^ (June 15, 1968). Additionally, relate^ policy statements were issued n JJlished, firmed § 503.2 as on® ^ 1^ i >amended 34 F.R. 8941 (June 4, 1969)^ * £ ¡ 32, 34 and alphabetically rearranged § F.R. 9210-9211 (June 11,1969) • The Commission has view of the express language a FEDERAL REGISTER, VOL. 34, NO. 152— SATURDAY, AUGUST 9, 1969

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RULES AND REGULATIONS 12945 legislative history of section 10 (a) of the Act, which defines “consumer com­ modity,“ and the entire Act that the opinions expressed in the above-men­ tioned policy statements set forth an in­ terpretation of “consumer commodity” that is unduly comprehensive. Moreover, the above-mentioned policy statements are incomplete because they did not de­ fine adequately the boundaries of prod­ uct coverage under the definition. The Commission has also determined in view of the Act and its history that all actions taken under Part 501 of the regulations are invalid as they were based upon an interpretation of “consumer commodity” that is unduly comprehensive. The fore­ going determinations of the Commission were based upon a memorandum from the Commission's General Counsel with attachments, which included a digest of the Act’s legislative history. Copies of these documents are available to mem­ bers of the public upon request to the Commission’s Division of Legal and Public Records.

Accordingly, pursuant to the provisions of the Pair Packaging and Labeling Act (sections 4, 6, 10, 80 Stat. 1297, 1299, 1300, 1301; 15 U.S.C. 1453, 1455, 1459), Part 503 is amended as follows: Sections 503.1 and 503.2 are repealed and a new § 503.5 is added, as follows: Federal Trade Commission, the legisla­ tive history of the Act demonstrates the intent of Congress, for the reasons stated therein, to place the following categories outside the scope of the definition of “consumer commodity” ;

( 1 ) Durable articles or commodities ; ( 2 ) Textiles or items of apparel ; <3) Any household appliance, equip­ ment, or furnishing, including feather and down-filled products, syntheticfilled bed pillows, mattress pads and patchwork quilts, comforters and decora­ tive curtains;

(4) Bottled gas for heating or cook­ ing purposes;

( 5 ) Paints and kindred products ; (6) Flowers, fertilizer, and fertilizer materials, plants or shrubs, garden and lawn supplies;

(7) Pet care supplies;

(8) Stationery and writing supplies, gift wraps, fountain pens, mechanical pencils, and kindred products. (e) The articles, products, or com­ modities that are within the terms of section 10(a) of the Act and subject to regulation by the Federal Trade Com­ mission are either expendable commodi­ ties for consumption by individuals, ex­ pendable commodities used for personal care, or expendable commodities used for household services. The primary terms in § 503.5 Interpretation o f the definition °f “consum er com m odity” as con­ tained in section 1 0 (a ) o f the Fair Packaging and Labeling Act. (a) Section 10(a) of the Fair Packag- ^ and Labeling Act defines the term consumer commodity” in four classifi­ cations. These are:

(1) Any food, drug, device, or cos­ metic;

(2) And any other article, product, or commodity of any kind or class which is customarily produced or distributed for . ® through retail sales agencies or instrumentalities.

-JP consumption by individuals usually is consumed or ex­ pended in the course of such consumpnniiP For use by individuals for purwses of personal care and which usually „,.f?nsume<l or expended in the course of such use.

form} Por use by individuals in the perservices ordinarily rendered is the household and which usually of resumed or expended in the course such use.

°n 10(a> then expressly ex- (2) meats* poultry, and tobacco, animoi ' Nisons and biologies for c 2 \ (3) Prescription drugs, (4) al­ and t!.erages’ and (5) agricultural anf vegetable seeds.

Pair ^vsuant to sections 5 and 7 of the authoHfCT ging and Labeling Act, the to enfimi ^ Promulgate regulations and deviti ICe the Act as to any food, drug, the K ^L Cosmetic has been delegated to Welfare eto*y °f Health, Education, and commrwiif51., ias to any other “consumer mission**^ k° fke Federal Trade Comc°nmiodiiÌ£ thf?e articles, products, or dities subject to regulation by the section 10(a) for defining these categor­ ies are:

(1) Consumption by individuals; (2) Use by individuals;

(3) Personal care by individuals; (4) Performances of services ordinar­ ily rendered within the household by in­ dividuals;

(5) Consumed or expended. (f) These terms are defined as fol­ lows:

(1) Consumption "by individuals. This term as it is used in section 10(a) means the using up of an article, product, or commodity by an individual. (2) Use by individuals. This term as it is used in section 10(a) means the employment or application of an article, product, or commodity by an individual. (3) Personal care by individuals. This term as it is used in section 10(a) means that activity of an individual which is concerned with protecting, enhancing, and providing for the general clean­ liness, health, or appearance of the individual.

(4) Performance of services ordinar­ ily rendered unthin the household by in­ dividuals. These terms as they are used in section 10(a) mean: The term “house­ hold” refers to the interior and exterior of dwellings or residences occupied by individuals, including the surrounding premises. The term “performance of services ordinarily rendered within the household” means the doing of any ac­ tivity by an individual within the abovedescribed area which is normally done in connection with the maintenance and occupation of the above-described area as a habitation for individuals. (5) Consumed or expended. These terms as they are used in section 10(a) mean (1) the immediate destruction or extinction of an article, product, or com­ modity, or of the part used; or (2) the substantial diminution in the quantity,, quality or utility of an article, product, or commodity which results from usage upon one or several occasions over a com­ paratively short period of time. (g) The foregoing definition serves to amplify the definition of “consumer com­ modity” supplied by Congress in section 10(a) of the Act. As questions arise as to whether specific articles, products, or commodities are included in the above definition, the Commission will consider, among other things, the Congressional policy declared in section 2 of the Act, namely, that packages and labels should enable consumers to obtain accurate in­ formation as to the quantity of contents and should facilitate value comparisons. That is, in making its determinations of inclusions and exclusions under this definition, the Commission will consider the requirements of both the Act and the pertinent regulations and in that con­ nection will regard as one criterion the extent to which the disclosures required on “consumer commodities” are material to a consumer's selection of a particular article, product, or commodity. Interpre­ tative rulings in such instances will be made public, and can be expected to fur­ ther contribute to the development of clearer delineation of the scope of the term “consumer commodity”. (h) With respect to articles, products, or commodities included within the def­ inition of “consumer comoddities”, the Commission will consider requests for ex­ emptions in accordance with section 5 (b) of the Act and § 500.3(e) of this chapter, and will make public its rulings on all such requests.

Issued: August 5,1969.

By direction of the Commission. CsealI J oseph W. S hea, Secretary.

[F.R. Doc. 69-9384; Filed, Aug. 8, 1969; 8:46 a.m.]