MISBRANDING AND FALSE OR DECEPTIVE ADVERTISING OR INVOICING IS DECLARED

UNLAWFUL

SEC. 3. (a) The introduction, or manufacture for introduction, into commerce, or the sale, advertising for sale, transportation, or distribution, in commerce, of any fur article, or any imported fur, which is misbranded or falsely or deceptively advertised or invoiced within the meaning of this Act or the rules and regulations prescribed under this Act, is unlawful and shall be an unfair method of competition, and an unfair or deceptive act or practice, in commerce under the Federal Trade Commission Act; and any person who shall manufacture or deliver for shipment, or ship, or sell or offer for sale, or advertise for sale, in commerce, any such fur article or fur which is misbranded or falsely or deceptively advertised or invoiced within the meaning of this Act and the rules and regulations prescribed under this Act, is guilty of an unfair method of competition, and an unfair or deceptive act or practice, in commerce within the meaning of the Federal Trade Commission Act.

(b) Subsection (a) of this section shall not apply--

(1) to any common carrier or contract carrier in respect of a fur article or fur shipped or delivered for shipment in commerce in the ordinary course of its business;

(2) to any person manufacturing, delivering for shipment, shipping, selling or offering for sale, for exportation from the United States to any foreign country, a fur article or fur branded in accordance with the specifications of the purchaser and in accordance with the laws of such country; (3) in respect of any fur article or imported fur imported into the United States on or before the effective date of this Act;

(4) in respect of any fur article or imported fur imported into the United States after the effective date of this Act, prior to the time such fur article or imported fur is released from the custody of the Bureau of Customs for introduction into commerce within the United States.

MISBRANDED FUR ARTICLES

SEC. 4. (a) A fur article shall be considered to be misbranded-

(1) if it is falsely or deceptively stamped, tagged, labeled, or otherwise identified; (2) if a stamp, tag, label, or other means of identification is not affixed to the fur article or does not show in words and figures plainly legible

(A) the true English name (as set forth in the Fur Products Name Guide) of the animal that produced the fur;

(B) in the case of a fur article containing more than one kind of fur, the true English names (as set forth in the Fur Products Name Guide) of the animals that produced the fur;

(C) in the case of a fur article containing reused fur, the fact that it contains reused fur;

(D) the name of the manufacturer of the fur article and/or the name of one or more persons subject to section 3 with respect to such fur article;

(E) in the case of a fur article which contains imported fur, the name of the country which appeared on the stamp, tag, label, or other means of identification affixed to such fur at the time it was released from the custody of the Bureau of Customs.

(b) In addition to information required in this section, the stamp, tag, label, or other means of identification required by this Act to be affixed to a fur article may contain other information not violating the provisions of this Act or the rules and regulations prescribed under this Act.

AFFIXING OF STAMP, TAG, LABEL OR OTHER IDENTIFICATION

SEC. 5. (a) Any person manufacturing for introduction or first introducing into commerce a fur article shall affix thereto the stamp, tag, label, or other means of identification required by this Act, and the same shall remain affixed to such fur article until sold to the consumer: Provided, That if any person subject to section 3 with respect to a fur article finds or has reasonable cause to believe the stamp, tag, label, or other means of identification affixed to such article does not contain the information required by this Act, he may replace the same with a substitute containing the information so required, provided the name and address of the person who affixes the substitute appears thereon.

(b) Any person who shall cause or participate in the removal or mutilation of any stamp, tag, label, or other means of identification, affixed to a fur article

with the intent to violate the provisions of this Act, is guilty of an unfair method of competition, and an unfair or deceptive act or practice, in commerce within the meaning of the Federal Trade Commission Act.

FALSE OR DECEPTIVE ADVERTISING OR INVOICING OF FUR ARTICLES OR IMPORTED

FUR

SEC. 6. A fur article or imported fur shall be considered to be falsely or deceptively advertised or invoiced (1) if the name or names of an animal or animals other than the name or names required by this Act to appear on the stamp, tag, label, or other means of identification affixed to the fur article or imported fur are used in any form of advertisement, invoice, public announcement, or notice which is intended to aid, promote, or assist directly or indirectly in the sale of such article or fur, or (2) any other form of misrepresentation or deception other than misbranding is practiced directly or by implication in connection with the sale of such article or fur.

MISBRANDED IMPORTED FUR

SEC. 7. (a) All imported fur imported into the United States after the effective date of this Act shall, prior to the release thereof from the custody of the Bureau of Customs for introduction into commerce within the United States, be stamped, tagged, labeled, or otherwise identified in accordance with the provisions of subsection (b) of this section by the person first introducing such fur into commerce within the United States.

(b) (1) Imported fur shall be considered to be misbranded—

(A) if it is falsely or deceptively stamped, tagged, labeled, or otherwise identified.

(B) if a stamp, tag, label, or other means of identification is not affixed to the fur or does not show in words and figures plainly legible

(i) the true English names (as set forth in the Fur Products Name Guide) of the animal that produced the fur;

(ii) the name of the country from which such fur originated.

(2) In the case of whole skins or pieces consisting of more than one skin, each skin or piece shall bear a stamp, label, tag, or other means of identification as required by paragraph (1) of this section.

(3) In the case of pieces of parts of skins less than whole skins, stamping, tagging, labeling, or other means of identification shall be applied according to rules and regulations prescribed by the Commission.

(4) The stamp, tag, label, or other means of identification affixed to imported fur, whether whole skins or pieces or parts thereof, shall remain affixed until the fur is used in the manufacture of a fur article.

(c) Any person who shall cause or participate in the removal or mutilation of any stamp, tag, label, or other means of identification affixed to any imported fur with the intent to violate the provisions of this section is guilty of an unfair method of competition, and an unfair or deceptive act or practice in commerce, within the meaning of the Federal Trade Commission Act: Provided, That any person engaged in the fur-processing business may, during the time any fur is in his custody, remove the stamp, tag, label, or other means of identification for the purpose of processing or reprocessing the fur; but before the fur leaves his custody such stamp, tag, label, or other means of identification shall be reaffixed in the identical manner in which it was received: Provided further, That in the event such stamp, tag, label, or other means of identification is not removed by such processor and during the state and process of being processed the stamp, tag, label, or other means of identification is mutilated, destroyed, removed, or made illegible, the processor shall restamp, retag, relabel, or use other means of reidentification of such fur in a plain and legible manner using the same letters, wording, and figures that appeared on the original stamp, tag, label, or other means of identification when received by the processor.

INVOICES OF IMPORTED FUR ARTICLES AND OF IMPORTED FUR

SEC. 8. (a) All invoices as now required under the law or laws covering importations of fur or fur articles shall set forth, in addition to the matter specified by such law or laws, such information as the Commission may require to carry out the purposes of this Act.

(b) The falsification of, or failure to set forth said information in said invoices, or the falsification or perjury of the consignee's declaration provided for in said law or laws covering the importation of such fur or fur products, insofar as it

relates to said information, shall be an unfair method of competition and an unfair or deceptive act or practice, in commerce under the Federal Trade Commission Act; and any person who falsifies or fails to set forth said information in said invoices, or who falsifies or perjures said consignee's declaration insofar as is related to said information, may thenceforth be prohibited by the Commission from importing, or participating in the importation of, fur or fur articles into the United States except upon filing bond with the Secretary of the Treasury in the sum double the value of said fur or fur articles and any duty thereon, conditioned upon compliance with the provisions of this Act.

NAME GUIDE FOR FUR PRODUCTS

SEC. 9. (a) The Commission shall withn one year after the date of the enactment of this Act issue a regulation after holding public hearing thereon, setting forth the namess of all fur-bearing animals, which shall be known as the "Fur Products Name Guide". The names used shall be the true English names for the animals in question. After the effiective date of this Act the names as set forth in such Guide shall be used in stamping, tagging, labeling, or other means of identification of all fur and fur articles as well as in the advertising and invoicing thereof.

(b) At such time as the Commission deems advisable, supplement lists may be issued containing additional names of fur-bearing animals that may bcome into being and use, or remove from the list the names of any such fur-bearing animals that become extinct.

(c) The Secretary of Agriculture shall, within nine months after the date of the enactment of this Act, provide the Commission with an official list of the true English names of the fur-bearing animals which are deemed domestic animals under the Act entitled "An Act relating to the domestic raising of fur-bearing animals", approved April 30, 1946 (Public Law 369, Seventy-ninth Congress). Such names shall be set forth in the Fur Products Name Guide. Names of domestic fur-bearing animals shall be classified and listed separately in such Guide under the heading of "Domestic Fur Products Name Guide". Prior to adding or removing any names from the Domestic Fur Products Name Guide as provided in this section, the Commission shall receive approval from the Secretary of Agriculture, and the Commission upon the official request of the Secretary of Agriculture shall add to or remove from the Domestic Fur Products Name Guide such names as the Secretary shall request.

ENFORCEMENT OF THE ACT

SEC. 10. (a) (1) Except as otherwise specifically provided in this Act, this Act shall be enforced by the Federal Trade Commission under rules, regulations, and procedure provided for in the Federal Trade Commission Act.

(2) The Commission is authorized and directed to prevent any person from violating the provisions of this Act, in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act; and any such person violating the provisions of this Act shall be subject to the penalties and entitled to the privileges and immunities provided in said Federal Trade Commission Act, in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though the applicable terms and provisions of the said Federal Trade Commission Act were incorporated into and made a part of this Act.

(b) The Commission is authorized and directed to make rules and regulations of the manner and form of disclosing information required by this Act, and for segregation of such information for different types of fur and fur articles as may be necessary to avoid deception or confusion, and to make such further rules and regulations under and in pursuance of the terms of this Act, as may be necessary and proper for clarification for administration and enforcement.

(c) The Commission is authorized to cause inspection, analyses, tests, and examinations to be made of any fur or fur article subject to this Act; and to cooperate with any department or agency of the Government, with any State, Territory or possession, or with the District of Columbia; or with any department, agency, or political subdivision thereof, or with any person.

(d) Every manufacturer of fur articles shall maintain proper records showing the kind and content of fur as required by this Act of all fur articles made by him, and shall preserve such records for at least three years.

(2) The neglect or refusal to maintain and so preserve such records is unlawful, and any such manufacturer who neglects or refuses to maintain and so preserve

such records shall forfeit to the United States the sum of $100 for each day of such failure which shall accrue to the United States and be recoverable by a civil action.

CONDEMNATION AND INJUNCTION PROCEEDINGS

SEC. 11. (a) (1) Any fur or fur article shall be liable to be proceeded against in the district court of the United States for the district in which found, and to be seized for confiscation by process of libel for condemnation, if the Commission has reasonable cause to believe such fur or fur article is being manufactured or held for shipment, or shipped, or held for sale or exchange after shipment, in commerce in violation of the provisions of this Act, and if after notice from the Commission the provisions of this Act with respect to such fur or fur article are not shown to be complied with, proceedings in such libel cases shall conform as nearly as may be to suits in rem in admiralty, and may be brought by the Commission.

(2) If such fur or fur articles are condemned by the court, they shall be disposed of, in the discretion of the court, by destruction; by sale; by delivery to the owner or claimant thereof upon payment of legal costs and charges and upon execution of good and sufficient bond to the effect that such fur or fur articles will not be disposed of until properly stamped, tagged, labeled, or otherwise identified under the provisions of this Act; or by such charitable disposition as the court may deem proper. If such fur or fur articles are disposed of by sale, the proceeds, less legal costs and charges, shall be paid into the Treasury of the United States. (b) Whenever the Commission has reason to believe that—

(1) any person is violating, or is about to violate any section of this Act; and (2) it would be to the public interest to enjoin such violation until complaint is issued by the Commission under the Federal Trade Commission Act and such complaint dismissed by the Commission or set aside by the court on review, or until order to cease and desist made thereon by the Commission has become final within the meaning of the Federal Trade Commission Act, the Commission may bring suit in the district court of the United States or in the United States court of any Territory, for the district or Territory in which such person resides or transacts business, to enjoin such violation, and upon proper showing a temporary injunction or restraining order shall be granted without bond.

GUARANTY

SEC. 12. (a) No person shall be guilty under section 3 if he establishes a guaranty received in good faith signed by and containing the name and address of the person residing in the United States by whom the fur or fur articles guaranteed were manufactured and/or from whom they were received, that said fur or fur article is not misbranded under the provisions of this Act. Such guaranty shall be either (1) a separate guaranty specifically designating the fur or fur article guaranteed, in which case it may be on the invoice or other paper relating to such fur or fur article; or (2) a continuing guaranty filed with the Commission applicable to all fur or fur articles handled by a guarantor in such form as the Commission by rules and regulations may prescribe.

(b) Any person who furnishes a false guaranty, except a person relying upon a guaranty to the same effect received in good faith signed by and containing the name and address of the person residing in the United States by whom the fur or fur article guaranteed was manufactured and/or from whom it was received, with reason to believe the fur or fur article falsely guaranteed may be introduced, sold, transported, or distributed in commerce, is guilty of an unfair method of competition, and an unfair or deceptive act or practice, in commerce, within the meaning of the Federal Trade Commission Act.

CRIMINAL PENALTY

SEC. 13. (a) Any person who willfully violates any section of this Act shall be guilty of a misdemeanor and upon conviction shall be fined not more than $5,000, or be imprisoned not more than one year, or both, in the discretion of the court.

(b) Whenever the Commission has reason to believe any person is guilty of a misdemeanor under this section, it shall certify all pertinent facts to the Attorney General, whose duty it shall be to cause appropriate proceedings to be brought for the enforcement of the provisions of this section against such person,

APPLICATION OF EXISTING LAWS

SEC. 14. The provisions of this Act shall be held to be in addition to, and not in substitution for or limitation of, the provisions of any other Act of Congress.

EFFECTIVE DATE

SEC. 15. Except as provided in section 9, this Act shall take effect eighteen months after the date of its enactment.

SEPARABILITY CLAUSE

SEC. 16. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of the Act and the application of such provision to any other person or circumstance shall not be affected thereby.

The CHAIRMAN. This legislation was introduced by our distinguished colleague from Minnesota, Mr. O'Hara. This committee, as some of you may know, has had extensive experience with similar legislation and it is my understanding that H. R. 3734 is patterned after that legislation previously had before us known as the Wool Products Labeling Act of 1939.

The great interest shown on the part of the fur industry indicates that the committee has before it an important piece of commercial legislation.

The committee goes into these hearings with an open mind as to the need for the legislation, desirous of hearing from various industry representatives as to their thought with respect to this bill and its necessity.

There are some who appear in favor of it and others to oppose it. We will hear from both proponents and opponents, in the hope that each will contribute to the consideration of the bill sufficiently to enable the committee to deal wisely in making its decision as to the merits of the legislation. Before I call the first witness, I bring to the attention of the committee that I have received reports from interested departments of the Government, the Federal Trade Commission, the Treasury Department, Department of Agriculture, the Justice Department, and the Interstate Commerce Commission, and a communication from the Board of Commissioners of the District of Columbia, also a report from the Department of Commerce. All of these will be made a part of the record at this point. (The reports and communications above referred to are as follows:) FEDERAL TRADE COMMISSION, Washington, D. C., October 29, 1947.

Hon. CHARLES A. WOLVERTON,

Chairman, Committee on Interstate and Foreign Commerce,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: Pursuant to your request for comment on H. R. 3734, Eightieth Congress, first session, a bill to protect consumers, retailers, distributors, manufacturers, dealers, and producers from misnaming, misbranding, improper identification, and deceptive or misleading advertising of fur products and articles made in part or in whole from fur, and for other purposes, the following is respectfully submitted.

The bill is generally modeled after the Wool Products Labeling Act of 1939 and is designed to protect consumers, retailers, distributors, manufacturers, dealers, and producers from the use of fictitious, false, or deceptive names or designations for furs through the establishment and maintenance of a Fur Products Name Guide and the requirements for affirmative disclosure of such names or designations in labeling. The bill also inhibits the misnaming, misbranding, improper indentification, and deceptive or misleading advertising and invoicing of fur products, whether made in whole or in part of fur.

The current need for the proposed legislation is emphasized by the increasing number of foreign names and glamorized fictitious designations used in advertising, on labels, etc., in describing furs and fur products, which dseignations tend to confuse and mislead purchasers or prospective purchasers as to the kind and quality of fur being offered for sale. Federal legislation of the type proposed would undoubtedly be desirable and in the public interest.