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111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-571

======================================================================



 
                   TRUTH IN FUR LABELING ACT OF 2010

                                _______
                                

 July 27, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2480]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2480) to improve the accuracy of fur product 
labeling, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Legislative History..............................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings and Recommendations.................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Statement of General Performance Goals and Objectives............     4
Constitutional Authority Statement...............................     4
Earmarks and Tax and Tariff Benefits.............................     4
Federal Advisory Committee Statement.............................     4
Applicability of Law to Legislative Branch.......................     4
Federal Mandates Statement.......................................     4
Committee Cost Estimate..........................................     5
Budget Authority and Congressional Budget Office Cost Estimate...     5
Section-by-Section Analysis of the Legislation...................     6
Explanation of Amendment.........................................     7
Changes in Existing Law Made by the Bill, as Reported............     7

                               Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Truth in Fur Labeling Act of 2010''.

SEC. 2. ELIMINATION OF EXEMPTION TO FUR PRODUCT LABELING REQUIREMENTS 
                    FOR PRODUCTS CONTAINING RELATIVELY SMALL QUANTITIES 
                    OR VALUES OF FUR.

  (a) In General.--Section 2(d) of the Fur Products Labeling Act (15 
U.S.C. 69(d)) is amended by striking ``; except that'' and all that 
follows through ``contained therein''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 3. EXEMPTION FOR DISCRETE SALES BY NON-RETAILERS.

  Section 3 of the Fur Products Labeling Act (15 U.S.C. 69a) is amended 
by adding at the end the following:
  ``(g) No provision of this Act shall apply to a fur product--
          ``(1) the fur of which was obtained from an animal through 
        trapping or hunting; and
          ``(2) when sold in a face to face transaction at a place such 
        as a residence, craft fair, or other location used on a 
        temporary or short term basis, by the person who trapped or 
        hunted the animal, where the revenue from the sale of apparel 
        or fur products is not the primary source of income of such 
        person.''.

SEC. 4. FEDERAL TRADE COMMISSION REVIEW OF FUR PRODUCTS NAME GUIDE.

  Not later than 90 days after the date of the enactment of this Act, 
the Federal Trade Commission shall publish in the Federal Register 
notice of, and an opportunity to comment on, a review of the Fur 
Products Name Guide (16 C.F.R. 301.0).

                          Purpose and Summary

    H.R. 2480, the ``Truth in Fur Labeling Act of 2009'', was 
introduced on May 19, 2009, by Rep. James P. Moran (D-VA), Rep. 
Mary Bono Mack (R-CA), and 13 other members. H.R. 2480 amends 
the Fur Products Labeling Act to require all fur products to be 
labeled.

                  Background and Need for Legislation

    The labeling of fur products is currently regulated by the 
Fur Products Labeling Act of 1951, which requires that fur 
manufactured for use as attire have labels indicating the 
animal name and the country of origin.\1\ Apparel with less 
than $150 worth of fur is exempted from these requirements by 
the Rules and Regulations of the Federal Trade Commission (FTC) 
under the Fur Products Labeling Act.\2\
---------------------------------------------------------------------------
    \1\15 U.S.C. Sec. Sec. 69-69j. The law also requires labeling of 
the manufacturer name, whether the fur is natural or dyed, and whether 
the fur is used or damaged.
    \2\16 CFR Sec. 301.39.
---------------------------------------------------------------------------
    In today's manufacturing of fur apparel, roughly 14% of 
products trimmed with animal fur go unlabeled because they fall 
below the $150 threshold set by current federal law.\3\ In 
addition, an investigation by the Humane Society found real fur 
that was labeled as faux fur and other furs that were 
mislabeled.\4\
---------------------------------------------------------------------------
    \3\The Humane Society of the United States, Congress Calls for 
Truth in Fur Labeling In Response to Ongoing Misrepresentation (May 20, 
2009) (online at www.hsus.org/press_ and_publications/press_releases/
congress_calls_for_truth_in_fur_labeling_ 052009.html).
    \4\Id.
---------------------------------------------------------------------------
    The FTC, as instructed by the Fur Products Labeling Act, 
produces the Fur Products Name Guide that defines how fur 
products may be listed on the label.\5\ This guide, which was 
last updated by the FTC in 1967, has been criticized as 
outdated and inaccurate.\6\
---------------------------------------------------------------------------
    \5\16 C.F.R. Sec. 301.
    \6\Humane Society Legislative Fund, Fact Sheet: Support the Truth 
in Fur Labeling Act S.1076/H.R. 2480 (online at www.hslf.org/pdfs/fur-
labeling-fact-sheet-tafa.pdf) (accessed May 10, 2010).
---------------------------------------------------------------------------
    H.R. 2480 amends the Fur Products Labeling Act by removing 
the FTC's authority to exempt apparel valued under a certain 
amount. As a result, all articles of apparel containing fur 
will be required to be labeled. The legislation also instructs 
the FTC to review the Fur Products Name Guide.
    A companion bill, S. 1076, was introduced by Senator Robert 
Menendez (D-NJ) on May 19, 2009.

                          Legislative History

    H.R. 2480, the ``Truth in Fur Labeling Act of 2009,'' was 
introduced on May 19, 2009, by Rep. James P. Moran (D-VA), with 
cosponsors Reps. Mary Bono Mack (R-CA), Dennis Moore (D-KS), 
Henry Brown (R-SC), Lynn Woolsey (D-CA), Steve Cohen (D-TN), 
George Miller (D-CA), Earl Blumenauer (D-OR), Sam Farr (D-CA), 
Thaddeus McCotter (R-MI), Maurice Hinchey (D-NY), Dennis 
Kucinich (D-OH), Brad Sherman (D-CA), Pete King (R-NY), and 
Todd Russell Platts (R-PA).
    The bill was referred to the Committee on Energy and 
Commerce and on May 20, 2009, H.R. 2480 was referred to the 
Subcommittee on Commerce, Trade, and Consumer Protection. A 
legislative hearing was held by Subcommittee on May 13, 2010. 
At the hearing, witnesses representing the FTC, animal rights 
advocates, and the industry association expressed support for 
the legislation.

                        Committee Consideration

    On June 30, 2010, the Subcommittee on Commerce, Trade, and 
Consumer Protection met in open markup session to consider H.R. 
2480. During that consideration a manager's amendment offered 
by Subcommittee Chairman Rush was adopted by a voice vote. 
Subsequently, the Subcommittee forwarded H.R. 2480 favorably to 
the full Committee, amended, by a voice vote.
    On July 15, 2010, the Committee on Energy and Commerce met 
in open markup session and considered H.R. 2480 as approved by 
Subcommittee. The Committee agreed by a voice vote to adopt an 
amendment by Mr. Latta. Subsequently, the full Committee 
ordered H.R. 2480, favorably reported to the House, amended, by 
a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Stupak ordering H.R. 2480 reported to the House, 
amended, was approved by a voice vote. There were no record 
votes taken during consideration of this bill.

            Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report, including 
the finding that all fur products should be labeled.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Regarding compliance with clause 3(c)(2) of rule XIII of 
the Rules of the House of Representatives, the Committee adopts 
as its own the estimate regarding H.R. 2480 prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report, including the requirement that all fur products 
be labeled.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 2480. Article I, section 8, clauses 3 and 18 
of the Constitution of the United States grants the Congress 
the power to enact this law.

                  Earmarks and Tax and Tariff Benefits

    H.R. 2480 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the 
House of Representatives.

                  Federal Advisory Committee Statement

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., section 5(b) of the Federal 
Advisory Committee Act.

             Applicability of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. 
This bill does not relate to employment or access to public 
services and accommodations.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported bill include unfunded mandates. 
In compliance with this requirement the Committee adopts as its 
own the estimates prepared by the Congressional Budget Office 
and included herein.

                        Committee Cost Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2480. Clause 3(d)(3)(B) of that rule, however, provides 
that this requirement does not apply when the Committee adopts 
as its own the cost estimate of H.R. 2480 prepared by the 
Director of the Congressional Budget Office under section 402 
of the Congressional Budget Act.

               Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for H.R. 2480 from the 
Director of the Congressional Budget Office:

                                                     July 26, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2480, the Truth in 
Fur Labeling Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2480--Truth in Fur Labeling Act of 2010

    H.R. 2480 would require products that contain a small 
quantity of fur to comply with provisions of current law that 
prohibit false or misleading branding, advertising, or 
invoicing of fur products. Currently, products containing a 
small quantity of fur, as defined by the Federal Trade 
Commission (FTC), are exempt from the labeling requirements. 
The bill also would exempt products containing fur obtained by 
trapping or hunting and sold in a face-to-face transaction from 
the labeling requirements. The FTC would be required to develop 
regulations to carry out those new requirements.
    Based on information from the FTC, CBO expects that 
developing and enforcing the new regulations would impose a 
minimal cost on the agency; therefore, CBO estimates that 
implementing H.R. 2480 would not significantly increase 
spending subject to appropriation. Enacting H.R. 2480 could 
increase civil and criminal penalties and thus would affect 
federal revenues and direct spending; therefore, pay-as-you-go 
procedures would apply. However, CBO estimates that such 
effects would not be significant in any year.
    H.R. 2480 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 2480 would impose private-sector mandates, as defined 
in UMRA, on manufacturers of fur products, fur-trimmed 
products, and fur accessories. The bill would expand existing 
labeling requirements for products containing animal fur to 
include items using relatively small amounts of animal fur. The 
labels include information about the name of the animal used, 
manufacturer, country of origin, and other information. 
According to information from the FTC, about 140,000 products--
less than 14 percent of the market--would be affected by the 
mandate, and the incremental cost of compliance would be low. 
Therefore, CBO estimates that the aggregate cost of the 
mandates would fall well below the annual threshold for 
private-sector mandates ($141 million in 2010, adjusted 
annually for inflation).
    The CBO staff contacts for this estimate are Susan Willie 
(for federal costs) and Marin Randall (for the private-sector 
impact). The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 designates the short title of the Act as the 
``Truth in Fur Labeling Act of 2010.''

Section 2. Elimination of exemption to fur product labeling 
        requirements for products containing relatively small 
        quantities or values of fur

    Section 2(a) of H.R. 2480 amends section 2(d) of the Fur 
Products Labeling Act (15 U.S.C. 69(d)) to remove the authority 
of the FTC to exempt articles of wearing apparel from the 
requirements of the Act by reason of the relatively small 
quantity or value of the fur or used fur contained in such 
articles. All ``fur products'' as defined in the Fur Products 
Labeling Act will therefore be subject to the requirements of 
that Act.

Section 3. Exemption for discrete sales by non-retailers

    Section 3 exempts certain fur products sold by hunters or 
trappers from the requirements of the Fur Products Labeling 
Act. In order to qualify for the exemption, the fur product 
must have been obtained from an animal by trapping or hunting, 
must be sold by the person who trapped or hunted the animal, 
must be sold in a face-to-face transaction in a home or a 
location used on a temporary or short term basis, and the 
revenue from the sale of apparel or fur products must not be 
the primary source of income for the seller. This exemption 
would not apply to the resale of those same fur products by the 
original purchasers or any successor purchasers.

Section 4. Federal Trade Commission review of Fur Products Name Guide

    Section 4 directs the FTC to review the Fur Products Name 
Guide (16 CFR 301.0). Notice of the review shall be published 
in the Federal Register, and the public shall have an 
opportunity to comment on the review.

                        Explanation of Amendment

    Mr. Latta offered an amendment to create a new section of 
the bill exempting certain fur products sold by trappers or 
hunters from the requirements of the Fur Products Labeling Act. 
The amendment became new section 3 of the Act and is explained 
in the section-by-section analysis. The full Committee agreed 
to the amendment by a voice vote.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

FUR PRODUCTS LABELING ACT

           *       *       *       *       *       *       *


  Sec. 2. As used in this Act--
  (a) * * *

           *       *       *       *       *       *       *

  (d) The term ``fur product'' means any article of wearing 
apparel made in whole or in part of fur or used fur[; except 
that such term shall not include such articles (other than any 
dog or cat fur product to which section 308 of the Tariff Act 
of 1930 applies) as the Commission shall exempt by reason of 
the relatively small quantity or value of the fur or used fur 
contained therein].

           *       *       *       *       *       *       *


    MISBRANDING, FALSE ADVERTISING, AND INVOICING DECLARED UNLAWFUL

  Sec. 3. (a) * * *

           *       *       *       *       *       *       *

  (g) No provision of this Act shall apply to a fur product--
          (1) the fur of which was obtained from an animal 
        through trapping or hunting; and
          (2) when sold in a face to face transaction at a 
        place such as a residence, craft fair, or other 
        location used on a temporary or short term basis, by 
        the person who trapped or hunted the animal, where the 
        revenue from the sale of apparel or fur products is not 
        the primary source of income of such person.

           *       *       *       *       *       *       *