FTC Seeks Input on Changes to Guaranty Provisions in Fur Rules
The Federal Trade Commission is seeking comments by July 23 on proposed changes to the guaranty provisions of the Fur Rules under the Fur Products Labeling Act in order to align those rules with proposed changes to the guaranty provisions of the Rules under the Textile Fiber Products Identification Act. The Fur and Textile Acts shield entities that obtain guaranties from product providers from liability – guaranties that designate particular products and continuing guaranties that apply to all products transferred from a particular guarantor. The guaranty protections apply only to entities that receive a guaranty in good faith. In April 2013 the FTC proposed changes to the Textile Rules’ guaranty provision which are similar to the proposed Fur Rules changes.
The FTC is also currently considering other changes to the Fur Rules. However, the agency will wait to publish a final rule until the guaranty issue is fully assessed.