2021 Care Labeling Rule Supporting Statement

Federal Trade Commission
Supporting Statement for Information Collection Provisions of
The Care Labeling Rule
16 C.F.R. 423
(OMB Control # 3084-0103)
Summary of Changes from Previously Approved Collection
There are no program changes for this renewal period. For this renewal, FTC staff have revised
burden estimates and revised its Information Collection list as described below:


Annual Burden Hours: FTC staff have revised their estimate of the percentage of
industry participants who attach labels using fully automated systems that integrate
labeling into other production steps. Based on industry knowledge, FTC staff estimate
that 50 percent of manufacturers attach labels using fully automated systems that
integrate labeling into other production steps, while the other half use a semi-automated
process. These revised estimates have yielded a decrease in annual hours burden from
30,666,667 to 25,555,556 hours to attach labels.



Labor Costs: FTC staff calculate labor costs by multiplying the annual burden hours
estimate by relevant hourly labor costs derived from BLS wage data. As part of this
analysis, FTC staff updated hourly labor costs using updated BLS wage data. Due to the
reduction in annual hours burden estimate and updated BLS wage data, the estimated
annual labor costs have changed from $199,680,975 to $163,973,040.



Information Collection List: FTC staff have also revised the list of Information.
Previously, the Information Collection accounting for the burden of attaching labels to
covered items was divided between two separate ICs: (1) Attach Labels-I and (2) Attach
Labels-II. For this renewal, FTC staff have consolidated these two ICs and the
associated burden estimates under a single IC now titled “Attach Labels.” Following
this consolidation, the IC titled “Attach Labels-I” has been removed.

1.

Necessity for Collecting the Information

In 1971, the Federal Trade Commission (“FTC” or “Commission”) determined that
it is unfair or deceptive to sell textile clothing (and piece goods used to make textile
clothing) without providing basic care information to consumers.1 The Commission found
that, absent care information, consumers suffer substantial economic injury when they are
unable to shop for clothing on the basis of care characteristics, and when they use improper
care procedures that damage clothing. Accordingly, the Commission issued a trade
regulation rule to require permanent labels that fully inform purchasers about how to care
for and maintain textile clothing.
1

36 FR 23,883 (1971).

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The Commission’s Trade Regulation Rule on Care Labeling of Textile Wearing
Apparel and Certain Piece Goods as Amended (“Care Labeling Rule” or “Rule”), 16 C.F.R.
§ 423, requires manufacturers and importers to attach a permanent care label to all covered,
non-exempted textile clothing. Also, manufacturers and importers of piece goods used to
make textile clothing must provide the same care information on the end of each bolt or roll
of fabric. This information must fully disclose either washing or dry cleaning instructions,
or that the item cannot be cleaned if such is the case. If washing instructions are given, the
label must also disclose a drying procedure and, in some circumstances, bleaching and
ironing care. If dry cleaning instructions are given, the appropriate solvent(s) must be
disclosed if all solvents cannot be used. Use of standardized terminology is suggested, but
not required, for all care instructions. For exempted items, the Rule requires disclosure of
care instructions on a hang tag, on the package, or in some other conspicuous place.
2.

Use of the Information

Consumers use the information disclosed on care labels to make purchase
decisions and to avoid ineffective garment care practices that may damage to garments.
Professional cleaners also use the information to avoid damaging garments and
ineffective care procedures. Textile products that are used to make clothing comprise a
vast array of fibers, fabrics, and finishes. Each of these products may have unique care
performance characteristics and require the use of specific care techniques. The large
number of products on the market makes it impracticable for consumers and professional
cleaners to be informed about appropriate care practices. If manufacturers and importers
of these products did not disclose care instructions to prospective purchasers, consumers
would be unable to determine with certainty what care procedures to employ. In addition,
consumers would not have the opportunity to consider care requirements, along with
other product attributes, in making informed choices among available textile clothing
products.
3.

Consideration of the Use of Improved Information Technology to Reduce Burden

Effective disclosure of care information to consumers entails labeling on garments
themselves so that consumers can be informed of proper care procedures at the time of
purchase and at the time of care; thus, providing an option for electronic disclosure pursuant
to the Government Paperwork Elimination Act, Pub. L. No. 105-277, Title XVII, 112 Stat.
2681-749, is impracticable.
4.

Burden/Efforts to Identify Duplication/Availability of Similar Information

Except for a limited requirement under the Flammable Fabrics Act regulations, see
16 C.F.R. §§ 1602-1632, there is no other federal or state law or regulation that requires
care labeling of textile clothing. The Care Labeling Rule provides that, in the event of a
conflict between its provisions and the rules issued under the Flammable Fabrics Act, the
latter will take precedence.2 During the 1983 amendment proceeding, the Commission

2

16 C.F.R. § 423.9.

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found that there were no known conflicts between the two sets of regulations.3
5.

Efforts to Minimize Burden on Small Businesses

The Commission has minimized the burden on all businesses in a number of ways.
Except for certain exempted items, the Rule requires a label disclosing a method of care or
that the item cannot be cleaned if such is the case. In August 2000, the Commission
considered but decided not to require instructions to disclose alternative methods of care. See
65 Fed. Reg. 47261 (2000). If an item is both washable and dry cleanable, the Rule might
have required the care label to include instructions for both methods. By not requiring the
disclosure of more than one care method, the Rule has avoided imposing additional costs to
establish a reasonable basis for the additional care method. However, the Rule does not
prohibit the disclosure of more than one method of care. Thus, manufacturers that wish to
include more information may do so, provided they have a reasonable basis for each method
listed on the label.
One of the principal considerations in the Commission’s 1983 Rule amendment
proceeding was how to improve care information while reducing unnecessary burdens
on industry. To accomplish these ends, the Rule outlines the necessary elements for
both washing and dry cleaning instructions. A warning system of labeling, that
succinctly identifies cleaning methods to avoid, is used to minimize the number of
words necessary to give a complete care instruction. The Rule provides includes a
glossary of standardized care terms to assist manufacturers or importers in drafting a
complete instruction and ensure that instructions can be more easily understood.4
Manufacturers must have a reasonable basis for the care information they provide
on labels, because such information constitutes a material claim. During the 1983
amendment proceeding, the Commission considered (but did not adopt) specific testing
and recordkeeping requirements. Instead, the Rule describes six categories of evidence
that may be used to establish a reasonable basis ranging from product tests to “other
reliable evidence.”5 The firms’ experience, other industry expertise, current technical
literature, and similar reliable evidence may provide the required reasonable basis. A
recordkeeping requirement was not considered necessary for Commission enforcement
purposes.
Evidence in the rulemaking record showed that retailers of piece goods were not, in
many cases, providing consumers the care labels supplied by the manufacturers. However,
the record also showed that the majority of consumers who did receive the labels did not sew
them into homemade garments. Based on this information, the Commission decided not to
impose a duty of distributing such labels and relieved the piece goods manufacturers of the
obligation to supply such labels. Instead, such manufacturers must now only put the care
instructions on the end of each bolt or roll of cloth.

3
4
5

48 Fed. Reg. 22,741 (1983).
16 C.F.R. § 423, Appendix A.
16 C.F.R. § 423.6(c).

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The original Rule required industry members to petition the Commission for all
exemptions and to submit samples or tests to support such petitions. The 1983 amendments
retained this petition system only for products that the manufacturer or importer claim
would be harmed in appearance by the requirement for a permanent label.6 No industry
member has requested an exemption since 2000. The other permitted exemptions apply
automatically, based on a manufacturer’s or importer’s determination that a product meets
the criteria listed in the Rule. Thus, if a product meets the criteria, it is not necessary to file
a request for this exemption with the Commission.
6.

Consequences of Conducting Collection Less Frequently

The public disclosure required by this Rule consists of placing a single label on each
garment as it is manufactured or imported. Because this information is necessary to assist
consumers in making informed purchasing decisions, it is not feasible to modify the timing
of these disclosures.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

The disclosures required by this Rule are consistent with all applicable
guidelines contained in 5 C.F.R. § 1320.5(d)(2).
8.

Solicitation of Comments/Consultation Outside the Agency

The FTC sought public comment on its request to OMB for a three-year extension of the
current PRA clearance for the information collection aspects of the Rule, as required by 5 CFR §
1320.8(d). See 85 Fed. Reg. 71900 (Nov. 12, 2020). No relevant comments were received. The
FTC is providing a second opportunity for public comment while seeking OMB approval to
extend the existing PRA clearance for the Rule.
In addition, the Commission recently sought comment on proposed revisions to the Rule
as part of an ongoing retrospective review proceeding. See 85 FR 44485 (July 23, 2020).
9.

Payments or Gifts to Respondents
Not applicable. The Rules does not provide for any payments or gifts to respondents.

10. & 11.

Assurances of Confidentiality and Matters of a Sensitive Nature

Not applicable. The Rule does not require the submission of any information of a
sensitive or confidential nature. The requirements for which the Commission seeks OMB
clearance do not involve disclosure of confidential or sensitive information but, rather, the
labeling of products with information regarding the appropriate care of covered products.

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16 C.F.R. § 423.8(d).

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12.

Estimated annual hours burden: 27,489,476 hours (solely relating to disclosure).7

Staff estimates that approximately 10,744 manufacturers or importers of textile apparel,
producing about 18.4 billion textile garments annually, are subject to the Rule’s disclosure
requirements. Staff estimates the burden of determining care instructions to be 100 hours each
year per firm, for a cumulative total of 1,074,400 hours.
Staff further estimates that the burden of drafting and providing labels is 80 hours each
year per firm, for a total of 859,520 hours. Staff estimates that the process of attaching labels
is fully automated and integrated into other production steps for 50 percent (approximately, 9.2
billion) of the approximately 18.4 billion garments that are required to have care instructions
on permanent labels.8 For the remaining 9.2 billion items, the process is semi-automated and
requires an average of approximately ten seconds per item, for a total of 25,555,556 hours per
year. Thus, the total estimated annual burden for all firms is 27,489,476 hours (1,074,400
hours to determine care instructions + 859,520 hours to draft and order labels + 25,555,556
hours to attach labels).
Estimated annual cost burden: $187,184,518 (solely relating to labor costs). The
chart below summarizes the total estimated costs.
Task

Hourly Rate9

Burden Hours

Labor Cost

Determine care instructions

$

29.00

1,074,400

$31,157,600

Draft and order labels

$

18.00

859,520

$15,471,360

Attach labels

$

5.5010

25,555,556

$140,555,558

TOTAL

$187,184,518

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The Care Labeling Rule imposes no specific recordkeeping requirements. Although the Rule requires
manufacturers and importers to have reliable evidence to support the recommended care instructions, companies may
rely on current technical literature or past experience rather than testing.
8
Approximately 1 billion of the estimated 19.4 billion garments produced annually are either not covered by
the Care Labeling Rule (gloves, hats, caps, and leather, fur, plastic, or leather garments) or are subject to an
exemption that allows care instructions to appear on packaging (hosiery).
9
All hourly rates except for “Attach labels” are rounded to the nearest dollar and drawn from the U.S. Dep’t
of Labor, Bureau of Labor Statistics, “Table 1. National employment and wage data from the Occupational
Employment Statistics survey by occupation, May 2019,” at https://www.bls.gov/news.release/ocwage.t01.htm. The
hourly labor cost estimate for determining care instructions is based on mean hourly rates for Office and
Administrative Support Supervisors and the estimate for drafting and ordering labels is based on mean hourly rates
for Information and Record Clerks.
10
For imported products, the labels generally are attached in the country where the products are manufactured.
According to information compiled by an industry trade association using data from the U.S. Department of
Commerce, International Trade Administration and the U.S. Census Bureau, approximately 97.5% of apparel
purchased in the United States is imported. With the remaining 2.5 % attributable to U.S. production at an
approximate domestic hourly wage of $12 to attach labels (derived from the U.S. Dep’t of Labor, Bureau of Labor
Statistics, “Occupational Employment Statistics—May 2019” which is cited in footnote nine), staff has calculated a
weighted average hourly wage of $5.50 per hour attributable to U.S. and foreign labor combined. Wages in major
textile exporting countries, factored into the above hourly wage estimate, were based on data from the U.S.
Department of Labor, Bureau of Labor Statistics, available at: http://www.bls.gov/fls/#compensation.

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13.

Estimated Capital or Other Non-Labor Costs

Staff believes that there are no current start-up costs or other capital costs associated
with the Care Labeling Rule. Because the labeling of textile products has been an integral part
of the manufacturing process for decades, manufacturers have in place the capital equipment
necessary to comply with the Rule’s labeling requirements. Based on knowledge of the
industry, staff believes that much of the information required by the Rule would be included on
the product label even absent those requirements.
14.

Estimated Cost to the Federal Government

Staff estimates a representative year’s cost imposed by the Rule during the course of
the three-year clearance period sought will be approximately $100,000. Attorney, clerical, and
other support staff costs are included in this estimate, as are employee benefits.
15.

Program Changes or Adjustments

There are no program changes for this renewal period. Changes in burden
estimates for this renewal period result from revised FTC staff estimates. In addition,
FTC staff have revised the list of Information Collections, as described below.
For this renewal period, FTC staff have revised their estimate of the percentage of
industry participants who attach labels using fully automated systems that integrate
labeling into other production steps and those for whom labeling is semi-automated. As
discussed in Section 12, FTC staff estimates based on its industry knowledge that, for 50
percent (an increase from staff’s previous estimate of 40 percent) of the approximately
18.4 billion garments that are required to have care instructions on permanent labels, the
process of attaching labels is fully automated and integrated into other production steps.
For the remaining 9.2 billion items, staff estimates that the process is semi-automated and
requires an average of approximately ten seconds per item to attach labels. This yields a
total of 25,555,556 hours per year for attaching labels. FTC staff estimates that this
change in estimated use of automation results in a decrease in annual hours burden from
30,666,667 to 25,555,556 hours to attach labels. Staff has also updated the hourly labor
rates used for calculating labor costs based on updated BLS data resulting in minor
changes to annual cost burden estimates.
In addition, FTC staff have revised the list of Information Collections as part of
this clearance renewal. Previously, due to the large burden estimate, the Information
Collection accounting for the burden of attaching labels to covered items was divided
between two separate ICs: (1) Attach Labels-I and (2) Attach Labels-II. For this
renewal, FTC staff have consolidated the burden estimate under a single IC now titled
“Attach Labels” and removed the IC titled “Attach Labels-I” (i.e., the burden associated
with this removed IC is now included under the revised “Attach Labels” IC).

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16.

Statistical Use of Information
There are no plans to publish any information for statistical use.

17.

Display of the Expiration Date for OMB Approval
Not applicable.

18.

Exceptions to the Certification for Paperwork Reduction Act Submissions

The FTC certifies that this collection of information is consistent with the requirements
of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8(b)(3), and is not seeking an
exemption to these certification requirements.

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