BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   March 16, 2010

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                      AB 1656 (Ma) - As Amended:  March 2, 2010

                              As Proposed to be Amended
           
          SUBJECT  :   FUR PRODUCTS: LABELING

           KEY ISSUE  :  TO BETTER INFORM CONSUMERS WHO MAY MISTAKE UNLABELED  
          ANIMAL FUR TO BE FAKE FUR, SHOULD ALL CLOTHING APPAREL FOR SALE  
          IN CALIFORNIA THAT CONTAINS REAL ANIMAL FUR, REGARDLESS OF PRICE  
          OR VALUE OF THE FUR, BE REQUIRED TO CARRY A TAG OR LABEL STATING  
          THE ANIMAL FROM WHICH THE FUR WAS ACQUIRED AND, IF IMPORTED, THE  
          COUNTRY OF ORIGIN OF THE FUR?

           FISCAL EFFECT  :   As currently in print this bill is keyed  
          non-fiscal.

                                      SYNOPSIS

          This bill, sponsored by the Humane Society of the United States,  
          would require all clothing apparel for sale in this state that  
          contains genuine animal fur, regardless of price or value of the  
          fur, to carry an attached tag or label stating the animal from  
          which the fur was acquired and the country of origin of any  
          imported fur.  Current federal law, the Fur Products Labeling  
          Act, exempts fur-trimmed garments valued at less than $150 from  
          the requirement to display specified information about the  
          animal fur on the label or tag attached to the garment.  The  
          author contends that this "loophole" exemption affects a  
          substantial number of consumers, indicating that almost one out  
          of every eight fur garments or accessories make their way into  
          stores without any information about fur content because they  
          are purportedly exempt from the federal labeling requirements.   
          According to supporters, unlabeled fur garments pose particular  
          problems for consumers with allergies and ethical objections to  
          items containing real animal fur because many of these items are  
          dyed in non-natural colors, with the result that the fur appears  
          fake and can easily be mistaken for faux fur unless accurately  
          labeled.  Therefore, in order to eliminate the impact of the  
          federal loophole in California and ensure that consumers know  
          before purchase what kind of animal fur, if any, is contained in  
          an item of clothing apparel, this bill would apply specified  








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          labeling requirements to all apparel containing fur for sale in  
          California, regardless of the price of the apparel or the amount  
          or value of the fur.  Consistent with federal law, boots and  
          footwear containing fur would be subject to these labeling  
          requirements, but handbags and purses would be exempted.  In  
          addition, this bill does not require more information to appear  
          on the label than is already required under federal law, nor  
          does it attempt to restrict the manufacture or sale of fur  
          garments.  If enacted, this bill would make California the sixth  
          state in the nation to enact fur labeling requirements more  
          broadly applicable than those under federal law.  There is no  
          known opposition to this bill.

           SUMMARY  :  Requires all clothing apparel for sale in this state  
          that contains genuine animal fur, regardless of price or value  
          of the fur, to carry an attached tag or label stating the animal  
          from which the fur was acquired and the country of origin of any  
          imported fur.  Specifically,  this bill  :   

          1)Prohibits any person from selling or displaying for sale any  
            clothing apparel containing any amount of animal fur,  
            regardless of the overall price or value of the fur, without  
            an attached and conspicuously displayed tag or label that  
            states the animal from which the fur was acquired and the  
            country of origin of any imported furs used.

          2)Defines "fur" to mean any animal skin or part thereof with  
            hair, fleece, or fur fibers attached thereto, either in its  
            raw or processed state.

          3)Provides that labeling of articles of clothing pursuant to  
            this bill may be accomplished by adding the required  
            disclosures to the permanent tag attached to the clothing, to  
            the temporary tag used by the merchant to identify the  
            merchandise, or by affixing to the article of clothing, in a  
            conspicuous place, a sticker listing the required disclosures.

          4)Exempts sellers of used articles of clothing made wholly or  
            partly of animal fur from these labeling requirements.

          5)Provides that each article of clothing not labeled pursuant to  
            these requirements constitutes a separate violation of this  
            act, subject to a civil penalty of not more than five hundred  
            dollars ($500) for the first violation, and not more than one  
            thousand dollars ($1000) for each subsequent violation.








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          6)Provides that a retail merchant is not liable for a violation  
            if a manufacturer or supplier for the merchant certifies to  
            that merchant, in the invoice or other written document, that  
            any tag or label attached by the manufacturer or supplier  
            conforms to these labeling requirements, unless the retail  
            merchant knew, or reasonably should have known, that the  
            certification is false.

          7)Provides that nothing in this bill shall be construed to  
            preempt any federal law, or any other statute that prohibits  
            or restricts the sale of fur products.  Further provides that  
            if any provision of this bill is held to be preempted by  
            federal law, the preemption shall not affect other provisions  
            of this bill that can be given effect.

          8) If enacted, becomes operative on September 1, 2011.

           EXISTING LAW  :  

          1)Pursuant to the federal Fur Products Labeling Act (15 U.S.C.  
            69), prohibits the manufacture for sale, sale, advertising,  
            transportation, or distribution of  any fur product which has  
            been shipped and received in commerce, and which is misbranded  
            or falsely or deceptively advertised or invoiced, as defined.   
            These and other related acts are deemed unlawful and  
            constitute unfair methods of competition, and unfair and  
            deceptive practices in commerce under the Federal Trade  
            Commission Act (15 U.S.C. 41 et seq.).

          2)Pursuant to Section 301.39 of Title 16 of the Code of Federal  
            Regulations, provides that if the cost of any fur trim or  
            other manufactured fur or furs contained in a fur product does  
            not exceed $150 to the manufacturer of the finished fur  
            product, or if a manufacturer's selling price of a fur product  
            does not exceed $150, then the fur product shall be exempt  
            from the requirements of the Fur Products Labeling Act.  The  
            exemption does not apply, however, if:

             a)   Any false, deceptive, or misleading representations  
               about the fur contained in the fur product are made.

             b)   Any representations as to the fur are made in the  
               labeling, invoicing, or advertising of the fur product  
               without disclosing specified information, including the  








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               name of the animal that produced the fur, whether the fur  
               is bleached or dyed, and whether the fur is composed in  
               substantial part of paws, tails, bellies, or waste fur.

             c)   The fur product contains dog or cat fur.

          3)Pursuant to Section 301.1 of Title 16 of the Code of Federal  
            Regulations, defines the term "wearing apparel" to mean any  
            articles of clothing or covering for any part of the body and  
            including any assembled furs, used furs, or waste furs, in  
            attached form, including mats, plates or garment shells or  
            furs flat off the board, and furs which have been dyed,  
            tip-dyed, bleached or artificially colored, intended for use  
            as or in wearing apparel.

          4)Pursuant to the Health and Safety Code, 

             a)   Prohibits the manufacture, shipment, sale, or offer for  
               sale of lead-containing jewelry in California, unless the  
               composition of the jewelry meets certain specifications.

             b)   Requires a manufacturer or supplier of jewelry sold or  
               offered for sale in this state to submit technical  
               documentation or other information to the Department of  
               Toxic Substances Control to obtain certification attesting  
               that the jewelry does not contain a level of lead that  
               would prohibit the jewelry from being sold or offered for  
               sale under the preceding requirement. 

             c)   Further requires the manufacturer or supplier of jewelry  
               to either display the certification prominently on the  
               shipping container or on the packaging of jewelry, or  
               alternatively, to provide the certification to any person  
               who sells or offers for sale that manufacturer's or  
               supplier's jewelry, upon the person's request.  (Health and  
               Safety Code Sections 25214.2 to 25214.3.1.)

          5)Pursuant to the Song-Beverly Consumer Warranty Act, defines  
            "clothing" to mean any wearing apparel, worn for any purpose,  
            including under and outer garments, shoes, and accessories  
            composed primarily of woven material, natural or synthetic  
            yarn, fiber, or leather or similar fabric.  (Civil Code  
            Section 1791(c).)

           COMMENTS  :  This bill, sponsored by the Humane Society of the  








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          United States, seeks to require all clothing apparel for sale in  
          this state that contains genuine animal fur, regardless of  
          price, to carry an attached tag or label stating the animal from  
          which the fur was acquired and the country of origin of any  
          imported fur.  According to the sponsor, this bill is intended  
          to "close a loophole" in federal law that exempts fur-trimmed  
          garments valued at less than $150 from the requirement to  
          display information about the animal fur on the label of the  
          garment.  The author writes in support:

               More than one million items of clothing or accessories  
               are sold with animal fur in the United States each  
               year.  The federal Fur Products Labeling Act requires  
               all garments with real animal fur valued at $150 or  
               more to indicate species and country of origin on  
               clothing labels.  However, federal law is silent on  
               labeling requirements for products with animal fur  
               valued at less than $150. Due to the vast number of  
               fur factory farms around the world that mass produce  
               raccoon dogs, rabbits, foxes, and other animals at a  
               low-cost, and the ability of garment manufacturers to  
               piece together cheap leftover fur pelts, it is common  
               for garments to go unlabeled under the federal  
               loophole.  

               California consumers have the right to know what they  
               are buying and what they are wearing, regardless of  
               the value of the fur involved.  AB 1656 addresses the  
               federal loophole by requiring all garments sold in  
               California that contain animal fur to say so on their  
               label.

           Labeling Required Regardless of Apparel's Price or Value of Fur.   
           Federal law specifically exempts fur products from labeling  
          requirements if the cost of the fur contained in the fur product  
          does not exceed $150 to the manufacturer of the finished fur  
          product, or if the manufacturer's selling price of a fur product  
          does not exceed $150.  The exemption does not apply, however, if  
          (1) the fur product contains dog or cat fur; (2) any false,  
          deceptive, or misleading representations about the fur contained  
          in the fur product are made; or (3) if any representations as to  
          the fur are made in the labeling, invoicing, or advertising of  
          the fur product without disclosing specified information,  
          including the name of the animal that produced the fur, whether  
          the fur is bleached or dyed, and whether the fur is composed in  








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          substantial part of paws, tails, bellies, or waste fur.  (16  
          C.F.R. 301.39.)  

          Under Section 301.39, the exemption is inapplicable only if some  
          representation about the fur is affirmatively made.  If no  
          representation is made at all about a fur product under $150 in  
          value, and the product does not contain dog or cat fur, then the  
          exemption applies.  Thus, the regulation apparently provides an  
          incentive to not label fur products valued under $150, and to  
          not make any representation about the fur content of such  
          apparel, at the expense of providing valuable information to  
          consumers.

          The author contends that unlabeled fur apparel attributable to  
          the Section 301.39 exemption is in fact a widespread problem  
          affecting a large number of retailers and consumers.  The Humane  
          Society has provided the Committee with evidence from some of  
          its ongoing investigations that reveal national retailers such  
          as Nordstrom, Loehmann's, Ross, and Burlington Coat Factory,  
          among others, commonly sell unlabeled fur-trimmed jackets as  
          well as fur garments that inaccurately identify the kind of fur  
          they contain.

          The scope of the problem is also illustrated by recent  
          International Trade Commission data, cited by the Federal Trade  
          Commission, that estimates the total number of fur garments,  
          fur-trimmed garments, and fur accessories manufactured each year  
          to be around 1,019,054 items, with approximately 132,477 of  
          those items exempt from the labeling requirements pursuant to 16  
          CFR 301.39.  (Federal Register, Vol. 74, No. 28, February 12,  
          2009.)  These figures support the contention that almost one out  
          of every 8 fur garments or accessories make their way into  
          stores without any information about fur content because they  
          are exempt from the federal labeling requirements.  In  
          advocating for this bill, the author believes that California  
          consumers have the right to know what kind of item they are  
          purchasing, and that this right should not be compromised merely  
          because the value of the item or the fur used in it falls below  
          an arbitrary cutoff amount.  Thus, the bill seeks to apply the  
          specified labeling requirements to all apparel containing fur  
          for sale in California, regardless of the price of the apparel  
          or the amount or value of the fur contained therein.

           Requiring Accurate Labeling Provides Essential Information to  
          Consumers  .  In addition to extending labeling requirements to  








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          every fur garment for sale in the state, regardless of price or  
          value of the fur, this bill specifies two pieces of information  
          appear on the label itself: (1) the animal from which the fur  
          was acquired; and (2) the country of origin of any imported furs  
          used in the item.  Federal law already requires both of these  
          items to appear on the label of every fur product subject to the  
          regulations, in addition to the name of the manufacturer and  
          other disclosures about fur composition, if applicable.   
          Consistent with its stated purpose to simply close the $150  
          federal "loophole" in California, this bill does not require  
          more information to appear on the label than is already required  
          under federal law, nor does it attempt to restrict the  
          manufacture or sale of fur garments.  

          This important bill protects consumers by ensuring that  
          essential and accurate information is displayed on a tag or  
          label attached to every fur garment for sale in California.  In  
          this aspect, it is similar to existing labeling requirements for  
          lead-containing jewelry under Health & Safety Code Sections  
          25214.2 to 25214.3.1.  Under that law, manufacturers or  
          suppliers of lead jewelry for sale must display a specified  
          certification, attesting that the jewelry does not contain an  
          impermissibly high level of lead under state law, either on the  
          shipping container or packaging of the jewelry.  This bill,  
          however, requires far less state involvement because, unlike the  
          lead jewelry law, it does not require the manufacturer or  
          supplier to submit technical documentation to state authorities  
          who must then run lab tests on a sample item to determine  
          whether to issue the necessary certification statement.

          Ultimately, this bill will eliminate the abundance of unlabeled  
          fur garments for sale that pose particular problems for  
          consumers with allergies and ethical objections to items  
          containing real animal fur.  Many garments contain animal fur  
          that has been dyed in non-natural colors, such as pink, red, or  
          blue, with the result that the fur appears fake and can easily  
          be mistaken for faux fur unless accurately labeled.  This bill  
          will particularly benefit consumers who are allergic to any or  
          all types of real animal fur by enabling them to identify and  
          purchase garments made of faux fur or real fur that does not  
          trigger an allergic reaction.  Similarly, this bill will benefit  
          consumers who have ethical objections to real fur or fur farming  
          practices in other countries by facilitating an informed  
          purchasing decision with peace of mind.









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           Five States Already Require Labeling of Fur Apparel  :  If passed,  
          this bill would make California the sixth state in the nation to  
          enact fur labeling requirements more broadly applicable than  
          those under federal law.  In 1941, Massachusetts became the  
          first state to require "all natural, dyed or imitation furs"  
          sold at retail to display the name of the animal on the label.   
          Wisconsin followed suit in 1949 with the same requirement but  
          exempting any garment with a price of $50 or less.  

          In 1951, the federal Fur Products Labeling Act was passed.  It  
          was not until 55 years later, in 2006, that New York became the  
          third state to pass fur labeling legislation.  Under New York's  
          law, all garments manufactured, imported for profit, or sold in  
          the state that contain genuine animal fur or fake (imitation)  
          fur must carry a label that states either "real fur" or "fake  
          fur," in addition to the name of the animal and the country of  
          origin as required by the federal Act.  In 2008, Delaware passed  
          legislation (effective June 2010) that requires new fur garments  
          sold by retail merchants to indicate the presence of real fur on  
          the tag or label.  Sellers of used or second-hand garments are  
          exempted from the labeling requirements.  

          In 2009, New Jersey passed legislation (effective March 2010)  
          that requires all animal fur garments for sale in the state,  
          regardless of price or value of the fur, to display the type of  
          animal and country of origin on the label.  This bill  
          essentially proposes to follow New Jersey's lead and close the  
          so-called federal "loophole" that allow garments priced or  
          valued at under $150 to be sold unlabeled.  Like New Jersey's  
          law, this bill also provides exemptions for sellers of used  
          garments, as well as retailers who have obtained a written  
          guarantee from the manufacturer that the label conforms to these  
          labeling requirements.

           State Laws Not Preempted by Federal Fur Labeling Act  :  Although  
          the Federal Fur Labeling Act does not specifically authorize  
          states to adopt more restrictive labeling requirements for fur  
          products, the Committee's research has not identified any  
          successful challenges to state fur labeling laws on federal  
          preemption grounds.  In two of the five states (Delaware and New  
          Jersey) that have passed state fur labeling laws, those laws do  
          not become effective until later this year.  In 2006, New York  
          became the first state to specifically pass a law to close the  
          federal loophole, and no preemption challenge to that law has  
          been identified at this time.








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          In any case, this bill specifically provides that none of its  
          provisions shall be construed to preempt any federal law, or any  
          other statute that prohibits or restricts the sale of fur  
          products.  If any provision is held to be preempted by federal  
          law, it is severable from other provisions that can be given  
          effect.  In addition, there is federal legislation (H.R. 2480)  
          pending in the 111th Congress that, if passed, would eliminate  
          the current exemption for fur products valued at under $150 and  
          specifically authorize states to pass stricter fur labeling  
          laws. 

           Retail Merchants Not Liable If Manufacturer or Supplier  
          Certifies Compliance with Labeling Requirements.   The author has  
          recently amended the bill to relieve a retail merchant from  
          liability for any violation of these provisions if the  
          manufacturer or supplier for that merchant certifies in writing  
          that any tag or label attached by the manufacturer or supplier  
          conforms to these labeling requirements.  The immunity does not  
          apply if the retail merchant knew, or reasonably should have  
          known, that the certification is false.  This non-liability  
          provision, which mirrors those contained in the recent New  
          Jersey law, allows retailers to rely on written certification  
          from their manufacturers or suppliers of fur apparel that any  
          attached tags or labels, if provided, comply with labeling  
          requirements.  This is reasonable because manufacturers and  
          suppliers are in a better position than retailers to know what  
          type of animal fur was used in the garment (if in fact real  
          animal fur was used) and from what country the fur came from, if  
          imported.  Although there is no requirement that the  
          manufacturer or supplier attach the required tags or labels,  
          retailers have some business leverage to encourage this practice  
          because they could presumably choose to engage less with any  
          manufacturer or supplier who does not label or certify their fur  
          products.

           Fur Handbags Not Subject to These Labeling Requirements.   The  
          Fur Products Labeling Act (15 U.S.C. 69) defines its operative  
          term "fur product" to mean any article of wearing apparel made  
          in whole or in part of fur or used fur.  Under the federal Act,  
          the term "wearing apparel" means any articles of clothing or  
          covering for any part of the body.  (16 CFR 301.1.)  Under this  
          definition, shoes or footwear containing fur are subject to the  
          federal labeling requirements because they are worn to cover the  
          feet, but handbags or purses containing fur are exempt because  








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          they do not cover the body and are carried rather than worn by a  
          person.  

          This bill prohibits the sale or display for sale of "any coat,  
          jacket, garment, or other clothing apparel made wholly or  
          partially of fur" unless specified labeling requirements are  
          met.  The author has confirmed to the Committee that this bill  
          is not intended to apply fur labeling requirements to handbags  
          or purses, and that the recent insertion of the word "clothing"  
          before the term "apparel" in proposed Section 1739.82(a)  
          (modeled after a recent New Jersey statute) is meant to further  
          clarify this intent.  

          It is important to note that the policy reasons cited by the  
          author for requiring complete and accurate labeling of fur  
          clothing articles seem to apply equally to handbags containing  
          fur.  If the bill were to eliminate the distinction between  
          fur-trimmed garments and fur-trimmed handbags that allows the  
          latter to go completely unlabeled in this state, it would go  
          even farther in accomplishing its objective of promoting  
          transparency and informed consumer purchasing of products  
          containing animal fur.

          Nevertheless, if the bill is to apply only to clothing but not  
          handbags, there is an existing definition of "clothing" in the  
          Civil Code that may present a potential conflict.  Under Civil  
          Code Section 1791(c), "clothing" is defined to mean any wearing  
          apparel, worn for any purpose, including under and outer  
          garments, shoes,  and accessories  composed primarily of woven  
          material, natural or synthetic yarn, fiber, or leather or  
          similar fabric.  (Emphasis added.)  Although using the term  
          "clothing apparel" might not have posed a problem when enacted  
          in New Jersey, here its use may cause unintended consequences.   
          On one hand, the definition of clothing in Section 1791(c)  
          refers to "wearing apparel," which under federal law is limited  
          to clothing articles that cover the body but is not defined  
          under state law.  On the other hand, the same definition  
          includes "accessories," which typically includes purses and  
          handbags.  

           Proposed Amendment  :  Therefore, to ensure that this bill mirrors  
          the scope of the federal Act by requiring only articles of fur  
          clothing to be labeled, the author has proposed to amend the  
          bill to explicitly define the term "clothing apparel" in a  
          manner identical to the definition of "wearing apparel" under 16  








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          CFR 301.1.  The amendments are:

               On page 2, line 13, insert:  (c) "Clothing apparel" means  
               any articles of clothing or covering for any part of the  
               body.

               On page 2, line 23, strike out "articles of clothing" and  
               insert in its place "clothing apparel"


           Delayed Operational Date  :  In order to afford manufacturers and  
          retailers in California more time to adopt practices to comply  
          with these labeling requirements, the author has amended the  
          bill to become operative on September 1, 2011, if enacted,  
          rather than the original date of January 1, 2011.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Humane Society of the United States (sponsor)
          American Society for the Prevention of Cruelty to Animals  
          (ASPCA)
          Consumer Action

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334