Vol. 143, No. 10 — March 7, 2009

Regulations Amending the Textile Labelling and Advertising Regulations

Statutory authority

Textile Labelling Act

Sponsoring department and agency

Department of Industry and Competition Bureau

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

The Textile Labelling Act (TLA) and the Textile Labelling and Advertising Regulations (TLAR) are intended to protect consumers against misrepresentation in the labelling and advertising of textile products as well as to ensure that consumers may choose textiles on the basis of fibre content.

The TLAR require that the fibre content be disclosed by generic name, and section 26 of the TLAR prescribes the generic fibre names that may be used in Canada to indicate the fibre content of a consumer textile article. If the generic fibre that a manufacturer wishes to use is not prescribed under section 26, the manufacturer must apply to the Minister of Industry, as outlined in section 27 of the TLAR, to have a new generic fibre name prescribed. In 2006, the Competition Bureau (the “Bureau”), acting on behalf of the Minister, received two applications for new generic fibre names: “lastol” and “polylactic acid” or “PLA.”

In order for manufacturers to be able to use the new fibre names on the labels of consumer textile articles, section 26 of the TLAR must be amended to include them in the list of Generic Names for Textile Fibres. This regulatory amendment proposal would amend section 26 of the TLAR to add the generic fibre names “lastol” and “PLA” and their corresponding definitions to the list of generic names in section 26 of the TLAR.

Alternatives

Section 27 of the TLAR currently outlines the procedure for adding a new generic fibre name to the list of Generic Names for Textile Fibres in section 26 of the TLAR. Once an application for a new generic fibre name has been filed, the options for the Minister are to either (1) notify the applicant that a generic name already prescribed is the appropriate generic name for the fibre; or (2) prescribe a new generic name for the fibre.

In order to determine whether it would be appropriate to add new generic fibre names and definitions to the TLAR, the Bureau contracted the Committee on Generic Names for Man-Made Fibres of the Canadian General Standards Board (CGSB). The CGSB completed its analysis of both fibres and amended the National Standard of Canada CAN/CGSB-4.157-M91 — Generic Name for Man-Made Fibres, in July 2007, to include the two new generic fibre names “lastol” and “PLA.” The fact that the CGSB has approved the addition of the two new generic fibre names signifies CGSB’s conclusion that the two fibres in question are not appropriately described by the existing generic designations listed in section 26 of the TLAR. Therefore, maintenance of the status quo was rejected as the current regulations do not provide an acceptable generic name for these fibres.

Benefits and costs

Use of the fibres

Lastol — The fibre for which the generic name “lastol” has been proposed is mainly targeted for apparel applications, specifically in clothing applications where stretch is desirable. According to the applicant, lastol is a type of “olefin fibre” (already a prescribed generic name), which differs from commercially available olefin fibres because of its elasticity and wide temperature tolerance, making it a good choice for easy-care stretch apparel applications. In particular, the applicant (DOW Chemical Company) maintains that lastol has distinctive properties that would be significant to consumers, including (1) stretch and recovery power that is far superior to that of any olefin fibre; (2) shape retention at temperatures in excess of 170°C, which enables the fibre to survive rigorous manufacturing and consumer care processes; and (3) chemical resistance to solvents that typically dissolve conventional olefins.

PLA — The fibre for which the generic name “PLA” has been proposed is mainly targeted for apparel applications, specifically performance apparel applications. In particular, the applicant (Natureworks LLC) maintains that PLA has distinctive properties that would be significant to consumers, including (1) low moisture absorption and high wicking, offering benefits for sports and performance apparel and products; (2) low flammability and smoke generation; (3) high resistance to ultra violet (UV) light, a benefit for performance apparel as well as outdoor furniture and furnishings applications; (4) a low index of refraction, which provides excellent colour characteristics; and (5) lower specific gravity, making PLA lighter in weight than other fibres. These properties are important to consumers who desire sports or performance apparel that is water-resistant and washable, or desire furnishings with low flammability.

Manufacturers

Manufacturers are subject to existing legislative and regulatory requirements regarding the accurate labelling of fibre content on consumer textile articles. The proposed regulatory amendments do not add to these existing requirements. The proposed amendments would facilitate the labelling of the fibres in question by providing a generic name to be used on fibre content labels. In addition, given the properties described above, manufacturers would benefit by being able to identify these fibres as having properties suitable for particular apparel garments.

Consumers

The prescribing of generic fibre names could benefit consumers by allowing them to more readily identify these fibres on textile content labels, which is consistent with the promotion of consumer information and protection. In particular, given the properties described above, consumers would benefit by being able to readily identify the presence of these fibres, and the corresponding properties, in the apparel garments that they seek or purchase.

“Lastol” and “PLA” in the United States

The fibres in question are currently identified by the generic names “lastol” and “PLA” in the United States.

In 2002, the U.S. Federal Trade Commission added “PLA” to its list of approved generic names, noting that “PLA ... is of a distinctive chemical composition not encompassed by any of the Textile Rules’ existing generic definitions for manufactured fibers, that its physical properties are important to the public, that the fiber is in active commercial use, and that the granting of a new generic name and definition is important to the consuming public at large.” [See U.S. Federal Trade Commission, Federal Register, February 1, 2002 (Volume 67, Number 22)].

In 2003, the U.S. Federal Trade Commission added “lastol” to its list of approved generic names, noting that the fibre “has the same general chemical composition as an established generic fiber category (olefin), has distinctive properties of importance to the general public as a result of a new method of manufacture or substantially differentiated physical characteristics, such as fiber structure (e.g. elasticity and heat resistance), and that its distinctive features make the fiber suitable for uses for which other fibers under the established olefin generic name would not be suited, or would be significantly less well suited. Consequently, the Commission has determined that there are sufficient differences between [the fibre] and conventional olefins to merit a new subclass designation.” [See U.S. Federal Trade Commission, Federal Register (Volume 68, Number 17)].

The proposed regulatory amendments would prescribe the same generic names and definitions in Canada for the two fibres in question. Businesses in Canada would benefit by being able to label their textile articles in a manner consistent with the fibre names used in the United States, facilitating trade across the United States–Canada border, and providing consistent product labelling to the benefit of industry participants and consumers in both countries.

Consultation

The applications for the addition of the two new generic fibre names in question were submitted by two fibre manufacturers. The manufacturers will experience the most direct impact from the proposed regulatory amendments by being permitted to use the new generic fibre names on their consumer textile product content labels, thus allowing them to sell and market their products under the same fibre names as are currently used in the United States.

Support for the proposed amendments was also obtained from the CGSB, which recognized the unique characteristics of the fibres in question, and approved the addition of the two new generic fibre names in the National Standard of Canada CAN/ CGSB-4.157-M91, Generic Name for Man-Made Fibres. The responsibility for the development and maintenance of this standard rests with a committee comprised of representatives from industry (fibre and fabric producers and retailers), government and testing organizations, including representatives from organizations such as the University of Manitoba, Industry Canada, Textile Technologies Centre, Bodycote Materials Testing Canada, Dow Chemical Canada, Canadian Textiles Institute, Invista Company, Department of National Defence, and Testing Laboratories of Canada.

In October 2006, the Bureau sent technical data for the two fibres in question (“lastol” and “PLA” or “polylactic acid”) to the CGSB for distribution to the CGSB Committee on Generic Names for Man-Made Fibres for the purpose of amending the National Standard of Canada CAN/CGSB-4.157-M91, Generic Names for Man-Made Fibres.

In January 2007, the CGSB forwarded the proposed amendments to the Committee on Generic Names for Man-Made Fibres, along with a “letter-ballot.” The Committee members were also provided with samples of each of the two fibres for testing, should members wish to verify statements made by the applicants about the fibres. Committee members were instructed to mark and return the letter-ballot as affirmative, negative, or abstention. Approval of a CGSB draft amendment is by consensus of the Committee. CGBS defines consensus as a substantial agreement reached by concerned interests involved in the preparation of an amendment. This process implies much more than the concept of a simple majority, but does not require unanimous approval.

In February 2007, the CGSB indicated that consensus had been reached on the proposed amendment. In particular, of the 11 ballots distributed to Committee members, seven were returned, and six of these were “affirmative” (the remaining ballot was an abstention). In July 2007, the CGSB amendment to the National Standard of Canada CAN/CGSB-4.157-M91, Generic Names for Man-Made Fibres (adding “lastol” and “PLA”) was published.

Both “lastol” and “PLA” have also been approved as generic fibre names in the United States, and are included in the U.S. Rules and Regulations under the Textile Fiber Products Identification Act. In crafting the definitions of “lastol” and “PLA” to be inserted in section 26 of the TLAR, the definitions used in the United States were consulted and mirrored to the greatest extent possible in order to ensure consistency, and to facilitate trade and other industry interests.

Compliance and enforcement

The proposed regulatory amendments do not change existing compliance and enforcement mechanisms or result in any additional enforcement costs.

The TLA prohibits the sale, import or advertisement of prescribed consumer textile articles that do not contain a disclosure label that complies with the provisions of the Act. The TLA also prohibits the making of false or misleading representations relating to a textile fibre product. The provisions of the TLA and TLAR are monitored and enforced through the use of inspectors designated under the Department of Industry Act.

Contacts

Carole Gaetz
Competition Law Officer
2000–300 Georgia Street W
Vancouver, British Columbia
V6B 6E1
Telephone: 604-666-2196
Fax: 604-666-6111
Email: carole.gaetz@bc-cb.gc.ca

Erin Fagan
Acting Senior Competition Law Officer
50 Victoria Street
Gatineau, Quebec
K1A 0C9
Telephone: 819-953-2180
Fax: 819-953-8535
Email: erin.fagan@bc-cb.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraph 11(1)(i) of the Textile Labelling Act (see footnote a), proposes to make the annexed Regulations Amending the Textile Labelling and Advertising Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of this notice and be addressed to Carole Gaetz, Competition Bureau Canada, 2000-300 Georgia Street West, Vancouver, British Columbia V6B 6E1 (tel.: 604-666-2196; fax.: 604-666-6111).

Ottawa, February 26, 2009

MARY PICHETTE
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE TEXTILE LABELLING AND ADVERTISING REGULATIONS

AMENDMENTS

1. (1) Paragraph 26(2)(o) of the Textile Labelling and Adve r tising Regulations (see footnote 1) is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

(iii) where the olefin units are cross-linked synthetic polymers with low but significant crystallinity, composed of at least 95 per cent by mass of ethylene and at least one other olefin unit and the fibre is substantially elastic and heat resistant, “lastol” may be used as the generic name for the fibre;

(2) Subsection 26(2) of the Regulations is amended by striking out “and” at the end of paragraph ( t ), by adding “and” at the end of paragraph ( u ) and by adding the following after paragraph ( u ):

(v) a manufactured fibre in which the fibre-forming substance is composed of at least 85 per cent by mass of lactic acid ester units derived from naturally occurring sugars is “PLA” or “polylactic acid”.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

[10-1-o]

Footnote a
R.S., c. T-10

Footnote 1
C.R.C., c. 1551