ing agency people were held to discuss labeling practices in light of Senator Hart's bill. "As a result of those conferences a new format for off-label deals was developed. We abandoned any reference to 'regular' price and substituted 'standard' price, because we have what amounts to a standard price in our price lists and that price is shown separately on our invoices. "In addition to the new off-label deal treatment we have also revised several of our labels in order to remove qualifying words in the net weight designation, such as 'full' or 'giant.' We have also discontinued any designation of any of our products as 'Economy Size.' Finally, we have revised several of our net weight declarations on labels in order to make them more conspicuous and readable. MACARONI PACKAGES AND LABELS REDESIGNED; MORE PROMINENT WEIGHT IDENTIFICATION; PACKAGE SIZE CHANGE CREATES SLACK-FILL PROBLEM "While we always have endeavored to have packages in compliance with legal requirements, some of the steps we have taken more strongly bring out this feature; and in one instance we have created a new problem for ourselves. "1. We have changed our 12-ounce polyethylene package on nine macaroni spaghetti items to 16 ounces. Further, we have increased the size of the type and placed it in a visual vehicle to assure easy identification of weight by Mrs. Consumer. "2. We have reduced the package length from 91⁄2 inches to 81⁄2 inches on the following polyethylene film items: Long Macaroni; Long Spaghetti; Thin Spaghetti; and Quick-Cook or Long Vermicelli. This applies to both our 16-ounce and 10-ounce lines. "3. We reduced the length from 19 inches to 17 inches on our polyethylene package on Italian Style Spaghetti and Italian Style Thin Spaghetti. This applies to both our 10-ounce and 16-ounce lines. Weight identification was improved also on these packages. "4. We have reduced the length of three wax-wrapped carton items from 11% inches to 9 inches. This applies to our 7-ounce line. The items are Long Macaroni, Thin Spaghetti, and Long Spaghetti. In this instance we created a slack-fill problem on the two spaghetti items. Previously, when we used the 11-inch carton, we were able to pack the hook that is formed in the making of the spaghetti. Now we find we can no longer do this. On the shorter package we must reduce either the height and depth of our package (which will mean a modification of packaging equipment) or we may increase the weight to 8 ounces, which, of course, would create a price revision problem. As yet we have few complaints on slack fill; but we feel we are, at best, a borderline case for the present. I am enclosing samples of some of our new and old packaging materials which will give you an idea of how we have strengthened weight identifications." CEREAL PACKAGES REVISED FOR BETTER CONSUMER IDENTIFICATION IN ACCORD WITH INDUSTRY STANDARD "We have revised our packages in accord with the Cereal Institute 'Principles of Good Practice Regarding the Declaration of Net Contents on and Fill of Breakfast Cereal Packages.' "We enclose one of our 40 percent Bran Flakes packages, and call attention to the following matters: "1. Regarding the net weight statement: "(a) It is on the front of the package. “(b) It is in good color contrast, without obscuring designs or vignettes. "(c) It is in boldface 14-point type, inasmuch as the area of the front of the package is about 80 square inches. "(d) It is clearly and prominently shown on a special cut into the design so that it can be readily found and easily read by interested customers under customary conditions of purchase and use. "2. Regarding the ingredient statement, etc., a committee of the Cereal Institute, Inc., recommended that all of the ingredient information should be in one place and in the same place on all packages, so that the consumer would know where to look for it. In compliance with this recommendation, we place all of this information on the upper lefthand side panel of the package, which is 97158 0-63—pt. 1- -32 reserved exclusively for this and related material. You will note that this information is prominently and conspicously printed with regard to the size and kind of type, contrast, and location, so as to be readily found and easily read by interested consumers. "3. You will note that the package complies with paragraphs (c) (1), (2), (3), (4), and (6) of Senator Hart's bill." WHAT TRADE ASSOCIATIONS HAVE DONE GMA (see attached bulletins). Cereal Institute (see attached Thermo-fax of "Principles of Good Practice Regarding Declaration of Net Contents on, and Fill of, Breakfast Cereal Packages"). National Coffee Association: The National Coffee Association has recommended to members by bulletin that fractional ounces not be used for soluble coffee. It has also recommended against the use of such terms as "jumbo" and "economy" on soluble coffee. National Canners Association: Regularly issues and widely distributes a looseleaf canned foods labeling manual which is supplemented with sheets on new regulations and interpretations whenever these are issued. This is widely distributed and used as a guide in the labeling of canned foods. NCA has issued several bulletins alerting its membership to continuously check compliance with regulations. The Biscuit & Cracker Manufacturers' Association of America: At a recent meeting of the Biscuit & Cracker Manufacturers' Association, the following resolution was adopted: "The board of directors of the Biscuit & Cracker Manufacturers' Association strongly reaffirms its position that packages containing food products offered for sale to the consumer should be truthful as to their contents in every respect, including a description of the product, listing of ingredients, weight of contents and design of package." [Special bulletin from the president, No. 3025-A, June 19, 1961] Re information on your labels. To official representatives of all GMA member-companies: I had a telephone call today from Commissioner George P. Larrick, who is responsible for administering the Food, Drug, and Cosmetic Act. The Senator Hart committee has requested the Commissioner to prepare a report showing to what extent the information on the labels meets the legal requirements. During our telephone conversation, he mentioned that * * * "I am convinced that your members want to be in compliance with the law"; but he also noted that some of the labels are not. He thought it would be a good idea if I sent you another copy of the law which spells out the requirements, and this is attached; and to suggest that you carefully review your labels, and if there are any that do not conform with the legal requirements, that you take immediate steps to correct the same. There are many new people in Washington, occupying top jobs, and you must expect that there will be investigations on many issues. One of the top investigations which will make headline news will be on this very subject of packaging labels. Therefore, we strongly urge that you carefully review your labels to see that they conform with the regulations; and your packages to see that they cannot be declared as deceptive. Mr. Larrick's office is primarily concerned with labels containing adequate and correct information. Senator Hart's investigation will concern itself more with deceptive packages and deceptive pricing. PAUL S. WILLIS, President. [Special bulletin from the president, No. 3079, May 4, 1962] Re Federal Food and Drug Administration. To all GMA member-companies: Mr. George P. Larrick, Commissioner, Federal Food and Drug Administration, and I have known each other for quite awhile. We enjoy a fine relationship and communicate freely and frankly with one another. I talked with him today to invite him to the Greenbrier meeting for an informal participation in our program. Unfortunately, there is a conflict in dates, and he is committed to attend the annual meeting of the Association of Food & Drug Officials of the United States in Miami. He hopes to arrange it so that one of his top assistants can join us. Speaking generally about things, he commented upon his testimony before Senator Hart's committee with particular reference to the "cents-off promotions." When such promotions have the effect of misleading the public, his Department feels obligated to make an investigation and take any appropriate action. He recognizes that these cents-off promotions are usually stimulated and prolonged by competitive actions; and he also recognizes the legal implications involved for any group to simultaneously discontinue such promotions. Mr. Larrick said he will be glad to meet with any of you and discuss matters of this kind. He referred also to the recent seizure of instant coffee which contained the word "economy" size. In this case the charge was that the distributor resold the smaller size at a lesser price per ounce than the economy size, which they considered as misbranding. He also added that the manufacturers involved had been to see him, and reported that some time ago they decided to delete the word "economy." If the company had so notified Mr. Larrick, the Department would not have gone through with the seizure. If your labels or promotions contain statements which any recent rulings declared as objectionable, and you intend to make revisions, you might consider the matter of so notifying the appropriate Government agencies. That might preclude any later Government action. If you desire to see Mr. Larrick and want us to assist you in making an appointment, let us know. PAUL S. WILLIS, President. [Special bulletin from the president, No. 3093, July 5, 1962] To all GMA member-companies: ANSWERS TO INDUSTRY QUESTIONS When we planned the program for the recent GMA midyear meeting, we spoke with Mr. George Larrick, Commissioner, Food and Drug Administration, about participating in same. We both agreed such a participation could clarify a lot of matters in which we have a mutual interest. Mr. Larrick regretfully declined because he was committed to participate in an important meeting on the same dates elsewhere. At his suggestion, we invited Mr. W. B. Rankin, who is Assistant Commissioner, and he looked forward to being with us. Later he was forced to cancel his acceptance because the Congress had scheduled hearings on the same dates as our meeting on legislation of great importance to the Food and Drug Administration. Because of his enforced absence, Mr. Rankin agreed to answer in writing a list of specific questions which we submitted to him. The attached statement contains our questions and Mr. Rankin's answers. You will be interested in having this information. PAUL S. WILLIS, President. QUESTIONS SUBMITTED BY GROCERY MANUFACTURERS OF AMERICA, INC. 1. Labeling of packages.-Testimony at hearings before the Hart subcommittee has called attention to various irregularities in the labeling of grocery product packages. The law prescribes what information must appear on the package. As regards the necessary "conspicuousness" of that information what is the FDA policy with respect to location and type size of such information? Answer: We believe that the information required by law to appear on food packages should normally appear on the main display panel in readable type; the size of type should bear a reasonable relationship to the other type used on that label. Over the years, we have seen labels where we could conclude that placing the mandatory information on other than the main panel would achieve the requirement of conspicuousness; the cylindrical can labels represent a case in point where many have the mandatory information immediately to the right of the main display panel. On the other hand, there are packages on the market where, in addition to not being on the main panel, the required information is not at all conspicuous because of size of type, being printed with nonessential information, or on parts of the package where the information would be noted only after a careful search. This question is under consideration now. A possible solution would be to require that certain information such as net weight and ingredient statements be printed on the main display panel in type of specified size and to allow other required information such as the name and address of the manufacturer to appear at some other point on the package. Hon. PHILIP A. HART, Washington, D.C. GROCERY MANUFACTURERS OF AMERICA, INC., DEAR SENATOR HART: Permit me to express thanks for the courteous hearing extended to Mr. Willis and to me by yourself and subcommittee counsel in connection with testimony on the bill, S. 387. In my statement I said that "Both the Federal Trade Commission and the Food and Drug Administration now possesses plenary power to prohibit all deceptive and misleading practices in connection with packaging and labeling.” I offer the confirming evidence requested, as follows: Federal Food, Drug, and Cosmetic Act: In hearing testimony beginning at page 795 Commissioner George P. Larrick and Assistant General Counsel William W. Goodrich discussed the broad powers of the act. Mr. Larrick (pp. 795-796): "The Federal Food, Drug, and Cosmetic Act, enacted on June 25, 1938, is fundamentally a consumer measure. In addition to requiring that foods be clean, sound, and wholesome, it has provisions designed to inform the consumer about the food in the package and thus permit her to make intelligent selections at the marketplace. The law has, for example, a provision for the establishment of standards of identity, quality, and fill of container. In establishing any such standard there is a clear-cut requirement that such action must be one which will promote honesty and fair dealing in the interest of the consumer. In addition to prohibiting false or misleading statements in the labeling of foods-and this includes all written, printed, and graphic matter accompanying food when shipped interstate and when held for sale afterward, not just the label on the package the law contains several provisions of supplying positive information. I would like to discuss some of these which have been of previous interest to this committee. "They include the requirement for declaring an accurate statement of the quantity of the contents, a prohibition against deceptive packaging, the requirements for declaring ingredients, including artificial flavors, artificial colors, and chemical preservatives, and requirements dealing with foods for special dietary use. All of these are designed to give the consumer a great deal of information about the food in the package, and there is a provision which states that any information required by the law to appear on the label must be so printed, conspicuously, as to be likely to be read and understood by the ordinary individual under customary conditions of purchase and use. "Back in 1938, when the law was passed, we had the idea that this requirement, of conspicuousness, as set forth in section 403 (f) of the act, meant that all required statements should be printed in easily readable type on the main display panel of the label, right along with the brand name and the name of the food, and that if the package label was so made that there were two such main panels the required information should be set forth on each one. Our very first regulation in this area provided that the required labeling information may lack that prominence and conspicuousness required by the law by reason, along with other reasons, of-- "The failure of such word, statement, or information to appear on the part or panel of the label which is presented or displayed under customary conditions of purchase." Mr. Goodrich (p. 810). In answer to Mr. Cohen's inquiry about adequacy of existing law and procedure: "As the figures show, we have taken a positive, aggressive step in bringing about some corrections. We are confident it will work." 66 * We are Federal Trade Commission Act.-Chairman Dixon (p. 824). a Commission, quasi-legislative with the power of the Congress, quasi-judicial when the court stamps its approval upon it. The Commission has had considerable experience in protecting the consuming public from false and deceptive prac tices, accomplished by various means and practices. ***" (P. 825). “Our basic law had been extended now not only to unfair competition, but unfair and deceptive acts and practices. *** There can be no doubt that the Commission's general powers under existing law would authorize it to issue such orders when false or misleading packaging or labeling result in consumer deception." (P. 832). “If you will read that section 6, you will come to a section 6(g) where the Federal Trade Commission was authorized, and I will read it, sir ""from time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of this act.' "Now, I believe that there is a legislative grant here. I think it was so intended." (P. 834). "I have said here, as you pointed out, I think, that on a given case, if we had a given product in front of us, a given practice in front of us, and we had inquired into all of its ramifications, if it were apparent there was deception we could so find and write, in my opinion, if we had a good basis, even an affirmative requirement in there of adequate disclosure. But this is one at a time. In my opinion, one at a time is not good for America, sir." Commissioner Everette MacIntyre. More recently (January 22, 1963) Commissioner MacIntyre, addressing the food drug cosmetic law section of the New York State Bar Association, said: "With the enactment of the Wheeler-Lea amendments to the Federal Trade Commission Act in 1938, consumer protection gained new stature. He was given protection in his own right, not dependent on whether the deceptive practice also had an effect of injuring competitors. The Wheeler-Lea amendments to section 5 gave the Commission jurisdiction to prevent unfair or deceptive acts or practices in commerce, in addition to the unfair methods of competition in commerce which previously were unlawful. * * * I believe the greatest development of the law in deceptive practices before the Commission in the immediate future will entail questions of affirmative disclosure. I think you will see more and more of our cases involving the question of what omissions in advertising and labeling are material enough and deceptive enough to require an affirmative disclosure of facts. Full implementation of this authority of the Commission to prevent deception by requiring affirmative disclosures may obviate the need for a multiplicity of labeling or packaging laws or laws seeking to provide further protection to the public in the sale of particular commodities. The argument might be made that if the practice is deceptive, let the Commission correct it under present law. If no deception is involved, then it may be the practice is not of sufficient importance from the public standpoint to warrant its being given further attention." Respectfully yours, F. T. DIERSON, General Counsel. NATIONAL-AMERICAN WHOLESALE GROCERS' ASSOCIATION, INC., Re S. 387, H.R. 2382. Mr. PAUL S. WILLIS, New York, N.Y., March 18, 1963. President, Grocery Manufacturers of America, Inc., New York, N.Y. DEAR PAUL: We understand that you are to appear before the Senate Judiciary Committee as a representative of the food industry in opposition to Senator Hart's so-called truth-in-packaging bill, S. 387. You will be interested in knowing that our association has given this legislation serious study and that our board of governors has unanimously adopted a resolution expressing its opposition to the bill. It is the opinion of this association that enactment of this legislation is unnecessary, potentially dangerous to the food industry and to the whole concept of free American enterprise. The birth of this association in 1906 is intimately associated with the enactment of the original food and drug law. Grocery wholesalers were pioneers in having enacted legislation which would provide the consumer with high-quality products properly packaged and labeled. |