A new rule is requiring retailers to display logos, including those of major corporations, on clothing and accessories at checkout, instead of on the items themselves.
The new rule will take effect July 1.
The change is designed to help protect consumers from the “fakes and cheats” that retailers are exploiting, said Kristi Miller, senior director of retail communications for the Retail Industry Leaders Association.
“It’s a great step toward ensuring our brands, including clothing and apparel products, are displayed prominently in stores,” Miller said.
“It’s also an important step to help consumers make informed choices about their purchasing choices, because these companies are not making our shopping experiences more pleasant.
Read moreAt least 14 brands including Gap, Walmart, Target, Macy’s and J.C. Penney have already agreed to the new policy.
A handful of retailers, including Walmart, Sears and Kohl’s, have yet to take the step.
What’s new?”
There are still retailers that don’t agree to it and have not signed on to it, and we want to see what happens,” said Miller.
What’s new?
The new rule does not apply to online retailers, Miller said, but retailers may still display logos on clothing or accessories.
“It could be on apparel or it could be an entire section on accessories,” Miller told ABC News.
“We’ve heard of online retailers having the same problem as the major retailers, where the logos are all over the place.”
The new rules are intended to help ensure consumers are not shopping with a “fraudulent product,” Miller added.
“But we’ve heard from retailers that they do see a big difference in how they are showing the brands on their site.”
The rules also do not affect other types of products like diapers and other household items, which are not required to display the logos.
In some cases, a retailer may have to change the design of an item that doesn’t meet the new rules, but that could still cause confusion for consumers.
For example, a company might choose to change a logo for a new product and not include it on an existing product that does, according to Miller.
“In that case, we want the consumer to know that it is still on that item,” she said.
This rule was originally issued by the U.S. Department of Agriculture and was recently updated by the Office of Federal Trade Commission (OFC).
“We’re very excited that we’ve finally found a solution to protect consumers and retailers from the fraud and counterfeiters who use false logos,” said Lisa A. Hirsch, the deputy commissioner of the Office for Intellectual Property and Bureau of Consumer Protection.
“By requiring retailers and brands to display all brand logos on their product, we’re helping to make shopping easier for consumers.”
