# Labeling laws that govern every hangtag and sewn-in tag
A single sweater labeled "100% cashmere" that turns out to be a wool blend can cost a brand real money. In one well-known enforcement sweep, the U.S. Federal Trade Commission (FTC) went after retailers selling products labeled as cashmere or containing more cashmere than they actually did. The lesson for anyone in fashion: the small tag sewn into the side seam is a legal document, and getting it wrong triggers penalties, recalls, and reputational damage.
This lesson breaks down the three disclosures every garment must carry in the United States and Europe: fiber content, care instructions, and country of origin, plus the identification numbers that tie a product back to its maker.
Hangtags (the cardboard tags that hang off a garment) sell the product. Sewn-in tags (the permanent labels inside) satisfy the law. Regulators care about the sewn-in label because it survives after the hangtag is cut off.
In the U.S., three FTC-enforced laws do most of the work:
Care labeling is handled separately by the FTC's Care Labeling Rule. Country of origin is enforced jointly by the FTC and
The FTC publishes a plain-language guide worth bookmarking: Threading Your Way Through the Labeling Requirements.
You must list every fiber that makes up 5% or more of the garment, by percentage, in descending order, using the generic fiber name (for example "cotton," "polyester," "elastane"), not a brand name.
Example: a legga listed as "95% cotton, 5% spandex" is fine. "Spandex" and "elastane" are both accepted generic terms.
Fibers under 5% are grouped as "other fiber" unless they serve a functional purpose (a small percentage of elastane for stretch can be named because it affects fit).
The percentages must be accurate. "100% cashmere" means 100% cashmere. This is exactly where the FTC catches brands: a "cashmere" sweater that lab-tests as a blend is a false claim under the Wool Act.
An RN (Registered Identification Number) is a number the FTC issues to a U.S. business, which can appear on the label instead of the company name. It is free to obtain through the FTC website. A WPL number is an older wool-specific version you may still see on legacy stock.
You do not have to use an RN. You can print the full company name instead. But most brands use the RN because it is compact and does not reveal the manufacturer to competitors.
Key point for buyers and sourcing teams: an RN identifies a U.S. business responsible for the product. It is not a mark of quality and it is not a factory code.
The label must state where the product was made, for example "Made in Vietnam" or "Made in Italy." For a garment, origin is generally determined by where it was assembled (where the fabric was cut and sewn), not where the fiber was grown.
Imported goods must show the foreign country of origin. "Made in USA" claims are held to a high bar: the FTC requires that a product be "all or virtually all" made domestically to carry an unqualified "Made in USA" label. Getting this wrong is a frequent enforcement target.
Under the Care Labeling Rule, the manufacturer must provide at least one safe method of care (washing, drying, ironing, bleaching, dry cleaning), and must warn if a normal care procedure would harm the garment.
Example: a rayon dress that shrinks in water needs a "Dry Clean Only" instruction. If you only test washing and it survives, you can label it washable, but you must have a reasonable basis for the instruction. You cannot guess.
The EU governs fiber content through Regulation (EU) No 1007/2011 on textile fibre names and labelling. Core differences from the U.S.:
Country-of-origin marking in the EU is more limited than in the U.S. for textiles: "Made in" labeling is not uniformly mandatory for all garments, though customs origin rules still apply for import purposes.
Practical takeaway for a brand shipping to both markets: you often need multi-market labels. A single sewn-in tag might carry fiber content in several languages plus U.S.-style percentages and an RN, so it can ship anywhere without re-labeling.
🎬 [VIDEO: "How to Read a Clothing Care Label" - youtube.com - a short, practical walkthrough of care symbols and what each one means for washing, drying, and dry cleaning]
Most labeling failures are not fraud. They are operational gaps.
Mislabeled blends. A factory substitutes a cheaper fiber to hit a cost target and the label is not updated. The brand ships "100% silk" that is actually a silk-polyester blend. Solution: lab-test production samples, not just pre-production samples.
Missing RN on private-label goods. A retailer sells a product under its own brand but forgets the RN or company name. Every unit is technically non-compliant.
Wrong country of origin after a sourcing shift. Production moves from China to Bangladesh mid-season, but the pre-printed labels still say China. This is a customs problem as well as an FTC problem.
Care instructions copied across styles. A team reuses "machine wash cold" from a cotton tee on a wool blend that felts in the wash. If a customer's garment is ruined and the instruction was unreasonable, the brand is exposed.
Responsibility runs to whoever puts the product on the market. For a brand selling its own label, that is the brand, even if a third-party factory made the error. "The factory did it" is not a defense. This is why sourcing contracts should require the supplier to warrant label accuracy and to indemnify the brand for labeling violations.
Knowledge check
1. Why do regulators focus their enforcement attention on the sewn-in tag rather than the cardboard hangtag?
2. A brand sells a sweater labeled '100% cashmere' that is actually a wool blend. Which law most specifically governs this misrepresentation?
3. A garment contains 60% cotton, 37% polyester, and 3% spandex. How should the fiber content be disclosed under U.S. rules?
4. Select ALL correct answers about the four disclosures a compliant U.S. garment label must show.
Select all the correct answers.
5. Select ALL correct answers about how U.S. labeling laws are enforced and structured.
Select all the correct answers.
Suppose you are launching a sweater to sell in both the U.S. and France. Lab testing on the production run returns: 70% merino wool, 28% nylon, 2% elastane.
Your compliant label needs:
Notice the sweater cannot legally be called "cashmere" or even "wool" without qualification if the wool content were lower. The generic name and the percentage must match what is in the garment.