FDA Considers New Sunscreen Labeling Rules
The U.S. Food and Drug Administration (FDA) is considering implementing new guidelines for retail and promotional sunscreen later this year, potentially updating standards that have been in place since 1978. As part of its proposals, the FDA is looking at stricter rules to prevent misleading labeling, while also developing a rating system to measure a sunscreen's effectiveness against ultraviolet A rays. "The FDA has been talking about new labeling for sunscreen for a dozen years," says Bijan Hosseini, president of HandsFree Sunscreen (asi/59523). "I do think a rating system would be effective because of the technology that exists today."

If the current proposals become regulations, companies would be banned from using terms like "sunblock" and "all-day protection" on labels. The maximum sun protection factor (SPF) that a product could claim would be capped at 50+ and a multi-star ranking system would be established, with a one-star rated sunscreen offering the least protection and a four-star rated sunscreen offering the most. "I think you'll see a move to improve formulas," says Larry Wilhelm, CEO of Custom HBC (asi/47934). "Sunscreens will be updated to provide broader spectrum coverage. We've done that with our sunscreen over the last year in anticipation of these rules."

Since 2007, when the latest proposals were first discussed, the FDA has received thousands of comments from companies, including large retailers that are lobbying for testing standards that would benefit their individual product lines. Within the promotional market, the real concern about the proposals relates to the scope of the enforcement. "The FDA is vigilant and very thorough," says Mel Ellis, president of HumphreyLine (asi/62050). "The system for domestically sourced product is sophisticated. The problem is there's no apparatus for international sourcing."

Besides updating sunscreen guidelines, the FDA is also considering approving the use of Tinosorb M, a popular ingredient in sunscreens found in Europe. Tinosorb M and similar ingredients appear to be effective against ultraviolet A rays, which cause wrinkles and cancer. Compliant and improved sunscreen products could be on the American market by 2012, according to an FDA spokesman.

New Regulations Spur Flame-Resistant Clothing Sales
A set of new regulations enforced by the Occupational Safety and Health Administration (OSHA) and other agencies is increasing the popularity of flame-resistant clothing, according to manufacturers. The rules are affecting the apparel buying decisions of businesses in a wide range of industries, from petro-chemical companies to public utilities to general contractors. "Our sales of flame-resistant clothing are up 30%," says Fred Haws, owner of Haws USA (asi/43861). "We've gotten a surge of calls in the last few months. The profit margins are pretty good."

The new OSHA regulations specifically require that flame-resistant clothing be used in oil and gas drilling, servicing and production-related operations, with penalties enforced for lack of compliance. In addition to the federal rules, though, several other industries have chosen to self-regulate through organizations like the National Fire Protection Agency and guidelines like the National Electrical Safety Code. "Companies have had to perform hazard assessments and then put their workers in flame-resistant clothing," says Tom Kiddle, technical sales business manager for Carhartt, an apparel manufacturer that specializes in industrial protective gear. "There's been a boom in business. Companies are providing full protection for employees, from shirts to pants to jackets."

To be considered flame-resistant, apparel must extinguish a flash fire within two to three seconds, preventing more serious burns following an explosion. Typically, flame-resistant clothing is either made of a material called Nomex or specially treated with chemicals. "There's more fire-resistant cotton now because it's more comfortable," says Kiddle. "Sales of flame-resistant clothes have been good over the last three years, with 2008 and 2009 as the pinnacle. The market is still trending upward."

The Joe Show: Tailgating Products
In conjunction with the Hot Issue of Counselor this August, Managing Editor Joe Haley is dedicating The Joe Show to showing off the hottest products in the ad specialty market. Broken into fun categories, each week he's focusing on a different theme – and then each of the items will be shown in the August Hot Issue.

In this episode, Joe fires up the grill and displays some of the latest items available for tailgating events. Have clients looking to spruce up their outdoor fall promotions? Check out this episode. 

Click here to see this Hot Products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

All-In-One Passes Disney Audit
Supplier All-In-One (asi/34256) announced that it has passed a voluntary audit conducted by the compliance division of The Walt Disney Company. To become compliant with the Disney Code of Conduct, a company must demonstrate quality working conditions, ethical operations and respect for the environment. "Disney's leadership in the area of compliance is well known and their standards are among the world's most rigorous," says Stephanie Mills, director of operations at All-In-One. "By passing this audit, we've demonstrated that our distributors can confidently market our products not only to Disney, but to other Fortune 500 companies."

As part of its monitoring and compliance program, Disney and designated third-parties make unannounced on-site inspections of manufacturing facilities, review books and records relating to employment matters and hold private interviews with workers. All-In-One was officially certified as a Disney-compliant supplier earlier this month.

McDonald's Threatened With Lawsuit Over Promo Toys
A California watchdog group has served McDonald's with a letter expressing its intent to sue unless the restaurant chain removes toys from its Happy Meals by mid-July. The group, called the Center for Science in the Public Interest (CSPI), believes McDonald's is luring children into its restaurants with deceptive ad campaigns, while essentially promoting obesity. "McDonald's is the stranger in the playground handing out candy to children," said CSPI litigation director Stephen Gardner. "McDonald's use of toys undercuts parental authority and exploits young children's developmental immaturity. It's a creepy and predatory practice that warrants an injunction."

In response to CSPI's allegations, McDonald's has defended its Happy Meal toys as "just one part of a fun, family experience" at the restaurant. McDonald's has also pointed out that its Happy Meal menus now offer healthy options, like apple slices and juices, in place of French fries and sodas. "We couldn't disagree more with the misrepresentation of our food and marketing practices," said William Whitman, a McDonald's spokesman. "McDonald's is committed to a responsible approach to our menu, and our Happy Meal offerings. We have added more choice and variety than ever before, a fact that has been widely reported and recognized."

McDonald's is not the first high profile company that the CSPI has targeted. In 2006, the organization threatened cereal maker Kellogg's with a similar lawsuit, alleging the company engaged in marketing practices that were "disease-promoting" and "brainwashing" toward children. Rather than fighting a potential suit in court, Kellogg's acquiesced to the CSPI's demands, agreeing to stop using branded toys in connection with foods that fall short of meeting certain nutritional standards. "As a practical matter, this commitment means that parents will find it a little easier to steer their children toward healthy food choices," said CSPI executive director Michael Jacobson, following Kellogg's eventual compliance in 2007.

In its latest notice letter, CSPI maintains that McDonald's toy promotions violate state consumer protection laws in four states and Washington, DC. The organization says it will sue McDonald's in 30 days unless the restaurant agrees to remove toys from Happy Meals. The lawsuit threat comes a month after Santa Clara County in California banned local fast-food chains from giving away promotional toys with meals that exceeded a certain calorie count. The action also comes on the heels of McDonald's recalling 12 million promotional glasses earlier this month when they were found to have excessive levels of cadmium.

Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. eastern time to 11:00 a.m., a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we gave a State of the Industry sneak peek and discussed overseas issues that are sure to impact the ad specialty industry. Plus, listeners called in to the show looking for advice on how to update their marketing efforts.

If you missed the show, a recording is now available at www.asicentral.com/radio. And, don't forget to join us for our next broadcast on Tuesday, July 6. Log on to www.asicentral.com/radio at 10:30 a.m. ET to listen to the radio show, and give us a call at 215-953-4979 to hear your voice on the air.

Lungsal Buys Poppenex Line
Supplier Lungsal Int'l (asi/68190) has reached an agreement to purchase Poppenex's (formerly asi/79000) logo in motion line, the companies have announced. Although Poppenex now plans to leave the ad specialty industry, the company's staff will work closely with Lungsal to expand the line, which is known for its lenticular or lens-like effects. Per the deal, Danny Lee, sales manager of Poppenex, will be joining the staff at Lungsal. Effective July 1, all logo in motion line inquiries should be directed to Lungsal. The California-based supplier, founded in 1990, primarily manufacturers pens, coasters and luggage tags.

Nominations Open For 2010 Counselor Power 50
Counselor is now compiling its Power 50 list for 2010 – our recognition of the industry's most powerful individuals – and we're looking for feedback from you. Click here to see the list of last year's Power 50 and let us know whether you think the members are more or less influential today than they were a year ago.

Plus, this is also the place to nominate new people who you think should be on the 2010 Power 50 list. Scroll to the bottom of the survey to submit new candidates for the Counselor Power 50 list. Please write their name and company in the space provided.

Click here to take the survey and make new nominations.

ASICentral: Top 100 Markets For Ad Specialty Sales
A recent exclusive Counselor study unveiled the best cities for ad specialty distributors to do business in right now. For the interactive online version, we decided to extend the list to the largest 100 markets and give them not only a rank, but a grade too.

Want to know where the best – and worst – cities are for ad specialty sales? Click here.

Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com. Also, follow ASICentral at: .

ASI Online Learning Center
Did you know you can take self-paced, on-demand courses at ASI Education's Online Learning Center? This is the newest and most convenient way for distributors, decorators and suppliers to get educated. In our newest course for distributors, "Break Into These Five Hot Apparel Markets," we'll unveil five markets that are buying lots of decorated apparel (think: education, high-tech companies, government entities and more), the types of apparel they buy and how to make the pitch and close the sale.

Click here to learn why you should be selling apparel to online schools. (Hint: It's a $300 million market.) Thiers is just one of the markets you'll learn how to sell to in this course.

Click here to take the course.

In the News
Bodek and Rhodes (asi/40788) announced the addition of Next Level to its offerings, becoming the national wholesaler of the brand through 2011.

GatewayCDI (asi/202515) held its bi-annual sales meeting in May.  The event featured a supplier vendor fair and a sales seminar.

Geiger (asi/202900) announced that it was awarded the 2010 International Carl Rosenfeld Award for best promotion of the year for the Liv at the 52nd annual meeting of World Advertising Gift Exchange (WAGE) in May.

R.S. Owens (asi/75530) celebrated the Chicago Blackhawks' Stanley Cup victory by holding a fund raiser and contributing the money to more than 20 organizations.

Starline USA (asi/89320) announced the launch its Performance Eyewear product line. The supplier also introduced a new inventory check feature to the Idea Board section of its website. The feature allows distributors to verify stock before suggesting products to clients. For more information, go to www.starline.com.