The Hobby Protection Act, signed into law Nov. 29, 1973, and amended in 2014, is designed to protect collectors against deceptive reproductions and the manufacture of imitation collectible items. The Federal Trade Commission promulgates rules and regulations under the Hobby Protection Act and is empowered to enforce the law.
HOBBY PROTECTION ACT
Following is the text of the Hobby Protection Act of 1973 as amended by the Collectible Coin Protection Act of 2014. (Amendments in bold.)
Public Law 93-167
AN ACT
To require that reproductions and imitations of coins and political items be marked as copies or with the date of manufacture.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled; That this Act may be cited as the “Hobby Protection Act”.
MARKING REQUIREMENTS
SEC. 2. (a) POLITICAL ITEMS. — The manufacture in the United States, or the importation into the United States, for introduction into or distribution in commerce of any imitation political item which is not plainly and permanently marked with the calendar year in which such item was manufactured, is unlawful and is an unfair or deceptive act or practice in commerce under the Federal Trade Commission Act.
(b) COINS AND OTHER NUMISMATIC ITEMS.—The manufacture in the United States, or the importation into the United States, for introduction into or distribution in commerce, or the sale in commerce of any imitation numismatic item which is not plainly and permanently marked “copy”, is unlawful and is an unfair or deceptive act or practice in commerce under the Federal Trade Commission Act.
(c) REGULATIONS.—The Federal Trade Commission shall prescribe rules for determining the manner and form in which items described in subsection (a) or (b) shall be permanently marked.
(d) PROVISION OF ASSISTANCE OR SUPPORT.—It shall be a violation of subsection (a) or (b) for a person to provide substantial assistance or support to any manufacturer, importer, or seller if that person knows or should have known that the manufacturer, importer, or seller is engaged in any act or practice that violates subsection (a) or (b).
(e) EXEMPTION.—Subsections (a) (b), and (d), and regulations under subsection (c), shall not apply to any common carrier or contract carrier or freight forwarder with respect to an imitation political item or imitation numismatic item received, shipped, delivered, or handled by it for shipment in the ordinary course of its business.
PRIVATE ENFORCEMENT
SEC. 3. (a) In General.–If any person violates section 2 (a) or (b) or a rule under section 2 (c), any interested person may commence a civil action for injunctive relief restraining such violation, and for damages, in any United States District Court for a district in which the defendant resides, has an agent, transacts business, or wherever venue is proper under section 1391 of title 28, United States Code. In any such action, the court may award the costs of the suit, including reasonable attorneys’ fees.
(b) Trademark Violations.–If the violation of section 2 (a) or (b) or a rule under section 2(c) also involves unauthorized use of registered trademarks belonging to a collectibles certification service, the owner of such trademarks shall have, in addition to the remedies provided in subsection (a), all rights provided under sections 34, 35, and 36 of the Trademark Act of 1946 (15 U.S.C. 1116, 1117, and 1118) for violations of such Act.
ENFORCEMENT BY FEDERAL TRADE COMMISSION
SEC. 4. (a) Except as provided in section 3, this Act shall be enforced by the Federal Trade Commission under the Federal Trade Commission Act.
(b) The Commission shall prevent any person from violating the provisions of this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act; and any such person violating the provisions of this Act shall be subject to the penalties and entitled to the privileges and immunities provided in said Federal Trade Commission Act, in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though the applicable terms and provisions of the said Federal Trade Commission Act were incorporated into and made a part of this Act.
IMPORTS
SEC. 5. Any item imported into the United States in violation of section 2 (a) or (b) or regulations under section 2(c) shall be subject to seizure and forfeiture under the customs laws.
APPLICATION OF OTHER LAW
SEC. 6. The provisions of this Act are in addition to, and not in substitution for or limitation of, the provisions of any other law of the United States or of the law of any State.
DEFINITIONS
SEC. 7. For purposes of this Act:
(1) The term “original political item” means any political button, poster, literature, sticker, or any advertisement produced for use in any political cause.
(2) The term “imitation political item” means an item which purports to be, but in fact is not, an original political item, or which is a reproduction, copy, or counterfeit of an original political item.
(3) The term “original numismatic item” means anything which has been a part of a coinage or issue which has been used in exchange -or has been used to commemorate a person or event. Such term includes coins, tokens, paper money, and commemorative medals,
(4) The term “imitation numismatic item” means an item which purports to be, but in fact is not, an original numismatic item or which IS a reproduction, copy, or counterfeit of an original numismatic item.
(5) The term “commerce” has the same meaning as such term has under the Federal Trade Commission Act.
(6) The term “Commission” means the Federal Trade Commission,
(7) The term “United States” means the States, the District of Columbia, and the Commonwealth of Puerto Rico.
(8) The term “collectibles certification service” means a person recognized by collectors for providing independent certification that collectible items are genuine.
(9) The term “Trademark Act of 1946” means the Act entitled “An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes”, approved July 5, 1946 (15 U.S.C. 1051 et seq.).
EFFECTIVE DATE
SEC. 8. This Act shall apply only to imitation political items and imitation numismatic items manufactured after the date of enactment of this Act.
Approved November 29, 1973.
And the following are the current FTC rules:
Title 16 → Chapter I → Subchapter C → Part 304
Title 16: Commercial Practices
PART 304—RULES AND REGULATIONS UNDER THE HOBBY PROTECTION ACT
Contents
§304.1 Terms defined.
§304.2 General requirement.
§304.3 Applicability.
§304.4 Application of other law or regulation.
§304.5 Marking requirements for imitation political items.
§304.6 Marking requirements for imitation numismatic items.
Authority: 15 U.S.C. 2101 et seq.
Source: 40 FR 5496, Feb. 6, 1975, unless otherwise noted.
§304.1 Terms defined.
(a) Act means the Hobby Protection Act (approved November 29, 1973; Pub. L. 93-167, 87 Stat. 686, (15 U.S.C. 2101 et seq.)).
(b) Commerce has the same meanings as such term has under the Federal Trade Commission Act.
(c) Commission means the Federal Trade Commission.
(d) Imitation numismatic item means an item which purports to be, but in fact is not, an original numismatic item or which is a reproduction, copy, or counterfeit of an original numismatic item. Such term includes an original numismatic item which has been altered or modified in such a manner that it could reasonably purport to be an original numismatic item other than the one which was altered or modified. The term shall not include any re-issue or re-strike of any original numismatic item by the United States or any foreign government.
(e) Imitation political item means an item which purports to be, but in fact is not, an original political item, or which is a reproduction, copy or counterfeit of an original item.
(f) Original numismatic item means anything which has been a part of a coinage or issue which has been used in exchange or has been used to commemorate a person, object, place, or event. Such term includes coins, tokens, paper money, and commemorative medals.
(g) Original political item means any political button, poster, literature, sticker, or any advertisement produced for use in any political cause.
(h) Person means any individual, group, association, partnership, or any other business entity.
(i) Regulations means any or all regulations prescribed by the Federal Trade Commission pursuant to the Act.
(j) United States means the States, the District of Columbia, and the Commonwealth of Puerto Rico.
(k) Diameter of a reproduction means the length of the longest possible straight line connecting two points on the perimeter of the reproduction.
[40 FR 5496, Feb. 6, 1975, as amended at 53 FR 38942, Oct. 4, 1988]
§304.2 General requirement.
Imitation political or numismatic items subject to the Act shall be marked in conformity with the requirements of the Act and the regulations promulgated thereunder. Any violation of these regulations shall constitute a violation of the Act and of the Federal Trade Commission Act.
§304.3 Applicability.
Any person engaged in the manufacturing, or importation into the United States for introduction into or distribution in commerce, of imitation political or imitation numismatic items shall be subject to the requirements of the Act and the regulations promulgated thereunder.
§304.4 Application of other law or regulation.
The provisions of these regulations are in addition to, and not in substitution for or limitation of, the provisions of any other law or regulation of the United States (including the existing statutes and regulations prohibiting the reproduction of genuine currency) or of the law or regulation of any State.
§304.5 Marking requirements for imitation political items.
(a) An imitation political item which is manufactured in the United States, or imported into the United States for introduction into or distribution in commerce, shall be plainly and permanently marked with the calendar year in which such item was manufactured.
(b) The calendar year shall be marked upon the item legibly, conspicuously and nondeceptively, and in accordance with the further requirements of these regulations.
(1) The calendar year shall appear in Arabic numerals, shall be based upon the Gregorian calendar and shall consist of four digits.
(2) The calendar year shall be marked on either the obverse or the reverse surface of the item. It shall not be marked on the edge of the item.
(3) An imitation political item of incusable material shall be incused with the calendar year in sans-serif numerals. Each numeral shall have a vertical dimension of not less than two millimeters (2.0 mm) and a minimum depth of three-tenths of one millimeter (0.3 mm) or one-half ( 1⁄2 ) the thickness of the reproduction, whichever is the lesser. The minimum total horizontal dimension for the four numerals composing the calendar year shall be six millimeters (6.0 mm).
(4) An imitation political button, poster, literature, sticker, or advertisement composed of nonincusable material shall be imprinted with the calendar year in sans-serif numerals. Each numeral shall have a vertical dimension of not less than two millimeters (2.0 mm). The minimum total horizontal dimension of the four numerals composing the calendar year shall be six millimeters (6.0 mm).
§304.6 Marking requirements for imitation numismatic items.
(a) An imitation numismatic item which is manufactured in the United States, or imported into the United States for introduction into or distribution in commerce, shall be plainly and permanently marked “COPY”.
(b) The word “COPY” shall be marked upon the item legibly, conspicuously, and nondeceptively, and in accordance with the further requirements of these regulations.
(1) The word “COPY” shall appear in capital letters, in the English language.
(2) The word “COPY” shall be marked on either the obverse or the reverse surface of the item. It shall not be marked on the edge of the item.
(3) An imitation numismatic item of incusable material shall be incused with the word “COPY” in sans-serif letters having a vertical dimension of not less than two millimeters (2.0 mm) or not less than one-sixth of the diameter of the reproduction, and a minimum depth of three-tenths of one millimeter (0.3 mm) or to one-half ( 1/2) the thickness of the reproduction, whichever is the lesser. The minimum total horizontal dimension of the word “COPY” shall be six millimeters (6.0 mm) or not less than one-half of the diameter of the reproduction.
(4) An imitation numismatic item composed of nonincusable material shall be imprinted with the word “COPY” in sans-serif letters having a vertical dimension of not less than two millimeters (2.0 mm) or not less than one-sixth of the diameter of the reproduction. The minimum total horizontal dimension of the word “COPY” shall be six millimeters (6.0 mm) or not less than one-half of the diameter of the reproduction.