Uniform Industry
16 CFR Part 101 · Trade practice rules · in the Code of Federal Regulations 1949-1977 (12 annual editions)
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Latest edition: Library of Congress, 1977 CFR · Earliest edition: 1949 CFR
Text (1977 edition, OCR)
Chapter |—Federal Trade Commission
accept, anything of value as a commis-
sion, brokerage, or other compensation,
or any allowance or discount in lieu
thereof, except for services rendered in
connection with the sale or purchase of
goods, wares, or merchandise, either to
the other party to such transaction or
to an agent, representative, or other
intermediary therein where such inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect
control, of any party to such transaction
other than the person by whom such
compensation is so granted or pald.
(d) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the
industry engaged in commerce to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of value to or for the benefit of a
customer of such member in the course
of such commerce as compensation or
in consideration for any services or fa-
cilities furnished by or through such
customer in connection with the proe-
essing, handling, sale, or offering for
sale of any products or commodities
manufactured, sold, or offered for sale
by such member, unless such payment or
consideration is available on propor-
tionally equai terms to all other cus-
tomers competing in the distribution of
such products or commodities.
(e) Prohidited discriminatory services
or facilities. It is an unfair trade prae-
tice for any member of the industry en-
gaged tn commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not ac-
corded to all competing purchasers on
proportionally equal terms. .
Nore: See subsection (b) of section 2 of
the Clayton Act, as amended, which is set
forth in the note concluding Paragraph (a)
of this section.
(f) Inducing or receiving an illegal dis-
crimination in price. It ts an unfair
trade practice for any person engaged
in commerce, in the course of such com-
merce, knowingly to tnduce or recetvye
@ discrimination in price which ts pro-
hibited by the foregoing provision of
§ 101.1
paragraphs (a) to (e) of this section.
[Rule 20]
§ 92.21 Aiding or abetting use of unfair
trade practices.
It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or
indirectly, to use or promote the use of
any unfair trade practice specified in
this part. [Rule 21]
PART 101—-UNIFORM INDUSTRY
Group I
Sec.
101.1 Misrepresentation of industry prod-
‘ucts.
101.2 Misbranding.
101.3 Misrepresentation as to character of
business.
101.4 Misrepresenting unforms as “cus-
tom made,” “made to order,” etc.
101.5 Deceptive numbering.
101.6 Deception as to used garments.
101.7 Deceptive use of competitor’s plates,
cuts, or illustrations.
101.8 Imitation of trade-marks, trade
names, etc.
101.9 Substitution of products.
101.10 Fictitious prices.
101.11 Defamation of competitors or dis-
paragement of their products.
101.12 Enticing away employees of com-
petitors.
101.13 Commercial bribery.
101.14 Procurement of competitors’ confi-
dential information by unfair
means and wrongful use thereof,
101.15 Inducing breach of contract.
101.16 Selling below cost.
101.17 Unfair bidding methods.
101.18 Discrimination.
101.19 Aid or abetting use of unfair trade
practices.
Group II
101.101 Repudiation of contracts.
101.102 Fictitious bids.
101.103 Identical information to all bidders.
101.104 Arbitration.
AvutTHoritY: Secs. 6(g), 5, 38 Stat. 722, 719;
15 US.C. 46(g), 45, unless otherwise noted.
Sourcr: 5 FR 1812, May 18, 1940, unless
otherwise noted.
Group I
§ 101.1 Misrepresentation of industry
products.
It is an unfair trade practice to make
or publish, or cause to be made or pub-
shed, directly or indirectly, any false,
misleading, or deceptive statement or
representation, by way of advertisement
or otherwise, concerning the grade, qual-
ity, quantity, use, size, material, con-
481
§ 101.2
tent, origin, shrinkage, properties, color
fastness, washability, design, tailoring,
production, manufacture, or distribution
of any product of the industry or con-
cerning any component of such product
or in any other material respect.
Norse: Disclosure of material content shall
be made in accordance with the require-
ments of the applicable fiber identification
rules of the Commission.
§ 101.2 Misbranding.
The false or deceptive marking or
branding of products of the industry
with respect to the grade, quality,
quantity, use, size, material, content,
origin, shrinkage properties, color fast-
ness, washability, design, tailoring, pro-
duction, manufacture, or distribution of
such products, or concerning any com-
ponent thereof, or in any other material
respect, is an unfair trade practice.
Nore: Disclosure of material content shall
be made in accordance with the requirements
of the applicable fiber identification rules of
the Commission.
§ 101.3 Misrepresentation as to char-
acter of business.
It is an unfair trade practice for any
person, firm, or corporation to hold him-
self or itself out as a uniform tailor, uni-
form manufacturer, or uniform whole-
saler, when such is not the fact, or in any
other manner to misrepresent the char-
acter, extent or type of his or its business.
§ 101.4 Misrepresenting uniforms as
“eustom made,” “made to order,”
ete.
The sale or offering for sale, through
advertising or otherwise, of uniforms as
custom made, made to order, or by other
representations implying or importing
that a garment is to be or has been
manufactured according to the measure-
ments of an individual submitted with
the order, when such is not the fact, is
an unfair trade practice.
§ 101.5 Deceptive numbering.
It is an unfair trade practice for any
member of the industry to disguise, by
any special number, any standard or
special fabric known to the trade by a
given number, in such manner or under
such circumstances as to have the ca-
pacity and tendency or effect of mislead-
ing or deceiving the purchasing or con-
suming public into the erroneous belief
that a superior fabric is being offered for
Title 16—Commercial Practices
sale when such is not the fact, or of
deceiving the purchasing or consuming
public in any other respect.
§ 101.6 Deception as to used garments.
(a) It is an unfair trade practice for
any member of the industry to sell, offer
for sale, advertise, or otherwise represent
any uniform, or any part thereof, as be-
ing new when such is not true in fact.
(b) In the marketing of used or
second-hand uniforms or uniforms con-
taining used or second-hand parts, it 1s
an unfair trade practice to fail or re-
fuse to make full and nondeceptive dis-
closure, by tag or label attached to the
product, of the fact that such uniform
or parts thereof are not new but are
used or second-hand, as the case may be,
such failure or refusal to make disclo-
sure having the capacity and tendency or
effect of misleading or deceiving the pur-
chasing or consuming public.
§ 101.7 Deceptive use of competitor's
plates, cuts, or illustrations,
It is an unfair trade practice, in the
sale and distribtuion of industry products
to adopt for one’s own use, by photo-
static, photographic, or other means of
reproduction, the exclusively owned
plates, cuts, or illustrations of a competi- ~
tor contained in such competitor's
catalogs, sales publications, measure
books, folders, or blanks, with the ca-
pacity and tendency or effect of thereby
misleading or deceiving the purchasing
or consuming public into the erroneous
belief that the products so sold and dis-
tributed are products of such competitor.
§ 101.8 Imitation of trade-marks, trade
names, etc.
The imitation or simulation of the
trade-marks, trade names, brands, or
labels of competitors, with the capacity
and tendency or effect of misleading or
deceiving the purchasing or consuming
public, is an unfair trade practice.
§ 101.9 Substitution of products.
The practice of shipping or delivering
products which do not conform to
samples submitted, to specifications upon
which the sale is consummated, or to rep-
resentations made prior to securing the
order, without the consent of the pur-
chaser to such substitutions, or with the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public, is an unfair trade
practice.
482
Chapter |—Federal Trade Commission
§ 101.10 Fictitious prices.
Offering merchandise for sale at prices
purported to be reduced from what are in
fact fictitious prices, or offering mer-
chandise for sale at a purported reduc-
tion in price when such purported reduc-
tion {s in fact fictitious, or is otherwise
misleading or deceptive, is an unfair
trade practice.
§ 101.11 Defamation of competitors or
disparagement of their products.
The defamation of competitors by
falsely Imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dis-
paragement of the grade, quality, or
manufacture of the product of competi-
tors, or of their business methods, selling
prices, values, credit terms, policies, or
services, is an unfair trade practice.
§ 101.12 Enticing away employees of
competitors.
Willfully enticlng away the employees
of competitors with the purpose and ef-
fect of unduly hampering, injuring, or
prejudlcing competitors in their busi-
nesses {s an unfair trade practice.
§ 101.13 Commercial bribery.
It is an unfalr trade practice for a
member of the industry, directly or indi-
rectly, to give, or offer to give, or permit
or cause to be given, money or anything
of value to agents, employees, or repre-
sentatives of customers or prospective
customers, or to agents, employees, or
representatives of competltors’ customers
or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase products manufac-
tured or sold by such industry member or
the maker of such gift or offer, or to in-
fluence such employers or principals to
refrain from dealing in the products of
competitors or from dealing or contract-
ing to deal with competitors.
§ 101.14 Procurement of competitors’
confidential information by unfair
means and wrongful use thereof.
It is an unfair trade practice for any
member of the industry to obtain infor-
mation concerning the business of a com-
petitor by bribery of an employee or
agent of such competitor, by false or mis-
leading statements or representations, by
the impersonation of one in authority, or
§ 101.18
by any other unfair means, and to use the
information so obtained in such a man~
ner as to injure said competitor in his
business or to suppress competition or
unreasonably restrain trade.
§ 101.15 Inducing breach of contract.
Inducing or attempting to induce the
breach of existing lawful contracts be-
tween competitors and their customers
or their suppliers by any false or decep-
tive means whatsoever, or interfering
with or obstructing the performance of
any such contractual duties or services
by any such means, with the purpose and
effect of unduly hampering, injuring, or
prejudicing competitors in their busi-
nesses, is an unfair trade practice.
§ 101.16 Selling below cost.
The practice of selling industry prod-
ucts below the selfer’s cost with the
intent and with the effect of injuring a
competitor and where the effect may be
substantially to lessen competition or
tend to create a monopoly or unreason-
ably restrain trade is an unfair trade
practice; all elements recognized by good
accounting practice as proper elements
of such cost shall be included in deter-
mining cost under this section. The
costs, however, which are referred to in
this section, are actual costs of the re-
spective seller and not some other figure
or average costs in the industry deter-
mined by an industry cost survey or
otherwise.
§ 101.17 Unfair biddmg methods.
It is an unfair trade practice for a unt-
form manufacturer to induce a con-
tractee or purchaser to use and apply
in specifications a number to denote a
style of fabrle upon which bidding {fs to
be let publicly, which number is not
generally used and known to other
members of the industry to denote a
known fabric, or to withhold other in-
formation necessary to enable competi-
tors to intelligently bid on the contract,
where the effect may be to substantially
lessen competition or tend to create a
monopoly or unreasonably restrain
trade.
§ 101.18 Discrimination.
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
ete., which effect unlawful price discrim-
ination. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
483
§ 101.18
merce, to grant or allow, secretly or
openly, directly or indirectly, any rebate,
refund, discount, credit, or other form of
price differential where such rebate, re-
fund, discount, credit, or other form of
price differential effects a discrimination
in price between different purchasers of
goods of like grade and quality, where
either or any of the purchases involved
therein are in commerce, and where the
effect thereof may be substantially to
Jessen competition or tend to create a
monopoly in any line of commerce, or to
injure, destroy, or prevent competition
with any person who elther grants or
knowingly receives the benefit of such
discrimination, or with customers of
either of them: Provided, however, (1)
That the goods involved in any such
transaction are sold for use, consump-
tion, or resale within any place under the
jurisdiction of the United States.
(2) That nothing contained in this
section shall prevent differentials which
make only due allowance for differences
in the cost of manufacture, sale, or de-
livery resulting from the differing
methods or quantities in which such
commodities are to such purchasers sold
or delivered; ‘
(3) That nothing contained in this
section shall prevent persons engaged in
selling goods, wares, or merchandise in
commerce from selecting their own cus-
tomers in bona fide transactions and not
in restraint of trade;
(4) That nothing contained in this
section shall prevent price changes from
time to time where made in response to
changing conditions affecting elther (i)
the market for the goods concerned, or
di) the marketability of the goods, such
as, but not limited to, actual or im-
minent deterioration of perishable goods,
obsolescence of seasonal goods, distress
_sales under court process, or sales in good
faith in discontinuance of business in
the goods concerned.
(b) Prohibited brokerage and com-
missions. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such oom-
merce, to pay or grant, or to receive or
accept, anything of value as a commis-
sion, brokerage, or other componsation,
or any allowance or discount in Neu
thereof, except for services rendered in
connection with the sale or purchase of
goods, wares, or merchandise, either to
the other party to such transaction or
to an agent, representative, or other in-
termediary therein where such interme-
‘Title 16—Commercial Practices
diary is acting in fact for or in behalf,
or is subject to the direct or indirect con-
trol, of any party to such transaction
other than the person by whom such
compensation is so granted or paid.
(c) Prohibition advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of value to or for the benefit of a
customer of such member in the course
of such commerce as compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer in connection with the processing,
handling, sale, or offering for sale, of any
products or commodities manufactured,
sold, or offered for sale by such member,
unless such payment or oonsideration is
available on proportionately equal terms
to ail other customers competing in the
distribution of such products or commod-
es.
(a) Prohibited discriminatory services
or factlities. It is an unfair trade prac-
tice for any member of the industry en-
gaged in commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the fur-
nishing of, any services or facilities con-
nected with the processing, handling,
sale, or offering for saie of such com-
modity so purchased upon terms not ac-
corded to all purchasers on proportion-
ally equal terms.
(e) Inducing or receiving an illegal
discrimination tn price. It 1s an unfair
trade practice for any member of the in-
dustry engaged m commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which ts prohibited by the fore-
going provisions of this section.
(f) Purchases by schools, colleges, unt-
versities, public libraries, churches, hos-
pitals, and charitable tnstitutions not op-
erated for profit. The foregoing provi-
sions of this section relate to practices
within the purview of the Robinson-
Patman Antidiscrimination Act, which
act and the application thereunder of
this section are subject to the limitations
expressed in the amendment to such
Robinson ~Patman Antidiscrimination
Act, which amendment was approved
May 26, 1938, and reads as follows:
484
Chapter |—Federal Trade Commission
Be it enacted by the Senate and House of
Representatives of the United States of
Ameriea in Congress assembled, That nothing
in the Act approved June 19, 1986 (Public,
Numbered 692, Seventy-fourth Congress, sec
ond session), known as the Robinson-Patman
Antidiscrimination Act, shall apply to pur-
chases of their supplies for their own use by
schools, colleges, universities, public libraries,
churches, hospitals, and charitable institu-
tions not operated for profit.
(Sec. 2, 88 Stat. 780, as amended, secs. 2, 8, 4,
49 Stat. 1627, 1628; 15 U.S.C. 13, 18a, 18b,
31a)
§ 101.19 Aiding or abetting use of un-
fair trade practices.
It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or
indirectly, to use or promote the use of
any unfair trade practice specified in
this part.
Grovur IT
§ 101.101 Repudiation of contracts.
Lawful contracts are business obliga-
tions which should be performed in let-
ter and in spirit. The repudiation of
contracts by sellers on a rising market
or by buyers on 2 declining market is
condemned by the industry.
§ 101.102 Fictitious bids.
The industry condemns fake or ficti-
tious bids made for the purpose of de-
ceiving competitors and securing undue
advantage. If plans and specifications
are changed and new bids called for after
the original bids have been submitted
and opened, the same fairness should ob-
tain as with the original bid.
§ 101.103 Identical information to all
bidders.
Where the buyer furnishes to one bid-
der, directly or indirectly, pertinent in~
formation concerning the bidding, or an
interpretation of some feature of the
specifications, giving this bidder an un-
due advantage over his competitors who
have not received the same information,
the industry recommends that such in-
formation or interpretation be made
available to all other bidders by the
buyer or his representative.
§ 101.104 Arbitration.
The industry approves the practice of
-handling business disputes between
members of the industry and their cus-
tomers in a fair and reasonable manner,
coupled with a spirit of moderation and
good will, and every effort should be
§ 103.1
made by the disputants themselves to
compose their differences. If unable to
do so, they should, if possible, submit
these disputes to arbitration.
PART 103—-RABBIT INDUSTRY
Sec.
103.0
103.1
103.2
The industry and ita products defined.
Misrepresentation of products,
Misrepresentation concerning prolif-
cacy, growth, disease-resistance,
development of superior meat, fur,
or hatr, etc.
Misrepresenting industry products as
meeting requirements of a standard
or specification,
Misrepresentation as to character of
business,
103.3
103.4
108.5 Misrepresentation concerning pur-
chase of offspring of rabbits or
cavies, ete.
108.6 Bait advertising.
108.7 Defamation of competitors or false
disparagement of their products.
108.8 Prohibited discrimination.
108.9 Aiding or abetting use of unfair trade
practices.
AvutHoriTy: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.
Source: 23 FR 4787, June 27, 1958, unless
otherwise noted.
§ 103.0 The industry and its products
defin
°
(a) Products of the industry covered
by the rules in this part mclude all types,
breeds, varieties, or strains of live do-
mestic rabbits or cavies.
(b) Members of the industry are per-
sons, firms, corporations, and organiza-
tions engaged m the sale, offering for
sale, or distribution of any such products.
§ 103.1 Misrepresentation of products.
In the sale, offering for sale, or distri-
bution of industry products, it is an un-
fair trade practice for any member of the
industry to make or publish, or cause to
be made or published, any statement or
representation (whether in the form of
advertisement, trade promotional litera-
ture, mark, stamp, brand, label, depic-
tion, photograph, illustration, radio or
television broadcast, or otherwise)
which, directly or by implication, has
the capacity and tendency or effect of
deceiving purchasers or prospective pur.
chasers concerning: ;
(a) The grade, quality, quantity, age,
price, value, pedigree, registration, ori-
gin, weight, health, strength, growth,
livability, size, productivity, breeding,
raising, or desirability, of any industry
product; or
485