Uniform Manufacturers Industry

16 CFR Part 101 · Trade practice rules · in the Code of Federal Regulations 1938-1938 (1 annual editions)

Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.

Latest edition: Library of Congress, 1938 CFR · Earliest edition: 1938 CFR

Text (1938 edition, OCR)

CHAPTER I-—FEDERAL TRADE COMMISSION § 101.4

100.7. Falsifying accounts. For a cleaning and dyeing firm or
corporation, operating under a receivership of a United States court,
to so falsify the books and accounts of the business as to deceive the
court and continue the receivership by showing a profit instead of a
loss in the business, thus perpetuating unlawful sales below cost, is
an unfair trade practice.*t

100.8 False representation or advertising. For the purpose of
enticing customers from competitors, the practice of falsely adver-
tising or representing that garments or fabrics are cleaned or dyed
at unusually low prices when the said advertised prices apply only
to the partial processing of garments or fabrics, is an unfair trade
practice.*t

100.9 Simulation of marks, designs, etc. For one concern to
simulate or copy a style of store front and signs of a competitor,
with the intention of gaining the customers of said competitor by
falsely leading them to believe that the business of said competitor is
being conducted by the above concern or as a part of its business, is
an unfair trade practice.*t

PART 101—UNIFORM MANUFACTURERS INDUSTRY

Sec. Bec.

101.1 Sales below cost. 101.9 Commercial bribery.

101.2 Substitution. 101.10 Inducing breach of contract.

101.3 (Superseded). 101.11 Defamation of competitors.

101.4 False marking or branding. 101.12 Misrepresenting quality and

101.5 False advertising. price.

101.6 Enticing employees. 101.13 Marked-up price.

101.7 Imitation of trade-marks, names, 101.14 Aiding and abetting unfair com-
ete. petition.

101.8 Espionage. 101.15 Deception.

Section 101.1 Sales below cost. Selling uniforms or accessories
below cost with the intent and with the effect of injuring a com-
petitor and where the effect may be to substantially lessen competi-
tion or tend to create a monopoly or to unreasonably restrain trade
is an unfair trade practice.**it

**§§ 101.1 to 101.15, inclusive, issued under the authority contained in sec. 5,
88 Stat. 719; 15 U.S.C. 45.

TiIn §§ 101.1 to 101.15, inclusive, the numbers to the rlght of the decimal point

correspond with the respective rule numbers in Trade practice rules, Uniform
Manufacturers Industry, FTC, Mar. 15, 1934,

Rule 3 superseded (see 49 Stat. 1526; 15 U.S.C., 13-13b, 21a).

101.2 Substitution. The practice of shipping or delivering prod-
ucts which do not conform to the samples submitted or representa-
tions made prior to securing the orders without the consent of the
purchasers to such substitutions, and with the effect of deceiving or
misleading purchasers, is an unfair trade practice.**tt

101.4 False marking or branding. The false marking or brand-
ing of products of the industry, with the effect of misleading or de-
celving purchasers with respect to the quantity, quality, grade or
substance of the goods purchased, is an untair trade practice.**tt

*tFor statutory and source citations, see note to § 100.1. Page 89
**++For statutory and source citatious, see note to § 101.1. [809}


§ 101.5 TITLE 16-—-COMMERCIAL PRACTICES

101.5 False advertising. The making, or causing or permitting
to be made or published, of any false, untrue, or deceptive statement,
by way of advertisement or otherwise, concerning the grade, quality
quantity, substance, character, nature, origin, size or preparation of
any product of the industry, having the tendency and capacity to
mislead or deceive purchasers or prospective purchasers, is an unfair
trade practice.*?

101.6 Enticing employees. Maliciously enticing away the em-
ployees of competitors, with the purpose and effect of unduly hamper-
ing, injuring, or embarrassing competitors in their businesses, is an
unfair trade practice.*f

101.7 Imitation of trade-marks, names, etc. The imitation of
the trade-marks, trade names, slogans, or other marks of identifica-
tion of competitors, having the tendency and capacity to mislead or
deceive purchasers or prospective purchasers, is an unfair trade
practice.*t

101.8 Espionage. Securing information from competitors con-
cerning their businesses by false or misleading statements or repre-
sentations, or by false impersonations of one in authority, or the
wrongful use thereof to unduly hinder or stifle the competition of
such competitors, is an unfair trade practice.*t

101.9 Commercial bribery. Directly or indirectly to give or per-
mit to be given or offer to give money or anything of value to agents,
employees, or representatives of customers or prospective customers,
or to agents, employees, or representatives of competitors’ customers
or prospective customers, without the knowledge of their employers
or principals, as an inducement to influence their employers or prin-
cipals to purchase or contract to purchase industry products from
the inaker of such gift or offer, or to influence such employers or
principals to refrain from dealing or contracting to deal with com-
petitors, is an unfair trade practice.*?

101.10 Inducing breach of contract. Maliciously inducing or
attempting to induce the breach of existing contracts between com-
petitors and their customers by any false or deceptive means what-
soever, or interfering with or obstructing the performance of any
such contractual duties or services by any such means, with the pur-
pose and effect of unduly hampering, injuring, or embarrassing com-
petitors in their businesses, is an unfair trade practice.*t

101.11 Defamation of competitors. The defamation of competi-
tors by falsely imputing to them dishonorable conduct, inability to
perform contracts, questionable credit standing, or by other false rep-
resentations, or the false disparagement of the grade or quality of
their goods, with the tendency and capacity to mislead or deceive
purchasers or prospective purchasers, is an unfair trade practice.*t

101.12 Misrepresenting quality and price. Conspiring with a
manufacturer to disguise by any special number any standard or
special fabric known generally to the trade by a given number, and
to establish for the fabric intended by the disguised number a price in
excess of the current established price of the fabric identified by the

Page 90 *tFor statutory and source citations, see note to § 101.1.
[810]


CHAPTER I-—-FEDERAL TRADE COMMISSION § 102.4

number by which it is generally known to the trade, for the purpose
of deceiving purchasers into the belief that they are purchasing a
superior fabric when such is not the fact, is an unfair trade prac-
tice.*t

101.13 Marked-up price. Offering for sale merchandise at a
price reduced from a marked-up or fictitious price, with the tendency
and capacity to mislead or deceive purchasers or prospective pur-
chasers is an unfair trade practice.*t

101.14 Aiding and abetting unfair competition. For any per-
son, firm, or corporation knowingly to aid or abet another in the use
of unfair trade practices is an unfair trade practice.*t

101.15 Deception. For a uniform manufacturer to induce a con-
tractee “or purchaser” to use and apply in specifications a number to
denote a style of fabric upon which bidding shall be let publicly,
which number is not generally used and known to the members of
the industry to denote a known fabric, with the intent and purpose
of deceiving competitors as to the style, quality and source of the
fabric, and withholding other necessary information to enable com-
petitors to intelligently bid on the contract, is an unfair trade
practice.*t

PART 102—MUSICAL MERCHANDISE INDUSTRY

See, Sec.

102.1 False advertising. 102.7 Defamation of competitors.
102.2 False marking or branding. 102.8 Inducing false statements.
102.3 (Superseded). 102.9 False testimonials.

102.4 Commercial bribery. 102.10 False advertising.

102.5 (Superseded). 102.11 Marked-up prices.

102.6 Sales below cost. 102.12 Inadequate supplies.

Section 102.1 False advertising. The making, or causing or
permitting to be made or published, of any false, untrue or deceptive
statement, by way of advertisement or otherwise, concerning the grade,
quality, quantity, substance, character, nature, origin, size, or prepa-
ration of any product of the industry, having the tendency and
capacity to mislead or deceive purchasers or prospective purchasers,
is an unfair trade practice.**tt

**38 102.1 to 102.12, inclusive, issued under the authority contained in sec. 5,
38 Stat. 719; 15 U.S.C. 45.

ttIn §§ 102.1 to 102.12, inclusive, the numbers to the right of the decimal point
correspond with the respective rule numbers in Trade practice rules, Musical
Merchandise Industry, Apr. 4, 1934.

Rules 8 and 5 superseded (see 49 Stat. 1526; 15 U.S.C., Sup., 13-13b, 21a).

102.2 False marking or branding. The false marking or brand-
ing of products of the industry, with the effect of misleading or de-
ceiving purchasers with respect to the quantity, quality, grade or
substance of the goods purchased, is an unfair trade practice.**tt

102.4 Commercial bribery. Directly or indirectly to give or per-
mit to be given or offer to give money or anything of value to agents,
employees, or representatives of customers or prospective customers

*+For statutory and source citations, see note to § 101.1. Page 91
**++For statutory and source citations, see note to § 102.1. [811]