Consumer Law Library

Uniform Manufactures Industry

16 CFR Part 101 · Trade practice rules · in the Code of Federal Regulations 1943-1943 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1943 CFR · Earliest edition: 1943 CFR

Text (1943 edition, OCR)

§ 98.36

peting in the distribution of such prod-
ucts or commodities.

(d) Prohibited discriminatory services
or facilities. 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 by
furnishing, or by contributing to the fur-
nishing of, any services or facilities con-

nected with the processing, handling, -

sale or offering for sale of such com-
modity so purchased upon terms not. ac-
corded to all purchasers on proportion-
aliy equal terms.

(e) Illegal price discrimination. It is
an unfair trade practice for any member
of the industry or other person engaged
in commerce, in the course of such com-
merce, to discriminate in price in any
other respect contrary to section 2 of the
Clayton Act as amended by the Act of
Congress approved June 19, 1936 (49
Stat. 1526-8; 15 U.S.C. 13-13b, 21a), or
knowingly to induce or receive a dis-
crimination in price which is prohibited
by such section as amended. (49 Stat.
1526-8; 15 U.S.C. 13-13b, 21a)

§ 98.36 Aiding or abetting use of un-
fair trade practices. For any member
of the industry knowingly to aid or abet
another member, cr any other person,
firm or corporation, in the use of unfair
trade practices, is an unfair trade
practice. .

Note: For Group IT rules, see 3 F.R. 3191.

PART 99-—-BARRE GRANITE
INDUSTRY

Sec.
99.1
99.2
99.4
99.6
99.7
99.8
99.9
99.10
99.11
99.12
99.13
99.14

Substitution.

Sales below cost.

False marking or branding.
Inducing breach of contract.
Imitation of trade-marks, names, etc.
Consignment selling.
Enticing employees.
Defamation of competitors.
Substitution, ,

False representations.

False advertising.

Espionage,

99.15 Using inferior materials.

99.16 Deceiving competitors in bids.

Note: For the text of the regulations in
this part, see 16 CFR Part 99.

Page 4154

Title 16—-Commercial Practices ~

PART 100—CLEANING AND DYEING
INDUSTRY, PENNSYLVANIA AND
ADJOINING TERRITORY |

Sec.

100.1 Misrepresenting prices as “special”,

100.2 Sales below cost.

100.4 Defamation of competitors.

100.5 Enticing employees.

100.6 Aiding and abetting unfair competi-
tion. .

100.7 Falsifying accounts.

100.8 False representation or advertising.

100.9 Simulation of marks, designs, etc.

Notre: For the text of the regulations in
this part, see 16 CFR Part 100.

PART 101—UNIFORM MANUFAC-
TURERS INDUSTRY
Sec.

101.0
101.1

Definition of “commerce”.

Misrepresentation of industry prod-
ucts.

Misbranding.

Misrepresentatlon as to character of.
business.

Misrepresenting uniforms as “custom
made,” “made to order,” etc.

Deceptive numberlng.

Deception as to used garments.

Deceptive use of competltor’s plates,
cuts, or illustrations.

Imitation or simulation of trade-
marks, trade names, brands or labels.

Substitution of products.

Fictitious prices.

Defamation of competitors or dis- -
paragement of their products.

Enticing away employees of com-
petitors. .

Commercial bribery.

Procurement of competitors’ confiden-
tial information by unfair means
and wrongful use thereof.

Inducing breach of contract.

Selling below cost.

Unfair bidding methods.

Discrimination (Robinson-Patman).

Aiding or abetting use of unfair trade
practices.

AUTHORITY: §§101.0 to 101.19, inclusive
(with the exceptions noted in the text,) is-
sued under 38 Stat. 719, as amended: 15
U.S.C., 45.

Source: §§ 101.0 to 101.19, inclusive, con-
tained in Trade Practice Rules, Uniform In-
dustry, Federal Trade Commission, May 18,
1940; 5 F.R. 1812.

§101.0 Definition of “commerce.” As.
used in this part, the word “commerce”
means trade or commerce among the
several States and with foreign nations,
or between the District of Columbia or
any Territory of the United States and
any State, Territory, or foreign nation,
or between any insular possessions or
other places under the jurisdiction of the

101.2
101.3

1014

101.5
101.6
101.7

101.8

101.9
101.10
101.11

101.12

101.13
101,14

101.15
101.16
101.17
101.18
101.19


Chapter I—Federal Trade Commission

United States, or between any such pos-
session or place and any State or Terri-
tory of the United States or the District
of Columbia or any foreign nation, or
within the District of Columbia or any
Territory or any insular possession or
other place under the jurisdiction of the
United States: Provided, That this shall
not apply to the Philippine Islands. (38
Stat. 730; 15 U.S.C. 12.)

$101.1 Misrepresentation of industry
products. It is an unfair trade practice
to make or publish, or cause to be made
or published, directly or indirectly, any
false, misleading, or deceptive statement
or representation, by way of advertise-

ment or otherwise, concerning the grade,

quality, quantity, use, size, material, con-
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.

Nore: 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 prod-
ucts of the industry with respect to the
grade, quality, quantity, use, size, ma-
terial, content, origin, shrinkage proper-
ties, color fastness, washability, design,
tailoring, production, manufacture, or
distribution of such products, or con-
cerning any component thereof, or in
any other material respect, is an unfair
_ trade practice.

Note: 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 corpora-
tion to hold himself or itself out as a uni-
form tailor, uniform manufacturer, or
uniform wholesaler, when such is not the
fact, or in any other manner to misrep-
resent the character, extent, or type of
his or its business.

§ 101.4 Misrepresenting uniforms as
“custom made,” “made to order,” etc.
The sale or offering for sale, through ad-
vertising or otherwise, of uniforms as
custom made, made to order, or by other
representations implying or importing

§ 101.8

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 spe-
cial number, any standard or special
fabric known to the trade by a given num-
ber, in such manner or under such Cir-
cumstances as to have the capacity and
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public into the erroneous belief that a
superior fabric is being offered for 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 being
new when such is not true in fact.

(b) In the marketing of used or
secondhand uniforms or uniforms con-
taining used or secondhand parts, it is
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 secondhand, 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.

8101.7 Deceptive use of competitor's
plates, cuts, or illustrations. It is an
unfair trade practice, in the sale and
distribution of industry products, to
adopt for one’s own use, by photostatic,
photographic, or other means of repro-
duction, the exclusively owned plates,
cuts, or illustrations of a competitor
contained in such coinpetitor’s catalogs,
sales publications, measure books,
folders, or blanks, with the capacity and
tendency or effect of thereby misleading
or deceiving the purchasing or consum-
ing public into the erroneous belief that
the products so sold and distributed are
products of such competitor.

§ 101.8 Imitation or simulation of
trade-marks, trade names, brands or
labels. The imitation or simulation of

Page 4155


§ 101.9

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 prod-
ucts which do not conform to samples
submitted, to specifications upon which
the sale is consummated, or to repre-
sentations 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.

§101.10 Fictitious prices. Offering
merchandise for sale at prices purported
to be reduced from what are in fact fic-
titious prices, or offering merchandise for
sale at a purported reduction in price
when such purported reduction is 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 im-
puting to them dishonorable conduct, in-
ability to perform contracts, questionable
credit standing, or by other false repre-
sentations, or the false disparagement of
the grade, quality, or manufacture of the
products of competitors, or of their busi-
ness methods, selling prices, values, credit
terms, policies, or services, is an unfair
trade practice.

§101.12 Enticing away employees of
competitors. Wilfully enticing away the
einployees of competitors with the pur-
pose and effect of unduly hampering, in-
juring, or, prejudicing competitors in
their businesses is an unfair trade prac-
tice.

§ 101.13 Commercial bribery. It is an
unfair trade practice for a member of
the industry, directly or indirectly, to
give, or offer to give, or permit or cause
to be given, 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 in-
ducement to influence their employers
or principals to purchase or contract to

Page 4156

Title 16—Commercial Practices

purchase products manufactured or sold
by such industry member or the maker
of such gift or offer, or to influence such
employers or principals to refrain from
dealing in the products of competitors
or from dealing or contracting 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 information concern-
ing the business of a competitor by
bribery of an employee or agent of such
competitor, by false or misleading state-
ments or representations, by the imper-

‘sonation of one in authority, or by any

other unfair means, and to use the in-
formation so obtained in such a manner
as to injure said competitor in his busi-
hess or to suppress competition or un-
reasonably restrain trade.

§101.15 Inducing breach of contract.
Inducmg 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 products be-
low the seller’s cost with the intent and
with the effect of injuring a competitor
and where the effect may be substanti-
ally to lessen competition or tend to
create a monopoly or unreasonably re-
strain trade is an unfair trade practice;
all elements recognized by good account-
ing practice as proper elements of such
cost shall be included in determining
cost under this section. The costs, how-
ever, which are referred to in this section,
are actual costs of the respective seller
and not some other figure or average
costs in the industry determined by an
industry cost survey or otherwise.

§ 101.17 Unfair bidding methods. It
is an unfair trade practice for a uni-
form 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 is to


Chapter I—Federal Trade Commission

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 (Robinson-
Patman)—(a) Prohibited discrimina-
tory prices, or rebates, refunds, dis-
counts, credits, etc, which effect
unlawful price discrimination. It is an
unfair trade practice for any member
of the industry engaged in commerce,
in the course of such commerce, to grant
or allow, secretly or openly, directly or
indirectly, any rebate, refund, discount,
credit, or other form of price differen-
tial, where such rebate, refund, 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 aré in
commerce, and where the effect thereof
may be substantially to lessen competi-
tion or tend to create a monopoly in any
line of commerce, or to injure, destroy,
or prevent competition with any person
who either grants or Knowingly receives
the benefit of such discrimination, or
with customers of either of them: Pro-
vided, however:

(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place
under the jurisdiction of the United
States;

(2) That nothing herein contained
shall prevent differentials which make
only due allowance for differences in
the cost of manufacture, sale, or deliv-
ery resulting from the differmg methods
or quantities in which such commodities
are to such purchasers sold or delivered;

(3) That nothing herein contained
shall prevent persons engaged in Selling
goods, wares, or merchandise in com-
merce from selecting their own cus-
tomers in bona fide transactions and not
in restraint of trade;

(4) That nothing herein contained
shall prevent price changes from time
to time where made in response to

§ 101.18

changing conditions affecting either (i)
the market for the goods concerned, or
(ii) 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
commerce, to pay or grant, or to receive
or accept, anything of value as a com-
mission, brokerage, or other compen-
sation, 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 in-
termediary 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 paid.

(c) 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 adver-
tising 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 compensa-
tion or in consideration for any services
or facilities furnished by or through
such customer in connection with the
processing, handling, sale, or offering
for sale, of any products or commodi-
ties manufactured, sold, or offered for
sale by such member, unless such pay-
ment or consideration is available on
proportionately equal terms to all other
customers competing in the distribution
of such products or commodities.

(d) Prohibited discriminatory scrvices
or facilities. 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 commod-
ity bought for resale, with or without
processing, by contracting to furnish or
furnishing, or by contributing to the fur-

Page 4157


-§ 101.19

nishing of, any services or facilities con-
nected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not
accorded to all purchasers on propor-
tionally equal terms.

(e) Inducing or receiving an illegal
discrimination in price. It is an unfair
trade practice for any member of the
industry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which is prohibited by the fore-
going provisions of this section.

(f) Purchases by schools, colleges,
universities, public libraries, churches,
hospitals, and charitable institutions not
operated for profit. The foregoing pro-
visions of this section relate to prac-
tices within the purview of the Robinson-
Patman Antidiscrimination Act, which
Act and the application thereunder of
this section are subject to the limita-
tions expressed in the amendment to
such Robinson-Patman Antidiscrimina-
tion Act, which amendment was ap-
proved May 26, 1938, and reads as fol-
lows:

Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That noth-
ing in the Act approved June 19, 1936 (Pub-
lic, Numbered 692, Seventy-fourth Congress,
second session), Known as the Robinson-
Patman Antidiscrimination Act, shall apply
to purchases of their supplies for their own
use by schools, colleges, universities, public
libraries, churches, hospitals, and charitable
institutions not operated for profit. (15
U.S.C. 18¢.)

§ 101.19 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 in-
duce another, directly or indirectly, to
use or promote the use of any unfair
trade practice specified in this part.

Note: For Group II rules, see 5 FR. 1814.

PART 102—MUSICAL MERCHANDISE

INDUSTRY
Sec.
102.1 False advertising.
102.2 False marking or branding.
102.4 Commercial bribery.
102.6 Sales below cost.
102.7. Defamation of. competitors.
102.8 Inducing false statements.
102.9 False testimonials.
102.10 False advertising.

Page 4158

Title 16—Commercial Practices

Sec.
102.11 Marked-up prices.
102.12 Inadequate supplies.

Nore: For the text of the regulations in
this part, see 16 CFR Part 102.

PART 103—RABBIT AND CAVY
BREEDERS’ INDUSTRY

Sec.

103.1
103.2
103.3
103.4
103.5
103.6
102.7

Sales below cost.
False advertising.
Inducing breach of contract.
Defamation of competitors.
Misrepresentation.
Misleading contracts.
‘False advertising re purchase.
103.8 False representation of grade.
103.9 Inadequate supplies.

Note: For the text of the regulations in
this part, see 16 CFR Part 103.

PART 104—WHOLESALE DRUG

INDUSTRY
Sec.

104.1
104.2
104.3
104.5
104.7
104.8
104.9

False advertising.

Defamation of competitor.

Sales below cost.

Commercial bribery.

Altering trade-marks and brands.

Discrimination between purchasers.

Misrepresenting character of busl-
ness,

Imitation of trade-marks, names, etc.

Marked-up prices.

Threats of sult.

Substitution.

False price lists,

Sales below cost.

Misrepresenting prices as “special”.

Loss leaders.

104.20 Coercing purchases.

104.21 Combination, conspiracy, boycott.

Nore: For the text of the regulations in
this part, see 16 CFR Part 104.

104.10
104.11
104.12
104.13
104.14
104.15
104.17
104.18

PART 105—WHOLESALE TOBACCO

TRADE
Sec.
105.1 Loss leaders.
105.2 Sales below cost.
105.4 Misrepresenting character of busi-
ness.
105.56 False advertising.
105.6 Imitation of trade-marks, names, etc.
105.7 . False branding or packing.
105.8 Defamation of competitors.
105.10 Commercial bribery.
105.11 Inducing breach of contract.
105.12 Threats of sult.
105.13 False price quotations.
105.14 Coercing purchases,
105.15 False invoice.

Nore: For the text of the regulations in
this part, see 16 CFR Part 105.