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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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.