Wholesale Tobacco Trade
16 CFR Part 105 · Trade practice rules · in the Code of Federal Regulations 1938-1960 (5 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1960 CFR · Earliest edition: 1938 CFR
Text (1960 edition, OCR)
§ 1039 paragraph (d) of this section reads as fol- lows Upon proof being made at any hearing on a complaint under this section that there has been discrimination in price or services or facilities furnished the burden of re- putting the prima facie case thus made by showing justification shall be upon the per- son charged with a violation of this section and unless justification shall be affirmatively shown the Commission is authorized to issue an order terminating the discrimination Provided however That nothing herein con- tained shall prevent a seller rebutting the prima facie case thus made by showing that bis lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor or the services or facilities furnished by a competitor § 1039 Aiding or abetting use of uufair trade practices It 1s an unfair trade practice for any person firm or corporation to aid abet coerce or induce another, directly or in- directly to use or promote the use of any unfair trade practice specified in this part PART 105—WHOLESALE TOBACCO TRADE Group I Sec 1051 Loss leaders 105 2 Sales below cost 105 4 Misrepresenting character of busi- ness 195 5 Misrepresentation in general 105 6 Imitation of trade-marks trade names etc 105 7 False branding or packing 105 8 Defamation of competitors 10510 Commercial bribery 10511 Inducing breach of contract 10512 Threats of suit 10513 False price quotations etc 10514 Coercing purchases 10515 False invoicing Group II 105101 Inadequate supplies 105102 Differentiating between wholesale and retail transactions 105 103 Evasion of lawful taxes COMMITTEE ON TRADE PRACTICES 105 201 Industry committee AuTHoRITY §§ 1051 to 105 201 issued un- der sec 6(g) 38 Stat 722 15 USC 46(g) Interpret or apply sec 5 38 Stat 719 as amended 15USC 45 Source §§1051 to 105201 contained in trade practice rules Wholesale Tobacco Trade FTC Sept 28 1935 except as other- wise noted Page 260 Title 16—Commercial Practices Group I § 105 1 Loss leaders The practice of using a brand of cigars cigarettes tobacco products, or allied lines as a “loss leader’ to induce the purchase of other merchandise, the sale of which merchandise 1s used to recoup the loss sustained on the said brand of cigars cigarettes tobacco products or allied lines with the tendency or capac- ity to deceive or mislead purchasers or prospective purchasers and which un- fairly diverts trade froin or otherwise injures competitors 1s an unfair trade practice § 1052 Sales below eost The practice of selling below cost with the intent and with the effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or unreason- ably restrain trade 1s an unfair trade practice cost being determined by in- cluding all elements recognized by good accounting practices § 1054 Misrepresenting cbaracter of business For any person firm or corporation to hold himself or itself out to the public as a wholesaler when such 1s not the case or for any member of the industry to misrepresent the character of his busi- ness, with the tendency or capacity to mislead or deceive purchasers or pro- spective purchasers 1s an unfair trade practice § 1055 Mhusrepresentation m general The making of or causing or permit- ting to be made or published, any false, untrue or deceptive statement by way of advertising or otherwise concerning the grade quality quantity substance char- acter, nature origin, size or preparation of any products sold or offered for sale having the tendency or capacity to mis- lead or decelve purchasers or prospective purchasers 1s an unfair trade practice § 1056 Imitation of trade marks, trade names, etc The imitation of the trade-marks trade names or other marks of identifi- cation of competitors having the tend- ency or capacity to mislead or deceive purchasers or prospective purchasers 1s an unfair trade practice Chopter |—Federal § 1057 False branding or packing The practice of branding or marking or packing any products, or causing the same to be branded or marked or packed im a inanner which is calculated to or does deceive or mislead purchasers or prospective purchasers with respect to the brand, grade quality quantity, or- gin, size, substance, character, nature material, content or preparation of such products 1s an unfair trade practice §1058 Defamation of compctitors The defamation of competitors by falsely 1mputing to them dishonorable conduct, inability to perform contracts questionable credit standing or by other false representations or the false dis- paragement of the grade or quality of their goods with the tendency or capac- ity to mislead or deceive purchasers or Prospective purchasers 1s an unfair trade practice § 10510 Commercial bribery Directly or indirectly to give or permit to be given or offer to give money or anything of value, to agents employees or representatives of customers or pro- spective customers or to agents em- Ployees or representatives of competi- tors’ customers, or prospective customers without the knowledge of their employers or principals aS an inducement to in- fluence their employers or principals to purchase or contract to purchase indus- try products from the maker of such gift or offer or to influence such employers or principals to refrain from dealing or con- tracting to deal with competitors 1s an unfair trade practice § 10511 Inducing breach of contract Willfully inducing or attempting to induce the breach of any lawfully exist- ing contract or contracts between com- petitors and their customers by any false or deceptive means whatsoever, or inter- fering with or obstructing the perform- ance of any such contractual duties or services, with the purpose and effect of unduly hampering, injuring or embar- rassing competitors in their busmesses 1s an unfair trade practice § 10512 Threats of suit The circulation of threats of suit for infringement of patents or trade-marks among customers or prospective cus- tomers of a competitor not made in good faith but for the purpose of harassing or Trade Commission § 105 102 intimidating such customers or prospec- tive customers or otherwise prejudicing or injuring competitors in their busi- nesses 1s an unfair trade practice § 10513 False price quotations, etc The publishing or circulating by any member of the industry of false or mis- leading price quotations price lists or terms of sale, having the capacity or tendency to muslead or deceive pur- chasers or prospective purchasers, 1s an unfair trade practice § 10514 Coercing purchases The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products where the effect may be to sub- stantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, 1s an unfair trade practice §105 15 False invoicing Withholding from or inserting 1n the invoice facts which make the invoice a false record, wholly or in part of the transaction represented on the face thereof with the purpose or effect of misleading or deceiving purchasers or prospective purchasers 1s an unfair trade practice Group II § 105101 Inadequate supplies The advertising or offering for sale by a wholesaler of any well known or trade- marked tobacco product of the Whole- sale Tobacco Industry at greatly reduced prices when the quantity of said goods 1s entirely inadequate to supply the usual demand of customers of the said whole- saler with the tendency or capacity to mislead or deceive purchasers or pro- spective purchasers 1s condemned by the industry § 105102 Duiffereutiating between whole- sale and retail transactions Where merchandise at wholesale and merchandise at retail are sold in the same establishment the failure on the part of any member of the industry to properly differentiate between or iden- tify the two types of transactions where the result may be to create confusion and deception as to the character of the transaction in the mmds of purchasers or prospective purchasers 1s condemned by the industry Page 261 § 105 103 § 105103 Evasion of lawful taxes The evasion of the payment of State taxes On cigars cigarettes or other to- bacco products through interstate trans- actions 1s condemned by the industry COMMITTEE ON TRADE PRACTICES § 105 201 Industry committee The provisions of §161 of this sub- chapter shall be applicable to an industry committee established under this part [21FR 1174 Feb 21 1956] PART 108-—-PAPER DRINKING STRAW MANUFACTURING INDUSTRY Group I Sec 1081 Sales below cost 108 2 False marking or branding 1083 Imitation of trade-marks etc 1084 Misrepresentation in general 1085 Defamation of competitors 1086 Inducing breach of contract 1087 ~=©False price quotations 10810 Commercial bribery 10811 Threats of suit 10812 Coercing purchases 10813 False invoicing 10814 Sales through bogus independent AUTHORITY §§ 1081 to 108 14 issued under sec 6(g) 38 Stat 722 15 USC 46(g) In- terpret or apply sec 5 38 Stat 719 as amend- ed 15USC 45 Source §§1081 to 10814 contained in trade practice rules Paper Drinking Straw Manufacturing Industry FTC July 3 1936 §1081 Sales below cost The practice of selling goods below the Seller’s cost with the mtent and with the effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice, all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section §1082 False marking or branding The false markmg or branding of products of the industry with the tend- ency capacity or effect of misleading or deceiving purchasers with respect to the grade qualhty quantity substance character nature origin size or prepara- tion or in any other material respect of the goods purchased 1s an unfair trade practice Page 262 Title 16—Commercial Practices § 1083 Imitation of trade marks, ete The imitation of the trade-marks trade names brands labels or other marks of identification of competitors having the tendency capacity or effect of misleading or decelving purchasers or prospective purchasers 1s an unfair trade practice § 1084 Mnusrepresentation in general The making or causing or permitting to be made of published of any false, un- true or deceptive statement or represen- tation by way of advertisement or other- wise concerning the grade quality, quantity substance character, nature origin size or preparation or In any other material respect of any product of the industry sold or offered for sale hav- ing the tendency capacity or effect of misleading or decelving purchasers or prospective purchasers 1s an unfair trade practice § 1085 Defamation of competitors The defamation of competitors by falsely 1mputing to them dishonorable conduct inability to perform contracts, questionable credit standing or by other false representations or the false dis- paragement of the grade or quality of their goods with the tendency capacity or effect of misleading or deceiving pur- chasers Or prospective purchasers or with the tendency capacity or effect of unduly hampering mjJuring or prejJudicing such competitors in the conduct of their busi- ness 1S an unfair trade practice § 1086 Inducmg breach of contract Willfully inducing or attempting to m- duce the breach of existing contract or contracts between competitors and their customers or their suppliers by any false or deceptive means whatsoever or will- fully 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 injurmg or prejJudicing com- petitors in their businesses 1s an unfair trade practice § 1087 False price quotations The publishing or circulating by any member of the industry of false or mis- leading price quotations price lists terms of sale or discounts having the tendency, capacity, or effect of misleading or de- celving purchasers or prospective pur- chasers, 1s an unfair trade practice