Paper Drinking Manufacturing Industry
16 CFR Part 108 · Trade practice rules · in the Code of Federal Regulations 1974-1974 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1974 CFR · Earliest edition: 1974 CFR
Text (1974 edition, OCR)
Chapter I—Federal
benefit of a customer of such member
in the course of such commerce as com-
pensation 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 com-
modities manufactured, sold, or offered
for sale by such meinber, unless such
payment or consideration is made known
to and is available on proportionally
equal terms to all other customers com-
peting in the distribution of such prod-
ucts or commodities.
(da) Prohibited discriminatory services
or facilities. No member of the -indus-
try engaged in commerce shall discrim-
inate in favor of one purchaser against
another purchaser or purchasers of a
commodity bought for resale, with or
without processing, by contracting to
furnish or furnishing, or by contributing
to the furnishing of, any services or fa-
cilities including, but not limited to, dis-
plays, exhibits, and processing, handling,
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: Subsection (b) of section 2 of the
Clayton Act as amended, which is set forth
in the note concluding paragraph (a) of
this section is applicable to paragraph (d)
of this section.
(e) Inducing or receiving an illegal
discrimination in price, advertising or
promotional allowances, or services or
facilities. No member of the industry
engaged in commerce, in the course of
such commerce, shail knowingly induce
or receive a discrimination in price, ad-
vertising or promotional allowances, or
services or facilities, which is prohibited
by the foregoing provisions of this sec-
tion. [Rule 10]
{27 F.R, 6211, June 30, 1962, as amended
at 29 F.R, 9369, July 9, 1964]
§ 105.11 Prohibited forms of trade re-
straints (unlawful price fixing, etc.).’
It is an unfair trade practice for any
member of the industry, either directly
1The prohibitions of this section are sub-
ject to Public Law 542, approved July 14,
1952—-66 Stat. 632 (the McGuire Act, com-
monly referred to as the Falr Trade Amend-
ment) which provides that with respect to
@ commodity which bears, or the label or
container of which bears the trade-mark,
brand, or name of the producer or distribu-
tor of such commodity and which is in free
and open competition with commodities of
Trade Commission § 105.12
or indirectly, to engage in any planned
common course of action, or to enter
into or take part in any understanding,
agreement, combination, or conspiracy,
with one or more members of the indus-
try, or with any other person or persons,
to fix or maintain the price of any goods
or otherwise unlawfully to restrain trade;
or to use any form of threat, intimi-
dation, or coercion to induce any member
of the industry or other person or persons
to engage in any such planned common.
course of action, or to become a party
to any such understanding, agreement,
combination, or.conspiracy. [Rule 11]
§ 105.12 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 prohibited by
this part. [Rule 12]
PART 108—PAPER DRINKING STRAW
MANUFACTURING INDUSTRY
Group I
Sec. . :
108.1 Sales below cost.
108.2 False marking or branding. ~
108.3 Imitation of trade-marks, etc.
108.4 Misrepresentation in general.
108.5 Defamation of competitors;
108.6 Inducing breach of contract.
108.7 False price quotations.
108.10 Commercial bribery.
108.11 Threats of suit.
108.12 Coercing purchases.
108.13 False invoicing.
108.14 Sales through “bogus” independent.
AvutHoriTr: The provisions of this Part 108
issued under secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: The provisions of this Part 108
contained in trade practice rules, Paper
Drinking Straw Manufacturing Industry,
FTC, July 3, 1936, unless otherwise noted.
the same generai class produced or distrib-
uted by others, a seller of such a commodity
may enter into a contract or agreement with
a buyer thereof which establishes a mininum
or stipulated price at which such commodity
may be resold by such buyer when such
contract or agreement is lawful as applied
to intrastate transactions under the laws of
the State, Territory, or territorial Jurisdiction
in which the resale is to be made or to
which the commodity is to be transported
for such resale, and when such contract or
agreement is not between manufacturers, or
between wholesalers, or between brokers, or
between factors, or between retailers, or be-
tween persons, firms, or corporations in com-
petition with each other.
511
§ 108.1
§ 108.1 Sales helow cost.
The practice of selling goods below the
seller’s 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 unreasonably restrain trade,
is an unfair trade practice; all elements
recognized by good accountimg practice
as proper elements of such cost shall be
included in determining cost under this
section.
§ 108.2 False marking or branding.
The false marking or branding of
products of the industry, with the tend-
ency, capacity or effect of misleading
or deceiving purchasers with respect to
the grade, quality, quantity, substance,
character, nature, origin, size or prepara-
tion, or in any other material respect of
the goods purchased, is an unfair trade
practice.
§ 108.3 Imitation of trademarks, etc.
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 deceiving purchasers or
prospective purchasers, is an unfair trade
practice.
§ 108.4 Misrepresentation 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 deceiving purchasers or
prospective purchasers, is an unfair trade
practice.
§ 108.5 Defamation of competitors.
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 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
Title 16—Commercial Practices
hampering, injuring or prejudicing such
competitors in the conduct of their busi-
ness, is an unfair trade practice.
§ 108.6 Inducing breach of contract.
Wilfully inducing or attempting to in-
duce the breach of existing contract or
contracts between competitors and their
customers or their suppliers by any false
or deceptive means whatsoever, or wil-
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, injuries or prejudicing com-
petitors in their businesses, is an unfair
trade practice.
§ 108.7 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-
ceiving purchasers or prospective pur-
chasers, is an unfair trade practice.
§ 108.10 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 prospec-
tive customers, or to agents, employees,
or representatives of competitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or prin-
cipals, as an inducement to infiuence
their employers or principals to purchase
or contract to purchase industry products
from the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing or contracting
to deal with competitors, is an unfair
trade practice.
§ 108.112 Threats of suit.
The circulation of threats of suit for
infringement of patent or trademark
among customers or prospective cus-
tomers of competitors, not made in good
faith but for the purpose or with the ef-
fect of harassing or intimidating cus-
tomers or prospective customers, or of
unduly hampering, injuring or prejudic-
ing competitors in their busimesses, is an
unfair trade practice.
§ 108.12 Coercing purchases.
The practice of coercing the purchase
of one or more products as a prerequisite
to the purchase of one or more other
512
Chapter |1—Federal Trade Commission
products, where the effect may be to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade, is an unfair trade
practice.
§ 108.13 False invoicing.
Withholding from or inserting in the
invoice statements which make the in-
voice 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, is an unfair trade
practice.
§ 108.14 Sales through “bogus” inde-
pendent.
The practice by a member of the in-
dustry of selling or marketing industry
products through a pretended independ-
ent concern to induce the purchasing
public to believe such concern is inde-
pendent and in competition with the said
member of the industry owning or con-
trolling such concern, when such is not
the fact, with the tendency or capacity
to mislead or deceive purchasers, pro-
spective purchasers or the consuming
public, is an unfair trade practice.
PART 109—BUFF AND POLISHING
WHEEL MANUFACTURING INDUS-
TRY
: Sec.
109.0 Definitions.
109.1 Misrepresentation and deception
(general).
109.2 Misrepresentatlon as to character of
business.
109.3 Misrepresenting products as con-
forming to standard.
109.4 False and misleading price quota-
tlons, etc.
109.5 Deceptive invoicing.
109.6 Substitutlon of products.
109.7 Prohibited saies below cost.
109.8 Inducing breach of contract.
109.9 Defamation of competitors or false
disparagement of their products.
108.10 Procurement of competitors’ confi-
dential Information by unfair
means and wrongful use thereof.
109.11 Commercial bribery.
109.12 Prohibited forms of trade restraints
(unlawful price fixing, etc.).
109.13 Prohibited discrimination.
109.14 Aiding or abetting use of unfair
‘trade practices.
COMMITTEE ON TRADE PRACTICES
109.201 Industry committee.
AurTHoritTy: The provisions of this Part 109
issued under secs. 6, 5, 38 Stat. 721, 719;
15 U.S.C, 46, 45, unless otherwise noted.
§ 109.3
Source: The provisions of this Part 109
appear at 22 F.R. 4497, June 27, 1957, unless
otherwise noted.
§ 109.0 Definitions.
(a) Industry members. Persons, firms,
corporations, and organizations engaged
in the manufacture and sale of industry
products as defined in paragraph (b)
of this section:
(b) Industry products. Buffs and
contact and polishing wheels which are
constructed substantially of any textile
or other nonrigid material and used for
wiping, cleaning, oiling, or, with or with-
out abrasives, for surface finishing. :
§ 109.1 Misrepresentation and decep-
tion (general).
It is an unfair trade practice for
any industry member, in connection
with the offering for sale, sale, or dis-
tribution of industry products, to use,
or cause or promote the use of, any
trade promotional literature, advertising
matter, guarantee, warranty, mark,
brand, label, trade name, picture, design
or device, designation, or other type of
oral or written representation, however
disseminated or published, or to fail to
disclose any material fact, when such
representation or failure to disclose has
the capacity and tendency or effect of
misleading or deceiving purchasers or
prospective purchasers with respect to
the type, grade, quality, quantity, use,
size or size symbol, material, finish,
strength, thickness, composition, origin,
preparation, manufacture, or distribu-
tion of any product of the industry, or in
any other material respect.
§ 109.2 Misrepresentation as to charac-
ter of business.
It is an unfair trade practice for any
industry member, in the course of or in
connection with the offering for sale, sale,
or distribution of industry products, to
misrepresent the character, extent, vol-
ume, or type of his business.
§ 109.3 Misrepresenting products as
conforming to standard.
It is an unfair trade practice for any
industry member, in the course of or in
connection with the offering for sale,
sale, or distribution of industry products,
to represent, through advertismg, per-
sonal solicitation, or otherwise, that such
products conform to any standard or
standards recognized in or applicable
to the industry when such Is not- the
fact,
513