Ladies' Handbag Manufacturing Industry
16 CFR Part 113 · Trade practice rules · in the Code of Federal Regulations 1938-1969 (7 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1969 CFR · Earliest edition: 1938 CFR
Text (1969 edition, OCR)
Title 16—Chapter | unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or com- modities. (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 fur- nishing, 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 commod- ity so purchased upon terms not accord- ed to all purchasers on proportionally equal] terms. (e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the in- dustry engaged in commerce, in the course of such commerce, knowingly to . induce or receive a discrimination in price which is prohibited by the pro- visions in paragraphs (a) to (d) of this section. (f) Exemptions. The inhibitions of this section shalt not apply to purchases of thelr supplies for thelr own use by schools, colleges, universities, public li- braries, churches, hospitals, and charita- ble institutions not operated for profit. § 110.13 Aiding or ahetting 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 in- directly, to use or promote the use of any unfair trade practice specified in §§ 110.1 to 110.12. Group IT § 110.101 Saturday and Sunday closings. In the interest of the public and of itself, the industry urges all mem- bers of the industry to adhere to the practice of not opening their sales of- fices on Saturdays and Sundays for the transaction of business. § 110.102 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in let- ter and in spirit. The repudiation of contracts by sellers on a rising market or by buyers on a declining market ts condemned by the industry. 4 =, fi $ 110.104 § 110.103 Information as to width, count and weight to appear on in- voices and confirmations of orders. When goods are sold by specifications or construction, in order that accurate information regarding the type of goods sold or offered for sale may be known to purchasers, the industry approves the practice of placing on the confirmation of order and on the invoice the gray con- struction, i e., gray width, count and weight, in the case where the goods sold are to be delivered in the gray; and in the case where the goods sold are to be delivered in the finished state, the in- dustry approves the practice of placing on the confirmation of order and invoice the finished construction, i. e., the width, count and weight in such finished state. The omission from the confirmation of order or invoice of any such information required by this section is condemned by the industry. § 110.104 Use of samples. The industry disapproves the giving of samples without charge except only as may be necessary to acquaint purchasers or prospective purchasers with the grade or quality of the product offered for sale. However, the furnishing of samples shall not be carried out in a manner involving discrimination contrary to the provi- sions of § 110.12. PART 113—LADIES’ HANDBAG MANUFACTURING INDUSTRY Group I Sec. 113.1 Misrepresentation in general. 113.2 Defamation of competitors. 113.3 Sales below cost. 113.4 Commercial bribery. 113.5 Threats of suit. 113.7 False marking or branding. 113.9 Imitation of trade-marks, trade names, etc. 113.10 Coercing purchases, 118.11 Inducing breach of contract. 118.12 False invoicing. 1138.18 Aiding or abetting use of unfair trade practices. 113.14 False price quotations. Group II 113.101 Unwarranted return of merchan- dise. 113.102 Cost accounting. AUTHORITY: The provisions of this Part 113 issued under secs. 6(g), 5, 88 Stat. 722, 719: 15 U.S.C. 46(g), 45. 9 § 113.1 Source: The provisions of this Part 113 contained in trade practice rules, Ladies’ Handbag Manufacturing Industry, FTC, Aug. 18, 1986, unless otherwise noted. Group I § 113.1 Misrepresentation in general. The making or causing or permitting to be made or published, any false, untrue, or deceptive statements or representa- tion, by way of advertisement or other- wise, concerning the grade, quality, quan- tity, substance, character, nature, origin, size or preparation of any product of the industry, or concerning credit terms, values, policies, services, or the nature or form of the business conducted, hav- ing the tendency or capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice. § 113.2 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credlt standing, or by other false representations, or the false dis- paragement of the grade or quality of the goods of competitors, their credit terms, values, policies, services, or the nature or form of the business conducted, with the tendency or capacity to mislead or de- ceive purchasers or prospective pur- chasers, is an unfair trade practice. § 113.3 Sales below cost. The practice of selllng goods below the Selier’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 un- fair trade practice. All elements recog- nized by good accounting practice as proper elements of such cost shall be in- cluded in determining cost under this section. § 113.4 Commercial bribery. Directly or indirectly to give, or permit to be given, or offer to glve money or any- thing 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 principals, as an inducement to influence their employers or princlpals to pur- chase or contract to purchase industry products from the maker of such gift or offer, or to influence such employers or Title 16—Chapter | principals to refrain from dealing or con- tracting to dea] with competitors, is an unfair trade practice. § 113.5 Threats of suit. The circulation of threats of suit for infringement of patents or trade-marks among customers or prospective custom- ers of a competitor, not made in good faith but for the purpose of harassing or intimidating such customers or pro- spective customers, or otherwise preju- dicing or injuring competitors in their businesses, is an unfair trade practice. § 113.7 False marking or branding. The practice of branding or marking or packing any products, or causing the same to be branded or marked or packed in a manner which is calculated to or does deceive or mislead purchasers, pro- spective purchasers, or the consuming public, with respect to the brand, grade, quality, value, quantity, origin, size, sub- stance, character, nature, material, con- tent, or preparation of such products, is an unfair trade practice. § 113.9 Imitation of trade-marks, trade names, etc. The imitation of the trade-marks, trade names, or other marks of identi- fication of competitors, having the tend- ency or capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice. § 113.10 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, is an unfair trade practice. § 113.11 Inducing breach of contract. Willfully inducing or attempting to in- duce the breach of any lawfully existing contract or contracts between competi- tors and their customers or their sup- pliers by any false or deceptive means whatsoever, or willfully interfering with or obstructing the performance of any such contractual duties or services, with the purpose and effect of unduly hamper- ing, injuring or embarrassing competl- tors in their businesses, is an unfair trade practice. § 113.12 False invoicing. Withholding from or inserting in the invoice, bill of lading, or other document 480 Title 16—-Chapter t of title, statements which make the in- voice, bill of lading, or other document of title 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, prospective purchasers, or the consuming public, is an unfair trade practice. § 113.13 Aiding or abetting use of un- fair trade practices. For any member of the industry know- ingly to aid or abet another in the use of unfair trade practices is an unfair trade practice. § 113.14 False price quotations. The publishing or circulating by any member of tlie industry of false or mis- leading price quotations, price lists or terms of sale, having the tendency or capacity to mislead or deceive purchasers, prospective purchasers, or the consuming public, is a unfair trade practice. __ Group II § 113.101 Unwarranted return of mer- cbandise. The industry disapproves of the prac- tice of accepting the return of merchan- dise after the same has been in the hands of the purchaser for an unreasonable length of time. § 113.102 Cost accounting. It is the judgment of the industry that each member should independently keep proper and accurate records for deter- mining his costs. PART 114—PRESERVE MANUFAC- TURING INDUSTRY * Group I Sec. 114.1 Falsely advertising, marking or brand- ing preserves. 114.2 Disclosure in respect to imitations. 114.8 False invoicing. AUTHORITY: The provisions of this Part 114 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45. 1This part does not, in any respect, sup- plant or relieve anyone of the necessity of complying with the legal requirements of the pure food laws or other provisions of law. They are established under the Federal Trade Commission Act for the purpose of more ef- fectively stamping out unfair competitive practices in the interest of the public, and to assist in general law enforcement to this end. § 114.1 Source: The provisions of this Part 114 contained in trade practice rules, Preserve Manufacturing Industry, FTC, Sept. 12, 1936, unless otherwise noted. § 114.1 Falsely advertising, marking or branding preserves. The practice of selling, advertising, describing, branding, marking, labeling or packing of fruit preserves, fruit jams, fruit jellies or apple butter, or any simu- lation thereof, in a manner which is cal- culated to mislead or deceive, or has the tendency and capacity or effect of mis- leading or deceiving, purchasers, pro- spective purchasers or the consuming public, with respect to the character, nature, content, grade, quality, quantity, substance, material, preparation or manufacture of such product, or in any other material respect, is an unfair trade practice. For purposes of this section: (a) Preserve, fruit preserve, jam, fruit jam, are understood to mean the clean, sound fruit product possessing definite characteristic flavor of the preserved fruit or fruits named on the label, made by cooking or concentrating to a suitable consistency properly prepared, clean, sound, entire edible portion of fresh fruit, cold-packed fruit, canned fruit, or a mixture of two or all of these, with sugar or with sugar and water, with or without spice or vinegar, or with such harmless organic acids as may be neces- sary to compensate for natural acid defl- ciency of the particular fruit used, but excluding acids or acid salts generally recognized as chemical preservatives, and in the preparation of which fruit product there is used not less than forty- five (45) pounds of actual fruit to each fifty-five (55) pounds of sugar. In the case of fruits deficient in pectin, or whose composition or texture prevent the preparation of preserve or jam as de- fined herein of the desired consistency, nothing herein shall prevent the addition of small quantities of pectin or pectinous material: Provided, however, That if such pectin or pectinous material is added, the ratio of not less than forty- five (45) pounds of fruit to each fifty-five (55) pounds of sugar be maintained, and the finished product containing such added pectin shall contain not less than sixty-eight (68) percent water-soluble solids derived from the fruit and sugar used in its manufacture, as determined by refractometer at twenty degrees (20°) centigrade without correction for the insoluble solids present. 481