Consumer Law Library

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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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

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=,

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$ 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

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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.

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