Rubber Manufacturing Industry
16 CFR Part 115 · Trade practice rules · in the Code of Federal Regulations 1949-1949 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1949 CFR · Earliest edition: 1949 CFR
Text (1949 edition, OCR)
§ 115.1 Part 115—Rubber Tire Industry GROUP I Sec. 115.1. Discrimination, 115.2 Defamation of competitors. 115:3 Sales below cost. 115.4 Misrepresentation in general. 115.6 False branding or marking. 115.6 Misrepresenting character of busi- ness. 115.7 Misrepresenting products handled. 115.8 Falsely representing “change-over” tires or tubes as new or unused. 115.9 False invoicing. 115.10 Passing off used, rebuilt, etc., tires as new or unused. , 115.11 Misrepresenting grade or quality. 115.12 False illustrations. 115.13 Failure to disclose true character of tires or tubes, GROUP II 115.101 Differentiating between wholesale and retail transactions. 115.102 Proper marking or branding of tires recommended. AUTHORITY: §§ 115.1 to 115,102 issued under sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g). Interpret or apply sec. 5, 38 Stat. 719, as amended; 15 U. S. C. 45. Other statutory provisions interpreted or appiied are cited to text in parentheses, Source: §§ 115.1 to 115.102 contained in trade practice rules, Rubber Tire Industry, FTC, Oct. 17, 1936. GROUP I § 115.1 Discrimination — (a) Prohib- ited discriminatory differentials, re--- bates, refunds, discounts, credits and other allowances. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce,to grant or ailow,secretly or openly, directly or indirectly, any price differentials, rebates, refunds, dis- counts, credits or other allowances which effectuate a discrimination in price be- tween different purchasers of goods of like grade and quality where either or _ any of the purchases involved therein are in commerce and where the effect thereof may he substantialiy to lessen competition or tend to create a monop- oly 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 discrimina- tion or with customers of either of them: Provided, however, (1) That the goods involved in any such transaction are sold for use, consumption or resale with- in any place under the jurisdiction of the United States; Page 274 Title 16——Commercial Practices (2) That nothing contained in this section shall prevent differentials which make only due allowances for differences in the cost of manufacture, sale or deliv- ery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing contained in this section shall prevent persons engaged in selling goods, wares or merchandise in commerce from selecting their own cus- tomers in bona fide transactions and not in restraint of trade; (4) That nothing contained in this section shall prevent price changes from time to time where made in re- sponse to changing conditions affecting either (i) the market for the goods con- cerned, or (ii) the marketability of the goods, such as, but not iimited to, actual or imminent 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 brokerages and com- missions. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such com- merce, to pay or grant or to receive or ac- cept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof ex- cept 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, repre- sentative, or other intermediary therein where such intermediary 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 per- son 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 in- dustry engaged in commerce, to pay or contract for the payment of advertising or promotion 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 compensation or in consideration for any services or facili- ties furnished by or through such cus- tomer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such member, .unless such payment or consideration is available on proportionally equal terms Chapter |—Federal Trade Commission 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 by furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such com- modity so purchased upon terms not ac- corded to all purchasers on proportionally 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, or knowingly to induce or receive a discrim- ination in price which is prohibited by such section as amended. (Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528; 15 U. S. C. 18, 18a, 13b, 21a) § 115.2 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable conduct, Inability to perform contracts, question- able credit standing or by other false representations, or the false disparage- ment of the grade, quality, or manufac- ture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, with the tendency, capacity or effect of misleading or deceiving purchasers, pro- spective purchasers or the consuming public, is an unfair trade practice. § 115.3 Sales below cost. The prac- tice of selling goods below the seller’s cost, with the intent and with the effect of injuring a competitor and where the ef- fect may be to substantially lessen com- petifion 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. § 115.4 Misrepresentation in general. The making or causing or permitting to 819583°-—49——-19 § 115.9 be made or published any false, untrue or deceptive statement, representation, guarantee, warranty or adjustment pol- icy, by way of advertisement or other- wise, concerning the grade, quality, quantity, substance, use, character, na- ture, origin, size, manufacture or distri- bution of any product of the industry or concerning the life or service of tires or.tubes, or in any other material re- spect, having the tendency, capacity or effect of misleading or deceiving pur- chasers, prospective purchasers or the consuming public, is an unfair trade practice. §115.5 False branding or marking. The false or deceptive marking or brand- ing of products of the industry for the purpose or with the tendency, capacity or effect of misleading or deceiving pur- chasers, prospective purchasers or the consuming public with respect to the grade, quality, quantity, use, size, ma- terial, content, origin, preparation, man- ufacture, or distribution of such products, or in any other material respect, is an unfair trade practice. § 115.6 Misrepresenting character of business. For any person, firm or cor- poration to hold himself or itself out to the public as “an authorized dealer” when such is not the fact, or for any member of the industry to misrepresent the char- acter of his business, with the tendency, capacity or effect of misleading or de- ceiving purchasers, prospective pur- chasers or the consuming public, is an unfair trade practice. § 115.7 Misrepresenting products han- dled. For any member of the industry to represent, by advertising or otherwise, that he handles “all standard makes” of tires or tubes, when such is not the fact, ‘with the tendency, capacity or effect of misleading or deceiving purchasers, pro- spective purchasers or the consuming public, is an unfair trade practice. §115.8 Falsely representing “change- over” tires or tubes as new or unused. Falsely representing in the sale or of- fering for sale of “change-over” tires or tubes that such tires or tubes are new or unused when they are in fact not new or unused, with the tendency, capacity or effcct of misleading or de- ceiving purchasers, prospective purchas- ers or the consuming public, is an unfair trade practice. §115.9 False invoicing. Withholding from or inserting in the invoice or sale Page 275 § 115.10 ticket statements which make the in- voice or sale ticket a false record, wholly or in part, of the transaction represented on the face thereof, with the purpose or effect of thereby misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice. § 115.10 Passing off used, rebuilt, etc., tires as new or unused. (a) The passing off, selling or offering for sale of used, rebuiit, recapped, retreaded, or repaired tires as new or unused tires, is an unfair trade practice. (b) The sale or offering for sale of used, rebuilt, recapped, retreaded, or re- paired tires which have been dressed or prepared so as to simulate new or un- used tires without having durably and conspicuously branded or molded in the rubber thereof the word “second-hand”, or the words “used tire—rebuilt”, “used tire—recapped”, “used tire—retreaded”’, or “used tire—repaired’’, as the case may be, or without otherwise fully and truth- fully disclosing to all purchasers and users the fact that such tires are not new but in truth are second-hand tires, or used tires which have been rebuilt, recapped, retreaded, or repaired, respec- tively, with the purpose or with the effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, or with the purpose or effect of placing an instrument of fraud or decep- tion in the hands of dealers or in other channels of trade, is an unfair trade practice. § 115.11 Misrepresenting grade or quality. The direct or indirect misrep- resentation of tires as being of a quality or grade higher than in fact they are, or as being of first, second, third, fourth or fifth line or grade when such is not the fact, having the tendency, capacity or effect of misleading or deceiving pur- chasers, prospective purchasers or the consuming public, is an unfair trade practice. § 115.12 False illustrations. The use in advertisements of illustrations or de- pictions of tires or tubes of a different brand, Style or size, or of a higher line, grade or quality than the tires’ or tubes to which the representations in such ad- vertisements are truthfully applicable, having the capacity, tendency or effect of misieading or deceiving purchasers, prospective purchasers or the consum- ing public, is an unfair trade practice. Page 276 Title 16—Commercial Practices § 115.13 Failure to disclose true char- acter of tires or tubes. The use of adver- tisements or representations of tires or tubes, or of prices thereof, which are in fact applicable only to certain limited sizes, lines, grades, qualities, styles or brands, without in such advertisement and representations truthfully and un- equivocally disclosing the fact of such limitations, having the capacity, tend- ency or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice. GROUP II § 115.101 Differentiating between wholesale 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 correctly 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 minds of purchasers or prospective purchasers, is condemned by the industry. § 115.102 Proper marking or branding of tires recommended, In the interest of public safety and the protection of purchasers and prospective purchasers from deception, it is the judgment of the industry that the members thereof manufacturing pneumatic automobile tires should mark or brand such tires with words and figures or phrases, molded on or in the rubber of each side wall of such tires, (or otherwise affixed on each such side in some equally per- manent manner) which will unequivo- caliy, conspcuously and truthfully indi- cate the number of plies existing in the construction of such tires (ply as herein used meaning fabric running from bead to bead of tire), for example: ‘4-piy”, or “6-ply”, etc. The failure or refusal to so mark or brand tires as provided in this rule is condemned by the industry. Part 116—Private Home Study Schools GROUP I Sec. 116.1 False advertising, etc. 116.2 False representations as to earnings. 116.3 Misrepresentation as to opportuni- ties.