Rubber Tire Industry

16 CFR Part 115 · Trade practice rules · in the Code of Federal Regulations 1938-1960 (3 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)

Chapter I—Federal

out fully disclosing that the same is
honey preserve honey Jam honey Jelly
or honey apple butter as the case may
be or without setting forth the word
‘honey ’ as prominently or conspicuously
as any other word used as descriptive of
the product with the capacity and tend-
ency or effect of misleading or deceiving
purchasers prospective purchasers or
the consuming public 1s an unfair trade
practice within the meaning of this
section

(f) When advertising representing
branding or labeling any preserve jam
or jelly containing substantial amounts
of two or more fruits although made in
conformity with the applicable require-
ments of paragraphs marked (a) (b)
(d) or (e) of this section the kinds of
fruit so coOntaimed in such products
should be prominently and conspicuously
disclosed and named on the label in the
order of their predominance by weight
Advertising representing branding or
labeling of any preserve Jam or Jelly as
containing two or more fruits when each
such fruit 1s not present in substantial
and characterising amounts with the
capacity and tendency or effect of mus-
leading or deceiving purchasers pro-
spective purchasers or the consuming
public 1s an unfair trade practice within
the meaning of this section

(g) The word sugar as used in this
section Means sucrose or dextrose or a
combination thereof

§ 1142 Dhasclosure in respect to im:-
tations

The practice of advertising, labeling
branding selling or offering for sale an
imitation preserve, jam jelly or apple
butter without clearly and prominently
disclosing therein that the product 1s such
imitation with the tendency and capac-
ity or effect of misleading or deceiving
purchasers prospective purchasers or the
consuming public 1s an unfair trade
practice For purposes of this section

(a) Products which contain a smaller
proportion of fruit than specified in the
applicable requirements set forth in
§1141 (a) (b) (ce) (d) and (e) or
which otherwise fail to conform with the
applicable minimum requirements set
forth in such paragraphs respectively
and which simulate or imitate preserves
jams Jellies or apple butter as described
in such paragraphs and which are used
or sold for the same purpose, except fruit
pie filling fruit sauce fruit butter other

Trade Commission $1151
than apple butter mint wine and calves-
foot jellies described represented la-
beled and sold as such and preserved
citrus fruit products 1s understood to be
imitation preserve imitation jam imuita-
tion Jelly or imitation apple butter re-
spectively, and to avoid deception and
confusion of the purchasing public they
should be described represented labeled
and sold as such respective imitation
products

§1143 False invoicing

Withholding from or inserting 1n the
invoice statements which make the i1n-
voice a false record wholly or 1n 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 1s an unfair trade practice

PART 115—RUBBER TIRE

INDUSTRY
Group I
Sec
1151 Discrimination
1152 Defamation of competitors
1153 Sales below cost
1154 Misrepresentation in general
1155 Faise branding or marking
1156 Miusrepresenting character of busi-
ness
1157 Musrepresenting products handled
1158 Falsely representing change-over
tires or tubes as new or unused
1159 False invoicing
11510 Passing off used rebuiit etc tires as
new or unused
11511 Mhsrepresenting grade or quality
11512 False illustrations
11513 Fa.lure to disclose true character of

tires or tubes

Group II

115101 Differentiating between wholesale
and retail transactions
115 102 Proper marking or branding of tires
recommended
AUTHORITY §§ 1151 to 115 102 issued under
sec 6 (g) 38 Stat 722 15 U S C 46 (g)
Interpret or apply sec 65 38 Stat 719 as
amended 15 U S C 45 Other statutory
provisions interpreted or applied are cited
to text in parentheses
Source §§1151 to 115102 contained in

trade practice rules Rubber Tire Industry
FTC Oct 17 1986

Group I
§ 1151  Discriminatuon

(a) Prohibited discriminatory differ-
entials, rebates, refunds, discounts, cred-
ats and other allowances It 1s an unfair

Page 275


$1152

trade practice for any member of the
industry engaged in commerce 1n the
course of such commerce, to grant or
allow, secretly or openly, directly or 1n-
directly any price differentials rebates
refunds, discounts, credits or other al-
lowances which effectuate a discrimina-
tion 1n price between 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 be substantially to
lessen competition or tend to create a
monopoly 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
discrunination 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 within any place under the
jurisdiction of the United States

(2) That nothing contained in this
section shall prevent differentials whick
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
elther (1) the market for the goods con-
cerned or (11) the marketability of the
goods such as but not limited 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 1n the goods concerned

(b) Prohitnted brokerages and com-
missions It 1s an unfair trade practice
for any member of the sndustry 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 heu 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 intermedlary therein

Page 276

Title 16—Commercial Practices

where such intermediary Is acting In
fact for or in behalf or 1s subject to the
direct or indirect controi of any party
to such transaction other than the per-
son by whom such compensation 1s so
granted or paid

(c) Prohibited advertising or promo-
tional allowances etc It 1s an unfair
trade practice for any member of the 1n-
dustry engaged 1n 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 1s
available on proportionally equal terms
to all other customers competing in the
distiibution of such products or com-
modities

(d) Prohibited discriminatory services
or factlitzes Its 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 offermg 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 1s
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 1s prohibited by
such section as amended
(Sec 2 38 Stat 730 as amended secs 2 3 4

49 Stat 1527 1528 15U S C 18 18a 18b
21a)

§ 1152 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 dispar-


Chapter I—Federal Trade Commission

agement of the grade quality, or manu-
facture 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 decelving purchasers pro-
spective purchasers or the consuming
public 1s an unfair trade practice

§ 1153 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, 1s an un-
fair trade practice all elements recog-
mized by good accountimg practice as
proper elements of such cost shall be in-
cluded in determining cost under this
section

§ 1154 Mhisrepresentation in general

The inaking or causing or permitting to
be made or published any faise untrue or
deceptive statement, representation,
guarantee, warranty or adjustment poi-
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 mdustry
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 pubiic 1s an unfair trade
practice

§1155 False branding or marking

The false or deceptive marking or
branding of products of the industry for
the purpose or with the tendency capac-
lity or effect of misleading or deceiving
purchasers, 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 1s an
unfair trade practice

§1156 Misrepresenting character of

business

For any person firm or corporation
to hold hunself or itself out to the pub-
lic 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-

$115 10

ceiving purchasers, prospective pur-
chasers or the consuming public, is an
unfair trade practice

§1157 Misrepresenting
handled

For any ineinber 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 1s an unfair trade practice

products

§1158 Falsely representing “change-
over” tures or tuhes as new or unused

Falsely representing 1n the sale or of-
fering for sale cf “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 effect of misleading or de-
ceiving purchasers prospective purchas-
ers or the consuming public is an unfair
trade practice

§1159 False mvoicng

Withholding from or inserting in the
imvoice or sale ticket statemnents which
make the invoice or sale ticket a false
record wholiy or in part, of the trans-
action represented on the face thereof
with the purpose or effect of thereby mis-
ieading or deceiving purchasers, prospec-
tive purchasers or the consuming public,
1s an unfarr trade practice

§ 11510 Passing off used, rebuilt, etc ,

tires as new or unused

(a) The passing off selling or offermg
fer sale of used rebuilt recapped re-
treaded, or repaired tires aS new or
unused tires 1s 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 inolded in the
rubber thereof the word “second-hand”
or the words “used tire—rebuult’ used
tire—recapped “used tire—retreaded”
or “used tire—repaired’ as the case nay
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,

Page 277


§ 11511

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

§11511 Mhsrepresenting grade or

quality

The direct or indirect misrepresenta-
tion 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 1s 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

§11512 False illustrations

The use in advertisements of llustra-
tions or depictions 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 representa-
tions in such advertisements are truth-
fully applicable having the capacity
tendency or effect of misleading or de-
ceiving purchasers prospective purchas-
ers or the consuming public 1s an unfair
trade practice

§11513 Failure to disclose true char-
acter of ures or tubes

The use of advertisements or repre-
sentations 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 advertisernent and representations
truthfully and unequivocally disclosing
the fact of such limitations having the
capacity tendency or effect of mislead-
ing or deceiving purchasers prospective
purchasers or the consuming public 1s
an unfair trade practice

Group II

§115101 Dnifferentatmg 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 1s condemned
by the industry

Page 278

Title 16—Commercial Practices

§ 115102 Proper marking or branding

of tures recommended

In the interest of public safety and the
protection of purchasers and prospective
purchasers from deception it 1s the judg-
ment of the industry that the members
thereof manufacturing pneumatic auto-
mobile 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-
cally, conspicuously 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-ply’
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

1161 False advertising etc

1162 False representations as to earnings

1163 Misrepresentation as to opportuni-
ties

1164 False representations as to student
employment or schools connection
with United States Government

1165 False promises as to empioyment or
increased earnings

1166 Limited time offers

1167 Misrepresenting offers as special

1168 Fictitious prices

1169 Money-back agreements

11610 Misleading scholarship offers

11611 Misuse of word free

11612 Defamation of competitors

11613 Deceptively advertising character and
scope of institution

11614 Deception in issuance of diplomas
degrees etc

11615 Falsely representing courses of study

11616 Misrepresentation as to facuity ad-
visory board instruction materials
etc

11617 Misrepresentation as to personal in-
struction

11618 Deceptive Help Wanted advertising

11619 Blind advertising

11620 Deceptive language in general

11621 Misuse of word guarantee

11622 Simulation of legal documents

11623 Photographic misrepresentations

11624 Misuse of national embiems pictures
of United States Capitol and simi-
lar devices connoting Government
endorsement

11625 Misuse of words not for profit

11626 Unqualified students