Mirror Industry
16 CFR Part 118 · Trade practice rules · in the Code of Federal Regulations 1966-1979 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1979 CFR · Earliest edition: 1966 CFR
Text (1979 edition, OCR)
§ 62.3 Rebuilt by an Independent Rebuilder (3) Disclosure that the product was rebuilt by other than the manufactur- er so identified as, for example: Rebuilt by other than XYZ Motors (4) Disclosure that the product was rebuilt for the identified manufactur- er, if such is the case, as for example: Rebuilt for XYZ Motors (Rule 2] § 62.3 Misrepresentation as to condition of products and misuse of the terms “re- built,” “factory rebuilt,” “remanufac- tured,” etc. (a) It is an unfair trade practice to use, or cause or promote the use of, any statement or representation in ad- vertising, on containers, on industry products, or elsewhere, which has the capacity and tendency or effect of mis- leading or deceiving purchasers or prospective purchasers as to the condi- tion of an industry product, or the extent that an industry product has been repaired or reconstructed. (b) It is an unfair trade practice to use the words “Rebuilt,” “Remanufac- tured,” or words of similar import, as descriptive of an industry product which, since it was last subjected to any use, has not been dismantled and reconstructed as necessary, all of its internal and external parts cleaned and made free from rust and corro- sion, all impaired, defective or sub- stantially worn parts restored to a sound condition or replaced with new, rebuilt ‘ or unimpaired used parts, all missing parts replaced with new, re- built ' or unimpaired used parts, and such rewinding or machining and other operations performed as are nec- essary to put the industry product in sound working condition. ‘In accord with the provisions of this paragraph (b). Title 16—Commercial Practices (c) It is an unfair trade practice to represent an industry product as ‘“‘Fac- tory Rebuilt” unless the product was rebuilt as described in paragraph (b) of this section at a factory generally engaged in the rebuilding of such products. (See also § 62.2) [Rule 3] PART 118—MIRROR INDUSTRY Sec. 118.0 Definitions. 118.1 Deception (general). 118.2 Misrepresentation of kind or type of industry products. 118.3 Disclosure of foreign origin. 118.4 Disclosure of fact that products are “rejects,” ‘“‘secornds,” etc. 118.5 Misrepresenting products as con- forming to standard. 118.6 Deceptive pricing. 118.7 Deceptive use or imitation or simula- tion of trade or corporate names, trade- marks, etc. 118.8 False invoicing. 118.9 Guarantees, warranties, etc. 118.10 Substitution of products. 118.11 Commercial bribery. 118.12 Procurement of competitors’ confi- dential information by unfair means and wrongful use thereof. 118.13 Unfair threats of infringement suits. 118.14 Inducing breach of contract. 118.15 Prohibited forms of trade restraints (unlawful price fixing, etc.). 118.16 Prohibited discrimination. 118.17 Aiding or abetting use of unfair trade practices. Avutuortiry: Secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: 27 FR 6213, June 30, 1962, unless otherwise noted. § 118.0 Definitions. As used in these rules the terms ‘“In- dustry Member’ and “Industry Prod- ucts” shall have the following mean- ing: (a) Industry member: Any person, firm, corporation or organization (in- cluding manufacturers, wholesalers, jobbers, importers, retailers, etc.) en- gaged in the manufacture, sale, offer- ing for sale, or distribution of industry products as defined below. (b) Industry products. All kinds and types of mirrors both utilitarian and decorative. (c) For the purposes of these rules the following definitions shall apply: 350 Chapter !—Federal Trade Commission Plate glass: A transparent glass, the two surfaces of which are flat and parallel so that they give clear and undistorted vision and reflection, manufactured either by floating hot glass in ribbon form upon a heated liquid of greater density than that of glass or by grinding and polishing a ribbon of glass formed between two rolls. Window glass: A transparent glass which has been drawn or rolled, has glossy, fire polished surfaces and a characteristic wavi- ness of its surfaces which is visible when viewed at an acute angle or in reflected light. Window glass is sometimes referred to in the industry as sheet or shock glass. [27 FR 6213, June 30, 1962, as amended at 37 FR 18448, Sept. 12, 1972] § 118.1 Deception (general). It is an unfair trade practice for any industry member in connection with the sale, offering for sale, or distribu- tion of industry products to use any advertisement '! or representation which is false, or which by failure to disclose material facts has the capac- ity, tendency or effect. of misleading purchasers or prospective purchasers with respect to the type, grade, qual- ity, quantity, use, size, design, materi- al, finish, strength, backing, silvering, thickness, composition, origin, prepa- ration, manufacture, value, or distribu- tion of any product of the industry, or in any other material respect. [Rule 1] § 118.2 Misrepresentation of kind or type of industry products. It is an unfair trade practice for any member of the industry to sell, offer for sale, or distribute any industry product under any representation or circumstance having the capacity and tendency or effect of misleading or de- ceiving purchasers or prospective pur- chasers in any respect with regard to the kind or type of glass contained in any industry product, or the kind or type of backing affixed thereto. (a) Misrepresentation as to kind or type of glass. (1)(i) It is an unfair trade 'The word “advertisement” as here used includes any written or verbal statement, notice, presentation, illustration, or depic- tion which directly or indirectly promotes the sale of any industry product, or creates an interest in the purchase of any such product, whether same appears in a newspa- per, magazine, catalog, letter, sales promo- tional literature, radio or television broad- cast, or in any other media. $118.2 practice to sell, offer for sale, or dis- tribute any industry product contain- ing “window glass’ unless such prod- uct is marked, labeled, or stamped so as to reveal that the glass is ‘window glass.” (ii) The disclosure required by this section must be made on the product and be of such conspicuousness and legibility as to readily come to the at- tention of the casual observer, and of such permanence, and so affixed, as to remain on the product until consum- mation of consumer sale thereof. Such disclosure is not required upon indus- try products 72 square inches or less in size. (2) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice to represent that a product contains “crystal” or “crystale” glass, when, contrary to the representation, such product contains a different glass, e.g., “plate glass’ or “window glass.” (3) In the sale, offering for sale, or distribution of industry products it is an unfair trade practice to represent window glass as “distortion free,” or to represent any other kind of glass as “distortion free,’’ when such is not the fact. (4) In the sale, offering for sale, or distribution of industry products it is an unfair trade practice to describe the glass contained in an industry product as “shatter proof’ unless the glass is so constituted or treated so as in fact to prevent, in the event of breakage, the shattering and dispersal of particles of the glass. (b) Misrepresentation as to backing. (1) In the sale, offering for sale, or dis- tribution of industry products it is an unfair trade practice to represent that an industry product is “copper backed”, or is backed with ‘metallic copper” or has a “copper electroplat- ed’’ back, or to similarly use any other word, term or legend of like import as descriptive of the backing of an indus- try product, unless the electroplating of the copper backing is accomplished by an electrolytic process. NoTE: For the purposes of this part it is established that both the “galvanic,” or “contact” method, of electroplating (i.e., the plating method using a self induced electric 351 § 118.3 current), and the method using an external source of current, are truly electroplating processes. Both processes are equally well defined by the definition of Electroplating established by the American Society for Testing Materials, as follows: “Electroplating: The electro-deposition of an adherent metallic coating upon an elec- trode for the purpose of securing a surface with properties or dimensions different from those of the basic metal.” No useful purpose can be served by attempt- ing to establish a differentiation between the mirror backing produced by these two methods. (2) Nothing in this section shall be construed as prohibiting the use of representations that any backing on products of the industry contains copper, which has been applied me- chanically or by means other than the use of electric current when such is the fact, provided that a clear and con- spicuous disclosure is made in conjunc- tion with such representations as to the manner of application of the back- ing, as for example, “window glass mirror, painted back.” (3) The disclosure of the kind or type of glass and the kind and type of backing thereof required under this section may be in the form of a stamp, tag, mark or label on or attached to the product and shall be of such size type and so situated that it will come to the attention of the casual observer and be so affixed as to remain on the product until consumption of consum- er sale. (4) The following are examples of the marks, stamps or labels which will be regarded as meeting the require- ments of this section: An industry product containing “plate glass,” copper backed by an electrolytic proc- ess may be marked or described “plate glass-copper electroplated,” or “float glass-copper backed”; an _ industry product containing window glass backed by an electrolytic process may be marked or described ‘window glass- copper plated back” or ‘‘sheet glass- copper plated back,’ or an article con- taining plate glass backed with a copper plating which has been applied mechanically or by means other than the use of electric current may be marked or described as “plate glass- painted back.” [Rule 2] Title 16—Commercial Practices (27 FR 6213, June 30, 1962, as amended at 37 FR 18448, Sept. 12, 1972) $118.3 Disclosure of foreign origin. (a) It is an unfair trade practice to misrepresent the country of manufac- ture of industry products or their com- ponents. (b) It is also an unfair trade practice to offer for sale, sell, or distribute any industry product manufactured in a foreign country, or any industry prod- uct containing a substantial or materi- al part manufactured in a foreign country, without clear and adequate disclosure of such fact, when the fail- ure to make such disclosure has the capacity and tendency or effect of mis- leading or deceiving purchasers or prospective purchasers. (c) Disclosure of foreign origin as and when required under paragraphs (a) and (b) of this section, may be in the form of a stamping or marking on the product itself, or on a label or tag securely attached to the product. Such disclosure shall clearly identify the foreign country in which the product, or part thereof, was manufactured and shall be of such conspicuousness as to be noticeable and readable on casual inspection and of such permanence as to remain on the product until con- summation of consumer sale. Nore 1: Paragraph (b) of this section is not to be construed as requiring disclosure as to foreign manufacture or processing when, by reason of further manufacturing or processing operations in this country, or merger with another part or other parts, the imported product or part does not retain the appearance and essential charac- teristics which it possessed at the time of its importation. Note 2: Nothing in this section shall be construed as relieving any member of the industry (or other party) of the necessity of complying with the requirements of the cus- toms laws or regulations, or other applicable provisions of law or regulation, relating to marking of imported articles. [Rule 3] § 118.4 Disclosure of fact that products are “rejects,” “seconds,” etc. An industry product not equaling the manufacturer’s standard for his first quality products shall not be rep- resented as being of first quality and 352 Chapter |—Federal Trade Commission shall be marked or labeled as being a “second” or “reject,” or by some other term which adequately makes known the fact that it is not first quality. Such disclosure shall be in the form of a legible stamping or marking on the product itself, or on a label or tag se- curely attached to the product, and be sufficiently conspicuous as to be likely noticed and read on casual inspection of the product, and be so placed on or affixed to the product as to remain thereon until consummation of con- sumer sale. Disclosure that such prod- ucts are “seconds” or “rejects,” shall also be made in advertisements, price lists, other sales promotional litera- ture, and radio and television adver- tisements relating to such products. [Rule 4] § 118.5 Misrepresenting products as con- forming to standard. In the same, offering for sale, or dis- tribution of industry products, it is an unfair trade practice to represent, through advertising or otherwise, that such products conform to any stand- ards recognized in or applicable to the industry when such is not the fact. [Rule 5] §118.6 Deceptive pricing. It is an unfair trade practice for any member of the industry to represent directly or indirectly in advertising or otherwise that an industry product may be purchased for a specified price, or at a saving, or at a reduced price, when such is not the fact; or otherwise deceive purchasers or prospective pur- chasers with respect to the price of any product offered for sale; or fur- nish any means or instrumentality by which others engaged in the sale of in- dustry products may make any such representation. Nore: On December 20, 1963 the Commis- sion adopted Guides Against Deceptive Pric- ing which became effective on January 8, 1964 and which supersede the Guides on this subject as adopted October 2, 1958. Copies of the Guides will be furnished upon request. [Rule 6] (29 FR 7670, June 16, 1964] § 118.9 § 118.7 Deceptive use or imitation or sim- ulation of trade or corporate names, trade-marks, etc. It is an unfair trade practice for any member of the industry: (a) To imitate or simulate the trade- marks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or de- ceiving purchasers or prospective pur- chasers; or (b) To represent by use of any trade name, trade-marks, or other trade des- ignation, that any industry member is a manufacturer, wholesaler or import- er when such is not the fact; or (c) To use any trade name, corporate name, trade-mark, or other trade des- ignation, which has the capacity and tendency or effect of misleading or de- ceiving purchasers or prospective pur- chasers as to the name, nature, or origin of any product of the industry, or of any material used therein, or which is false, deceptive, or misleading in any other material respect. [Rule 7] § 118.8 False invoicing. Withholding from or inserting in in- voices or sales slips any statements or information by reason of which omis- sion or insertion a false record is made, wholly or in part, of the trans- actions represented on the face of suich invoices or sales slips, with the capacity and tendency or effect of thereby misleading or deceiving pur- chasers, prospective purchasers, or the consuming public in any material re- spect, is an unfair trade practice. [Rule 8] $118.9 Guarantees, warranties, etc. (a) Advertising of products shall not contain representations that a product is “guaranteed” without clear and con- spicuous disclosure of: (1) The nature and extent of the guarantee, and (2) Any material conditions or limi- tations in the guarantee which are im- posed by the guarantor, and (3) The manner in which the guar- antor will perform thereunder, and (4) The identity of the guarantor. (b) Guarantees shall not be used which under normal conditions are im- practical of fulfillment or which are 353 § 118.10 for such a period of time or are other- wise of such nature as to have the ca- pacity and tendency of misleading pur- chasers or prospective purchasers into the belief that the product so guaran- teed has a greater degree of servicea- bility, durability or performance capa- bility in actual use than in true in fact. (Rule 9] § 118.10 Substitution of products. It is an unfair trade practice for a member of the industry to make unau- thorized substitutions of products, where such substitutions have the ca- pacity and tendency or effect of mis- leading or deceiving purchasers, by: (a) Shipping or delivering industry products which do not conform to samples submitted, to specifications (in bids or otherwise) upon which the sale is consummated, or to representa- tions made prior to securing the order, without advising the purchaser of the substitution and obtaining his consent thereto prior to making shipment or delivery; or (b) Falsely representing the reason for making substitutions. [Rule 10] § 118.11 Commercial bribery. It is an unfair trade practice for a member of the industry, directly or in- directly, to give, or offer to give, or permit or cause to be given, money or anything of value to agents, employ- ees, or representatives of customers or prospective customers, or to agents, employees, or representatives of com- petitors’ customers or prospective cus- tomers, without the knowledge of their employers or principals, as an in- ducement to influence their employers or principals to purchase or contract to purchase products imported, manu- factured, or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or contracting to deal with competitors. [Rule 11) § 118.12 Procurement of competitors’ con- fidential information by unfair means and wrongful use thereof. It is an unfair trade practice for any member of the industry to obtain in- Title 16—Commercial Practices formation concerning the business of a competitor by bribery of an employee or agent of such competitor, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained so as sub- stantially to injure a competitor or un- reasonably restrain trade. [Rule 12] §118.13 Unfair threats of infringement suits, The circulation of threats of suit for infringement of patents or trade- marks among customers or prospective customers of competitors, not made in good faith but for the purpose and with the effect of harassing or intimi- dating such customers or prospective customers, or of unduly hampering, in- juring, or prejudicing competitors in their business, is an unfair trade prac- tice. [Rule 13] § 118.14 Inducing breach of contract. (a) Knowingly inducing or attempt- ing to induce the breach of existing lawful contracts between competitors and their customers, or between com- petitors and their suppliers, or inter- fering with or obstructing the per- formance of any such contractual duties or services, under any circum- stance having the capacity and ten- dency or effect of substantially injur- ing or lessening competition, is an unfair trade practice. (b) Nothing in this section is intend- ed to imply that it is improper to solic- it the business of a customer of a com- peting industry member; nor is the section to be construed as in anywise authorizing any agreement, under- standing, or planned common course of action by two or more industry members not to solicit business from the customers of either of them, or from customers of any other industry member. [Rule 14] § 118.15 Prohibited forms of trade re- straints (unlawful price fixing, etc.). ‘ It is an unfair trade practice for any member of the industry, either direct- ‘The prohibitions of this section are sub- ject to Pub. L. 542, approved July 14, 1952— 66 Stat. 632 (the McGuire Act, commonly referred to as the Fair Trade Amendment) Footnotes continued on next page 354 Chapter I—Federal Trade Commission ly or indirectly, to engage in any planned common course of action, or to enter into or take part in any un- derstanding, agreement, combination, or conspiracy with one or more mem- bers of the industry, 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, intimidation, 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 15] § 118.16 Prohibited discrimination. (a) Prohibited discriminatory prices, rebates, discounts, etc. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, dis- count, credit, or other form of price differential, where such _ rebate, refund, discount, credit, or other form of price differential, effects a discrimi- nation in price between different pur- chasers of goods of like grade and quality, where either or any of the purchasers involved therein are in commerce, and where the effect there- of may be substantially to lessen com- petition or tend to create a monopoly in any line of commerce, or to injure, Footnotes continued from last page which provides that with respect to a com- modity which bears, or the label or contain- er of which bears, the trade-mark, brand, or name of the producer or distributor of such commodity and which is in free and open competition with commodities of the same general class produced or distributed by others, a seller of such a commodity may enter into a contract or agreement with a buyer thereof which establishes a minimum or stipulated price at which such commodity may be resold by such buyer when such con- tract or agreement is lawful as applied to in- trastate 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 agree- ment is not between manufacturers, or be- tween wholesalers, or between brokers, or between factors, or between retailers, or be- tween persons, firms, or corporations in competition with each other. § 118.16 destroy, or prevent competition with any person who either grants or know- ingly receives the berefit of such dis- crimination, or with customers of either of them: Provided, however, (1) That the goods involved in any such transaction are sold for use, con- sumption, or resale within any place under the jurisdiction of the United States, and are not purchased by schools, colleges, universities, public 1i- braries, churches, hospitals, and chari- table institutions not operated for profit, as supplies for their own use; (2) That nothing contained in this section shall vrevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the dif- fering methods or quantities in which such commodities are to such purchas- ers sold or delivered; Note: Cost justification under the above proviso depends upon net savings in cost based on all facts relevant to the transac- tions under the terms of paragraph (a)(2) of this section. For example, if a seller regular- ly grants a discount based upon the pur- chase of a specified quantity by a single orcer for a single delivery, and this discount is justified by cost differences, it does not necessarily follow that the same discount can be cost justified if granted to a purchas- er of the same quantity by multiple orders or for multiple deliveries. (3) That nothing contained in this section shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade; (4) That nothing contained in this paragraph shall prevent price changes from time to time where made in re- sponse to changing conditions affect- ing the market for or the marketabil- ity of the goods concerned, such as but not limited to obsolescence of seasonal goods, distress sales under court proc- ess, or sales in good faith in discon- tinuance of business in the goods con- cerned; (5) That nothing contained in this section shall prevent the meeting in good faith of an equally low price of a competitor. Nore: Subsection (b) of section 2 of the Clayton Act, as amended, reads as follows: “Upon proof being made, at any hearing on 355 § 118.16 a complaint under this section, that there has been discrimination in price or services or facilities furnished, the burden of rebut- ting the prima facie case thus made by showing justification shall be upon the person charged with a violation of this sec- tion, and unless justification shall be affir- matively shown, the Commission is author- ized to issue an order terminating the dis- crimination: Provided, however, That noth- ing herein contained shall prevent a seller rebutting the prima facie case thus made by showing that his lower price or the furnish- ing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor.” (b) The following are examples of price differential practices to be con- sidered as subject to the prohibitions of paragraph (a) of this section when involving goods of like grade and qual- ity which are sold for use, consump- tion, or resale within any place under the jurisdiction of the United States, and which are not purchased by schools, colleges, universities, public li- braries, churches, hospitals, or chari- table institutions not operated for profit, as supplies for their own use, and when: (1) The commerce requirements specified in paragraph (a) of this sec- tion are present; and (2) The price differential has a rea- sonable probability of substantially lessening competition or tending to create a monopoly in any line of com- merce, or of injuring, destroying, or preventing competition with the in- dustry member or with the customer receiving the benefit of the price dif- ferential, or with customers of either of them; and (3) The price differential is not justi- fied by cost savings (see paragraph (a)(2) of this section); and (4) The price differential is not made in response to changing conditiions af- fecting the market for or the market- ability of the goods concerned (see paragraph (a)(4) of this section); and (5) The lower price was not made to meet in good faith an equally low price of a competitor (see paragraph (a)(5) of this section): Example No. 1. At the end of a given period an industry member grants a dis- count to a customer equivalent to a fixed Title 16—Commercial Practices percentage of the total of the customer's purchases during such period and fails to grant a discount of the same percentage to other customers on their purchases during such period. EXAMPLE No. 2. An industry member sells goods to one or more of his customers at a higher price than he charges other custom- ers for like merchandise. It is immaterial whether or not such discrimination is ac- complished by misrepresentation as to the grade and quality of the products sold. (c) Prohibited brokerage and com- missions. It is an unfair trade practice for any member of the industry en- gaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or dis- count in lieu thereof, except for serv- ices 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, representative, or other intermediary therein where such intermediary is acting in fact for or in behalf, or is subject to the direct or indirect con- trol, of any party to such transaction other than the person by whom such compensation is so granted or paid. (d) Prohibited advertising or promo- tional allowances, etc. It is an unfair trade practice for any member of the industry engaged in commerce to pay or contract for the payment of adver- tising or promotional 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 facilities furnished by or through such customer in connec- tion with the processing, handling, sale, or offering for sale of any prod- ucts or commodities manufactured, sold, or offered for sale by such member, unless such payment or con- sideration is made known to and is available on proportionally equal terms to all other customers compet- ing in the distribution of such prod- ucts or commodities. Nore 1: Industry members giving advertis- ing allowances to competiing customers must exercise precaution and diligence in seeing that all of such allowances are used in accordance with the terms of their offers. 356 Chapter I—Federal! Trade Commission Nore 2: When an industry member gives allowances to competing customers for ad- vertising in a newspaper or periodical, the fact that a lower advertising rate for equiva- lent space is available to one or more, but not all, such customers, is not to be regard- ed by the industry member as warranting the retention by such customer or custom- ers of any portion of the allowance for his or their personal use or benefit. (e) Prohibited discriminatory serv- ices or facilities. It is an unfair trade practice for any member of the indus- try engaged in commerce to discrimi- nate 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 contribut- ing to the furnishing of, any services or facilities connected with the proc- essing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all com- peting purchasers on proportionally equal terms. Note: 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 (e) of this section. (f)(1) The following is presented for the purpose of clarifying the require- ments of paragraphs (d) and (e) of this section with respect to the supplying of marketing services, facilities or allowances by industry members to their customers but it is not intended to imply by such presentation that other methods which assure of propor- tional equality of treatment of com- peting customers may not also be used. (2) An industry member may simul- taneously offer to each of his custom- ers competing in the resale of his products the same kind of promotional service, facility or allowance of a cost value equal to a uniform percentage of the sales (or purchases) of the indus- try member’s products by each cus- tomer during a specified and identical period of time: Provided, however, That when the service, facility or al- lowance offered is of a type which under reasonable terms and conditions is not usable or suitable to the facili- ties and business of all customers, and is offered to any one customer, the member offer each of those customers § 118.17 to whom the service, facility or allow- ance is not usable or suitable an alter- native type of promotional service, fa- cility or allowance which is of equiva- lent measurable cost, is usable by the customer, and is suitable to his facili- ties and business, and promptly inform all competing customers of the kind and amount of services, facilities or allowances which he has offered to each and the respective terms and con- ditions under which such services, facilities or allowances are to be fur- nished by the industry member: And- provided, further, That when the offer of any service, facility or allowance to any customer is conditioned on such customer supplying some reciprocal service, facility or payment, a recipro- cal service, facility or payment be re- quired in the offers to all other cus- tomers and there be an equality of ratio among all customers as to the measurable cost of that which is sup- plied by the industry member and the reciprocal service, facility or payment required by any customer. The indus- try member must take every reason- able precaution to see that services, facilities or allowances which he fur- nished to customers are used in accord with the terms of his offer; and upon failure of the customer to perform any obligation on his part the industry member must cease supplying the cus- tomer any further service, facility or allowance. (g) Inducing or receiving an illegal discrimination in price, advertising or promotional allowances, or services or Sacilities. It is an unfair trade practice for any member of the industry en- gaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price, ad- vertising or promotional allowances, or services or facilities, prohibited by the foregoing provisions of this section. (Rule 16] $118.17 Aiding or abetting use of unfair trade practices. It is an unfair trade practice for any person, firm, or corporation to aid, abet, coerce, or induce another, direct- ly or indirectly, to use or promote the use of any unfair trade practice pro- hibited by this part. [Rule 17] PARTS 147-149 [RESERVED]