Mirror Manufacturing Industry
16 CFR Part 118 · Trade practice rules · in the Code of Federal Regulations 1938-1960 (5 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
§ 117 23
is subject to the direct or indirect con-
trol, of any party to such transaction
other than the person by whom such
compensation 1s so granted 01 paid
(ec) Prohibited advertising or promo-
tronal allowances etc It 1s an unfair
trade practice for any member of the
industry engaged in commerce to pay or
contract for the payment of advertising
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 facil-
ities furmshed by or through such cus-
tomer 1n 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 18
available on proportionally equal terms
to all other customers competing in the
distribution of such products or com-
modities
(a) Prohibited discriminatory services
or facilities It 1s an unfair trade prac-~
tice for any member of the mdustry 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
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
accorded to all competing purchasers on
proportionally equal terms
(e) Inducing or reeetving an illegal
discrumination in price It 1S an unfair
trade practice for any member of the
industry engaged in commerce in the
course of such commerce knowingly to
mduce or receive a discrimination in
price which 1s prohibited by the fore-
going provisions of this section
Note This paragraph is a re-statement of
section 2 (f) of the Clayton Act as amended.
In @ complaint proceeding under this section
in order to make out a prima facie violation
the Commission must show that the favored
buyer induced or received the lower price
knowing or knowing facts from which he
should have known that such price was
violative of section 2 (a) of said act and not
justified under subparagraph (2) (4) or (5)
of paragraph (a) of this section When in
any such proceedings the issue is limited to
the question of whether the price differential
involved made only due aliowance for dif-
ferences in cost of manufacture sale or
Page 288
Title 16—Commercial Practices
delivery resuiting from the differing methods
or quantities in which the goods were sold
and delivered the Commission may estab-
lish a prima facie case in a number of ways
including
(1) By showing that the buyer paying the
lower price knew that the methods by and
quantities in which the goods were soid and
delivered to him by the selier were the same
as in the case of the competing buyer or
buyers paying the higher price or prices or
(2) By showing when there is a difference
in the methods or quantities in which the
goods were sold and delivered by the seiler
to the buyer than in the case of the compet-
ing buyer or buyers paying the higher price
or prices that the buyer paying the iower
price or prices knew the nature and extent of
such differences and knew or should have
known that they could not have resulted in
sufficient cost savings of the kind and char-
acter specified as to justify the price
differential
(ff) Exemptions The inhibitions of
this section shail not apply to purchases
of their supphes for their own use by
schools, colleges universities, public li-
braries, churches, hospitals, and chari-
table institutions not operated for profit
§ 11723 Aiding or abetting use of un-
fair trade practices
It 1s 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 the
foregoing sections of this part
PART 118—MIRROR MANUFACTUR-
ING INDUSTRY
Group I
See
1181 Definitions
1182 Deception in general
1183 Misrepresentations as to kinds of
glass quality thickness or backing
1184 Misuse of words plate glass thick-
ness’ etc
1185 Useofterm sheet giass without dis-
closing kind of glass
1186 Disclosure as to kind of giass in
mirrors
1187 Deceptive guarantees
1188 Misrepresenting seconds” etc
1189 Misuse of terms close-outs ‘dls-
continued lines etc
11810 Use of lottery or scheme of chance
11811 Substituting inferior products for
those ordered
11812 Imitation or simulation of trade-
marks etc
11813 Faise invoicing
11814 Misleading price quotations etc
11816 Commercial bribery
Chapter iI—-Federal
Sec
11816 Procurement of competitors confi-
dential information by unfair
means and wrongful use thereof
Defamation of competitors or dis-
paragement of their products
Unfair threats of infringement su{ts
Inducing breach of contract
Discrimination
Aiding or abetting use of unfair trade
practices
Group II
118101 Compliance with commercial stand-
ard National Bureau of Standards
118102 Uniform labeling
AUTHoriITy §§ 1181 to 118 102 issued under
sec 6 (g) 88 Stat 722 15U S C 46 (g)
Interpret or apply sec 5 388 Stat 719 as
amended 15 U S C 45 Other statutory
provisions interpreted or applied are cited
in text in parentheses
Source $§ 1181 to 118 102 appear at4F R
3372 July 20 1939
Group I
§1181 Definitions
For the purpose of this part the follow-
ing definitions shall apply
(a) Plate glass mirrors are murrors
the glass of which 1s polished plate glass
Plate glass 1s transparent flat glass with
plane and parallel surfaces ground and
polished to the extent that the glass
shows no distortion of vision when ob-
Jects are viewed through it at any angle
Plate glass is produced 1n several differ-
ent grades and may be obtained also
in different thicknesses namely ¥-inch
1%4-inch 44-inch and other thicknesses
(b) Window giass (or so-called shock)
murrors are mirrors the glass of which
is window glass Window glass is trans-
parent, flat glass having glossy fire fin-
ished apparently plane and smooth sur-
faces not ground and polished as tn the
case of plate glass but having a charac-
teristic waviness of surface which 1s visi-
ble when viewed at an acute angle or in
reflected hight Window glass for use in
mirrors 1s customarily made in thick-
nesses Of %-inch and %-1nch It 1s also
made in thicknesses of %.-Inch 72-inch
¥,-inch and other thicknesses
§ 1182 Deception in general
It 1s an unfair trade practice to use, or
cause or promote the use of any adver-
tisement, descriptions brands marks
labels representations or selling methods
(a) which have the capacity and tend-
ency or effect of misleading or deceiving
11817
118 18
118 19
118 20
118 21
Trade Commission §118 4
the purchasing or consuming public with
respect to the brand, manufacture grade,
quality durability thickness origin size
substance content condition backing
silvering finish material or character of
any murror or other product of the in-
dustry, or (b) which are false muslead-
ing or deceptive in any other material
respect,
§ 1183 Misrepresentations as to kind of
glass, quality, thickness or backing
It 1s an unfair trade practice to sell,
offer for sale advertise, describe brand,
label or otherwise represent, directly or
indirectly, any mirror
(a) As “plate’ or plate glass or as
being made of plate glass when the glass
of such mirror is not in fact plate glass
or
(b) As being made of glass of a certain
grade quality or thickness or as being
free from or as having certain character-
istics when such is not true in fact, or
(c) As being or not being made of win-
dow glass when such 1s not true in fact,
or
(d) As beg copper backed or backed
with copper or having copper backing
when such backing is not genuine metal-
hie copper apphed by the electrolytic
process Nothing in this section shall be
construed however, as prohibiting the
use of representations to the effect that
any backing on mirrors which has not
been apphed by the electrolytic process
contains copper when such 1s the fact,
Promded There is clearly and nonde-
ceptively disclosed in immediate con-
Junction with such representations, in-
formation clearly showing the fact that
the backing on the mirrors is not such
genuine inetallic copper backing electro-
lytically apphed And promded further
Said representations are clearly and
definitely qualified phrased or stated in
such manner as not to cause the pur-
chasing or consuming public to be de-
ceptively confused misled or deceived as
to the character nature or content of
such backing or otherwise or
(e) As being made of or containing
crystal glass or as being crystal when
such glass 1s not 1n fact crystal glass
§1184 Misuse of words “plate glass
thickness,”’ ete
The use of the words ‘plate glass
thickness” or words or representations
Page 289
$1185
of similar import as descriptive of mir-
rors which are made of glass other than
plate glass, with the capacity and tend-
ency or effect of misleading or deceiving
the purchasing or consuming public 1s
an unfair trade practice
§1185 Use of term “sheet glass” with-
out disclosing kind of glass
The use of the term “sheet” or “sheet
glass’ or words of similar import, as de-
scriptive of mirrors made of window glass
or plate glass without disclosing the fact
that the glass in such mirrors 1s window
glass or plate glass as the case may be
having the capacity and tendency or
effect of misleading or deceiving the pur-
chasing or consuming public 1s an un-
fair trade practice
§ 1186 Disclosure as to kiud of glass in
murrors
(a) Full and nondeceptive disclosure
as to whether the glass 1n mirrors Is plate
glass window glass or other glass should
be made in accordance with the herein-
after stated provisions of this section to
the end that the purchasing and con-
suming public may be informed as to the
kind of glass n such mirrors and that de-
ceptive concealment misunderstanding
muisrepresentation and unfair practices
may be avoided and prevented in the
marketing of such mirrors And it 1s an
unfair trade practice to conceal the fact
as to the kind of glass in the mirrors or
to offer for sale sell or distribute mur-
rors without the disclosure of the kind of
glass therein such concealment or non-
disclosure having the capacity and tend-
ency or effect of misleading or decelving
the purchasing or consuming public
(b) Said disclosure pursuant to thls
section of the kind of glass in mirrors
shall be made by a label attached to and
displayed upon the face of each mirror of
a size greater than 48 square inches on
which label the facts as to the kind of
glass of which the murror 1s composed
shall be set forth clearly and nondecep-
tively as for example ‘PLATE GLASS”
for mirrors composed of plate glass
“WINDOW GLASS for mirrors com-
posed of window glass
(c) In making the above-mentioned
disclosure under this section labels at-
tached by manufacturers or those first
placing the mirrors in the channels of
trade shall be attached to the face of
each glass in the mirror in such manner
as to carry through the ordimary chan-
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Title 16—Commercial Practices
nels of trade to the ultimate purchaser
or consumer thus avoiding the necessity
of relabeling or further labeling as to the
kind of glass contained in the mirror so
long as such original label 1s clear and
remains upon the mirror
(ad) The removal obliteration or de-
facement of any label required by this
section to appear upon the face of the
murror or the sale resale or distribution
of any mirror without a label as herein-
above provided for with the capacity
and tendency or effect of deceptively
concealing the kind of glass contained
in such mirror or of otherwise causing
such mirror to be offered for sale sold
or purchased under false, misleading or
deceptive representations or conditions
1s an unfair trade practice
(e) It 1s deemed proper practice in
respect to mirrors covered by this section
or products containing such mirrors for
manufacturers distributors dealers or
other marketers to truthfully identify
in their invoices or sales ships to pur-
chasers and in their catalogs and trade
promotional literature whether the re-
spective mirrors so covered therein are
plate glass or window glass” muir-
rors Failure or refusal to make such
disclosure or identification when pursued
with the capacity and tendency or effect
of causing or promoting the sale resale
or purchase of such mirrors or murror
products under conditions of deceptive
concealment or other misleading condi-
tions or representations Is an unfair
trade practice
§ 1187 Deceptive guarantees
It is an unfair trade practice to make
or publish or cause to be made or pub-
lished directly or indirectly, through ad-
vertising trade or corporate name or
otherwise any false misleading or de-
ceptive statement, guarantee warranty
or other representation concerning “Sil-
ver spoilage ” or concerning the backing
or sllvering or the life or durability of
mniois
§ 1188 Mhisrepresenting “seconds,” etc
It 1s an unfair trade practice (a) to
offer for sale sell or distribute lower
quality or so-called “seconds or defec-
tive mirrors as and for mirrors of higher
grade or quality or as not being such
“seconds ’, or (b) to deceptively conceal
the fact that the product 1s defective
thereby causing purchasers to be misled
or decelved
Chapter I—Federal
§ 1189 Misuse of terms “close outs,”
“discontinued lines,”’ etc
It 1s an unfair trade practice to adver-
tise, describe or otherwise represent reg-
ular lines or merchandise as “close-outs ”
“discontinued lines ” or by words or rep-
resentations of simular import when
such are not true in fact or to so adver-
tise describe or otherwise represent
merchandise where the capacity and
tendency or effect thereof 1s to lead the
purchasing or consuming public to be-
heve such merchandise 1s being offered
for sale and sold at greatly reduced
prices or at so-called ‘bargain’ prices
when such 1s not the fact
§11810 Use of lottery or scheme of
chance
The offering or giving of prizes pre-
miums or gifts in connection with the
sale of industry products or as an in-
ducement thereto by any scheme which
involves lottery or scheme of chance 1s
an unfair trade practice
§ 11811 Substututing inferior produets
for those ordered
The practice of using or substituting
any products of the industry inferior in
grade or quality to that specified by the
purchaser without the consent of said
purchaser to such use or substitution or
with the tendency and capacity or effect
of misleading or decelving the purchas-
ing or consuming public 1s an unfair
trade practice
§ 118 12 Imitation or
trade-marks, ete
The imitation or simulation of the
trade-marks trade names labels or
brands of competitors with the capacity
and tendency or effect of misleading or
deceiving the purchasing or consuming
public 1s an unfair trade practice
§ 11813 False mvoicing
Withholding from or inserting 1n in-
voices any statement or information by
reason of which omission or insertion a
false record 1s made wholly or in part
of the transactions represented on the
face of such invoices with the effect of
thereby misleading or decelving the pur-
chasing or consuming public 1s an unfair
trade practice
simulation of
§ 11814 Misleading price quotations,
ete
The making publishing or circulat-
ing by any member of the industry of
Trade Commission § 11818
false or musleading price quotations,
price lists terms or conditions of sale
with the tendency and capacity or effect
of misleading or deceiving the purchas-
ing or consuming pubhe 1s an unfair
trade practice
§11815 Commercial bribery
It 1s an unfair trade practice for a
member of the industry directly or indi-
rectly to give or offer to give or permit or
cause to be given money or anything of
value to agents, employees or representa-
tives of customers or prospective cus-
tomers or to agents employees or
representatives of competitors’ custom-
ers or prospective customers without the
knowledge of their employers or princi-
pals as an inducement to influence their
employers or principals to purchase or
contract to purchase products manufac-
tured or sold by such industry member or
the maker of such gift or offer or to in-
fluence such employers or principals to
refrain from dealing in the products of
competitors or from dealing or contract-
ing to deal with competitors
§ 11816 Procurement of competitors’
confidential information by unfair
means and wrongful use thereof
It 1s an unfair trade practice for any
member of the industry to obtain infor-
mation concerning the business of a
competitor by bribery of an employee or
agent of such competitor by false or mis-
leading statements or representations by
the impersonation of one in authority or
by any other unfair means and to use the
information so obtained in such a man-
ner as to injure said competitor in his
business or to suppress competition or
unreasonably restrain trade
§11817 Defamation of competitors or
disparagement of their products
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 dis-
paragement of the grade quahty or man-
ufacture of the products of competitors
or of their business methods selling
prices values credit terms _ policies,
services or conditions of employment 1s
an unfair trade practice
§ 11818 Unfarr threats of infringement
suits
The circulation of threats of suit for
infringement of patents or trade-marks
Page 291
§ 11819
among customers or prospective custom-
ers of competitors, not made in good
faith but for the purpose or with the
effect of harassing or intimidating such
customers or prospective customers or of
unduly hampering injuring or prejudic-
ing competitors in their businesses, is an
unfair trade practice
§11819 Inducing breach of contract
Inducing or attempting to mduce the
breach of existing lawful contracts be-
tween competitors and their customers or
their supphers by any false or deceptive
means whatsoever or interfering with or
obstructing the performance of any such
contractual duties or services by any such
means with the purpose and effect of
unduly hampering injuring or prejudic-
ing competitors in their businesses 1s an
unfair trade practice
§ 11820 Discrimination
(a) Prohibited discriminatory prices
or rebates refunds discounts credits
etc’ which effect unlawful price discrim-
mation Itisan unfair trade practice for
any member of the industry engaged in
commerce in the course of such com-
merce, to grant or allow, secretly or
openly directly or indirectly any rebate,
refund, discount credit or other form of
price differential, where such rebate, re-
fund discount credit, or other form of
price differential effects a discrimination
in price between different purchasers of
goods of hke grade and quality, where
either or any of the purchases involved
therem 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
knowimgly receives the benefit of such
discrimination or with customers of
either of them Provided, however (1)
That the goods involved m any such
transaction are sold for use, consump-~
tion, or resale within any place under the
jurisdiction of the United States,
(2) That nothing contained in this
section shall prevent differentials which
make only due allowance for differences
in the cost of manufacture, sale, or de-
livery resulting from the _ differing
1Paragraph (a) of § 11820 shall not be
construed as embracing practices prohibited
by paragraphs (b) (c) and (d) of this
section
Page 292
Title 16—Commercial Practices
methods or quantities in which such
commodities are to such purchasers sold
or delivered
(3) That nothing contamed in this
section shall prevent persons engaged mn
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 response to
changing conditions affecting either ()
the market for the goods concerned or
Qi) the marketability of the goods such
as but not hmuited to, actual or immi-
nent 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) Prohitnted brokerage and com-
missions It 1s an unfair trade practice
for any member of the industry engaged
in commerce, 1n the course of such com-
merce, to pay or grant, or to receive or
accept anything of value as a commuis-
sion brokerage, or other compensation
or any allowance or discount in heu
thereof except 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 representative or other inter-
mediary 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 person by whom such compen-
sation 1s so granted or paid
(c) 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 advertising
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 facili-
ties furnished by or through such cus-
tomer im connection with the processing
handhng sale or offerings 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
to all other customers competing in the
distribution of such products or commod-
ities
Chapter !—-Federal Trade Commission
(da) Prohibited discreminatory services
or facitees It 1s 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 fur-
nishing of any services or facilities con-
nected with the processing handling
sale or offering for sale of such com-
modity so purchased upon terms not ac-
corded to all purchasers on proportion-
ally equal terms
(e) Inducing or recewwing an illegal
discrimination in price It Is an unfair
trade practice for any member of the
industry engaged 1n commerce in the
course of such commerce knowingly to
induce or receive a discrimination 1n price
which 1s prohibited by the foregoing pro-
visions of this section
(Sec 2 38 Stat 730 as amended secs 2 3 4
49 Stat 1527 1528 15U S C 13 18a 18b 21a)
§ 11821 Ardimg or abettmg use of un-
fair trade practices
It 1s 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 this
part
Group II
§ 118 101 Compliance with commercial
standard, National Bureau of Stand-
ards
The industry recommends that each
member thereof comply with Commer-
cial Standard CS 27-36 for Mirrors as
promulgated by the National Bureau of
Standards United States Department of
Commerce
§ 118 102 Uniform labelmg
To faciltate protection of the purchas-
ing public 1t 1s the judgment and recom-
mendation of the industry that the labels
to be used pursuant to § 1186 should be
of uniform wording as follows
(a) For plate glass mirrors
This mirror is made
of
PLATE GLASS
(b) For window glass mirrors
This mirror is made
of
WINDOW GLASS
§ 1193
PART 119—COVERED BUTTON AND
BUCKLE MANUFACTURING INDUS-
TRY
Group I
Sec
1191 Sales below cost
1192 Enticing employees
1193 Defamation of competitors
1194 Imitation of trade-marks trade
names etc
1195 Discrimination
1196 Inducing breach of contract
1197 Misrepresentation in general
1198 Coercing purchases
1199 Fictitious prices
11910 Mlsuse of the word free
11911 Substitution
11912 Commercial bribery
11913 Espionage
11914 Misrepresenting products as con-
forming to standard
11915 Misrepresenting character of busi-
ness
11916 False marking or branding
11917 False involcing
AUTHORITY §§ 1191 to 119 17 issued under
sec 6 (g) 38 Stat 722 15U S C 46 (g)
Interpret or apply sec 5 38 Stat 719 as
amended 15 U S C 45 Other statutory
provisions interpreted or applied are cited
to text in parentheses
Source §§1191 to 11917 contained in
trade practice rules Covered Button and
Buckle Manufacturing Industry FTC Apr
9 1937
§ 1191 Sales below 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 to unreasonably restrain trade is an
unfair trade practice all elements recog-
nized by good accounting practice as
proper eleinents of such cost shall be
included in determining cost under this
section
§ 1192 Entiemg employees
Wulfully enticing away the employees
of competitors with the purpose and
effect of unduly hampering, injuring or
elnbarrassing competitors in their busi-
nesses, 1s an unfair trade practice
§ 1193 Defamation of competttors
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 dis-
paragement of the grade quality or
Page 293