Covered Button And Buckle Manufacturing Industry

16 CFR Part 119 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1976 CFR · Earliest edition: 1938 CFR

Decisions that mention this industry's rules (3)

Text (1976 edition, OCR)

Chapter |—Federal Trade Commission

products by each customer during a
specified and identical period of time:
Provided, however, That when the serv-
ice, facility or aliowance offered is of a
type which under reasonable terms and
conditions is not usable or suitable to the
facilities and business of ali customers,
and is offered to any one customer, the
member offer each of those customers to
whom the service, facility or alowance is
not usable or suitable an alternative type
of promotional service, facility or ailow-
ance which is of equivalent measurable
cost, is usabie by the customer, and is
suitable to his facilities and business, and
promptly inform all competing customers
of the kind and amount of services, facili-
ties or allowances which he has offered
to each and the respective terms and
conditions 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, facil-
ity or payment, a reciprocal service, faci'-
ity or payment be required in the offers
to all other customers and there be an
equality of ratio among all customers as
to the measurable cost of that which is
supplied by the industry member and the
reciprocal service, facility or payment re-
quired by any customer. The industry
member must take every reasonable pre-
caution to see that services, facilities or
allowances which he furnished to cus-
tomers are used m accord with the terms
of his offer; and upon failure of the cus-
tomer to perform any obligation on his
part the industry member must cease
supplying the customer any further serv-
ice, facility or allowance.

(g) Inducing or receiving an illegal
discrimination in price, advertising or
promotional allowances, or services or
facilities. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
merce, knowingly to induce or receive a
discrimination in price, advertising or
promotional allowances, or services or
facilities, prohibited by the foregoing
provisions of this section. [Rule 16]

§ 118.17 Aiding or abetting use of un-
fair trade practices.

It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or
indirectly, to use or promote the use of

§ 119.3

any unfair trade practice prohibited by
thispart. [Rule 17]

PART 119—COVERED BUTTON AND
BUCKLE MANUFACTURING INDUS-
TRY

Group I
Sec.
119.1 Sales below cost.
119.2 Enticing employees.
119.3 Defamation of competitors.
119.4 Imitation of trade-marks, trade
: names, etc.
119.5 Discrimination.
119.6 Inducing breach of contract.
119.7 Misrepresentation in general.
119.8 Coercing purchases.
119:9 Fictitious prices.
119.10 Misuse of the word “free.”
119.11 Substitution.
119.12 Commercial bribery.
119.18 Espionage.
119.14 Misrepresenting products as con-
forming to standard.
119.15 Misrepresenting character of busl-
ness.
119.16 False marking or branding.
119.17 False invoicing.

AutTHoRITY: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: Trade practice rules, Covered
Button and Buckle Manufacturing Industry,
FIC, Apr. 9, 1937, unless otherwise noted.

§ 119.1 Sales below cost.

The practice of selling goods below the
seller’s cost, with the intent and with the
effect of injurmg 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 elements of such cost shall be
included in determining cost under this
section.

§ 119.2 Enticing employees.

Wiilfully enticmg away the employees
of competitors, with the purpose and ef-
fect of unduly hampermg, injuring or
embarrassing competitors in their busi-
nesses, is an unfair trade practice.

§ 119.3 Defamation of competitors.

The defamation of competitors by
falsely imputing 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
manufacture of the products of compet-

553

58—063— 76-36


§ 119.4

itors, or of their business methods, selling
prices, values, credit terms, policies or
services, with the tendency, capacity or
effect of misleading or deceiving pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 119.4 Imitation of trade-marks, trade
names, etc.

The imitation of the trade-marks,
trade names, brands, labels or other
marks of identification of competitors,
having the tendency, capacity or effect
of misleading or deceiving purchasers,
prospective purchasers or the consuming
public, is an unfair trade practice.

§ 119.5 Discrimination.

(a) Prohibited discriminatory differ-
entials, rebates, 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 allow, secretly or openly,
directly or indirectly, any price differ-
entials, rebates, refunds, discounts, cred-
its or other allowances which effectu-
ate a discrimination in price between
different purchasers of goods of like
grade and quallty where either or any of
the purchases involved therein are in
commerce and where the effect thereof
may be substantially to lessen competi-
tion 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 discrimination 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 which
make only due allowance 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 shail prevent price changes from
time to time where made in response to

Title 16—Commercial Practices

changing conditions affecting either (i)
the market for the goods concerned, or
(ii) the marketability of the goods, such
as, but not limited to, actual or imminent
deterioration of perishable goods, obso-
lescence 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, im the course of such com-
merce, to pay or grant, or to receive or
accept, anything of value as a commis-
sion, brokerage, or other compensation,
or any allowance or discount in lieu
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 intermedi-
ary 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 is 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 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
avallable on proportionally equal terms
to all other customers competing in the
distribution of such products or com-
inodities.

(d) Prohibited discriminatory services
or facilities. It is an unfair trade prac-~
tice for any member of the industry
engaged in commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commod-
ity bought for resale, with or without
processing, by contracting to furnish or
by furnishing of, any services or facilities
connected with the processing, handling,
furnishing, or by contributmg to the
sale or offering for sale of such commod-
ity so purchased upon terms not ac-

554


Chapter |—Federal

corded to all purchasers on proportion-
ally 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 dis-
crimination 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. 13, 18a, 13b,
Qala) ‘

$119.6 Inducing breach of contract.

Willfully inducing or attempting to in-
duce, by any false or deceptive means”
whatsoever, the breach of any lawful
contract or contracts existing between
competitors and their customers or their
suppliers, or willfully interfering with or
obstructing the performance of any such
contractual duties or services, with the
purpose and effect of unduly hampering,
injuring or embarrassing competitors in
their businesses, is an unfair trade prac-
tice,

§ 119.7 Misrepresentation in general.

The making, or causing or permitting
to be made or published, any false, un-
true or deceptive statement or represen-
tation, by way of advertisement or other-
wise concerning the grade, quality,
quantity, substance, character, nature,
origin, size or preparation of any product
of the industry, or in any other material
respect, with the tendency, capacity or
effect of. misleading or deceiving pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 119.8 Coercing purchases.

The practice of coercing the purchase
of one or more products as a prerequisite
to the purchase of one or more other
products, where the effect may be to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade, is an unfair trade
practice.

§ 119.9 Fictitious prices.

Offering merchandise for sale at prices
purported to be reduced from what are in
fact fictitious prices, or offering mer-
chandise for sale at a purported reduc-
tion in price when such purported re-

Trade Commission § 119.14
duction is in fact fictitious, with the
tendency and capacity or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers or the consuming
public, is an unfair trade practice.

§ 119.10 Misuse of the word “free.’’

The use of the word “free” where not
properly or fairly qualified when the
article is in fact not free, with the tend-
ency or capacity to mislead or deceive
purchasers, prospective purchasers or
the consuming public, is an unfair trade
practice. .

§ 119.11 Substitution.

The practice of shipping or delivering
products which do not conform to the
samples submitted or representations
made prior to securing the orders, with-
out the consent of the purchasers to such
substitutions, and having the tendency,
capacity or effect of deceiving or mis-
leading purchasers, prospective pur-
chasers or the consuming public, is an
unfair trade practice.

§ 119.12 Commercial bribery.

Directly or indirectly to give or per-
mit to be given or offer to give money or
anything of value to agents, employees
or representatives of customers or pro-
spective customers, or to agents, employ-
ees or representatives of competitors’
customers or prospective customers,
without the knowledge of their employ-
ers or principals, as an inducement to
influence their employers or principals
to purchase or contract to purchase in-
dustry products from the maker of such
gift or offer, or to influence such em-
ployers or principals to refrain from
dealing or contracting to deal with com-
petitors, is an unfair trade practice.

§ 119.13 Espionage.

Securing information from competitors
concerning their businesses by false or
misleading statements or representations
or by false impersonation of one in au-
thority, and the wrongful use thereof to
unduly hinder or stifie the competition
of such competitors, is an unfair trade
practice. ~

§ 119.14 Misrepresenting products
conforming to standard.

In connection with the sale or offering
for sale of products of the industry, rep-
resenting through advertising or other-
wise that such products conform to any
standards recognized in or applicable to

as

555


§ 119.15

the industry 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.

§ 119.15 Misrepresenting character of
husiness.

For any person, firm or corporation
to hold himself or itself out to the
public as a manufacturer or whole-
saler when such is not the fact, or in any
other manner to misrepresent the char-
acter, extent or type of his or its business,
with the tendency or capacity to mislead
or deceive purchasers, prospective pur-
chasers or the consuming public, is an
unfair trade practice.

§ 119.16 False marking or branding.

The false or deceptive marking or
branding of products of the mdustry for
the purpose or with the tendency, capac-
ity or effect of misleading or deceiving
purchasers, prospective purchasers or the
consuming public with respect to the
grade, quality, quanity, use, size, mate-
rial, content, orgin, preparation, manu-
facture or distribution of such products,
or in any other material respect, is an un-
fair trade practice.

§ 119.17 False invoicing.

Witholding from or inserting in
invoices or sales tickets any statements
or information by reason of which omis-
sion or insertion a false record is made,
wholly or in part, of the transactions
represented on the face of such invoices
or sales tickets, with the purpose or ef-
fect of thereby misleading or deceiving
purchasers, prospective purchasers, or
the consuming public, is an unfair trade
practice.

PART 120—-TUBULAR PIPINGS AND
TRIMMINGS MANUFACTURING IN-
DUSTRY

Group I

Sec.
120.1: Sales below cost.
120.2 Inducing breach of contract.
120.3 Imitation of trade-marks, trade

names, etc.
120.4 Threats of sult.
120.5 Discrimination.
120.6 Defamation or competitors.
120.7. Misrepresentation in general.
120.8 Enticing employees.
120.9 Coercing purchases.
120.10 Fictitlous prices.
120.11 Misuse of the word “free.”
120.12 Substitution.

Title 16—Commercial Practices

Sec.

120.13
120.14
120.15

Commercial bribery.

Espionage.

Misrepresenting products as con-
forming to standard.

Misrepresenting character of busi-
ness,

120.17 False marking or branding.

120.18 False invoicing.
AutTHoritTy: Secs. 6(g), 5, 38 Stat. 722, 719;

15 U.S.C, 46(g), 45, unless otherwise noted.
Source: Trade practlces rules, Tubular

Pipings and Trimmings Manufacturing In-

dustry FTC, Apr. 23, 1937, unless otherwise
noted.

§ 120.1 Sales below cost.

The practice of selling goods below the
seller’s cost, with the intent an.i with the
effect of injuring a competitor and where
the effect may be to substantially lessen
competition or tend to create a monop-
oly or unreasonably restrain trade, is an
unfair trade practice; all elements rec-
ognized by good accounting practice as
proper elements of such cost shall be
included in determining cost under this
section.

§ 120.2 Inducing breach of contract.

Willfully inducing or attempting to in-
duce, by any false or deceptive means
whatsoever, the breach of any lawful
contract or contracts existing between
competitors and their customers or their
suppliers, or willfully interfering with or
obstructing the performance of any such
contractural duties or services, with the
purpose and effect of unduly hampering,
injuring or embarrassing competitors in
their business, is an unfair trade prac-
tice.

§ 120.3 Imitation of trade-marks, trade
names, etc.

The imitation of the trade-marks,
trade names, brands, labels or other
marks of identification of competitors,
having the tendency, capacity or effect of
misleading or deceiving purchasers,
prospective purchasers or the consum-
ing public, is an unfair trade practice.

§ 120.4 Threats of suit.

The circulation of threats of suit for
infringement of patents or trade-marks
among customers or prospective cus-
tomers of competitors, not made in good
faith but for the purpose or with the ef-
fect of harassing or intimidating such
customers or prospective customers, or

120.16

556