Tubular Piping And Trimmings Manufacturing Industry
16 CFR Part 120 · Trade practice rules · in the Code of Federal Regulations 1938-1938 (1 annual editions)
Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.
Latest edition: Library of Congress, 1938 CFR · Earliest edition: 1938 CFR
Text (1938 edition, OCR)
§ 119.16 TITLE 16—COMMERCIAL PRACTICES 119.16 False marking or branding. The false or deceptive mark- ing or branding of products of the industry for the purpose or with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public with respect to the grade, quality, quantity, use, size, material, content, origin, prepara- tion, manufacture or distribution of such products, or in any other material respect, is an unfair trade practice.*t 119.17 False invoice. Withholding from or inserting in invoices or sales tickets any statements or information by reason of which omission 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 effect of thereby misleading or deceiving pur- chasers, prospective purchasers, or the consuming public, is an unfair trade practice.*t PART 120—TUBULAR PIPINGS AND TRIMMINGS MANUFACTURING INDUSTRY * Sec. Sec. 120.1 Sales below cost. 120.6 Defamation of competitors. 120.2 Inducing breach of contract. 120.7 False advertising. 120.3 Imitation trade-marks and 120.8 Enticing employees. names, 120.9 Coercing purchases. 120.4 Threats of suit. 120.10 Marked-up prices. 120.5 Discrimination (Robinson-Pat- 120.11 Misuse of word “free”. man). 120.12 Substitution. (a) Prohibited discriminatory 120.13 Commercial bribery. rebates, refunds, discounts, 120,14 Espionage. credits, and other price differ- 120.15 Misrepresenting standards of entials. products. (b) Prohibited brokerages and 120.16 Misrepresenting character of commissions. business, (c) Prohibited advertising of promotional allowances, ete. 120.17 False marking or branding. 120.18 False invoice. (d) Prohibited discriminatory services or facilities. (e) Dllegal price discrimination. Section 120.1 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 com- petition or tend to create a monopoly or unreasonably restrain trade, is an unfair trade practice; all elements recognized by good account- ing practice as proper elements of such cost shall be included in de- termining cost under this section.**it **§§ 120.1 to 120.18, inclusive, (with the exception noted in the text,) issued under the authority contained in sec. 5, 38 Stat. 719; 15 U.S.C. 45. ttIn §§ 120.1 to 120.18, inclusive, the numbers to the right of the decimal point correspond with the respective rule numbers in Trade practice rules, Tubular Pipings and Trimmings Manufacturing Industry, FTC, Apr. 23, 1937. 5 See footnote p. 116. Page 136 *tFor statutory and source citations, see note to § 119.1. [856] . CHAPTER I—FEDERAL TRADE COMMISSION § 120.5 120.2 Inducing breach of contract. Willfully inducing or at- tempting to induce, by any false or deceptive means whatsoever, the breach of any lawful contract or contracts existing between competi- tors 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 practice.*7 120.3 Imitation trade-marks and names. The imitation of the trade-marks, trade names, brands, labels or other marks of identifica- tion of competitors, having the tendency, capacity or effect of mis- leading or deceiving purchasers, prospective purchasers or the con- suming public, is an unfair trade practice.*t 120.4 Threats of suit. The circulation of threats of suit for in- fringement of patents or trade-marks among customers or prospective customers 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.*t 120.5 Discrimination (Robinson-Patman)—(a) Prohibited dis- criminatory differentials, 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 differentials, rebates, refunds, discounts, credits or other allowances which effectuate a discrimination in price between different purchas- ers 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 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 herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered ; (3) That nothing herein contained 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 herein contained shall prevent price changes from time to time where made in response to changing conditions affecting either (i) the market for the goods concerned, or (ii) the market- * See footnote p. 116. *tFor statutory and source citations, see note to § 120.1, Page 137 857] 102569-—39—rrrLE 16——-55 : § 120.6 TITLE 16—-COMMERCIAL PRACTICES ability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, dis- tress sales under court process, or sales in good faith in discontinuance of business in the goods concerned. (b) Prohibited brokerages and commissions. It is an unfair trade practice for any member of the industry engaged 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 discount in lieu thereof, except for services ren- dered in connection with the sale or purchase of goods, wares, or mer- chandise, 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 control, of any party to such transaction other than the person by whom such compensation is so granted or paid. (c) Prohibited advertising or promotional allowances, ete. 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 pro- motional 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 com- pensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, han- dling, sale or offering for sale of any products or commodities manu- factured, 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 com- modities. (d) Prohibited discriminatory services or facilities. It is an unfair trade practice for any member of the industry engaged in commerce ® to discriminate 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 by furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale or offering for sale of such com- modity so purchased upon terms not accorded to all purchasers on proportionally equal terms. (e) Iegal price discrimination. It is an unfair trade practice for any member of the industry of other person engaged in commerce,® in the course of such commerce, 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 discrimination in price which is prohibited by such section as amended.t (49 Stat. 1526; 15 U.S.C., Sup., 13-18b, 21a) 120.6 Defamation of competitors. The defamation of competi- tors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, or the false disparagement of the grade, quality or 5 See footnote p. 116. Page 138 For source citation, see note to § 120.1. ~ [858] CHAPTER I—-FEDERAL TRADE COMMISSION § 120.13 manufacture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*t 120.7 False advertising. The making, or causing or permitting to be made or published, any false, untrue or deceptive statement or representation, by way of advertisement or otherwise, 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 deceiv- ing purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*t 120.8 Enticing employees. Wilfully enticing away the em- ployees of competitors, with the purpose and effect of unduly ham- pering, injuring or embarrassing competitors in their businesses, is an unfair trade practice.*t 120.9 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 substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice.*t 120.10 Marked-up prices. Offering merchandise for sale at prices purported to be reduced from what are in fact fictitious prices, or offering merchandise for sale at a purported reduction in price when such purported reduction is in fact fictitious, with the tendency and capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*t 120.11 Misuse of word “free”. The use of the word “free” where not properly or fairly qualified when the article is in fact not free, with the tendency or capacity to mislead or deceive purchasers, pros- pective purchasers or the consuming public, is an unfair trade prac- tice.*t 120.12 Substitution. The practice of shipping or delivering prod- ucts which do not conform to the samples submitted or representa- tions made prior to securing the orders, without the consent of the purchasers to such substitutions, and having the tendency, capacity, or effect of deceiving or misleading purchasers, prospective purchas- ers or the consuming public, is an unfair trade practice.*t 120.18 Commercial bribery. Directly or indirectly to give or permit to be given or offer to give money or anything of value to agents, employees or representatives of customers or prospective cus- tomers, or to agents, employees or representatives of competitors’ customers or prospective customers, without the knowledge of their employers or principals, as an inducement to influence their employ- ers or principals to purchase or contract to purchase industry prod- ucts from the maker of such gift or offer, or to influence such *f¥or statutory and source citations, see note to § 120.1. Page 139 [859} § 120.14 TITLE 16—COMMERCIAL PRACTICES employers or principals to refrain from dealing or contracting to deal with competitors, is an unfair trade practice.*? 120.14 Espionage. Securing information from competitors con- cerning their businesses by false or misleading statements or rep- resentations or by false impersonation of one in authority, and the wrongful use thereof to unduly hinder or stifle the competition of such competitors, is an unfair trade practice.*t 120.15 Misrepresenting standards of products. In connection with the sale or offering for sale of products of the industry, repre- senting through advertising or otherwise that such products conform to any standards recognized in or applicable to the industry when such is not the fact, with the tendency, capacity or effect of mislead- ing or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*+ 120.16 Misrepresenting character of business. For any person, firm or corporation to hold himself or itself out to the public as a manufacturer or wholesaler when such is not the fact, or in any other manner to misrepresent the character, extent or type of his or its business, with the tendency or capacity to mislead or deceive purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*t 120.17 False marking or branding. The false or deceptive mark- ing or branding of products of the industry for the purpose or with the tendency, capacity or effect of misleading or deceiving purchas- ers, prospective purchasers or the consuming public with respect to the grade, quality, quantity, use, size, material, content, origin, prep- aration, manufacture or distribution of such products, or in any other material respect, is an unfair trade practice.*t 120.18 False invoice. Withholding from or inserting in invoices or sales tickets any statements or information by reason of which omission 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 effect of thereby misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.*t Page 140 *+For statutory and source citations, see note to § 120.1. £860]