Tubular Pipings And Trimmings Manufacturing Industry

16 CFR Part 120 · Trade practice rules · in the Code of Federal Regulations 1943-1976 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1943 CFR

Text (1976 edition, OCR)

§ 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

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Chapter I—Federal Trade Commission

of unduly hampering, injuring or prej-
udicing competitors in their businesses,
is an unfair trade practice.

§ 120.5 Discrimination.

(a) Prohibited discriminatory differ-
entials, rebates, refunds, discounts, cred-
its and other allowanees. It is an unfair
trade practice for any member of the
industry engaged in commerce in the
course of such cominerce, to grant or
allow, secretly or openly, directly or indi-
rectly, any price differentials, rebates,
refunds, discounts, credits or other al-
lowances which effectuate a discrimina-
tion in price between different purchasers
of goods of like grade and quality where
either or any of the purchases involved
therein are in commerce and where the
effect thereof may be substantially to
lessen competition or tend to create a
monopoly in any line of commerce or to
injure, destroy or prevent competition
with any person who either grants or
knowingly receives the benefit of such
discrimination or with customers of
either of them: Provided however, (1)
That the goods involved in any such
transaction are soid 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 resultmg from the differing methods
or quantities in which such commodities
are to such purchasers sold or delivered;

(3) That nothing contained in this
section shall prevent persons engaged in
selling goods, wares or merchandise in
commerce from selecting their own cus-
tomers in bona fide transactions and not
in restraint of trade;

(4) That nothing contained in this
section shall prevent price changes from
time to time where made in response to
changing conditions affecting either (i)
the market for the goods concerned, or
di) 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-
mission. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
merce, to pay or grant, or to receive or

§ 120.5

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-
inediary 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 is so granted or paid.

(c) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of vaiue 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 facilitles
furnished by or through such customer
in connection with the processing, han-
dling, 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
available on proportionally equal terms
to all other customers competing in the
distribution of such products or
commodities.

(a) Prohibited discriminatory services
or facilities. It is an unfair trade prac-
tice for any member of the industry en-
gaged in commerce to discrimmate 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 commodity so
purchased upon terms not accorded to all
purchasers on proportionally 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 coin-
Inerce, to discriminate in price in any
other respect contrary to section 2 of the
Clayton Act as amended by the act of
Congress approved June 19, 1936, or
knowingly to induce or receive a discrim-
ination in price which is prohibited by
such section as amended.

(Sec. 2, 33 Stat. 730, as amended, secs. 2, 3, 4,
49 Stat. 1527, 1528; 15 U.S.C. 13, 18a, 13b, 21a)

557


§ 120.6

8 120.6 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 man-
ufacture 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 pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 120.7 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 ways of advertisement or
otherwise, concerning the grade, quality,
quantity, substance, character, nature,
origin, size or preparation of any prod-
uct of the industry, or in any other ma-
terial respect, with the tendency,
capacity or effect of misleading or de-
celving purchasers, prospective pur-
chasers or the consuming pubilc, is an
unfair trade practice.

§ 120.8 Enticing employees.

Willfully enticing away the employees
of competitors, with the purpose and ef-
fect of unduly hampering, injuring or
embarrassing competitors in their busi-
Nesses, is an unfair trade practice.

§ 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 sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade, is an unfair trade
practice.

§ 120.10 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 reduc-
tion is in fact fictitious, with the tend-
ency and capacity or effect of misleading
or deceiving purchasers, prospective pur-
chasers or the consuming public, is an
unfair trade practice.

§ 120.11 Misuse of the word “free.”

The use of the word “free’’- where not
properly or fairly qualified when the ar-

Title 16—Commercial Practices

ticle is in fact not free, with the tendency
or capacity to mislead or deceive pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 120.12 Substitution.

The practice of shipping or delivering
products which do not conform to the
samples submitted or representations
made prior to securmg 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.

§ 120.13 Commercial bribery.

Directly or indirectly to give or permit.
to be given or offer to give money or any-
thing of value to agents, employees or
representatives of customers or prospec-
tive customers, or to agents, employees.
or representatives of competitors’ cus-
tomers or prospective customers, without.
the knowledge of their employers or
principals, as an inducement to influence
their employers or principals to purchase
or contract to purchase industry prod-
ucts from the maker of such gift or offer,
or to influence such employers or prin-
cipals to refrain from dealing or con-
tracting to deal with competitors, is an
unfair trade practice.

§ 120.14 Espionage.

Securing information from competi-
tors concerning their businesses by false
or misleading statements or representa-
tions or by false impersonation of one in
authority, and the wrongful use thereof
to unduly hinder or stifle the competi-
tion of such competitor, is an unfair
trade practice. :

§ 120.15  Misrepresenting products as
conforming to standard.

In connection with the sale or offering
for sale of products of the industry, rep-
resenting through advertlsing, or other-
wise 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
misleading or deceiving purchasers, pro-
spective 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

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Chapter I—Federal Trade Commission

as a manufacturer or wholesaler when
such is not the fact, or in any other man-
ner to misrepresent the character, extent
or type of his or its business, with the
tendency or capacity to mislead or de-
ceive purchasers, prospective purchasers
or the consuming public, is an unfair
trade practice.

§ 120.17 False marking or branding.

The false or deceptive marking or
branding of products of the industry 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, quantity, use, size, mate~
rial, content, origin, preparation, manu-
facture or distribution of such products,
or in any other material respect, is an
unfair trade practice.

§ 120.18 False invoicing.

Withholding from or inserting in in~
voices 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 repre-
sented 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.

PART 121—WET GROUND MICA

INDUSTRY
Group I
Seo,
121.1 Sales below cost.
121.2 Loss leaders.
1213 False and misleading price quota-
tions, etc.
121.4 Discrimination.
1215 False invoicing.
1216 Defamation of competitors.
121.7. Inducing breach of contract.
121.8 False marking or branding.
1219 Misrepresentation in general.
121.10 Commercial bribery.
Group IT
121.101 Publication of price lists and terms
of sale.

121,102 Free samples for experimentation.

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

Source: Trade practice rules, Wet
Ground Mica Industry, FTC, May 4, 1987, un-~
leas otherwise noted.

§ 121.4

Group I
§ 121.1 Sales below cost.

The selling, or offering to sell, wet
ground mica, below 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 unreason-
ably restrain trade, is an unfair trade
practice; all elements recognized by good
accounting practice as proper elements
of such cost shall be included in deter-
mining cost under this section.

§ 121.2 Lass leaders.

The use of any product of the industry
as @ “loss leader” to induce the purchase
of other merchandise, the sale of which
merchandise is used to recoup the loss
sustained on the “loss leader” product so
sold, with the tendency, capacity or ef-
fect of misleading or deceiving purchas-
ers, prospective purchasers or the con-
suming public, and which unfairly
diverts trade from or otherwise injures
competitors? is an unfair trade practice.

§ 121.3 False and misleading price quo-
tations, ete.

The publishing or circulating by any
member of the industry of false or mis-
leading price quotations, price lists, terms
or conditions of sale, or reports as to
transportation costs, production or sales,
with the purpose and tendency or ca-
pacity to mislead or deceive purchasers,
prospective purchasers or the consuming
public, is an unfair trade practice.

§ 121.4 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 cominerce, to grant or
allow secretly or openly, directly or indi-
rectly, any price differentials, rebates,
refunds, discounts, credits or other allow-
ances which effectuate a discrimination
in price between different purchasers of
goods of like grade and quality where
either or any of the purchases involved
therein are in commerce and where the
effect thereof may be substantially to
lessen competition or tend to create a
monopoly in any line of commerce or to
injure, destroy or prevent competition
with any person who either grants or
knowingly receives the benefit of such
discrimination or with customers of

559