Wet Ground Mica Industry

16 CFR Part 121 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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

Text (1976 edition, OCR)

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


§ 191.5

either of them: Provided, however, (1)
That the goods involved in 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 meth-
ods or quantities in which such commodi-
ties are to such purchasers sold or de-
livered;

(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
changimg conditions affecting either (i)
the market for the goods concerned, or
(iid) the marketability of the goods, such
as, but not limited to, actual or immi-
nent deterioration of perislHiable goods,
obsolescence 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, in 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 transac-
tion other than the person by whom such
compensation 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 facilities
furnished by or through such customer
in connection with the processing, han-

Title 16—Commercial Practices

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 com-
modities.

(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 commodity
bought for resale, with or without proc-
essing, 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 ac-
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,
21a)

§ 121.5 False invoicing.

Withholdmg from or inserting in in-
voices 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, with the purpose or
effect of thereby misleading or deceivmg
purchasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 121.6 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 dispar-
agement of the grade, quality or manu-
facture 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, pro-

560


Chapter I—-Federal Trade Commission

spective purchasers or the consuming
public, is an unfair trade practice.

§ 121.7 Inducing breach of contract.

Willfully inducing or attempting to in-
duce the breach of an existing contract
or contracts between competitors and
their customers or their suppliers by
any false or deceptive means whatso-
ever, or willfully interfering with or ob-
structing the performance of any such
contractual duties or services by any
such means, with the purpose and effect
of unduly hampering, injuring, or preju-
dicing competitors in their businesses,
is an unfair trade practice.

§ 121.8 False marking or branding.

The false or deceptive marking or
branding of products of the industry,
with the tendency, capacity or effect of
misleading or deceiving purchasers, pro-
spective purchasers or the consuming
public with respect to the grade, quality,
quantity, use, size, material, content,
origin, preparation, manufacture or dis-
tribution of such products, or in any
other material respect, is an unfair trade
practice.

§ 121.9 Misrepresentation in general.

The inaking, 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,
use, size, material, content, origin, prepa-
ratlon, manufacture or distribution of
any industry products, or in any other
material respect, with the tendency, ca-
pacity or effect of misleading or deceiving
purchasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 121.10 Commercial hrihery.

It is an unfair trade practice for a
meinber of the industry directly or in-
directly to give or offer to give, or permit
or cause to be given, inoney or anything
of value to agents, employees or repre-
sentatives of customers or prospective
customers, or to agents, employees or
representatlves of competitors’ custom-
ers or prospective customers, without the
knowledge of their employers or prin-
cipals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry mem-
ber or the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing in the products

§ 121.102

of competitors, or from dealing or con-
tracting to deal with competitors.

Group II
§ 121.101 Publication of price lists and

terms of sale.

The industry approves the practice of
each individual member of the industry
independently publishing and circulating
to the purchasing trade his own price
lists fully setting forth his terms of sale.

§ 121.102 Free samples for experimen-
tation.

The industry approves the giving of
free samples of wet ground mica in suf-
ficient quantity for experimental pur-
poses and to acquaint purchasers or pro-
spective purchasers with the grade or
quality of the product offered for sale,
where the giving of such free mica by any
member of the industry is not, however,
practiced or accomplished in such way or
to such extent as to effectuate an illegal
discrimination in price contrary to sec-
tion 2 of the Clayton Act as amended by
the act of Congress approved June 19,
1936 (Pub. Law 692, 74th Cong., Robin-
son-Patman Act).

PART 122—-CONCRETE BURIAL VAULT
MANUFACTURING INDUSTRY

Group I
Sec.
122.1 Commercial bribery.
122.2. Inducing breach of contract.
122.3 Defamation of competitors.
122.4 Enticing empioyees.
122.5 Imitation of trade-marks, trade
names, brands, etc.
122.6 Substitution.
122.7 Espionage.
122.8 Faise-marking or branding.
122.9 Misrepresentation in general.
122.10 False invoicing.
122.11 Saies below cost.
122.12 Consignment selling.
122.138 Discrimination.
Group II
122.101 Publication of price lists and terms
of sale.

122.102 Cost accounting.
122.103 Arbitration.

COMMITTEE ON TRADE PRACTICES
122.201 Industry committee.

AurHoriry: Secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: Trade practice rules, Concrete
Burial Vault Manufacturing Industry, FTC,
July 10, 1937, unless otherwise noted.

561