Popular Priced Dress Manufacturing Industry

16 CFR Part 125 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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

Source: Trade practice rules, Tollet
Brush Manufacturing Industry, FTC, Dec. 31,
1937, unless otherwise noted.

§ 124.1 Misbranding.

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.

§ 124.2 Misrepresentation or conceal-
ment as to foreign handles or blocks.

(a) The passing off, selling or offering
for sale of tooth brushes, hair brushes,
or other toilet brushes made from im-
ported handles or blocks on which the
identification mark of the country of
origin has been omitted or has been ob-
literated or concealed m the fabrication
of the finished article, which brushes
have been marked, stamped or branded
in such manner as to mislead or deceive
purchasers, prospective purchasers or
the consuming public into the erroneous
belief that said brushes have been man-
ufactured wholly within the United
States, or that said brushes have been
manufactured wholly from materials
produced in the United States, is an un-
fair trade practice.

(b) In the case of tooth brushes, hair
brushes, or other toilet brushes manu-
factured ln the United States with han-

dies or blocks made in and imported .

from a foreign country, nothing in this
part shall prohibit branding or marking
the handles or blocks of such brushes,
or the cartons thereof, with the words or
letters ‘“Brush Made in U.S.A.” or words,
letters or phrases of like import, pro-
vided such mark or brand contain or be
immediately accompanied by words let-
_ ters or phrases which are of at least equal
prommence and conspicuousness and
which truthfully and unequivocally dis-
close the fact that such handles or blocks
have been manufactured or produced in,
or imported from, the foreign country
wherein such handles or blocks have been
manufactured or produced, such as, for
example: ‘Handle from England”, ‘““Block
from England”, “Handle from France”,
“Block from France”, “Handle from Ja-

or

§ 194.5

pan”, “Block from Japan”, or branding
or marking with words of like import.

§ 124.3 Deceptive advertisements or de-
scriptions.

Making, or causing to be made or pub-
lished, directly or indirectly, any false
untrue or deceptive statement or repre-
senation, by way of advertisement or
otherwise, concerning the grade, quality,
quantity, use, size, material, content, ori-
gin, preparation, manufacture or distri-
bution of any product of the industry, or
in any other: material respect, with the
tendency, capacity or effect of mislead-
ing or deceiving purchasers, prospective
purchasers or the consuming public, is
an unfair trade practice.

§ 124.4 Misrepresentation as to bristles.

The false marking, branding or label-
ing of tooth brushes, hair brushes, or
other toilet brushes with the words
“bristle” or “pure bristle’ when such
brushes are made in whole or in part
of horse hair, fiber or other adulterant
and such fact is not disclosed, or the
making of any false representations with
respect to the terms “bristle” or ‘pure
bristle’, through advertising or other-
wise, with the tendency, capacity or ef-
fect of misleading or deceiving purchas-
ers, prospective purchasers or the con-
suming public, is an unfair trade
practice.

§ 124.5 Misrepresentation as to kind of
wood in handle or back.

The false marking, branding, labeling
or advertising of the handles or backs of
tooth brushes, hair brushes, or other
toilet brushes as containing or being com-
posed of ebony, satinwood, or other costly
wood or woods, when the handles or backs
of such brushes are made from an imita-
tion of the above wood or woods and such
fact is not disclosed, with the tendency,
capacity or effect of misleading or de-
ceiving purchasers, prospective purchas-
ers or the consuming public, is an unfair
trade practice.

PART 125—POPULAR PRICED DRESS
MANUFACTURING INDUSTRY

Group I
Sec.
125.1 Induclng breach of contract.
125.2 Defamation of competitors.
125.3 Misrepresentation in general.
125.4 Enticing employees.
125.5 Discrimination.

or


$125.1

Sec.

125.6
125.7
125.8
125.9

Discriminatory returns.

Sales below cost.

Commercial bribery.

Imitation of trade-marks,
names, etc.

Espionage.

Consignment selling.

False invoicing.

Group IT

Unwarranted return of merchandise.
Repudiation of contracts.

125.103 Truthful disclosure cf fiber content.
125.104 Dissemination of credit information.

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

Source: Trade practice rules, Popular
Priced Dress Manufacturing Industry, FTC,
Dec. 31, 1987, unless otherwise noted.

Group I

trade

125.10
125.11
125.12

125.101
125.102

§ 125.1 Inducing breach of contract.

Willfully inducing or attempting to in-
duce the breach of existing contract or
contracts between competitors and their
custemers or their suppliers by any false
or deceptive means whatsoever, or will-
fully 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 prejudicing com-
petitors in their businesses, is an unfair
trade practice.

§ 125.2 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 p~oducts 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.

§ 125.3 Misrepresentation in general.

Making, or causing to be made or pub-
lished, directly or indirectly, any false,
untrue or deceptive statement or repre-
sentation, by way of advertisement or
otherwise, concerning the grade, quality,
quantity, substance, character, nature,

Title 16—Commercial Practices

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.
§ 125.4 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.

§ 125.5 Discrimination.

(a) Prohibited discriminatory reoates,
refunds, discounts, credits and other
price differentials. It is an unfair trade
practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, to grant, or
allow, secretly or openly, directly or in-
directly, any rebate, refund, discount,
credit or other price differential, where
such rebate, refund, discount, credit or
other price differential effects a dis-
crimination in price between different
purchasers of goods of like grade and
quality and 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 de-
livery resulting from the differing meth-
ods or quantities in which such com-
modities 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

566


Chapter I—-Federal Trade Commission

time to time where made in response to
changing conditions affecting either (i)
the market for the goods concerned, or

Gi) the marketability of the goods, such ©

as, but not limited to, actual or imminent
deteriorating of perishable goods, ob-
solescence of seasonal goods, distress
sales under court process, or sales in good
faith in discontinuance of business in the
goods concerned.

(o) Prohibited brokerage and commis-
sions. 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 transaction
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 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 compensatlon or
in consideration for any services or fa-
cilities furnished by or through such
customer in connection with the proc~
essing, handling, 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 proportlon-
ally equal terms to all other customers
competing in the distribution of such
products or commodities.

(d) Prohibited discriminatory services
or facilities. It is 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, handiing,

§ 125.7

sale or offering for sale of such com-
modity so purchased upon terms not ac-
corded to all purchasers on proportion-
ately 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 deceive 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. 18, 13a, 13b,
a

§ 125.6 Discriminatory returns.

It is an unfair trade practice for any
member of the industry, engaged in com-
merce, to discriminate in favor of one
customer-purchaser against another cus-
tomer-purchaser of dresses, bought from
such member of the industry for resale
by contracting to furnish or furnishing
in connection therewith, upon terms not
accorded to all customer-purchasers on
proportionally equal terms, the service or
facility whereby such favored purchaser
is accorded the privilege of returning
dresses so purchased and receiving
therefor credit or refund of purchase
price: Provided, however. That nothing
in any of the rules of this section shall
prohibit or be used to prevent the return
of merchandise by purchaser, for credit
or refund of purchase price, when and
because such merchandise has not been
properly labeled by the seller as to fiber
content, or has been otherwise falsely
or deceptively labeled or represented, or
when and because such merchandise is
defective in material, workmanship or in
any other respect contrary to warranty
or purchase contract.

§ 125.7 Sales below cost.

The practice of selling industry prod-
ucts below the seller’s cost, with the in-
tent and with the effect of injuring a
competitor and where the effect may be
substantially to 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.

567


§ 125.8

§ 125.8 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 pro-
spective customers, or to agents, em-
ployees or representatives of competitors’
customers or prospective customers,
without the knowledge of their em-
ployers 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 deal-
ing or contracting to deal with competi-
tors, is an unfair trade practice.

§ 125.9 Imitation of trade-marks, trade
names, etc. ‘

The imitation or simulation of the
trade-marks, trade names, labels or
brands of competitors, with the purpose,
or with the tendency and capacity or ef-
fect of misleading or deceiving pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 125.10 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 stifle the competition
of such competitors is an unfair trade
practice.

§ 125.11 Consignment selling.

It is an unfair trade practice for any
member of the industry to use the prac-
tice of shipping goods on consignment or
pretended consignment for the purpose
and with the effect of artifically clogging
trade outlets and unduly restricting com-
petitors’ use of said trade outlets in get-
ting their goods to consumers through
regular channels of distribution, or with
such purpose to entirely close said trade
outlets to such coinpetitors so as to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade: Provided, however, That
nothing in this section shall be construed
or used as restricting or preventing con-
signment shipping or inarketing of com-
modities in good faith and without arti-
ficial interference with competitors’ use
of the usual channels of distribution in
such manner as thereby to suppress com-
petition or restrain trade.

Title 16——Commercial Practices

§ 125.12 False invoicing.

Withholding 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 deceiv-
ing purchasers, prospective purchasers
or the consuming public, is an unfair
trade practice.

Group I

§ 125.101 Unwarranted return of mer-
chandise.

The practice, by members of the in-
dustry, of selling merchandise and later
permitting the purchaser to return it
for credit or refund of purchase price,
without just cause, creates waste and
loss, increases the cost of doing busi-
ness to the detriment of both the in-
dustry and the public and is condemned
by the industry, subject, however, to
requirements and limitations set forth
in the provisions of § 125.6.

§ 125.102 Repudiation of contracts.

Contracts are business obligations
which should be performed in letter and
in spirit. The repudiation of contracts
by sellers on a rising market or by buyers
on a declining inarket is condemned by
the industry.

§ 125.103 Truthful disclosure of fiber

content.

In the interest of consumer protec-
tion, the industry records itself as fa-
voring, and recommends, the practice
of members making fair and truthful
disclosure, in their advertisements, la-
bels, or other available means, of the fiber
contents of their garments.

§ 125.104 Dissemination of credit in-
formation.

The industry records its approval of
distributing information covering delin-
quent and slow accounts insofar as it
may be lawfully done.

PART 126—HOUSE DRESS AND WASH
FROCK MANUFACTURING INDUS-
TRY

Group I
Sec.
126.1 Misrepresentation in general.
126.2 False marking or branding.
126.3 Defamation of competitors.
126.4 Enticing employees.
126.5 Inducing breach of contract.

568