House Dress And Wash Frock Manufacturing Industry
16 CFR Part 126 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (14 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
§ 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
; Chapter Il—Federal
Sec.
126.6
126.7
126.8
126.9
126.10
126.11
126.12
Sales below cost.
Espionage.
Commerclal bribery.
False invoicing.
Consignment selling. .
Discriminatlon.
Discriminatory returns.
Grovp II
Instructions for treatment and care
of product.
Unwarranted return of merchandise.
Arbitration.
Repudiation of contracts.
Accurate information regarding
washablility, color fastness, and
shrinkage properties.
AvTHorITy: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: Trade practice rules, House
Dress and Wash Frock Manufacturing Indus-
try, FTC, Dec. 31, 1937, unless otherwise
noted.
126.101
126.102
126.103
126.104
126.105
Group I
§ 126.1 Misrepresentation in general.
Making, or causmg 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,
origin, size, serviceability, color, color
fastness, workmanship, washability, fiber
content or identification, shrinkage prop-
erties, manufacture or distribution of
any product of the industry, or in any
other material respect, with the ten-
dency, capacity or effect of misleading or
deceiving purchasers, prospective pur-
chasers or the consuming public, is an
unfair trade practice.
§ 126.2 False marking or branding.
The false or deceptive marking or
branding of products of the industry for
the purpose or with the tendency, ca-
pacity or effect of misleading or deceiv-
ing purchasers, prospective purchasers or
the consuming public with respect to the
grade, quality, quantity, substance, char-
acter, nature, origin, size, serviceability,
color, color fastness, workmanship,
washahbility, fiber content or {dentifica-
tion, shrinkage properties, manufacture
or distribution of such products, or in
any other material respect, is an unfair
trade practice.
§ 126.3 Defamation of competitors.
The defamation of competitors by
falsely imputing to them dishonorable
58-068—_76——--37
Trade Commission § 126.8
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 competi-
tors, 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.
§ 126.4 Enticing employees.
Willfully enticing away the employees
of competitors, with the purpose and
effect of unduly hampering, injuring or
embarrassing competitors in their busi-
nesses, is an unfair trade practice.
§ 126.5 Inducing breach of contract.
Willfully inducing or attempting to in-
duce the breach of existing contract or
contracts between competitors and their
customers or their suppliers by any false
or deceptive means whatsoever, or will-
fully interfering with or obstructing the
performance of any such contractual du-
ties or services by any such means, with
the purpose and effect of unduly ham-
pering, injuring or prejudicing competi-
tors in their businesses, is an unfair trade
practice.
§ 126.6 Sales below cost.
The practice of seiling industry prod-
ucts below the seller’s cost, with the
intent 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.
§ 126.7 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 stifie the competi-
tion of such competitors is an unfair
trade practice.
§ 126.8 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 pros-
569
§ 126.9
pective customers, or to agents, employ-
ees or representatives of competitors’
customers or prospective customers,
without the knowledge of their employers
or principals, as an inducement to in-
fluence their employers or principals to
purchase or contract to purchase indus-
try products from the maker of such gift
or offer, or to influence such employers
or principals to refrain from dealing or
contracting to deal with competitors, is
an unfair trade practice.
§ 126.9 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 deceiving
purchasers, prospective purchasers or
the consuming public, is an unfair trade
practice.
§ 126.10 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 artificially clogging
trade outlets and unduly restricting
competitors’ use of said trade outlets in
getting their goods to consumers through
regular channels of distribution, or with
such purpose to entirely close said trade
outlets to such competitors so as to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade: Provided, however, That
nothing herein shall be construed or used
as restricting or preventing consignment
shipping or marketing of commodities
in good faith and without artificial inter-
ference with competitors’ use of the usual
channels of distribution in such manner
as thereby to suppress competition or
restrain trade.
§ 126.11 Discrimination.
(a) Prohibited discriminatory rebates,
refunds, discounts, credits and other
price differentials. 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, se-
cretly or openly, directly or indirectly,
any rebate, refund, discount, credit or
other price differential, where such re-
bate, refund, discount, credit or other
price differentia! effects a discrimination
in price between different purchasers of
Title 16—Commercial Practices .
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 substan-
tially to lessen competition or tend to
create a monopoly in any line of com-
merce or to injure, destroy or prevent
competition with any person who either
grants or knowingly receives the benefit
of such discrimination or with custom-
ers of either of them: Provided, how-
ever, (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
customers 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
(ii) the marketability of the goods, such
as, but not limited to, actual or immi-
nent deterioration of perishable 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 transaction other
than the person by whom such compen.
sation is so granted or paid.
570
Chapter I—Federal
(ce) 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 compensation 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 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 commod-
ities. ;
(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, 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 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 discrimi-
nation 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, 18b,
21a)
§ 126.12 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
ted
vi
Trade Commission § 126.104
dresses so purchased and receiving there-
for 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 mer-
chandise by purchaser, for credit or re-
fund 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 decep-
tively 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.
Group If
§ 126.101 Instructions
and care of product.
In view of the fact that certain fabric
may be damaged or destroyed by contact
with certain types of deodorants or depil-
atories, the industry recommends that in
the case of garments made of such fabric
a tag or label be placed thereon by the
manufacturer informing the purchasing
public of such fact and of the desirabil-
ity of avoiding contact between the
fabric and such deodorants or depila-
pores which will damage or destroy the
abric.
§ 126.102 Unwarranted return of mer-
chandise.
The practice, by members of the
industry, 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 business
to the detriment of both the industry
and the public and is condemned by the
industry, subject, however, to require-
ments and limitations set forth in the
provisions of § 126.12. °
§ 126.103 Arbitration.
The industry approves the practice of
handling business disputes between
members of the industry and their cus-
tomers in a fair and reasonable manner,
coupled with a spirit of moderation and
good will, and every effort should be made
by the disputants themselves to compose
their differences. If unable to do so they
should, if possible, submit these disputes.
to arbitration.
§ 126.104 Repudiation of contracts.
Contracts are business obligations
which should be performed in letter and
in spirit. The repudiation of contracts by
1
for treatment
§ 126.105
sellers on a rising market or by buyers
on a declining market is condemned by
the industry.
§ 126.105 Accurate information regard-
ing washability, color fastness, and
shrinkage properties.
The industry recommends that truth-
ful and accurate descriptions of the
washability. color fastness, and shrink-
age properties of fabrics used be at-
tached to the dress or frock or be printed
on the labels used by members of the
industry on such dresses or frocks.
PART 127—-METAL CLAD DOOR AND
ACCESSORIES MANUFACTURING
INDUSTRY
Group I
Bec.
127.1 Commercial bribery.
1272 Inducing breach of contract.
127.3 Enticing employees.
127.4 Misrepresentation in general.
127.6 False branding or marking.
127.6 Defamation of competitors.
127.7. Discrimination.
127.8 Sales below cost.
127.9 Misrepresenting products as con-
forming to standard.
$7.10 Deceptive selling methods.
127.11 Substitution.
Group IT
127.101 Repudiation of contracts.
127.102 Fictitious bids.
127.108 ‘Blind blds.”
Auruoriry: Secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Sougce: Trade practice rules, Metal Clad
Door and Accessories Manufacturing Indus-
try, FTC, Jan. 20, 1938, unless otherwise
noted.
Group I
§127.1 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, employ-
ees or representatives of competitors’
customers or prospective customers,
without the knowledge of their employers
or principals, as an inducement to in-
fluence their employers or principals to
purchase or contract to purchase indus-
‘try products from the maker of such gift
or offer, or to influence such employers
or principals to refrain from dealing or
contracting to deal with competitors, is
an unfair trade practice.
Title 16—Commercial Practices
§ 127.2 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 whatsoever, or
willfully 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.
§ 127.3 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-
ness, is an unfair trade practice.
§ 127.4 Misrepresentation in general.
It is an unfair trade practice for any
inember of the industry to make or pub-
lish or cause to be made or published, di-
rectly or indirectly, any false, misleading
or deceptive statement or representation,
by way of advertisement, guarantee, war-
ranty, adjustment, policy, or otherwise,
concerning the grade, quality, quantity,
substance, use, character, nature, origin,
size, manufacture or distribution of any
product of the industry, or concerning
the life or service of such product, or in
any other material respect.
§ 127.5 False branding or marking.
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.
§ 127.6 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-
572