Carbon Dioxide Manufacturing Industry
16 CFR Part 129 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
' § 197.8 § 127.8 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 competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice; all elements recognized in good accounting practice as proper elements of such cost shall be in- cluded in determining cost under this section. § 127.9 Misrepresenting products as conforming to standard. Representing, through advertising or otherwise, that any products of the in- dustry conform to a standard recognized in or applicable to the industry when such js not the fact, with the tendency, capacity or effect of misleading or de- ceiving purchasers, prospective pur- chasers or the consuming public, is an unfair trade practice. § 127.10 Deceptive selling methods. The sale or offering for sale of any product of the industry by any false or deceptive means or device which has the tendency, capacity or effect of misleading or deceiving purchasers, pro- spective purchasers or the consuming public as to the grade, quality, quantity, substance, use, character, nature, origin, size or preparation of such product, or in any other material respect, is an un- ’ fair trade practice. § 127.11 Substitution. The practice of using or substituting any product of the industry inferior in grade or quality to, less in quantity than, or of a different design or type from, that specified by the purchaser, without the consent of sald purchaser to such use or substitution and with the tendency, ca- pacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice. Group It § 127.101 Repudiatiou 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 market is condemned by the industry. § 127.102 Fictitious bids. The industry condemns fake or ficti- tious bids made for the purpose of deceiv- ing competitors and securing undue ad- vantage. If plans and specifications are changed and new bids called for after the original bids have been submitted Title 16—Cemmercial Practices * and opened, the same fairness should obtain as with the original bid § 127.103 “Blind bids.” In cases of competitive bidding, the practice of receiving or making so-called “blind bids”, which discount the lowest competitive bid regardless of the amount, tends to destroy competitive bidding, and is condemned by the industry. PART 129—CARBON DIOXIDE MAN- UFACTURING INDUSTRY Group I Sec. 129.1 129.2 129.3 129.4 Inducing breach of contract. Espionage. Defamation of competitors. Interference with competitor’s right of purchase or sale. Imitation of trade-marks, names, etc. False marking or branding. Unauthorized use of containers. Misrepresentation in general. Discrimination. Deceptive selling methods. Consignment sales. Misuse of word “‘free’”’. Commercial bribery. Lottery schemes. Full-lne forcing. False invoicing. Sales below cost. Unlawful combinations in restralnt of trade. Aiding or abetting use of unfair trade practices. Group IT Arbitration. Repudiation of contracts. Unwarranted return of merchandise. Differentiating between wholesale and retail transactions. Coercive sales. Adherence to safety requirements. Dissemination of credit informa- tion, etc. 129.108 Agreement as to place of delivery. AvurHoritr: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46 (g), 45, unless otherwise noted. Source: ‘Trade practice rules, Carbon Dioxide Manufacturing Industry, FTC, _Mar. 19, 1988, unless otherwise noted. Grourt § 129.1 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 129.5 trade 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.101 129.102 129.103 129.104 129.105 129.106 129.107 574 Chapter Il—Federal suppliers, 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 prejudic- ing competitors in their businesses, is an unfair trade practice. § 129.2 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 competition of such competitors, is an unfair trade practice. § 129.3 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 manufacture of the products of competi- tors, or of their business methods, sell- ing prices, values, credit terms, policies, or services, or conditions of employment, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 129.4 Interference with competitor's right of purchase or sale. It is an unfair trade practice for any member of the industry, by means of any monopolistic practices or through combi- nation, conspiracy, coercion, boycott, threats, or any other unlawful means, directly or indirectly, to interfere with a competitor’s right to purchase his prod- ucts and supplies from whomsoever he chooses, or to sell the same to whomso- ever he chooses. § 129.5 Imitation of trade-marks, trade names, etc. The practice of imitating or causing to be imitated, or directly or mdirectly pro- moting the imitation of, the trade-marks, trade names, or other exclusively owned symbols or marks of identification of competitors, having the capacity, tend- ency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 129.6 False marking or branding. The false or deceptive marking or branding of products of the industry, Trade Commission §$ 129.9 with respect to the grade, quality, quan- tity, use, size, material, content, origin, preparation, manufacture, or distribu- tion of such products, or in any other material respect, is an unfair trade practice. § 129.7 Unauthorized use of containers." The unauthorized use of the car- bon dioxide containers of a competitor with the purpose and effect of thereby misleading or deceiving purchasers, pro- spective purchasers, or the consuming public, or with the purpose and effect of unduly hampering, injuring, or preju- dicing such competitor in his business, is an unfair trade practice. Cross REFERENCE: For shipping container specifications, see 49 CFR, Part 178. § 129.8 Misrepresentation in general. Making, or causing to be made or pub- lished, any false, misleading, or deceptive statement or representation, by way of advertisement or otherwise, concerning the grade, quality, quantity, substance, character, use, size, material, content, nature, origin, preparation, manufac- ture, or distribution of -any industry product, or in any other material respect, is an unfair trade practice. § 129.9 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 differential effects a discrimination in price between different purchasers of goods of like grade and quality and where either or any of the purchasers 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 1 Owing to the responsibility of the owners of containers involving compliance with In- terstate Commerce Commissfon regulations for the use of containers of Specifications 3 or 8A (see 49 CFR 80.214) requiring periodic testing of such containers (see 49 CFR 80.424) the industry recommends that con- tainers which bear a competitor’s identifica~ tion marks should not be used without own~ er’s permission evidenced by biil of sale, lease, or other instrument, in writing. 575 § 129.10 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, 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 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 time to time where made in response to changing conditions affecting either (i) the market for the goods concerned, or (i) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, ob- solescence of seasonal goods, distress saies under court process, or sales in good faith in discontinuance of business in the goods concerned. (b) Prohibited brokerage and commis- sions. It is an unfair trade practice for any member of the industry engaged in commerce, m 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. (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 Title 16—Commercial Practices of such commerce as compensation or in consideration for any services or fa- cilities furnished by or through such cus- tomer in connection with the processing, handling, 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 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- nishimg of, any services or facilities con- nected 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 discrim- ination 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) § 129.10 Deceptive selling methods. The sale or offering for sale of any product of the industry by any false or deceptive means or device which has the tendency and capacity or effect of misleading or deceiving purchasers, pro- spective purchasers, or the consuming public as to the quality, quantity, sub- stance, or size of such product, or in any other material respect, is an unfair trade practice. § 129.11 Consignment sales. 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 com- petitors’ use of said trade outlets in get- 576 Chapter I—Federal Trade Commission ting 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 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 re- strain trade: Provided, however, That nothing in this section shall be construed or used as restricting or preventing con- slgnment shipping or marketing of commodities in good faith and without artificial interference with competitors’ use of the usual channels of distribution in such manner as thereby to suppress competition or restrain trade. § 129.12 Misuse of word “free.” The use of the word “free” where not properly or fairly qualified when the ar- 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. : $129.13 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 prospec- tive customers, or to agents, employees, or representatives of competitors’ cus- tomers or prospective customers, without the knowledge of their employers or prin- cipals, as an inducement to infiuence their employers or principals to purchase or contract to purchase industry prod- ucts from the maker of such gift or offer, or to infiuence such employers or prin- cipals to refrain from dealing or con- tracting to deal with competitors, is an unfair trade practice. § 129.14 Lottery schemes. The offering or giving of prizes, premi- ums, or gifts in connection with the sale of products, or as an inducement thereto, by any scheme which involves iottery, misrepresentation, or fraud, is an unfair trade practice. § 129.15 Full-line forcing. 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 re- strain trade, is an unfair trade practice. § 129.101 § 129.16 False invoicing. Withholding from or inserting in in- voices, bills of lading, delivery receipts, or other documents of title, any state- ments or information by reason of which omission or insertion a false record is made, wholly or in part, of the transac- tions represented on the face of such in- voices, bills of lading, delivery receipts, or other documents of title, with the pur- pose or effect of thereby misleading or deceiving purchasers, prospective pur- chasers, or the consuming public, is an unfair trade practice. § 129.17 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 competition or tend to create a monopoly or unreasonably restrain trade, is an un- fair trade practice; all elements recog- nized by good accounting practice as proper elements of such cost shall be in- cluded in determining cost under this section. § 129.18 Unlawful combinations in re- Straint of trade. It is an unfair trade practice for any person, firm, partnership, corporation, or association to enter into or take part in, directly or indirectly, any agreement, understanding, combination, or con- spiracy with one or more persons, firms, partnerships, corporations, or associa- tions to fix, maintain, or enhance prices, or to suppress competition in respect of any product or products of the industry or other products, or to fix maintain, or enhance prices or suppress competition by any other unlawful means. § 129.19 Aiding or abetting use of un- fair trade practices. For any member of the industry know- ingly to aid or abet another member, or any other person, firm, or corporation, in the use of unfair trade practices, is an unfair trade practice. Grovp II § 129.101 Arbitration. The industry approves the practice of handling business disputes between mem- bers of the industry and their customers 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 577 § 129.102 differences. If unable to do so they should, if possible, submit these disputes to arbitration. § 129.102 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 buy- ers on a declining market, is condemned by the industry. § 129.103 Unwarranted return of mer- dise. : 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 good reason, creates waste and loss, increases the cost of doing busi- ness, to the detriment of both the in- dustry and the pubiic, and is condemned by the industry. § 129.104 Differentiating between wholesale and retail transactions. Where products of the industry are sold at wholesale and retail in the same establishment, the failure on the part of such member correctly to differentiate between or identify the two types of transactions, where the result may be to create confusion and deception as to the character of the transaction in the minds of purchasers or prospective pur~ chasers, is condemned by the industry. § 129.105 Coercive sales. The use of buying power to force un- economic or unjust terms of sale upon sellers, and the use of selling power to force uneconomic or unjust terms of sale upon buyers, are condemned by the in- dustry. § 129.106 Adherence to safety require- ments. In the judgment of the industry the practice of filling or using, for the distribution of liquid carbon dioxide, cylinders or containers which do not meet the requirements of Interstate Commerce Commission Specificatlons 3 or 3-A, and the practice of using con- verters or liqueflers which do not con- form to the safety regulations of the iocality in which they are used, may be dangerous to life and property and such practices are therefore condemned by the industry. In localities in which no official applicable safety regulations are in effect it is recommended as a proper Title 16—Commercial Practices practice to follow in the interest of safety that converters or liqueflers used be such as have been manufactured or constructed to meet the requirements of the Unflred Pressure Vessel Code of the American Society of Mechanical Engi- neers (A.S.M.E.) in effect at the time of such manufacture or construction, or which have otherwise been manufac- tured or constructed in accordance with adequate safety requirements. The use of converters or liqueflers is not pro- hibited or condemned by this rule but safety precautions are deemed neces- sary and desirable in the interest of the public and for the welfare of the industry and are therefore recommended. § 129.107 Dissemination of credit in- formation, etc. The industry records its approval of the distribution among members of the industry of information covering delin- quent and slow return of cylinder ac- counts as well as delmquent and slow credit accounts in so far as such may be lawfully done. § 129.108 Agreement as to place of delivery. To promote a business practice fair to both buyer and seller and to avoid un- hecessary claims for evaporation during transportation, the industry recom- mends that buyers and seilers at the time of sale of carbon dioxide in solid form agree upon the place at which de- livery should be made and weight taken. PART 131—SHRINKAGE OF WOVEN COTTON YARD GOODS Group I Sec. 131.1 Definition. 131.2 Misrepresentation as to shrinkage properties. 131.3. Misuse of descriptive terms. 131.4 Permissable terms. . 131.5 Use of terms “Preshrunk” or “Shrunk” wlth qualifications. 181.6 Aiding or abetting use of unfair trade practices. AvurHoriry: Secs, 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: 3 FR 1583, June 30, 1988, unless otherwise noted. § 131.1 Definition. As used in this part, the term “residual shrinkage” applied to woven cotton yard 578