Shrinkage Of Woven Cotton Yard Goods
16 CFR Part 131 · Trade practice rules · in the Code of Federal Regulations 1938-1978 (15 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1978 CFR · Earliest edition: 1938 CFR
Text (1978 edition, OCR)
§ 118.17
(f)(1) The following is presented for
the purpose of clarifying the require-
ments of paragraphs (d) and (e) of this
section with respect to the supplying
of marketing services, facilities or
allowances by industry members to
their customers but it is not intended
to imply by such presentation that
other methods which assure of propor-
tional equality of treatment of com-
peting customers may not aiso be
used.
(2) An industry member may simul-
taneously offer to each of his custom-
ers competing in the resale of his
products the same kind of promotional
service, facility or allowance of a cost
value equa! to a uniform percentage of
the sales (or purchases) of the indus-
try member’s products by each cus-
tomer during a specified and identical
period of time: Provided, however,
That when the service, facility or
allowance offered is of a type which
under reasonable terms and conditions
is not usable or suitable to the facili-
ties and business of ail customers, and
is offered to any one customer, the
member offer each of those customers
to whom the service, facility or
allowance is not usable or suitable an
alternative type of promotional ser-
vice, facility or allowance which is of
equivalent measurable cost, is usable
by the customer, and is suitable to his
facilities and business, and promptly
inform ail competing customers of the
kind and amount of services, facilities
or allowances which he has offered to
each and the respective terms and con-
ditions under which such services, fa-
cilities or allowances are to be fur-
nished by the industry member: And-
provided, further, That when the offer
of any service, facility or allowance to
any customer is conditioned on such
customer supplying some reciprocal
service, facility or payment, a recipro-
cal service, facility or payment be re-
quired in the offers to all other cus-
tomers and there be an equality of
ratio among all customers as to the
measurable cost of that which is sup-
plied by the industry member and the
reciprocal service, facility or payment
required by any customer. The indus-
try member must take every reason-
able precaution to see that services, fa-
cilities or allowances which he fur-
Title 16—-Commercial Practices
nished to customers are used in accord
with the terms of his offer; and upon
failure of the customer to perform any
obligation on his part the industry
member must cease supplying the cus-
tomer any further service, facility or
allowance. .
(g) Inducing or receiving an illegal
discrimination in price, advertising or
promotional allowances, or services or
Jacilities. It is an unfair trade practice -
for any member of the industry en-
gaged in commerce, in the course of
such commerce, knowingly to induce
or receive a discrimination im price, ad-
vertising or promotional! allowances, or
services or facilities, prohibited by the
foregoing provisions of this section.
{Rule 16]
§ 118.17 Aiding or abetting use of unfair
trade practices.
It is an unfair trade practice for any
Person, firm, or corporation to aid,
abet, coerce, or induce another, direct-
ly or indirectly, to use or promote the
use of any unfair trade practice pro-
hibited by this part. [Rule 17]
PART 131—SHRINKAGE OF WOVEN
COTTON YARD GOODS
Grour 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” with qualifications.
131.6 Aiding or abetting use of unfair trade
practices.
AutuHorirty: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: 3 FR 1583, June 30, 1938, unless
otherwise noted.
§131.1 Definition.
As used in this part, the term “‘resid-
ual shrinkage’ applied to woven
cotton yard goods in the piece means
the shrinkage or shrinking properties
remaining in such goods after the
same have undergone a shrinking pro-
cess.
430
Chapter I-—-Federai Trade Commission
§ 131.2 Misrepresentation as to shrinkage
properties.
The practice of selling, offering for
sale, advertising, describing, branding,
marking, or labeling woven cotton
yard goods in a manner which is calcu-
lated to mislead or deceive or has the
tendency and capacity or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers, or the consuming
public with respect to the preshrunk
character of such goods, the residual
shrinkage remaining therein, or with
respect to the extent of the shrinkage
to which such goods have been sub-
jected, or respecting any other shrink-
age properties, quality, or character of
such goods, is an unfair trade practice.
§ 131.3 Misuse of descriptive terms.
In the sale or distribution of woven
cotton yard goods, it is unfair trade
practice: (a) to use, of cause to be
used, directly or indirectly, the terms
“Pull Shrunk,” “Preshrunk,”
“Shrunk,” “Shrinkproof,” ‘“Will not
Shrink,” “Mill Shrunk,” “Double
Shrunk,” ‘“Non-Shrinkable,” or word,
term, mark, label, or representation of
like effect or similar import, as de-
scriptive of such goods when the same
are not in fact shrinkproof or non-
shrinkable, or have not in fact been
fully-shrunk or preshrunk to the
extent that no residual shrinkage is
left remaining in such goods, or (b)
otherwise to use, or cause to be used,
any such word, term, mark, label, or
representation so as to mislead or de-
ceive purchasers, prospective purchas-
ers, or the consuming public into the
belief that such goods have been
shrunk to a greater degree than is in
fact true or that the residual shrink-
age of such goods is less than is in fact
true.
§ 131.4 Permissible terms.
Nothing in this part shall prohibit
the use of the terms “Full Shrunk,”
“Preshrunk,” “Shrunk,” ‘“Shrink-
proof,’ ‘“Non-Shrinkable,” or word,
term, mark, label, or representation of
like effect or similar import, as de-
scriptive of woven cotton yard goods
which have undergone the application
of a shrinking process and thereby
have been shrunk or preshrunk to the
extent that no residual shrinkage is
§ 131.5
left remaining in such goods, And pro-
vided, That subsequent to the applica-
tion of such shrinking process the
goods have not been subjected to
stretching or to any condition or pro-
cess which has restored shrinking
properties or residual shrinkage to
such goods.
§131.5 Use of terms “Preshrunk” or
“Shrunk” with qualifications.
(a) In the case of woven cotton yard
goods which have undergone the ap-
plication of a shrinking process and
have been shrunk to a substantial
extent but as to which there remains a
certain amount of residual shrinkage,
nothing in these rules shall prohibit
the use of the term “Preshrunk,”
“Shrunk,” or term or word of like
effect or similar import, as an integral
part of or in immediate conjunction
with a truthful phrase, statement, or
assertion clearly and unequivocally
stating the fact that such goods have
been preshrunk or shrunk to a sub-
stantial extent and also setting forth
in percentage or percentages the
amount of residua) shrinkage remain-
ing in both the warp and the filling, or
in the warp or the filling whichever
has the greater residual shrinkage. To
avoid confusion, deception, or misun-
derstanding, the standard shrinkage
test provided for in paragraph (e) of
this section should be used in deter-
mining percentages to be specified in
such designations. The following are
typical examples of designations pro-
vided for in this section:
(1) Preshrunk (or shrunk)—will not shrink
more than % under Commercial Stan-
dard CS59-36
(2) Preshrunk (or Shrunk)—residual
shrinkage will not exceed % under
Commercial Standard CS59-36
(3) Preshrunk (or shrunk)—residual
shrinkage will not exceed warp %, fill-
me %, Commercial Standard CS59-
3 .
(4) These goods have been shrunk (or
preshrunk) to the extent that residual
shrinkage will not exceed % when
tested in accordance with the recognized
and approved standards or tests.
(b) The residual shrinkage percent-
age designations provided for in this
section for woven cotton yard goods
should be stamped on or otherwise
firmly affixed to the material in con-
431
§ 131.6
spicuous size and legibility of type or
style, and should also appear similarly
on all invoices, labels, marks, or adver-
tisements which carry reference to the
shrinkage of the goods.
(c) The use of residual shrinkage
percentage designations not in confor-
mity with results obtainable under the
test specified in paragraph (e) of this
section, with the capacity and tenden-
cy or effect of misleading or deceiving
purchasers, prospective purchasers, or
the consuming public, ls an unfair
trade practice.
(da) The use or specification of an un-
reliable or inadequate test in any such
designations, or the refusal to specify
a test which ls proper and applicable,
when done for the purpose or with the
capacity and tendency or effect or di-
rectly or indirectly misleading or de-
ceiving purchasers, prospective pur-
chasers, or the consuming public, ls an
unfair trade practice.
(e) The following test is deemed to
be an accepted and recognized test for
determining shrinkage properties or
residual shrinkage of woven cotton
yard goods in the application of these
rules and is recommended for use as a
standard shrinkage test for this pur-
pose:
“Commercial Standard CS59-36”
$131.6 Aiding or abetting use of unfair
trade practices.
_ It is an unfair trade practice for any
person, firm, or corporation to aid,
abet, coerce or induce another, direct-
ly or indirectly, to use or promote the
use of any unfair trade practice speci-
fied in this part.
PART 142—RADIO AND TELEVISION
INDUSTRY
Sec.
142.0 Definitions.
Grovr I
142.1 Misbranding, misrepresentation, and
deceptive seiling methods.
142.2 “All-wave,” ‘“world-wave,” ‘“world-
wide wave,” ‘standard broadcast,” etc.
142.3 Specific types of advertisements or
representations among those prohibited.
142.4 Sponsorship.
142.5 Alteration of identifying names or
marks.
Title 16—Commercial Practices
Sec.
142.6-1 Representations concerning cabi-
net composition—avoiding deception and
making disclosures.
142.6-2 Describing wood components and
wood imitations.
142.6-3 Identity of woods.
142.7 Deceptive use or change of cabinets.
142.8 Alteration or removal of serial num-
bers.
142.9 [Reserved]
142.10 Deception as to the convertibility of
a television receiving set to services
other than those for which it was origi-
nally manufactured.
142.11 Misuse of terms “discontinued
model,” “floor sample,” “demonstrator,”
etc.
142.12 Deception as to being “new.”
142.13 Deception as to Identity of manu-
facturer when products are repaired, re-
conditloned, or rebuilt by other than the
original manufacturer.
142.14 Misuse of terms “factory rebuilt”
and “rebuilt.”
142.15 Deceptive pricing.
142.16 Misrepresentation as to the effec-
tiveness of televislon antennas.
142.17 Guaranties, warranties, etc.
142.18 Use of the word “free.”
142.19 False invoicing.
142.20 Imitation of trade-marks,
names, etc.
142.21 Tie-in sales—coercing purchase of
one product as a prerequisite to the pur-
chase of other products.
142.22 Unfair threats of infringement
suits.
142.23 Prohibited forms of trade restraints
(unlawful price fixing, etc.).
142.24 Consignment distribution.
142.25 Use of lottery.
142.26 Defamation of competitors or false
disparagement of their products.
142.27 Enticing away employees of com-
petitors.
142.28 Procurement of competitors’ confi-
dential information.
142.29 Commercial bribery.
142.30 Exclusive deals.
142.31 Push money.
142.32 Prohibited discrimination.
AuTuHoRITy: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.
Source: 20 FR 4533, June 28, 1955, unless
otherwise noted.
§ 142.0 Definitions.
As used in the rules in this part, the
terms “industry member” and “indus-
try products” shall have the following
meanings, respectively:
Industry member: Any person, firm,
corporation, or organization engaged
in the manufacture, sale, or distribu-
trade
432