Macaroni And Noodle Products Industry
16 CFR Part 132 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1959 CFR
Text (1977 edition, OCR)
Chapter I—Federal
§ 131.5 Use of terms “Preshrunk” or
“Shrunk” with qualifications.
(a) In the case of woven cotton yard
goods which have undergone the appli-
cation 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 im-
port, as an integral part of or in imme-
diate conjunction with a truthful phrase,
statement, or assertion clearly and un-
equivocally stating the fact that such
goods have been preshrunk or shrunk to
& substantial extent and also setting
forth in percentage or percentages the
amount of residual shrinkage remaining
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 misunderstand~
ing ,the standard shrinkage test pro-
vided for in paragraph (e) of this section
should be used in determining percent-
ages to be specified in such designations.
The following are typical examples of
designations provided for in this section:
(1) Preshrunk (or shrunk)—will not
shrink more than ...... % under Commer-
cial Standard CS59-36
(2) Preshrunk (or Shrunk)—residual
shrinkage will not exceed -_.-_... % ander
Commercial Standard CS5S-36
(83) Preshrunk (or shrunk)-~—residual
shrinkage will not exceed warp —--..--- >
filling -----..--... %, Commercial Standard
CS59-36
(4) These goods have been shrunk (or pre-
shrunk) to the extent that residual shrink-
age will not exceed ..-_.. % when tested in
accordance with the recognized and approved
standards or tests.
(b) The residual shrinkage percentage
designations provided for in this section
for woven cotton yard goods should be
stamped on or otherwise firmly affixed
to the material in conspicuous size and
legibility of type or style, and should also
appear similarly on all invoices, labels,
marks, or advertisements which carry
reference to the shrinkage of the goods.
(c)The use of residual shrinkage
percentage designations not in conform-
ity with results obtainable under the test
specified in paragraph (e) of this section,
with the capacity and tendency or effect
of misleading or deceiving purchasers,
prospective purchasers, or the consum-
ing public, is an unfair trade practice.
Trade Commission § 131.6
(d) The use or specification of an
unreliable or inadequate test in any such
designations, or the refusal to specify
a test which is proper and applicable,
when done for the purpose or with the
capacity and tendency or effect or
directly or indirectly misleading or de~
ceiving purchasers, prospective purchas~
ers, or the consuming public, is an unfair
trade practice.
(e) The following test is deemed to
be an accepted and recognized test for
determining shrinkage properties or re~
sidual shrinkage of woven cotton yard
goods in the application of these rules
and is recommended for use as a stand~
ard shrinkage test for this purpose:
“Commercial Standard CS59-36”
§ 131.6 Aiding or abetting use of unfair
trade practiccs.
It is an unfair trade practice for any
person, firm or corporation to aid, abet,
coerce or induce another, directly or in~
directly, to use or promote the use of
any, unfair trade practice specified in this
part.
PART 132—MACARONI AND
NOODLE PRODUCTS INDUSTRY
Sec.
132.0 Definitions.
132.1 Concurrent jurisdiction of Food and
Drug Administration over labeling.
132.2. Deception (General).
182.3 Misrepresentation of protein, caloric
and starch content of products.
132.4 Misuse of words “macaroni,” “spa-
ghetti,” “vermicelli,” “egg-maca-
roni” and “noodles,” or “egg
noddles,” etc.
132.5 Misrepresentation of semolina, du-
rum or farina products.
132.6 Misrepresentation as to the egg con-
tent of product.
132.7 Deception as to ingredients of prod-
ucts.
182.8 Defamation of competitors or false
disparagement of their products.
132.9 Prohibited sales below cost.
132.10 Imitation of trade-marks, trade
names, etc.
132.11 Fictitious prices, etc.
132.12 Deceptive invoicing, etc.
132.18 Prohibited discrimination.
182.14 Commercial bribery.
132.15 Exclusive deals.
CoMMITTEE ON TRADE PRACTICES
182.201 Industry committee.
AuTHorrry: Secs. 6, 5, 38 Stat. 721, 719;
16 U.S.C. 46, 45, unless otherwise noted.
Source: 23 FR 5821, Aug. 1, 1958, unless
otherwise noted.
509
§ 132.0
$132.0 Definitions.
As used in this part the terms “itndus~
try member” and “industry products”
shall have the following meanings,
respectively:
(a) Industry member. Any person,
firm, corporation or organization en-
gaged in the manufacture, sale or dis-
tribution of industry products as defined
in paragraph (b) of this section.
(b) Industry products. All kinds and
types of macaroni, spaghetti, vermicelli
and noodle products. So-calied Chiness
noodles are not included.
$132.1 Concurrent jurisdiction of Food
and Drag Administration over label-
ing.
(a) Definitions and standards for
macaroni and nocdles products pro-
mulgated under the Federal Food. Drug
and Cosmetic Act by the Food and
Drug Administration will, when relevant,
be taken into consideration in the ad-
ministration of trade practice rules for
the industry.
(b) The Commission has jurisdiction
over the advertising of industry prod-
ucts, and both it and the Food and Drug
Administration have jurisdiction over
the labeling of such products. In order
to avoid unnecessary overlapping and
possible conflict of effort, the two
agencies have adopted a working ar-
rangement under which the Commission
regulates the advertising of such prod-
ucts and the Food and Drug Adminis-
tration regulates the labeling thereof,
with recognition that there may be
unusual situations in which the Commis-
sion will exercise its concurrent jurisdic-
tion over the labeling of such products.
(ec) Nothing in this part is to be con-
strued as relieving anyone of the neces-
sity of complying with the provisions of
the Federal Food, Drug and Cosmetic Act
with respect to the labeling of industry
products, and with the definitions and
standards for such products as es-
tablished by the Food and Drug
Administration.
$132.2 Deception (general).
It is an unfair trade practice for any
industry member to use or cause to be
used any advertisement’ of industry
1The word “advertisement” as here used
includes any written or verbal statement,
notice, presentation, illustration, or depic-
tion, other than labeling, which 1s directly
or indirectly designed to effect the sale of
Title 16—Commercial Practices
products which contains any statement,
representation, illustration, or depiction
which directly, or by implication or
through failure to disclose material in-
formation, has the capacity and tend-
ency or effect of misleading or deceiv-
ing purchasers or prospective purchasers
with respect to the grade, quality, quan-
tity, substance, character, nature,
origin, size, material, content, coloring,
digestibility, nutritional properties,
therapeutic value, effect on body weight,
preparation, or manufacture of any in-
dustry products, or which has the
capacity and tendency or effect of de-
ceiving purchasers or prospective pur~
chasers in any other material respect.
$132.3 Misrepresentation of protein,
caloric and starch content of prod-
nets.
It is an unfair trade practice for a
member of the industry to make any
representation in any advertisement?
which has the capacity and tendency or
effect of deceiving purchasers or prospec~
tive purchasers as to:
(a) The protein, caloric or starch con-
tent of any industry product, or
(b) The protein, caloric or starch con-
tent of any industry product, or portion
thereof when prepared for consumption
in accordance with the member’s direc-
tions or recommendations, or
(ec) The protein, caloric or starch con-
tent of any industry product compared
to other industry products or to specific
foods or to food generally.
Note: Among practices to be considered as
subject to the inhibitions of this section, are
representations in any advertisement? that
an industry product is a high protein food,
or is a food of low starch or caloric content.
§ 132.4 Misuso of words “macaroni,”
“spaghetti,” “vermicelli,” “egg-
macaroni” and “noodles,” or “egg
noodles,” etc.
It ts an unfair trade practice for an
industry member to represent in an
advertisement’? any product as being
macaroni, spaghetti, vermicelli, egg-
macaroni, noodies or egg noodles when
such is not the fact, or to misrepresent
the identity of any industry product.
any industry product, or to create an tn-
terest in the purchase of any such product,
whether same appears fn a newspaper, maga-
zine, or other periodical, in a catalog, letter,
or sales promotional literature, in a radio or
television broadcast, or in any other media.
510
Chapter |—Federal
§ 132.5 Misrepresentation of semolina,
durom, or farina prodncts.
It is an unfair trade practice for an
industry member to represent in any ad-
vertisement* an industry product as be-
ing a semolina, durum or farina product
when such {fs not true in fact.
Nore: Nothing in this section is to be con-
strued as inhibiting a representation that an
industry product ts:
(a) A semolina product when the wheat
content thereof is solely of semolina, or
(b) A durum product or a durum wheat
product when the wheat content thereof is
solely of durum wheat, or
(c) A farina product when the wheat con-
tent thereof ts solely of farina.
§ 132.6 Misrepresentation as to the egg
content of product.
It is an unfair trade practice for an
industry member to misrepresent in any
advertisement’ the egg content of any
industry product.
Nore: It is the consensus of the industry
that any representation as to the egg content
of an industry product should be on a mois-
ture free basis.
§ 132.7 Deception as to ingredients of
products.
It is an unfair trade practice for an
industry member to misrepresent in
any advertisement’? the presence, ab-
sence, amount or proportion of any in-
gredient in any industry product.
§ 132.8 Defamation of competitors or
false disparagement of their prod-
ucts.
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, selling
prices, values, credit terms, policies,
services, or conditions of employment, is
an unfair trade practice.
§ 132.9 Probibited sales below cost.
(a) The practice of selling products of
the industry at a price less than the cost
thereof to the seller, with the purpose or
intent, and where the effect is, or where
there is a reasonable probability that the
effect will be, to substantially injure,
suppress, or stifle competition or tend to
create a monopoly, is an unfair trade
practice.
Trade Commission § 132.10
(b) This section is not to be construed
as prohibiting all sales below cost, but
only such selling below the seller’s cost
as is resorted to and pursued with the
wrongful intent or purpose referred to
and where the effect {s, or where there
is reasonable probability that the effect
will be, to substantially injure, suppress,
or stifle competition or to create a mo-
nopoly. Among the situations in which
the requisite purpose or intent would
ordinarily be lacking are cases in which
such sales were (1) of seasonal goods
near the conclusion of the season; (2) of
perishable goods in respect to which
detertoration is imminent; (3) of ob-
solescent goods; (4) made under judicial
process; or (5) made in bona fide dis-
continuance of business in the goods con-
cerned.
(c) As used in paragraphs (a) and
(b) of this section, the term “cost”
means the respective seller’s cost and not
an average cost in the industry whether
such average cost be determined by an
industry cost survey or some other
method. It consists of the total outlay
or expenditure by the seller in the
acquisition, production, and distribution
of the products involved, and comprises
all elements of cost such as labor, ma-
terial, depreciation, taxes (except taxes
on net income and such other taxes as
are not properly applicable to cost), and
general overhead expenses, incurred by
the seller in the acquisition, manufac-
ture, processing, preparation for market~
ing, sale, and delivery of the products.
Not to be included are dividends or in-
terest on borrowed or invested capital,
or nonoperating losses, such as fire losses
and losses from the sale or exchange of
capital assets. Operating cost should
not be reduced by items of nonoperating
income, such as income from invest-
ments, and gain on the sale of capital
assets.
(ad) Nothing in this section shall be
construed as relieving an industry mem-
ber from compliance with any of the re-
quirements of the Robinson-Patman
Act.
§ 132.10 Imitation of trade-marks, trade
names, etc.
The imitation or simulation in ad-
vertising of the trade-marks, trade
names, containers, brands, or labels of
competitors, with the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers, is an unfair trade practice.
511
§ 132.11
§ 132.11 Fictitious prices, etc.
The publishing or circulating by any
member of the industry of false or mis-
leading price quotations, terms or condi-
tions of sale, or reports as to production
or sales, with the capacity and tendency
or effect of misleading or deceiving pur-
chasers or prospective purchasers, or the
advertising, sale or offering for sale of
industry products at prices purporting to
be reduced from what are in fact ficti-
tious prices, or at purported reductions
in prices when such purported reductions
are in fact fictitious or are otherwise
misleading or deceptive, is an unfair
trade practice.
§ 132.12 Deceptive invoicing, etc.
It is an unfair trade practice for any
member of the industry to issue invoices,
billings or sales slips, which, by reason
of inisstatements therein or omissions
therefrom, have the capacity and tend-
ency or effect of deceiving purchasers or
prospective purchasers in any material
respect.
§ 132.13 Prohibited discrimination.®
(a) Prohibited discriminatory prices,
rebates, refunds, discounts, credits, etc.,
which effect unlawful price discrimina-
tion. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, to grant or allow, secretly or
openly, directly or indirectly, any rebate,
refund, discount, credit or other form of
price differential, where such rebate, re-
fund, discount, credit, or other forin of
price differential, effects a discrimina-
tion 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
*As used in this section, the word “com-
merce” means “trade or commerce among
the several States and with foreign nations
or between the District of Columbia or any
Territory of the United States and any State,
Territory, or foreign nation, or between any
insular possessions or other places under the
jurisdiction of the United States, or between
any such possession or place and any State
or Territory of the United States or the Dis-
trict of Columbia or any foreign nation, or
within the District of Columbia or any Ter-
ritory or any insular possession or other place
under the jurisdiction of the United States.”
Title 16—Commercial Practices
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, con-
sumption, or resale within any place
under the jurisdiction of the United
States, and are not purchased by schools,
colleges, universities, public libraries,
churches, hospitals, and charitable in-
stitutions not operated for profit, as sup-
plies for their own use.
(2) That nothing contained in this
paragraph shall prevent differentials
which make only due allowance for dif-
ferences in the cost of manufacture, sale,
or delivery resulting from the differing
methods or quantities in which such
commodities are to such purchasers sold
or delivered.
Note: Cost justification under the above
proviso depends upon net savings in cost
based on all facts relevant to the transactions
under the terms of this subparagraph. For
example, if a seller regularly grants a dis-
count based upon the purchase of a specified
quantity by a single order for a single de-
livery, and this discount is justified by cost
differences, it does not follow that the same
discount can be cost justified if granted to a
purchaser of the same quantity by multiple
orders or for multiple deliveries.
(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
paragraph shall prevent price changes
from time to time where made in re-
sponse to changing conditions affecting
the market for or the marketability of
the goods concerned, such as but not
limited to distress sales under court proc-
ess, or sales in good faith in discontinu-
ance of business in the goods concerned.
(5) That nothing contained in this
section shali prevent the meeting in good
faith of an equally low price of a
competitor.
NotTE: See subsection (b) of section 2 of
the Clayton Act as amended, which is set
forth in the note following paragraph (g) of
this section.
(b) Prohibited brokerage 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-
512
Chapter I—Federal Trade Commission
sion, brokerage, or other compensation,
or any allowance or discount tn 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 in-
termediary therein where such inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect con-
trol, 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 compensation or in
consideration for any services or facili-
ties 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 ts
available on proportionally equal terms
to all other customers competing in the
distribution of such products or commod-
ities.
Nore 1: Industry members giving adver-
tising allowances to competing customers
must exercise precaution and diligence in
seeing that all of such allowances are used
in accordance with the terms of their offers.
Norz 2: When an industry member gives
allowances to competing customers for ad-
vertising in a newspaper or periodical, the
fact that a lower advertising rate for equiva-
lent space is available to one or more, but
not all, such customers, is not to be regarded
by the Industry member as warranting the
retention by such customer or customers of
any portion of the allowance for his or their
personal use or benefit.
(da) 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
furnishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offermg for sale of such com-
modity so purchased upon terms not ac-
corded to all competing purchasers on
proportionally equal terms.
§ 132.13
Nore: See subsection (b) of section 2 of
the Clayton Act as amended, which is set
forth in the note following paragraph (g)
of this section.
(e) Clarification of requirements for
supplying of marketing services, facilities
or allowances. The following is pre-
sented for the purpose of clarifying the
requirements of paragraphs (c) and (d)
of this section with respect to the sup-
Plying 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 proportional
equality of treatment of competing cus-
tomers may not also be used:
An industry member may simultane-
ously offer to each of his customers com-
peting in the resale of his products the
same kind of promotional service, fa-
cility or allowance of a cost value equal
to a uniform percentage of the sales (or
purchases) of the industry member’s
products by each customer during a
specified and identical period of time:
Provided, however, That when the serv-
ice, facility or allowance offered is of a
type which under reasonable terms and
conditions is not usable or suitable to
the facilities and business of all cus-
tomers, and is offered to any one cus-
tomer, the member offer each of those
customers to whom the service, facility
or allowance is not usable or suitable an
alternate type of promotional service,
facility or allowance which is of equiva-
lent measurable cost, Is usable by the
customer, and is suitable to his facilities
and business, and promptly inform all
competing customers of the kind and
amount of services, facilities or allow-
ances which he has offered to each and
the respective terms and conditions
under which such services, facilities or
allowances are to be furnished by the
industry member: And provided further,
That when the offer of any service, fa-
cility or allowance to any customer is
conditioned on such customer supplying
some reciprocal service, facility or pay-
ment, a reciprocal service, facility or
payment be required in the offers to all
other customers and there be an equality
of ratio among all customers as to the
measurable cost of that which is supplied
by the industry member and the recipro~
cal service, facility or payment required
of any customer. The industry member
must take every reasonable precaution to
seo that services, facilities or allowances
which he furnishes to customers are
518
§ 132.14
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 supply-
ing the customer any further service,
facility or allowance.
(f) Inducing or receiving an tlegal
discrimination in price. It is an unfair
trade practice for any member of the
industry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimmation in
price which is prohibited by the forego~
ing provisions of this section.
Note: This paragraph is a restatement of
section 2(f) of the Clayton Act as amended.
In a complaint proceeding under this sec-
tion, in order to make out a prima facile viola-
tion, the Commission must show that the
favored buyer induced or received the lower
price knowing, or knowing facts from which
he should have known, that such price was
violative of section 2(a) of said act and not
justified under subparagraph (2), (4), or (5)
of paragraph (a) of this section. When, in
eny such p , the issue is limited to
the question of whether the price differen-
tial involved made only due allowance for
differences in cost of manufacture, sale, or
delivery resulting from the differing methods
of quantities in which the goods were sold
end delivered, the Commission may estab-
lish a prima facie case in a number of ways,
including:
(1) By showing that the buyer paying the
lower price knew that the methods by, and
quantities in, which the goods were sold
and delivered to him by the seller were the
same as in the case of the competing buyer
or buyers paying the higher price of prices;
or
(2) By showing, when there is a differ-
ence in the methods or quantities in which
the goods were sold and delivered by the
seller to the buyer than in the case of the
competing buyer or buyers paying the higher
price or prices, that the buyer paying the
lower price or prices knew the nature and
extent of such differences and knew or
should have known that they could not have
resulted in sufficient cost savings of the kind
end character specified as to justify the
price differential.
(g) Purchases by U.S. Government
applicability of Robinson-Patman Anti-
discrimination Act to same. (1) In an
opinion submitted to the Secretary of
War under date of December 28, 1936,
the U.S. Attorney General advised that
the Robinson-Patman Antidiscrimina-
tion Act “is not applicable to Govern-
ment contracts for supplies.” (38 Opin-
ions, Attorney General 539)
Nore: This section Js based on the provi-
sions of section 2 of the Clayton Act as
amended hy the Robinson-Patman Act,
Title 16—Commercial Practices
(2) Subsection (b) of section 2 of the
Clayton Act as amended, which reads as
follows, is in amplification of the note to
subparagraph (5) of paragraph (a) of
this section and of the note to paragraph
(d) of this section.
Upon proof being made, at any hearing on
@ complaint under this section, that there
has been discrimination in price or services
cr facilities furnished, the burden of rebut-
ting the prima facie case thus made by shcw-
ing justification shall be upon the person
charged with a violation of this section, and
unless justification shall be affirmatively
shown, the Commission 1s authorized to 1s-
sue an order terminating the discrimination:
Provided, however, That nothing herein con-
tained shall prevent a seller rebutting the
prima facie case thus made by showing that
his lower price or the furnishing of services
or facilities to any purchaser or purchasers
was made in good faith to meet an equally
low price of a competitor, or the services or
facilities furnished by s competitor.
§ 132.14 Commercial bribery.
It is an unfair trade practice for any
industry member, directly or indirectly,
to give, or offer to give, or permit or
cause to be given, money or anything of
value to agents, employees, or represent-
atives of customers or prospective cus-
tomers, or to agents, employees, or rep-
resentatives of competitors’ customers
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 of prin-
cipals to refrain from dealing in the
products of competitors or from dealing
or contracting to deal with competiters,
or to effect any other advantage in favor
of the industry member making such
gift or offer with respect to the sale of
industry products to such employers or
principals.
§ 132.15 Exclusive deals.
It is an unfair trade practice for any
member of the industry engaged in com.
merce,’ in the course of such commerce,
to lease or make a sale or contract for
sale of any industry product, for use,
consumption, or resale within any place
under the jurisdiction of the United
States, or fix a price charged therefor,
or discount from, or rebate upon, such
price, on the condition, agreement, or
2 See footncte to § 132.13.
514
Chapter !—Federal Trade Commission
understanding that the lessee or pur-
chaser thereof shall not use or deal in
the goods of a competitor or competitors
of the lessor or seller, where the effect
of such lease, sale, or contract for sale,
or such condition, agreement, or under-
standing, may be to substantially lessen
competition or tend to create a monopoly
in any line of commerce.
COMMITTEE ON TRADE PRACTICES
§ 132.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
try committee established under this
part.
PART 136—PAINT AND VARNISH
BRUSH INDUSTRY
Sec.
186.0 Definitions.
186.1 Deception (general).
186.2 Deception as to the kind of material
of which the brushing part of a
brush is composed.
186.8 Misrepresentation as to setting.
186.4. Misleading price quotations, etc.
186.5 False invoicing.
136.6 Substitution of products.
186.7. Inducing breach of contract.
186.8 Commercial bribery.
186.9 Deceptive use of trade or corporate
names, trade-marks, eto.
186.10 Misrepresenting character of busi-
ness.
186.11 Use of word “free,”
186.12 Consignment distribution.
196.18 Prohibited sales below cost.
186.14 Misrepresenting products as con-
forming to standard.
186.15 Guarantees, warranties, etc.
136.16 Defamation of competitors or false
disparagement of their products.
136.17 Misrepresentation as to origin and
disclosure of foreign origin.
186.18 Prohibited forms of trade restraints.
186.19 Prohibited discrimination.
136.20 Exclusive deals.
136.21 Aiding or abetting use of unfair trade
practices.
COMMITTEE ON TRADE PRACTICES
186.201 Industry committee. -
AvrHogrrr: Secs. 6, 5, 38 Stat. 721, 718; 16
U.S.C. 46, 45, unless otherwise noted.
Source: 23 FR 4862, June 17, 1958, unlees
otherwise noted.
§ 136.0 Definitions.
(a) Industry members. Persons, firms,
corporations, and organizations engaged
in the manufacture, sale or distribution
of industry products as defined in this
section.
§ 136.2
(b) Industry products. Tho term “in-
dustry products” and the word “brushes”
as used in the rules in this part includes
all types and kinds of brushes which are
designed for use in applying paint, var-
nish, lacquer, calcimine, wallpaper or
other decorative or protective coatings or
primers or undercoatings for such coat-
ings. Also non-wire brushes for use in
dusting or cleaning surfaces preliminary
to the application of such coatings or
undercoatings.
§ 136.1 Deception (general).
In the sale, offering for sale, or distri-
bution of industry products it is an un-
fair trade practice to use, or cause or
promote the use of, any trade promo-
tional Hterature or advertising matter,
however disseminated or published, or to
use any marking, brand, or label on any
such product, which, directly or by impli-
cation, or through failure to disclose
material information in conjunction
therewith, has the capacity and tendency
or effect of deceiving purchasers or pros-
pective purchasers of such product in any
material respect.
§ 136.2 Deception as to the kind of ma-
terial of which the brushing part of
a brush is composed.
In the sale, offering for sale, or distri-
bution of industry products, it is an un-
fair trade practice:
(a) To represent or imply that the
brushing part of a brush is of a different
kind or type of material than is in fact
the case; or
(b) To fail correctly to identify, in the
manner set forth in this paragraph, the
kind of material of which the brushing
part of a brush is composed when, by
reason of the similarity of such material
to another or other kinds of material
used in the brushing part of brushes, the
fallure to make the identification has the
capacity and tendency or effect of de-
ceiving purchasers or prospective pur-
chasers as to the true composition
thereof. :
(1) Such identification shail be in the
form of a legible marking or stamping on
the handle or ferrule of the brush and
shall be of such size, conspicuousness,
and degree of permanency, as to be
noticeable and readable upon casual in-
spection when the brush is offered for
sale to consumer purchasers.
(2) When the composition of the
brushing part of a brush is of two or
more kinds of material, the identifica-
515