Macaroni, Noodles, And Related Products Industry
16 CFR Part 132 · Trade practice rules · in the Code of Federal Regulations 1938-1949 (3 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1949 CFR · Earliest edition: 1938 CFR
Text (1949 edition, OCR)
Chapter I—Federal Trade Commission have been preshrunk or shrunk to a sub- stantial 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 misunderstanding, the standard shrinkage test provided for in paragraph (e) of this section should be used in determining percentages to be specified in such designations. ‘The fol- lowing are typical examples of designa- tions 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 ___.__ % under Commercial Standard CS59-36 (3) 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 shrinkage will not exceed __.-__ % when tested tn ac- cordance 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 conspicuous size and legibility of type or style, agd 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 practlce. (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 of di- rectly 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 § 132.1 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 un- fair trade practices. It isan unfair trade practice for any person, firm or corpora- tion to aid, abet, coerce or induce an- other, directly or indirectly, to use or promote the use of any unfalr trade practice specified in this part. Part 132—Macaroni, Noodles, and Related Products Indus- try Sec. 132.1 GROUP I Misrepresentation of industry prod- ucts. 132.2 Specifications for macaroni and noodle products. 182.8 Misuse of words “macaronl,” “spa- ghettt,” “noodles,” etc. 182.4 Misrepresentation of semolina or fa- rina products. 132.5 Misrepresentation as to egg content of product. 132.6 Use of deceptive coloring or deceptive containers. 132.7 Deception as to additional food tn- gredlents. 182.8 Deceptive depictions. 132.9 Defamation of competitors and dis- paragement of their products. 132.10 Failure to brand industry products. 132.11 Seliing below cost. 132.12 Imitation or simulation of trade- marks, etc. 132.18 Publication or circulation of false or misleading price quotatlons, etc. 132.14 False invoicing. 182.15 Discrimination. AvuTHoRITY: §§ 182.1 to 182.15 issued under sec. 6 (g), 38 Stat. 722; 15 U.S. C. 46 (g). Interpret or apply sec. 5, 38 Stat. 719, as amended; 15 U. S. C. 45. Other statutory _ provisions interpreted or applied are cited to text in parentheses. Source: §§ 132.1 to 182.15 appear at 3 F.R. 1661. § 132.1 Misrepresentation of industry products. The practice of selling, adver- tising, describing, branding, marking, la- beling, or packing macaroni, noodies, or related products, or any simulation or imitation thereof, in a manner which is calculated to mislead or decelve, or has the tendency and capacity or effect of misleading or deceiving, purchasers, prospective purchasers or the consuming public with respect to the grade, quality, quantity, substance, character, nature, origin, size, material, content, composi- Page 325 § 132.2 tion, coloring, preparation, or manufac- ture of such products, or in any other material respect, is an unfair trade prac- tice. § 132.2 Specifications for macaroni and noodle products. For the purpose of and as used in this part: (a) “Macaroni” is understood to be the shaped and dried doughs prepared by adding water to one or more of the fol- lowing: semolina, farina, wheat flour. It may contain added salt. In the fin- ished product the moisture content does not exceed 13 percent. Various shapes of macaroni are known under distin- guishing names, such as spaghetti, ver- micelli, etc. (b) “Egg macaroni” is understood to be the shaped and dried doughs prepared by adding eggs and water, with or with- out salt, to one or more of the follow- ing: semolina, farina, wheat fiour. The eggs ingredient may be whole egg and/or egg yolk. In the finished product the moisture content does not exceed 13 per- cent and the egg-solids content upon the moisture-free basis is not less than 5.5 percent. (c) “Noodles, egg noodles’? are under- stood to be the shaped and dried doughs prepared from semolina, farina, or wheat fiour and eggs, with or without water, and with or without salt. -The egg in- gredient may be whole egg and/or egg yolk. In the finished product the mois- ture content does not exceed 13 percent and the egg-solids content upon the moisture-free basis is not less than 5.5 percent. Noodles are commonly ribbon- shaped. (d) “Plain noodles” are understood to be the shaped and dried doughs prepared from semolina, farina, or wheat fiour ~ and water, with or without salt. In the finished product the moisture content does not ‘exceed 13 percent. Plain noodles are commonly ribbon-shaped. § 132.3 Misuse of words “Macaroni,” “spaghetti,” “noodles,” ete. It is an un- fair trade practice to sell, offer for sale, advertise, describe, brand, label, or otherwise represent, directly or indirect- ly, any product as being macaroni, spa- ghetti, vermicelli, egg macaroni, noodles, egg noodles, plain noodles, or other simi- lar macaroni or noodle product, when such product does not conform to the specifications set forth in § 132.2. § 132.4 Misrepresentation of semolina or farina products. It is an unfair trade Page 326 Title 16——Commercial Practices practice to sell, offer for sale, advertise, describe, brand, label, or otherwise rep- resent any macaroni or noodle product as being a semolina or farina product when such is not true in fact. - §132.5 Misrepresentation as to egg content of product. It is an unfair trade practice to sell, offer for sale, advertise, describe, brand, label, or otherwise rep- resent, directly or indirectly, any product as being egg macaroni, noodles, or egg noodles when such is not true in fact, or when such product does not actually contain egg in sufficient proportion to meet the specifications set forth in § 132.2. § 132.6 Use of deceptive coloring or deceptive containers. It is an unfair trade practice to use yellow coloring in, or yellow transparent containers for, any macaroni, noodle, or related product In such manner as deceptively to import or imply to purchasers, prospective pur- chasers or the consuming public that such product contains egg in greater proportion than is in fact present, or in such manner as to mislead or deceive in any other respect. § 132.7 Deception as to additional food ingredients. (a) In case additional food ingredients, not including those specified under § 132.2, are used in maca- roni, noodles, or related products, full and nondeceptive disclosure of such fact should be made; and it is an unfair trade practice to conceal, or fail or refuse to disclose, or to misrepresent, directly or indirectly, the proportion of such food ingredients present in said macaroni, noodles, or related products, with the capacity and tendency or effect of mis- leading or deceiving purchasers, pro- spective purchasers, or the consuming public. (b) It is an unfair trade practice to advertise, describe, brand, label, or otherwise represent any product of the industry as containing a food ingredient when such food ingredient is not present at all or when such food ingredient is not present in substantial and characterizing amounts, with the capacity and tendency or effect of misleading or deceiving pur- chasers, prospective purchasers, or the consuming public. (c) Nothing in this part shall be con- strued as authorizing or permitting the use of any food ingredient contributing a yellow color for the purpose or with the effect of misleading or deceiving the pur- chasing public. Chapter I—Federal Trade Commission § 132.8 Deceptive depictions. The use of photographs, cuts, engravings, liiustrations, or pictoriai or other depic- tions or devices of industry products in catalogs, saies literature, or advertise- ments, or on packages or containers, or otherwise, in such manner as to have the capacity and tendency or effect of mis- leading or deceiving the purchasing or consuming public as to the grade, qual- ity, quantity, substance, character, na- ture, origin, size, material, content, com- position, coloring, preparation, or manu- facture of such products, is an unfair trade practice. § 132.9 Defamation of competitors and disparagement of their products. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, question- able credit standing, or by other false representations, or the faise disparage- ment of the grade, quality, or manufac- ture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. § 132.10 Failure to brand industry products. In the sale, offering for sale or shipment of industry products, the failure to brand, mark, or identify such products so as to disclose their true char- acter, where such failure has the tend- ency, capacity, or effect of misleading or deceiving purchasers, prospective pur- chasers, or the consuming public, is an unfair trade practice. § 132.11 Selling below cost. The practice of selling industry products be- iow the selier’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 unreasonably restrain trade, is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shail be inciuded in determining cost under this section. § 132.12 Imitation or simulation of trade-marks, etc. The imitation or sim- ulation of the trade-marks, trade names, labels, or brands of competitors with the purpose or with the tendency and capac- ity or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 132.13 Publication or circulation of false or misleading price quotations, etc. § 132.15 The publishing or circulating, by any member of the industry, of faise or mis- leading price quotations, price lists, or terms of sale, with the tendency, capac- ity or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 132.14 False invoicing. Withhold- ing from or inserting in invoices any statements or information by reason of which omission or insertion a faise rec- ord 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 pur- chasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 132.15 Discrimination—(a) Prohib- ited discriminatory prices or rebates, re- funds, discounts, credits, etc.,’ which effect unlawful price discrimination. It is an unfair trade-practice for any mem- ber of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or in- directiy, any rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, discount, credit, or other form of price differential effects a discrimination in price between different purchasers of goods of like grade and quality, where either or any of the purchases involved therein are in com- merce, 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 pre- vent 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 invoived 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, saie, or deliv- ery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing contained in this section shall prevent persons engaged in 1Paragraph (a) of § 132.15 shall not be construed as embracing practices prohibited by paragraphs (b) (c), and (d) of this sec- tion, Page 327 § 132.15, selling goods, wares, or merchandise in commerce from seiecting 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 conditlons affecting either (i) the market for the goods concerned, or (ii) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obso- lescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned. (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 vaiue 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 in- termediary therein where such inter- mediary is acting in fact for or in be- half, or is subject to the direct or in- direct 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 advertis- ing or promotional ailowances or any other thing of value to or for the benefit of a customer of such member in the course of such commerce as compensa- tion or in consideration for any services or facilities furnished by or through such customer in connection with the process- ing, 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 -con- sideration is available on proportionally equal terms to all other customers com- peting in the distribution of such prod- ucts or commodities. (d) Prohibited discriminatory serv- iees or facilities. It is an unfair trade practice for any member of the industry engaged in commerce to discriminate in Page 328 Title 16—Commercial Practices 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 offerlng 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 mem- ber of the industry or other person en- gaged in commerce, in the course of such commerce, 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 (49 Stat. 1526-8; 15 U.S. C., 13-13b, 21a), or knowingly to induce or receive 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. 13, 13a, 13b, 21a) Part 133—Tomato Paste Manu- facturing Industry . GROUP I . Sec. 133.1 Misrepresentation of industry prod- ucts. 133.2 Specifications for tomato paste. 133.3. Misrepresentation as to tomato paste. 133.4 Misrepresentation as to artificial color. . 183.5 Misrepresentation as to tomato con- tent of product. 133.6 Deceptive depictions. 133.7 Defamation of competitors and dis- paragement of their products. 133.8 Substituting inferior products for those ordered. 133.9 Commercial bribery. 133.10 Inducing breach of contract. 133.11 Enticing away employees of competi- tors. 133.12 Selling below cost. 133.138 Discrimination. 133.14 Misrepresentation as to basil, etc. GROUP II 133.101 Disclosure of solids content, 133.102 Repudiation of contracts. 133.103 Fake or fictitious bids. 133.104 Truthful disclosure of quality of products. 133.105 Dissemination of credit information. AvTHoRITY: §§ 133.1 to 133.105 issued under sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g). Interpret or apply sec. 5, 38 Stat. 719, as amended; 15 U. S. C. 45. Other statutory