Paint And Varnish Brush Industry
16 CFR Part 136 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (11 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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 !—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 § 136.3 tion required by this paragraph shall be of each kind in the order of its predomi- nance by weight or be immediately ac- companied by the percentage by weight of the entire composition which it rep- resents (Examples: When, by weight, composed of 60 percent horsehair and 40 percent bristle—“Horsehair and Bristle” or “60 percent Horsehair and 40 percent Bristle;” and when, by weight, composed of 60 percent nylon and 40 percent bristle—“Nylon and Bristle” or “60 percent Nylon and 40 percent Bristle”) : Provided, however, That when any kind of material constitutes but an insubstantial proportion of the entire mixture, the percentage by weight of the mixture accounted for by such kind shall immediately accompany the identifica- tion thereof. (3) In identifying the composition of the brushing part of a brush: (@ The word “bristle” shall not be used as descriptive of any material other than hog or swine hair; (ii) The term “China bristle” shall be confined to hog or swine hair imported from China; (iii) No part of the composition shall be described as tipped or flagged, or as tapered to leveled, when such is not the act; (iv) No part of the composition shall be represented as being “natural black” or “undyed” when such is not the fact; (v) Any part of the composition which is used material shall be immediately ac- coinpanied by a clear and non-deceptive disclosure of such fact. § 136.3. Misrepresentation as to setting. It ts an unfair trade practice to mis- represent the materials used in the set- ting of a brush or the precess by which the brushing part is affixed to the handle, through the use of such terms as “Vul- canized in Rubber,” “Epoxy,” or other- wise, when such is not the fact. § 136.4 Misleading price quotations, etc. It is an unfair trade practice for any industry member, in the course of or in connecticn with the offering for sale, sale, or distribution of industry products, to publish or circulate price quotations, price lists, or terms or conditions of sale, which have the capacity and tendency or effect of misleading or decelving pur- chasers or prospective purchasers, or the consuming public, in any material respect. Title 16—Commercial Practices § 136.5 False invoicing. Withholding from or inserting in in< voices any statement or information by reason Of which omission or insertion a false, inaccurate, or incomplete record is made, which has the capacity and tend- ency or effect of deceiving purchasers, prospective purchasers, or the consum- ing public in any material respect, is an unfair trade practice. § 136.6 Substitution of products. It is an unfair trade practice for any industry member, in the course of or in connéction with the sale or distribution of industry products, to make an un- authorized substitution of products, where such substitution has the capacity and tendency or effect of misleading or deceiving purchasers or the consuming public, by: (a) Shipping ocr delivering industry products which do not conform to sam- ples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without advising the purchaser of the substitution and obtaining his consent thereto prior to making ship- ment or delivery; or (b) Falsely representing the reason for making a substitution. § 136.7 Inducing breach of contract. (a) Knowingly inducing or attempting to induce the breach of existing lawful contracts between coinpetitors and their customers or their suppliers, or inter- fering with or obstructing the perform- ance of any such contractual duties or services, under any circumstances hav- ing the capacity and tendency or effect of substantially injuring or lessening present or potential competition, is an unfair trade practice. (b) Nothing in this section is intended to imply that it is improper for any in- dustry member to solicit the business of a customer or a competing industry member nor is this section to be con- strued as in anywise authorizing any agreement, understanding, or planned common course of action by two or more industry members not to solicit business from the customers of either of them, or from the customers of any other in- dustry member. § 136.8 Commercial bribery. It is an unfair trade practice for a member of the industry directly or in- directly, to give, offer to give, or cause 516 Chapter 1—Federal to be given, money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatives of competitors’ customers or prospective customers, without the knowledge of their employers or principals, as an in- ducement to influence their employers or principals to purchase or contract to purchase products sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from deal- ing or contracting to deal with competi- tors, 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. § 136.9 Deceptive use of trade or cor- porate names, trade-marks, ete. The use of any trade name, corporate name, trade-mark, or other trade desig- nation which has the capacity and tend- ency or effect of misleading or deceiving the purchasing or consuming public as to the character, name, nature, or origin of any product of the industry, or any material used therein, or which is false or misleading in any other material re- spect, is an unfair trade practice. § 136.10 Misrepresenting character of business. It is an unfair trade practice for any industry member, in the course of or in connection with the sale of industry products, to represent, directly or indi- rectly, that he is a manufacturer of in- dustry products, umless he owns and operates or directly controls a factory wherein such products are made, or in any other manner to misrepresent the character or extent, or type of his busi- ness. § 136.11 Useof word “free”. In connection with the sale, offering for sale, or distribution of industry prod- ucts it is an unfair trade practice to use the word “free,” or any other word or words of similar import, in advertise- ments or in other offers to the public, as descriptive of an article of merchandise, or service, which is not an unconditional gift, under the following circumstances: (a) When all the conditions, obliga- tions, or other prerequisites to the re- ceipt and retention of the “free” article of merchandise or service offered are not Trade Commission § 136.13 clearly and conspicuously set forth at the outset so as to leave no reasonable probability that the terms of the offer will be misunderstood; and, regardless of such disclosure: (b) When, with respect to any article of merchandise required to be purchased in order to obtain the “free” article or service, the offeror (1) increases the ordinary and usual price of such article of merchandise, or (2) reduces its quality, or (3) reduces the quantity or size thereof. Nore: The disclosure required by para- graph (a) of this section shall appear in close conjunction with the word “free” (or other word or words of similar import) wherever such word first appears in each advertise- ment or offer. A disclosure in the form of a footnote, to which reference is made by use of an asterisk or other symbol placed next to the word “free’’ will not be regarded aa compliance. § 136.12 Consignment distribution. (a) It is an unfair trade practice for any member of the industry to employ the practice of shipping industry prod- ucts on consignment without the express request or prior consent of the pur- chasers. (b) It is an unfair trade practice for any member of the industry to employ the practice of shipping industry prod- ucts on consignment or pretended con- signment for the purpose and with the effect of artificially clogging or closing trade outlets and unduly restricting com- petitors’ use of said trade outlets in getting their products to purchasers through regular channels of distribution, thereby injuring, destroying, or prevent- ing competition or tending to create a monopoly or unreasonably to restrain trade. (c) Nothing in this section shall be construed to authorize any understand- ing or agreement, combination or con- spiracy, or planned common course of action, by and between industry mem- bers, mutually to conforin or restrict their practice of shipping goods on con- signment with the intent or effect of lessening competition. § 136.13 Prohibited 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 517 § 136.14 create a monopoly, is an unfair trade practice. (b) This section is not to be censtrued as prohibiting all sales below cost, but only such selling beiow the seller’s cost as is resorted to and pursued with the wrongful intent or purpose referred to and where the effect is, or where there is a reasonable probability that the effect will be, to substantially injure, suppress, or stifie competition or to create a monopoly. Among the situations in which the requisite purpose or intent would ordinarily be lacking are cases in which such sales were: (1) Of obsoles- cent goods: (2) made under judicial process; or (3) made in bona fide discon- tinuance of business in the goods con- cerned, (c) As used in paragraphs (a) and (b) of this sectlon, 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 acqui- sition, production, and distribution of the products involved, and comprises all elements of cost such as labor, material, 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, manufacture, process- ing, preparation for marketing, sale, and delivery of the products. Not to be in- cluded are dividends or interest on bor- rowed or invested capital, or nonoperat- ing losses, such as fire losses and losses from the sale or exchange of capital assets. Operating cost should not be re- duced by items of nonoperating income, such as income from investments, and gain on the sale of capital assets. (d) Nothing in this section shall be construed as relieving an industry mem-~- ber from compliance with any of the requirements of the Robinson-Patman Act. § 136.14 Misrepresenting produets as conforming to standard. In connection with the sale or offering for sale of industry products, it is an unfair trade practice to represent, through advertising or otherwise, that such products conform to any standard recognized in or applicable to the in- dustry when such is not the fact. Title 16—Commercial Practices § 136.15 Guarantees, warranties, etc. (a) It is an unfair trade practice to represent, in advertising or otherwise, that any industry product is “guaran- teed” unless the nature and extent of such guarantee is conjunctively disclosed and without deceptively minimizing the terms and conditions relating to the obli- gation of the guarantor. (b) It is also an unfair trade practice to use, or cause to be used, any guarantee in which the obligations of the guaranter are impracticable of fulfillment, or in respect to which the guarantor fails or refuses to observe his liabilities there- under. (c) This section shall be applicable not only to guarantees but also to warranties, to purported guarantees and warranties, and to any promise or representation in the nature of a guarantee or warranty. § 136.16 Defamation of competitors or false disparagement of their prod- uets, 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 or quality of the goods of competitors, their credit terms, values, policies, services, the nature or form of the business conducted, or in any other material respect, is an unfair trade practice. § 136.17 Misrepresentation as to origin and disclosure of foreign origin. (a) It is an unfair trade practice to misrepresent the place of origin, produc- tion, assembly, or manufacture of indus- try products or their components. (b) (1) It is also an unfair trade prac- tice to offer for sale, sell, or distribute any industry product manufactured or produced in a foreign country, or any industry product containing a substan- tial or material part manufactured or produced in a foreign country, without affirmatively and clearly disclosing the fact that such product or part was man- ufactured or produced in an identified foreign country, when the failure to make such disclosure has the capacity and tendency or effect of misleading or deceiving purchasers or prospective pur- chasers. (2) Such identification, when required, shall be in the form of a legible marking or stamping on the handle or ferrule of the brush, or on a label or tag securely 518 Chapter I—Federal Trade Commission attached thereto, and shall be of such size, conspicuousness, and degree of permanency, as to be noticeable and readable upon casual inspection when the brush is offered for sale to con- sumer purchasers. Nore 1: Nothing in paragraph (b) of this section is to be construed as requiring dis- closure of the foreign origin of material or parts which, by reason of further processing in this country subsequent to their importe- tion, no longer retain the appearance and essential characteristics possessed by them at the time of their importation. Nore 2: Nothing in thts section shall be construed as relieving any member of the industry or other party of the necesslty of complying with the requirements of the customs laws or regulations relating to the marking of imported articles. § 136.13 Prohibited forms of trade re- straints.’ It is an unfair trade practice, either di- rectly or indirectly, to engage in any planned common course of action, or to enter into or take part in any under- standing, agreement, combination, or conspiracy with one or more industry members, or with any other person or persons, to fix or maintain the price of any goods or otherwise unlawfully to re- strain trade; or to use any form of threat, intimidation, or coercion to in- duce any member of the industry or other person or persons to engage in any such planned common course of action, or to become a party to any such 1The inhibltions of this section are swb- ject to Public Law 542, approved July 14, 1952, 66 Stat. 682 (the McGuire Act) which provides that with respect to a commodity which bears, or the label or container of which bears, the trade-mark, brand, or name of the producer or distributor of such com- modlty and which 1s in free and open com- petition with commoditles of the same general class produced or distributed by others, a seller of such a commodity may enter into a contract or agreement with 4 buyer thereof which establishes a minimum or stipulated price at which such commodity may be resold by such buyer when such contract or agreement is lawful as applied to intrastate transactions under the lawa of the State, Territory, or territorial juris- diction in which the resale is to be made or to which the commodity is to be trans- ported for such resale, and when such con- tract or agreement is not between manu- facturers, or between wholesalers, or between brokers, or between factors, or between re- tallers, or between persons, firms, or corpo- rations in competition with each other. 90-058-—77——-34 § 136.19 understanding, agreement, combination, or conspiracy. : § 136.19 Prohibited discrimination.* (a) Prohibited discriminatory prices, rebates, refunds, discounts, credits, ete., 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 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 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 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 Wbraries, 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 differences in the cost of manufacture, sale, or delivery resulting from the differ- ing methods or quantities in which such commodities are to such purchasers sold or delivered; Nore: Cost justification under the above proviso depends upon net savings in cost based on all facta relevant to the transac- 2As used in this section, the word “com- merce” means “trade or commerce among the several States and with foreign natlons, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possesslons 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 District. of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States.” 519 § 136.19 tions under the terms of subparagraph (2) of this paragraph. For example, if a seller regularly grants a discount based upon the purchase of a specified quantity by a single order for a single delivery, 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 obsolescence of seasonal goods, actual or imminent deterioration of per- ishable goods, distress sales under court process, or sales in good faith in dis- continuance of business in the goods concerned; (5) That nothing contained in this section shall prevent the meeting in good faith of an equally low price of a com- petitor. Nore: See subsection (b) of section 2 of the Clayton Act as amended which is set forth in the note following paragraph (e) of this section. (bo) Prohibited brokerage and com- missions. It is an unfair trade practice for any member of the industry en- gaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a com- mission, brokerage, or other compensa- tion, 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 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 Title 16—-Commercial Practices 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 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 engaged in commerce to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or 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 com- modity so purchased upon terms not accorded to all competing purchasers on proportionally equal terms. Nore: See subsection (b) of section 2 of the Clayton Act as amended, which is set forth in the note following paragraph (e) of this section. (e) Inducing or receiving an illegal 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 discrimination in price which is prohibited by the fore- going provislons of this section. Nore: Paragraph (e) of this section is a restatement of section 2 (f) of the Clayton Act as amended. In a complaint proceeding under this section, in order to make out a prima facie violation, 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 subpara- graphs (2), (4) or (6) of paragraph (a) of this section. When, in any such proceeding, the Issue is limited to the question of whether the price differential involved made only due allow- ance for differences in cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which the goods were sold and delivered, the Commission may establish 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 520 Chapter I—Federal Trade Commission 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 or prices; or (2) By showing, when there is a difference 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 puyer 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 and character spec- ified as to justify the price differential. Note: Section 136.19 is based on the pro- visions of section 2 of the Clayton Act as amended by the Robinson-Patman Act.. - Subsection (6) 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 paragarph (d) of this section. “Upon proof being made, at any hearing on a complaint under this section, that there has been discrimination in price or services or facilities furnished, the burden of rebutting the prima facie case thus made by showing justification shall be upon the person charged with a violation of this section, and unless justification shall be affirmatively shown, the Commission is authorized to issue an order terminating the discrimination: Provided, however, That nothing herein contained shall prevent a seller rebutting the prima facie case thus made by showing that the 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 com- petitor, or the services or facilities furnished by a competitor.” § 136.20 Exclusive deals. It is an unfair trade practice for any member of the industry to contract to sell or sell any industry product, or fix @ price charged therefor, or discount from, or rebate upon, such price, upon the condition, agreement, or understand- ing that the purchaser thereof shall not use or deal in the product of a competitor or competitors of such industry member, where the effect or such sale or contract or understanding, may be substantially for sale, or of such condition, agreement, to lessen competition or tend to create @ monopoly in any line of commerce. § 136.21 Aiding or abetting use of un- fair trade practices. It is an unfair trade practice for any person, firm or corporation to aid, abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in this part. § 138.0 COMMITTEE ON TRADE PRACTICES § 136.201 Industry committee. The provisions of § 16.1 of this sub- chapter shall be applicable to an indus- try committee established under this part. PART 138—RIBBON INDUSTRY ? GrouPpl Sec. 138.0 Definition. 138.1 Misbranding of industry products. 138.2 Misrepresentation of industry prod- ucts. 188.3 Misrepresentation as to character of business. 138.4 Faltse invoicing. 138.6 Defamation of competitors or dis- paragement of their products. 1388.6 Commercial bribery. 188.7 Imitation or simulation of trade- marks, trade names, etc. 138.8 Circulation of threats of suit. 138.9 Consignment selling. 138.10 Deception as to origin. 188.11 Disclosure of yardage. 188.12 “Cut-edge” and “pasted-back” prod- ucts. 138.13 Prohibited discriminatory practices. 138.14 Discriminatory returns. 138.15 Fiber identification of product. 138.16 Warranty statement in invoices. 138.17 Seconds. 188.18 Promoting the use of deceptive mar- keting methods tn the sale of cut- edge ribbon products. Group IT 138.101 Unwarranted return of merchandise. 138.102 Maintenance of accurate records. CoMMITTEE ON TrapEe PRACTICES 138.201 Industry committee. AvruHorirr: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: 7 FR 4820, June 30, 1942, unless otherwise noted. Grovp I § 138.0 Definition. The term “ribbon” or “ribbons” as herein used shall be construed for pur- poses of these rules as embracing all those narrow fabrics technically clas- sified or known as ribbons, also all other products marketed by members of the 1This part does not supplant, or relieve any member of the industry or other of the necessity of complying with, such ap- plicable fiber identification rules and other pertinent Group I rules as have been or may be approved and promugiated by the Federal Trade Commission. 521