Paint And Varnish Brush Manufacturing Industry

16 CFR Part 136 · Trade practice rules · in the Code of Federal Regulations 1939-1949 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1939 CFR

Decisions that mention this industry's rules (2)

Text (1949 edition, OCR)

§ 135.12

composed of silk; or (2) to use said
trade-mark in any other manner, or
under any other condition, which is mis-
leading or deceptive.

§ 135.12 Misrepresentations as to be-
ing a@ manufacturer, producer or im-
porter. .(a) It is an unfair trade
practice for any person, partnership or
corporation, by trade or corporate name
or otherwise, to hold himself or itself
out as being a manufacturer or producer
of silk or siik products when such is not
true in fact.

(8) It is an unfair trade practice for
any person, partnership or corporation
in the conduct of business to represent
himself or itself, directly or indirectly, as
having or operating a silk business in
whole or in part, or a silk department or
branch, or as being an importer of silk,
when such is not true in fact; or in any
other manner to misrepresent the char-
acter, nature or status of the business of
such person, partnership or corporation.

§ 135.13 Inducing or abetting viola-
tion of rules. (a) It is an unfair trade
practice for any importer, manufacturer,
producer or organization to aid, abet,
induce or coerce a deaier, distributor or
other vendor to omit or refuse to make
the disclosure as to content of merchan-
dise required by this part, or to other-
wise engage in any of the unfair trade
practices specified in this part.

(b) It is an unfair trade practice for
any dealer or other vendor or organiza~
tion to induce, aid, abet or coerce an
importer, manufacturer, producer or
other seller to omit or refuse to comply
with the requirements of this part, or to
otherwise engage in any unfair trade
practice specified in this part.

GROUP II

§ 135.101 Disclosure of proportions of
constituent fibers in mized goods. The
practice of making fuli and accurate dis-
closure of the proportions of percentages
of the constituent fibers in mixed goods
is approved as a proper practice to the
end that salespersons, dealers and other
marketers of such products may have
accurate information of the fiber con-
tent thereof and may in turn correctly
inform the purchasing and consuming
public, thereby avoiding confusion, mis-
understanding or misrepresentation as to
the nature or content of such products.
Any action taken in following this rule
should be consonant with the require-
ments of §§ 135.1 to 135.13. In the case

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Title 146—Commercial Practices

where all fibers present are llsted and
disclosed by name together with the per-
centage in which each is present, a tol-
erance of not to exceed 3 percent varia-
tion from the stated percentages may
be allowed to the extent that such varia-
tion is due to unavoidable variations in
manufacturing processes and not to lack
of reasonable effort to state such per-
centages accurately. .

§ 135.102 Terms descriptive of silk
fabrics or relating to weaves of texturcs.
Subject to and in conformity with the
requirements of the foregoing Group I
rules, the practice of truthfully qualify-
ing by the word “silk” all words, terms,
phrases or representations which mean
silk or are associated in the minds of the
purchasing or consuming public withi
fabrics composed of silk is recommended
as a desirable practice. For example:
“silk chiffon”, “silk crepe”, ‘silk satin”,
“silk taffeta’, etc.

§ 135.103 Information as to treatment
and care of product. The practice, by
producers, manufacturers and distribu-
tors, of furnishing and disseminating,
through tags, labels, advertisements or
other publicity, accurate information as
to the proper treatment, care and clean-
ing of the products covered by these
rules, is approved and recommended as
a desirable practice to follow in the inter-
est of enabling consumers to obtain and
enjoy full benefit of the desirable quali-
ties and services of such products.

Part 136—Paint and Varnish
Brush Manufacturing Industry

GROUP I
Sec.
136.0 Definitions.
136.1 Misrepresentation of industry prod-
ucts.
136.2 Misbranding of industry products.
136.3 Disclosure of composition.
136.4 False invoicing.
136.5 Induclng breach of contract.
136.6 Substitution of products.
136.7 Commercial bribery.
136.8 Imitation of trade-marks, ete.
136.9 Use of the word “free.”
136.10 Consignment shipping.
136.11 Use of “loss leaders.”
136.12 Discrimination.
136.13 Discriminatory returns.

GROUP IT

136.101 Unwarranted return of merchandise.

136.102 Repudiation of contracts,

136.103 Dissemination of credit informa-
tion.


Chapter |—Federal Trade Commission

Sec.
136.104 Filing of trade-marks, etc.
136.105 Ali-bristle brushes.

AUTHORITY: §§ 136.0 to 136.105 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
provisions interpreted or applied are cited
to text in parentheses.

Source: §§ 136.0 to 136.105 appear at 4 F. R.
235.

GROUP I

§ 136.0 Definitions. (a) The term
“products of the industry” and the word
“brushes” as used in the rules in this
part embrace all types of brushes manu-
factured in the industry for use in apply-
ing paint, varnish, lacquer, calcimine or
other similar decorative or protective
materials.

(bo) The term “bristle” as used in the
rules in this part is not to be construed
as including any hair, fiber or material
other than the bristle of swine.

§ 136.1 Misrepresentation of industry
products. It is an unfair trade practice
to make or publish, or cause to be made
or published, directly or indirectly, any
false, misleading or deceptive statement
or representation, by way of advertise-
ment or otherwise, concerning the grade,
quality, quantity, use, size, material,
content, origin, preparation, manufac-
ture or distribution of any products of
the industry or concerning any compo-
nent of such products, or in any other
material respect.

§ 186.2 Misbranding of industry prod-
ucts. (a) The markling or branding of
brushes with the words “All Bristle,”
“100% Bristle,’ “Pure Bristle,” or “All
Pure Bristle,” or with word, term or
representation of similar import or
meaning when such brushes are in fact
composed in whole or in part of mate-
rial or materials other than bristle, or
the use of the word “bristle” in any man-
ner having the tendency and capacity or
effect of misleading or deceiving the pur-
chasing or consuming public with re-
spect to the bristle content of such
brushes, is an unfair trade practice.

(b) The deceptive marking or brand-
ing of brushes with respect to the
grade, quality, quantity, use, size, mate-
rial, content, origin, preparation, manu-
facture or distribution thereof, or in any
other material respect, is an unfair
trade practice.

§ 136.5

§ 136.3 Disclosure of composition. It
is an unfair trade practice to sell, offer
for sale, or distribute any brush the
brushing part of which is composed, in
whole or in part, of any material which
by reason of its natural appearance or
as a result of special processing simu-
lates bristle, without clear and nonde-
ceptive disclosure of the true composition
thereof, where failure to so disclose the
same has the tendency and capacity or
effect of misleading or decelving the pur-
chasing or consuming public.

(a) Such disclosure should be made
by branding, stamping, or otherwise
marking the handle or ferrule of the
brush with the name of each of the con-
stituent materials of the brushing part
thereof in the order of its predominance.

InLUsTRATION: A brush composed of 60%
horsehair and 40% bristle should be marked

“Horsehair and Bristle” or “60% Horsehair
and 40% Bristie.”

Provided, however, (1) That the name
of any such constituent material shall not
be set forth in type or manner so in-
conspicuous, remotely placed, or dispro-
portionately minimized as thereby to
have the tendency, capacity or effect of
misleading or deceiving the purchasing
or consuming public in respect to the
proportion of such material contalned
therein, or in any other respect, and

(2) When bristle as a material ls not
contalned therein in a substantial quan-
tity, the percentage in whlch such ma-
terial is present should be specifically
stated, to the end that purchasers may
not be misled or deceived into the belief
that this material is present in greater
proportion than is in fact true.

ILLUSTRATION: A brush composed of 90%
horsehair and 10% bristle should be marked

“Horsehair and 10% Bristle” or “90% Horse-
hair and 10% Bristle.”

§ 136.4 False invoicing. Withholding
from or inserting in invoices any state-
ments or information by reason of which
omission or insertion a false record is
made, wholly or In part, of the transac-
tions represented on the face of such
invoices, with the purpose or effect of
thereby misleading or deceiving pur-
chasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 136.5 Inducing breach of contract.
Inducing or attempting to induce the
breach of existing lawful contracts be-

Page 341


§ 136.6

tween competitors and their customers
or their suppliers by any false or decep-
tive means whatsoever, or interfering
with or obstructing the performance of
any such contractual duties or services
by any such means, with the purpose
and effect of unduly hampering, injur-
ing or prejudicing competitors in their
businesses, is an unfair trade practice.

§ 136.6 Substitution of products. The
practice of shipping or delivering prod-
ucts which do not conform to samples
submitted, to specifications upon which
the sale is consummated, or to repre-
sentations made prior to securing the
order, without the consent of the pur-
chasers to such substitutions and with
the tendency, capacity or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers or the consuming
public, is an unfair trade practice.

§ 1367 Commereial bribery. It is an
unfair trade practice for a member of
the industry directly or indirectly to
give, or offer to give, or permit or cause
to be given, money or anything of Value
to agents, empioyees 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 infiuence their employers
or principals to purchase or contract to
purchase products manufactured or sold
by such industry member or the maker
of such gift or offer, or to infiuence such
employers or principals to refrain from
dealing in the products of competitors
or from dealing or contracting to deal
with competitors.

§ 136.8 Imitation of trade-marks, etc.
The imitation or simulation of the trade-
marks, trade names, labels or brands
of competitors, with the purpose or with
the tendency, capacity or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers, or the consuming
pubiic, is an unfair trade practice.

§ 136.9 Use of the word “free.”’ The
use of the word “free” where not prop-
erly or fairly qualified when the article is
in fact not free, with the tendency or
capacity to mislead or deceive purchas-
ers, prospective purchasers or the con-
suming public, is an unfair trade prac-
tice. , ‘ .

§ 136.10 Consignment shipping. It
is an unfair trade practice for any mem-

Page 342

Title 14—Commercial Practices

ber of the industry to use the practice
of shipping goods on consignment or
pretended consignment for the purpose
and with the effect of artificially clog-
ging trade outlets and unduly restrict-
ing competitors’ use of said trade outlets
in getting their goods to consumers
through regular channels of distribution,
or with such purpose to entirely close
said trade outlets to such competitors
so as to substantially lessen competition
or tend to create a monopoly or to un-
reasonably restrain trade: Provided,
however, That nothing in this section
shall be construed or used as restricting
or preventing consignment shipping or
marketing of commodities in good faith
and without artificial interference with
competitors’ use of the usuai channels
of distribution in such manner as
thereby to suppress competition or
restrain trade.

§ 136.11 Use of “loss leaders.” The
practice of selling any product of the
industry below the seller’s cost as a “‘loss
leader’ to induce the purchase of any
other product of the industry, the sale of
the latter being used to recoup the loss
sustained on the “loss leader” product so
sold, with the tendency or capacity to
mislead or deceive purchasers, prospec-
tive purchasers or the consuming public,
is an unfair trade practice.

§ 136.12 Discrimination—(a) Prohib-
ited discriminatory prices, or rebates, re-
funds, discounts, credits, etc.,, which ef-
fect unlawful price discrimination. It is
an unfair trade practice for any member
of the industry engaged in commerce, in
the course of such commerce, to grant or
allow, secretly or openly, directly or indi-
rectly, any rebate, refund, discount,
credit, or other form of price differential,
where such rebate, refund, discount,
credit, or dther 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 knowingiy receives the

1Paragraph (a) of § 136.12 shall not be
construed as embracing practices prohibited
by paragraphs (b), (c), and (d) of this
section.


Chapter |—Federal Trade Commission

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,
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, sale, 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
Selling goods, wares, or merchandise in
commerce from selecting their own cus-

. tomers in bona fide transactions and not

in restraint of trade;

(4) That nothing contained in this
section shall prevent price changes from
time to time where made in response to
changing conditions affecting either (i)
the market for the goods concerned, or
(ii) the marketability of the goods, such
as, but not limited to, actual or imminent
deterioration of perishable goods, ob-
solescence 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
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 inter-
mediary therein where such interme-
diary 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 advertis-
ing or promotional allowances or any
other thing of value to or for the benefit
of a customer of such member in the

§ 136.13

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
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 propor-
tionally equal terms to all other cus-
tomers competing in the distribution of
such product or commodities.

(d) Prohibited discriminatory services
or facilities, It is an unfair trade prac-
tice for any member of the industry to
engage in commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or by
furnishing, or by contributing to the fur-
nishing of, any services or facilities con-
nected with the processing, handling,
sale or offering for sale of such commod-
ity so purchased upon terms not accorded
to all purchasers on proportionally equal
terms. ’

(e) Illegal price discrimination. It is
an unfair trade practice for any member
of the industry or other person engaged
in commerce, in the course of such com-
merce, to discriminate in price in any
other respect contrary to section 2 of the
Clayton Act as amended by the act of
Congress approved June 19, 1936 (49 Stat.
1526-8; 15 U.S. C. 13-13b, 21a), or know-
ingly to induce or receive a discrimina-
tion 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)

§ 136.13 Discriminatory returns, It is
an unfair trade practice for any member
of the industry, engaged in commerce,
to discriminate in favor of one cus-
tomer-purchaser against another cus-
tomer-purchaser of brushes, bought
from such member of the industry for re-
sale, by contracting to furnish or fur-
nishing in connection therewith, upon
terms not accorded to all customer-pur-
chasers on proportionally equal terms,
the service or facility whereby such
favored purchaser is accorded the privi-
lege of returning brushes so purchased
and receiving therefor credit or refund
of purchase price: Provided, however,
Nothing in this part shall prohibit or

Page 343


§ 136.101

be used to prevent the return of mer-
chandise by purchaser, for credit or re-
fund of purchase price, when and be-
cause such merchandise has been falsely
or deceptively labeled, branded or repre-
sented, or when and because such mer-
chandise is defective in material, work-
manship, or in any other respect
contrary to warranty or purchase con-
tract.
GROUP It

§ 136.101 Unwarranted return of mer-
chandise. The practice, by members of
the industry, of selling merchandise and
later permitting the purchaser to return
it for credit or refund of purchase price,
without just cause, creates waste and
loss, increases the cost of doing business
to the detriment of both the industry
and the public, and is condemned by the
industry, subject, however, to require-
ments and limitations set forth in the
provisions, of § 136.13.

§ 136.102 Repudiation of contracts.
Lawful contracts are business obliga-
tions which should be performed in let-
ter and in spirit. The repudiation of
contracts by sellers on a rising market,
or by buyers on a declining market, is
condemned by the industry.

§ 136.103 Dissemination of credit in-
formation. The industry records its ap-
proval of distributing to its members in-
formation covering delinquent and slow
accounts insofar as this may be lawfully
done.

§ 136.104 Filing of trade-marks, etc.
To avoid confusion within the industry,
it is recommended that each member
thereof voluntarily file with some agency
designated by the industry all trade-
marks, trade names, labels or brands
used by such member and that such in-
formation be made equally available to
all members of the industry and to the
public.

§ 136.105 All-bristle brushes. The
industry records its approval of the
marking or branding of all brushes com-
posed wholly of bristle with the words
“All Bristle”, “100% Bristle’, ‘Pure
Bristle”, or “All Pure Bristle’, or with
word or words of similar import or mean-
ing, on the handle or ferrule thereof, to
the end that the purchasing and consum-
ing public may be correctly informed as
to the content of such brushes.

Page 344

Title 16—Commercial Practices

Part 137—Infants’ and Chil-
dren’s Knitted Outerwear In-
dustry *

GROUP I

Sec.

187.1 Misrepresentation of industry prod-~-
ucts,

Misbranding.

Fiber tdentification of product.

Misrepresentation as to character of
business.

Imitation or simulation of trade-
marks, etc.

Discrimination,

Discriminatory returns.

Consignment sales.

Aiding or abctting use of unfair trade
practices.

137.2
137.3
137.4

187.6

137.6
137.7
137.8
137.9

GROUP IT
137.101 Unwarranted return of merchandise.

AuTHORITY: §§ 187.1 to 137.101 issued under
sec. 6 (g), 38 Stat. 722; 15 U. 8S. 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: §§ 137.1 to 137.101 appear at 4 F. R.
2507.
GROUP I

§ 137.1 Misrepresentation of industry
produets. It is an unfair trade practice
to make or publish, or cause to be made
or published, directly or indirectly, -any
false, misleading or deceptive statement
or representation, by way of advertise-
ment or otherwise, concerning the char-
acter, grade, quality, quantity, substance,
nature, material, content, use, origin,
size, serviceability, color, color fastness,
workmanship, washability, fiber content
or identification, shrinkage properties,
manufacture or distrlbution of such
products, or the yarn or any component
of the product, or in any other mate-
rial respect.

§ 137.2 Misbranding. The false or de-
ceptive marking or branding of prod-
ucts of the industry with respect to the
character, grade, quality, quantity, sub-
stance, nature, material, content, use,
origin, size, serviceability, color, color
fastness, workmanship, washability, fiber
content or identification, shrinkage
properties, manufacture or distribution
of such products, or the yarn or any

1 This part does not supplant, or relieve any
member of the industry or other party of the
necessity of complying with, the applicable
fiber identification rules and other pertinent
Group I rules approved and promulgated by
the Federal Trade Commission,