Infants' And Children's Knitted Outerwear Industry
16 CFR Part 137 · Trade practice rules · in the Code of Federal Regulations 1939-1976 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1976 CFR · Earliest edition: 1939 CFR
Text (1976 edition, OCR)
Chapter I—Federal PART 137—INFANTS’ AND CHIL- DREN’S KNITTED OUTERWEAR IN- DUSTRY * Sec. 137.1 Group I Misrepresentation of industry prod- ucts. Misbranding. Fiber identification of product. Misrepresentation as to character of business. Imitation or simulation of trade- marks, etc. . Discrimination. Discriminatory returns. Consignment sales. Aiding or abetting use of unfair trade practices, Grovp IT 187.101 Unwarranted return of merchandise. AutTHoRITY: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: 4 FR 2507, June 28, 1939, unless otherwise noted. Group I § 137.1 Misrepresentation of industry products. It is an unfair trade practice to make or publish, or cause to be made or pub- lished, directly or indirectly, any false, misleading or deceptive statement or representation, by way of advertisement or otherwise, concerning the character, grade, quality, quantity, substance, na- ture, material, content, use, origin, size, serviceability, color, color fastness, work- manship, washability, fiber content or identification, shrinkage properties, manufacture or distribution 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 deceptive marking or branding of products of the industry with respect to the character, grade, quality, quantity, substance, nature, material, content, use, origin, size, serviceability, color, color fastness, workmanship, washability, fiber content or identifica- tion, shrinkage properties, manufacture 137.2 137.3 187.4 137.5 137.6 137.7 137.8 137.9 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. Trade Commission § 137.6 or distribution of such products, or the yarn or any component of the product, or in any other material respect, is an unfair trade practice. § 137.3 Fiber identification of product. Identification and disclosure of fiber and other material content of the prod- uct of this industry shall be made in accordance with the applicable require- ments of the Group I fiber identifica- tion rules approved and promulgated by the Commission, such as Part 123 of this subchapter relating to products con- taining rayon in whole or in part, and Part 135 of this subchapter, relating to products containing or purporting to contain silk in whole or in part, and such other provisions of laws and regulations on the subject as or when made appli- cable to the products of this industry. § 137.4 Misrepresentation as to _ char- acter of business. (a) It is an unfair trade practice for any person, partnership or corporation, by trade or corporate name or otherwise, to hold himseif or itself out as being a manufacturer, producer or importer when such is not true in fact. (b) 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 knitted outer- wear business, in whole or in part, or a department or branch thereof, when such is not true in fact; or in any other manner to misrepresent the character, nature or status of the business of such person, partnership or corporation. § 137.5 Imitation or simulation of trade. marks, ete. The imitation or simulation of the trade-marks, trade names, brands or jabels of competitors, or of the exclu- sively owned symbols of competitors which have not been directly or by opera- tion of law dedicated to the public, with the tendency and capacity or effect of misleading or deceiving purchasers or the consuming public, is an unfair trade practice. § 137.6 Discrimination. (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credit, etc.) which effect unlawful price dis- 1 Paragraph (a) of § 137.6 shall not be con- strued as embracing practices prohibited by paragraphs (b), (c) and (d) of this section. 599 § 137.7 crimination. It is an unfair trade prac- tice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, se- cretly or openly, directly or indirectly, 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 pur- chasers invoived therein are in commerce, and where the effect thereof may be sub- stantially to lessen competition or tend to create a monopoly in any line of com- merce, 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, consumption, or resale within any place under the jurisdiction of the United States. (2) That nothing contained in this sec- tion shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or de- livery resulting from the differing meth- ods or quantities in which such commod- ities are to such purchasers sold or dclivered; (3) That nothing contained in this section shal! 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 sec- tion 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, 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 value 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 Title 16——Commercial Practices goods, wares, or merchandise, either to the other party to such transaction or to an agent, representative, or other in- termediary therein where such interme- diary is acting in fact for or in behalf, or is subject to the direct or indirect 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 adver- tising 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 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 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 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 commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms. (e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the in- dustry 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 provisions of this section. (Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1628; 16 U.S.C. 13, 18a, 13b, 21a) § 137.7 Discriminatory returns. It is an unfair trade practice for any member of the industry engaged in com- merce to discriminate in favor of one customer-purchaser against another cus- tomer-purchaser of knitted outerwear, bought from such member of the in- 600 Chopter I—Federal dustry for resale, by contracting to fur- nish or furnishing in connection therewith, upon terms not accorded to all customer-purchasers on proportionally equal terms, the service or facility whereby such favored purchaser is ac- corded the privilege of returning knitted outerwear so purchased and receiving therefor credit or refund of purchase price: Provided, however, Nothing in this part shall prohibit or be used to prevent the return of merchandise by purchaser, for credit or refund of purchase price, when and because such merchandise has not been properly labeled by the seller as to fiber content, or has been otherwise falsely or deceptively labeled or repre- sented, or when and because such merchandise is defective in material, workmanship, or in any other respect contrary to warranty or purchase contract. § 137.8 Consignment sales. It is an unfair trade practice for any member of the industry to use the prac- tice of shipping goods on consignment or pretended consignment for the purpose and with the effect of artificially clogging trade outlets and unduly restricting com- petitors’ use of said trade outlets in get- ting 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 sub- stantially lessen competition or tend to create a monopoly or to unreasonably restrain trade: Provided, however, That nothing in this section shall be construed or used as restricting or preventing con- signment shipping or marketing of com- modities in good falth and without ar- ticial interference with competitors’ use of the usual channels of distribution in such manner as thereby to suppress competition or restrain trade. § 137.9 Aiding or abetting use of un- fair trade practices. It is an unfair trade practice for any person, firm or corporation to ald, abet, coerce or induce another, directly or in- directly, to use or promote the use of any unfair trade practice specified in this part. Group II § 137.101 Unwarranted return of mer- cbandise. The practice, by members of the in- dustry, of selling merchandise and later permitting the purchaser to return it Trade Commission § 137.101 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 in- dustry, subject, however, to requirements and limitations set forth in the provisions of § 137.7, and subject also to the general limitation that members of the industry shall not engage in any combination or conspiracy in restraint of trade or use any other illegal methods in the regula- tion, control or prevention of the return of merchandise. PART 138—-RIBBON INDUSTRY } GrouPpI 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, 188.4 False invoicing. 188.6 Defamation of competitors or dis- paragement of their products. 138.6 Commercial bribery. 138.7 Imitation or simulation of trade- marks, trade names, ete. 138.8 Circulation of threats of suit. 138.9 Consignment selling. 138.10 Deception as to origin. 138.11 Disclosure of yardage. 138.12 “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. 138.18 Promoting the use of deceptive mar- keting. methods in the sale of cut+ edge ribbon products. Group II 138.101 Unwarranted return of merchandise. 188.102 Maintenance of accurate records. COMMITTEE ON TRADE PRACTICES 138.201 Industry committee. AuTHoRITY: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless ctherwise noted. Source: 7 FR 4820, June 30, 1942, unless otherwise noted. 1This part does not supplant, or relieve any member of the industry or other party 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 promuglated by the Federal Trade Commission, 601 58—063—76—— -39