Ribbon Industry

16 CFR Part 138 · Trade practice rules · in the Code of Federal Regulations 1939-1977 (15 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1939 CFR

Text (1977 edition, OCR)

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


§ 138.1

industry, whether domestic or imported,
which have the appearance of ribbons
and are used for the same or similar
purposes, including so-called “cut-edge’”’
ribbons and “pasted-back” ribbons.

§ 138.1 Misbranding of industry prod-
ucts.

The false or deceptive marking or
branding of ribbons with respect to the
grade, quality, yardage, size, use, color-
fastness, content, origin, construction,
fabrication manufacture or distribution
thereof or in any other material respect,
is an unfair trade practice.

§ 138.2 Misrepresentation of industry
products.

It is an unfair trade practice to make
or publish or cause to be made of pub-
lished, directly or indirectly, any false,
misleading or deceptive statement, rep-
resentation, guarantee or warranty, by
way of advertisement or otherwise, con-
cerning the grade, quality, yardage, size,
use, colorfastness, content, origin, con-
struction, fabrication, manufacture or
distribution of any ribbon, or in any
other material respect.

§ 138.3 Misrepresentation as to char-
acter of business.

It is an unfair trade practice for any
member of the industry to represent,
directly or indirectly, through the use
of the word “mill” or “mills,” or any
other word or term of similar import or
meaning, in his or its corporate or trade
name, or otherwise, that he or it is a
manufacturer of ribbons or that he or it
is the owner or operator of a mill or
producing company manufacturing rib-
bons, when such is not the fact, or in any
other manner to misrepresent the char-
acter, extent or type of his or its
business.

§ 138.4 False invoicing.

Withholding from or inserting in in-
voices or sales tickets any statements or
information by reason of which omission
or insertion a false record is made,
wholly or in part, of the transactions
represented on the face of such invoices
or sales tickets, with the effect of thereby
misleading or deceiving purchasers or
the consuming public, is an unfair trade
practice.

§ 138.5 Defamation of competitors or
disparagement of their products.

The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,

Title 16—Commercial Practices

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 torms, policies or
services, is an unfalr trade practice.

§ 138.6 Commercial bribery.

It is an unfair trade practice for a
member of the industry directly or in-
directly to give, or offer to give, or permit
or cause to be given, money or anything
of value to agents, employees or repre-
sentatives of customers or prospective
customers, or to agents, employees or
representatives of competitors’ customers
or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase ribbons manufac-
tured or sold by such industry member or
the maker of such gift or offer, or to in-
fluence such employers or principals to
refrain from dealing in the product of
competitors or from dealing or contract-
ing to deal with competitors.

§ 138.7 Imitation or simulation of trade-
marks, trade names, etc.

The imitation or simulation of the
trade-marks, trade names, brands or
labels of competitors, or of the exclu-:
sively owned patterns of competitors
which have not been directly or by op-
eration 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.

§ 138.8 Circulation of threats of suit.

The circulation of threats of sult for
infringement of patents or trade-marks
among customers or prospective custom-
ers of competitors, not made in good
faith but for the purpose or with the
effect of harrassing or intimidating such
customers or prospective customers, or
of unduly hampering, injuring or preju-
dicing competitors in their businesses, is
an unfair trade practice.

§ 138.9 Cousignment selling.

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 artificialiy clogging
trade outiets and unduly restricting
competitors’ use of sald trade outlets in
getting their goods to consumers through

522


Chapter I—Federal Trade Commission

regular channels of distribution, or with
such purpose to entireiy close said trade
outlet to such competitors so as to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably re-
strain trade: Provided, however, That
nothing herein shall be construed or used
as restricting or preventing consignment
shipping or marketing of commodities in
good faith and without artificial inter-
ference with competitors’ use of the
usual channels of distributlon in such
manner as thereby to supress competition
or restrain trade.

§ 138.10 Deceptiou as to origin.

In respect to any ribbons of the follow-
ing types, first, ribbons which have been
woven or fabricated in a foreign country
and imported in the greige or other un-
finished state and dyed or finished in the
United States; or second, ribbons which
have been imported in the finished state
and redyed or refinished in the United
States; or third, ribbons which have been
made from fabric which has been woven
or fabricated in a foreign country and
imported either in the grelge of unfin-
ished state or in the dyed or finished
state, it is an unfair trade practice:

(a) To offer for saie, sell or distribute
any such ribbon under marks, stamps,
brands, labels, or representations which
have the capacity and tendency or effect
of misleading or deceiving purchasers or
the consuming public into the erroneous
belief that such ribbons or the fabrics
thereof were woven or fabricated in the
United States, or that they were not so
dyed, finished, redyed or refinished in
the United States, as the case may be;
or

(b) To offer for saie, sell or distrib-
ute any such ribbons without the same
being marked, stamped, branded or la-
beled so as to indicate clearly and non-
deceptively (1) the country of origin of
the fabric, and (2) that the ribbons were
woven or fabricated in such country and
were dyed or finished or redyed or refin-
ished in the United States, as the case
may be; the fallure, refusal or omission
to so mark, stamp, brand or labei such
ribbons having the tendency and capac-
ity or result of thereby promoting, abet-
ting or effectuating the marketing of the
ribbons under conditions which are mis-
leading or deceptive to purchasers or the
consuming public.

Nothing in this section shall be con-
strued as relieving any member of the
industry or other party of the necessity

§ 138.12

of complying with the requirements of
the customs law or regulations or other
applicable provisions of law or regula-
tion, relating to the marking or im-
ported articles.

Cross REFERENCE: For Customs Regula-
tions, see 19 CFR Chapter I.

§ 138.11 Disclosure of yardage.

In order that purchasers may not be
deceived as to the yardage of ribbons and
that misrepresentation and deceptive
concealment in respect thereto may be
avoided and prevented, the minimum
yardage of the article should be clearly
and nondeceptively marked on the prod-
uct or on the spools, bolts, cards or other
immediate packaging of the product;
and the sale, offer for sale or distribution
of any ribbens not so marked, with the
tendency and capability or effect of mis-
leading or deceiving purchasers or the
consuming public, is an unfair trade
practice.’

§ 138.12 ‘“Cut-edge” aud “pasted-back”
products.

To the end that purchasers may have
adequate information concerning the fol-
lowing types of industry products, and
that confusion, misrepresentation and
deception may be avoided and prevented,
the spool, bolt, card or other form of im-
mediate packaging of such products
should be clearly and nondeceptively
marked in the following manner:

(a) Ribbons having cut, and not wov-
en, edges should be marked or labeled
with the words “cut-edge,” or with the
word or words of similar import or
meaning.

(b) Ribbons made by the adhesion of
separate layers of fabric should be
marked or labled with such appropriate
word or words as will adequately disclose
that such products are so made, as for
example, “pasted-back.”

(c) Ribbon products which are both
“cut-edge” and “pasted-back’’ are sub-
ject to the disclosure requirements of
both paragraphs (a) and (b) of this sec-
tion.

It is an unfair trade practice to cause
any such product to be offered for sale,
sold or distributed without being so

2In cutting industry products in the greige
or after finishing, adequate allowance should
be made for the subsequent shrinkage and/
or contraction of such products, to the end
that purchasers may be assured the full yard-
age represented.

523


§ 138.13

marked or labeled, with the tendency and
capacity or effect of thereby misleading
or deceiving purchasers or the consuming
public.

Nothing in this section shall be con-
strued, however, as preventing the use of
the word “ribbon” or “ribbons” in prop-
erly describing such products of the
industry: Provided, That the words “cut-
edge” and/or “pasted-back” or other
appropriate terms are set forth in imme-
diate conjunction therewith, and with at
least equal prominence, conspicuousness
and emphasis, as for example, “cut-edge
ribbon,” “pasted-back ribbon,” or “cut-
edge pasted-back ribbon.”

§ 138.13 Prohibited discriminatory prac-
tices.

(a) Prohibited discriminatory prices
or rebates, refunds, discounts, credits,
etc., which effect unlawful price dis-
crimination. It is an unfair trade prac-
tice for any member of the industry en-
gaged in commerce, in the course of such
commerce, to grant or allow, secretly
or openly, directly or indirectly, any re-
bate, refund, discount, credit or other
form of price differential, where such re-
bate, refunds, discount, credit, or other
form of price differential effects a dis-
crimination in price between different
purchasers of goods of like grade and
quality, where either or any of the pur-
chases involved 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
transactions are sold for use, consump-
tion, 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 de-
livery resulting from the differing meth-
ods or quantities in which such com-
modities 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;

Title 16—Commercial Practices

(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, 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 commis-
sions. It is an unfair trade practice for
any member of the industry engaged in
commerce, m 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 m
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 intermedi-
ary 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 compen-
sation 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 m 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 is
available on proportionally equal terms
to all other customers coinpeting in the
distribution of such products or com-
modities.

(da) 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 proc-
essing, by contracting to furnish or
furnishing, or by contributing to the fur-
nishing of, any services or facilities con-
nected with the processing, handling,

504


Chapter I1—Federal Trade Commission

sale, or offering for sale of such com-
modity so purchased upon terms not
accorded to all purchasers on propor-
tionally equal terms.

(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 forego-
ing provisions of this section.

(f) Purchases by schools, colleges,
universities, public libraries, churches,
hospitals, and charitable institutions not
operated for profit. The foregoing provi-
sions of this section relate to practices
within the purview of the Robinson-
Patman Antidiscrimination Act, which
Act and the application thereunder of
this section are subject to the limitations
expressed in the amendment to such
Robinson-Patman Antidiscrimination
Act, which amendment was approved
May 26, 1938, and reads as follows:

Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That nothing
in the Act approved June 19, 1936 (Public
Numbered 692, Seventy-fourth Congress, sec-
ond session), known as the Robinson-Patman
Antidiscrimination Act, shall apply to pur-
chases of their supplies for their own use by
schools, colleges, universities, public librar-
les, churches, hospitals, and charitable insti-
tutions not operated for profit.

(Sec. 2, 38 Stat. 730, as amended, secs, 2, 8, 4,
49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15
U.S.C. 13, 18a, 13b, 18¢, 21a)

§ 138.14 Discriminatory returns.

It is an unfalr trade practice for any
member of the industry engaged in com-
merce to discriminate in favor of one
customer-purchaser against another
customer-purchaser of ribbons, bought
from such member of the industry for
resale, 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 fa-
vored purchaser is accorded the privilege
of returning ribbons 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 merchan-
dise by purchaser, for credit or refund of
purchase price, when and because such
merchandise has not been properly la-
beled by the seller as to fiber content, or
has been otherwise falsely or deceptively

§ 138.16

labeled or represented, or when and be-
cause such merchandise is defective in
material, workmanship, or in any other
respect contrary to warranty or purchase
contract.

§ 138.15 Fiber identification of product.

Identification and disclosure of fiber
and other material content of the prod-
ucts of this industry shall be made
in accordance with the applicable re-
quirements of the Group I fiber identifi-
cation rules approved and promulgated
by the Commission, such as the Group I
Rayon Rules promulgated October 26,
1937 (Part 123, of this subchapter), re-
lating to products containing rayon in
whole or in part, and the Group I Silk
Rules promulgated November 4, 1938
(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 applica-
ble to the products of this industry.

§ 138.16 Warranty

voices.*

(a) In respect to disclosure of fiber
content in invoices, if, because of a
multiplicity of items of different fiber
composition, it is not feasible to have the
fiber content of the different numbers
or items set out on the face or back of
the invoice or otherwise specifically listed
therein, a statement in lieu of such spe-
cific listing of fiber content in the invoice
may be set forth therein to the effect
that the seller warrants each and every
item coming under these rules and cov-
ered by such invoice to be properly
marked and labeled as to content in full
conformity with the provisions of appli-
cable trade practice rules: Provided,
Such products are labeled and marked
properly as to fiber content, yardage, and
in such other respects as required by
these rules: And provided further, That
no false or misleading designations or
representations are used, nor any other
deception, direct or indirect, is practiced
in or by means of such imvoice.

(b) The following is an example of
such warranty statement which may be
used under this section when the fore-
going conditions are met:

The seller hereby warrants that the rib-
bons covered by this invoice are clearly and
truthfully labeled and marked as to fiber
content and yardage. Truthful labels or

statement in in-

Added to rules for the industry on
June 30, 1942.

525


§ 138.17

marks disclosing such information should
not ibe removed or concealed.

(c) In invoices covering any ribbons
which are “cut-edge,” or “pasted-back,”
or “seconds,” the warranty statement in
the invoice under this section shall also
include a warranty that the ribbons are
properly marked in these respects, as for
example:

The seller hereby warrants that the rib-
bons covered by this invoice are clearly and
truthfully labeled and marked as to fiber
content and yardage, and as to their being
“out-edge,” “pasted-back,” or “ is,”
where euch is the fact. Truthful labels or
marks disclosing such information should
not be removed or concealed.

Nothing in this section shall be con-~-
strued as providing for the omission of
disclosure in the invoice of yardage or of
the fact that products are “cut-edge,”
“pasted-back,” or “seconds,” as the case
may be.

§ 138.17 Seconds.’

(a) Ribbons which are; or are repre-
sented as being, “Seconds” should be
marked “Seconds.”

(b) For purposes of this section, “Sec-
onds” shall be considered as including
all ribbons which are defective by reason
of containing flaws, irregularities, or
imperfections, in material, construction
or finish, or which are otherwise not of
first quality.

(ce) The marking provided for in this
section shall be made in a conspicuous
and nondeceptive manner on the spool,
bolt, card, or other form of immediate
packaging of the ribbons, or on the rib-
bons themselves, whichever method of
marking is appropriate under the cir-
cumstances, and with sufficient perma-
nency as to carry through the channels
of trade to the ultimate consumer in
clearly legible condition. Letters which
are of full face type and at least %
inch in height may be used for this
purpose.

(d) It is an unfair trade practice to
fail or refuse to make the disclosure pro-
vided for in this rule in respect of ribbons
which are “Seconds,” or to fail or refuse
to disclose the presence in ribbon prod-
ucts of any cuts, tears, burns, or that
the product is otherwise damaged, with
the capacity and tendency or effect of
thereby misleading or deceiving the pur-
chasing or consuming public.

8 Added to rules for the industry on June
80, 1942.

Title 16—Commercial Practices

§ 138.18 Promoting the use of deceptive
marketing methods in the sale of cut-
edge ribbon products.*

In the course of, or in connection with
the marketing, offering for sale, sale, or
distribution of ribbon products in the
trade and to the consuming public, it is
an unfair trade practice, directly or in-
directly, to cause, aid, abet, or promote
the display, offering for sate, or sale of
“cut-edge” ribbon products, through
any means or device, or under any con-
ditlons or circumstances, which have the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public; as for example,

(a) By using the device of removing
“cut-edge” ribbon products from their
packages and displaying them for sale in
retail stores without mark or sign plainly
informing the purchaser that such prod-
ucts are “cut-edge,” with the capacity
and tendency or effect referred to above;
or

(b) By using the device of inter-
mingling “cut-edge” and “woven-edge”
ribbons in such manner as to mislead or
deceive the purchasing public; or

(c) By using any other means or de-
vice which involves the deceptive con-
cealment or nondisclosure of the fact
that such ribbon products are “cut-edge,”
with the deceptive capacity and tendency
or effect mentioned.

Nore: To promote and facilitate observance
of this section, it is deemed proper practice
for manufacturers and others marketing
“cut-edge” ribbon producte for resale in re-
tail stores to supply their customers with
counter markers and signs clearly indicating
that the ribbon products displayed at such
counters are “cut-edge” and to otherwise
assist in making such disclosure and segre-
gation as is necessary to avoid deception and
to fully tnform the purchasing public.

Group It
§ 138.101 Unwarranted return of mer-
chandise.

The practice, by members of the indus-
try, of selling ribbons and later permit-
ting the purchaser to return the same
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 Rule 14 (§ 138.14) of
Group I, and subject also to the general
limitation that members of the industry

526


Chapter Il—Federal Trade

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.
§ 138.102 Maintenance of accurate rec-
ords.
It is the judgment of the industry that

each member should independently keep
proper and accurate records for deter-

mining his costs.
COMMITTEE ON 'TRADE PRACTICES

§ 138.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 F-R. 1174, Feb. 21, 1956]

PART 142-—RADIO AND TELEVISION
INDUSTRY
Sec.
142.0 Definitions.
Group I

142.1 Misbranding, misrepresentation, and
deceptive selling methods.

142.2 “All-wave,” ‘“world-wave,” “world-
wide wave,” “standard broadcast,”
etc.

142.3 Specific types of advertisements or
representations among those pro-
hibited.

142.4 Sponsorship.

142.5 Alteration of identifying names or
marks,

142.6-1 Representations concerning cabinet
composition—avoiding deception
and making disclosures.

142.6-2 Describing wood components and
wood imitations.

1423.6-3 Identity of woods.

142.7 Deceptive use or change of cabinets.

142.8 Alteration or removal of serial num-~-
bers.

1429 [Reserved]

143.10 Deception as to the convertibility of
a television receiving set to services
other than those for which it was
originally manufactured.

142.11 Misuse of terms “discontinued
“model,” “floor sample,” “demon-
strator,” etc.

142.12 Deception as to being “new.”

142.18 Deception as to identity of manufac-
turer when products are repaired,
reconditioned, or rebuilt by other
than the original manufacturer.

142.14 Misuse of terms “factory rebuilt” and
“rebuilt.”

142.15 Deceptive pricing.

142.16 Misrepresentation as to the effective-
ness of television antennas.

142.17 Guaranties, warranties, etc.

142.18 Use of the word “free.”

142.19 False invoicing.

Commission § 142.1

Sec.

142.20 Imitation of trade-marks, trade
names, etc.

Tie-in sales—coercing purchase of
one product as a prerequisite to
the purchase of other products.

Unfair threats of infringement suits.

Prohibited forms of trade restraints
(unlawful price fixing, etc.).

Consignment distribution.

Use of lottery.

Defamation of competitors or false
disparagement of thelr products.

Enticing away employees of com-
petitors.

Procurement of competitors’ con-
fidential information.

‘Commercial bribery.

Exclusive deals.

142.31 Push money.

142.32 Prohibited discrimination.

Avurnorirr: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.

Source: 20 FR 4538, June 28, 1965, unless
otherwise noted.

§ 142.0 Definitions.

As used in the rules in this part, the
terms “industry member” and “industry
products” shall have the following mean-
ings, respectively:

Industry member: Any person, firm,
corporation, or organization engaged in
the manufacture, sale, or distribution of
industry products as hereinafter defined.

Industry products: Radio receiving
sets, television receiving sets, combina-
tion radio and television recelving sets,
or parts or accessories therefor.

Group I

§ 142.1 Misbranding, misrepresentation,
and deceptive selling methods.

It is an unfair trade practice for any
member of the industry, in the course of
the marketing or distribution of prod-
ucts of the industry, (a) to use, or pro-
mote the use of, any marks, brands,
labels, depictions, layouts, advertise-
ments, prices, trade promotional de-
scriptions, or representations of any
kind, which, directly or by implication,
are false, misleading, or deceptive to the
purchasing or consuming public; or (b)
to offer for sale, seli, or distribute, or
promote the sale or distribution of,
products of the industry under any other
conditions or selling practices which
have the capacity and tendency or ef-
fect of misleading or deceiving the pur-
chasing or consuming public in any
material respect.

142.21
142.22
142.28
142.24
142.25
142.26
142.27
142.28

142.29
142.30

527