Wine Industry
16 CFR Part 139 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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 Il—~Federal 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 im the provisions of Rule 14 (§ 138.14) of Group I, 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. § 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 provislons 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 139——WINE INDUSTRY Group I Bec. 189.1 Misrepresentation as to character of business. 139.2 False Invoicing. 189.3 Substitution of products. 139.4 Defamation of competitors or dis- paragement of their products. 189.5 Imitation of trade-marks, etc. 139.6 Procurement of competitors’ confi- dential information by unfair means and wrongful use thereof. 139.7 Threats of suit. 139.8 Inducing breach of contract. 189.9 Enticing away employees of competi- tors. 189.10 Discrimination. 189.11 Combination or coercion to fix prices, . suppress competition or restrain trade. 189.12 Selling below cost. 189.138 Aiding or abetting use of unfair trade practices. Group II 139.101 Repudiation of contracts. 189.102 Abuse of buying and selling power, 189.108 Maintenance of accurate records. Avrnoriry: Sees. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Trade Commission § 139.5 Source: 4 FR 2708, June 80, 1939, unless otherwise noted. Grovp I § 139.1 Misrepresentation as to char- acter of business. It is an unfair trade practice for any person, firm or corporation to represent, directly or indirectly, that he or it is a manufacturer, producer or importer of wines or that he or it owns or controls a vineyard or vineyards wherein are grown the fruits from which his or its wines are produced, when such is not the fact, or in any other manner to misrep- resent the character, extent or type of his or its business. . § 139.2 False invoicing. Withholding from or inserting in in- voices 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, with the effect of thereby misleading or deceiving pur- chasers, prospective purchasers or the consuming public, is an unfair trade practice. § 139.3 Substitution of products. The practice of shipping or delivering products which do not conform to speci- fications provided for in the contract or order or to representations made con- cerning such products, without the con- sent of the purchasers to such changes or substitutions and with the tendency and capacity or effect of misleading or de- ceiving purchasers, prospective purchas- ers or the consuming public, is an unfair trade practice. § 139.4 Defamation of competitors or disparageinent of their products. The defamation of competitors by falsely imputing to then dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, or the false dispar- agement of the grade, quality or manu- facture of the products of competitors or of their business methods, selling prices, values, credit terms, policies or services, is an unfair trade practice. § 139.5 Initation of trade-marks, etc. The imitation or simulation of the trade-marks, trade names, brands or labels of competitors, with the tendency and capaclty or effect of misleading or 607 § 139.6 deceiving purchasers, prospective pur- cliasers or the consuming public, is an unfair trade practice. § 139.6 Procurement of competitors’ confidential information by unfair means and wrongful use thereof. It is an unfair trade practice for any member of the industry to obtain infor- mation concerning the business of a com- petitor, by bribery of an employee or agent of such competitor, by false or mis- leading statements or representations, by the impersonation of one in authority, or by any other unfair means and to use the information so obtained in such a man- ner as to mjure said competitor in his business or to suppress competition or unreasonably restrain trade. § 139.7 Threats of suit. The circulation of threats of suit for infringement of patents or trade-inarks among customers or prospective cus- toiners of competitors, not made in good faith but for the purpose or with the effect of harassing or mtimidatmg such customers or prospective customers or of unduiy hampering, injuring or prej- udicmg competitors in their businesses, is an unfair trade practice. § 139.8 Induciug breach of contract. Inducing or attempting to induce the breach of existmg lawful contracts be- 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, injuring or prejudicmg competitors in their busi- nesses, is an unfair trade practice. § 139.9 Enticing away employees of competitors. Willfully enticing away the employees of competitors, with the purpose and ef- fect of unduly hampering, injuring or Prejudicing competitors in their busi- nesses, is an unfair trade practice. § 139.10 Discrimination. (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrim- 1 Paragraph (a) of § 139.10 shall not be construed as embracing practices prohibited by paragraphs (b), (c) and (d) of this sec- tion. Title 16—Commercial Practices ination. 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 re- bate, refund, discount, credit, or other form of price differential effects a discrimination in price between dif- ferent 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 competi- tion 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, 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 froin 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 immi- nent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in - good faith in discontmuance 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 608 Chapter Il——Federal Trade Commission to the other party to such transaction or to an agent, representative, or other in- termediary therein wherein such inter- mediary is acting in fact 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. (ec) 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 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 proportion- ally equal terms to all other customers competing in the distribution of such products 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 com- modity so purchased upon terms not ac- corded to all purchasers on proportion- ally 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 fore- going provisions of this section. (Sec. 2, 88 Stat. 730, as amended, secs. 2, 3, 4, #9 Stat. 1527, 1528; 15 U.S.C. 18, 13a, 18b, a § 139.11 Combination or coercion to fix prices, suppress competition or re- strain trade. It is an unfair trade practice for any person, firm, partnership, corporation or association: § 139.101 (a) To use, directly or indirectly, any form of threat, intimidation or coercion against any member of the industry to unlawfully fix, maintain or enhance prices, suppress competition or restrain .trade; or (b) To enter into or take part in, di- rectly or indirectly, any agreement, un- derstanding, combination, conspiracy or concert of action with one or more per- | sons, firms, partnership, corporations or associations to fix, maintain or enhance prices, suppress competition or restrain trade. § 139.12 Selling below cost. The practice of selling industry prod- ucts below the seller’s cost, when pur- sued with wrongful intent of thereby injuring a competitor and where the ef- fect of such practice is to unreasonably restrain trade, tend to create a monopoly, or substantially lessen competition, is an unfair trade practice. This section is not to be construed as prohibiting all sales below cost, but only such selling below the seller’s cost as 1s resorted to and pursued as a monopolls- tic practice with the wrongful intent re- ferred to and coupled with the effect of unreasonably restraining trade, tend- ing to create a monopoly or substantially lessening competition. Sales below cost by a competitor not in a sufficiently strong competitive position to produce, and not actually producing, the monopo- listic or restraining effect mentioned, do not fall within the inhibitions of this section. The costs referred to in this section are actual costs of the respective seller and not some other figure or average costs in the industry, determined by an industry cost survey or otherwise. § 139.13 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 in- directly, to use or promote the use of any unfair trade practice specified in this part. Group It § 139.101 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in letter and in spirit. The repudiation of con- tracts by sellers on a rising market, or by buyers on a declining market, is con- demned by the industry. 609 § 139.102 § 139.102 Abuse of buying and selling ' power. The use of buying power to force un- economic or unjust terms of sale upon sellers, and the use of selling power to, force uneconomic or unjust terms of sale upon buyers, are condemned by the industry. .§ 139.103 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. PART 140—PUTTY MANUFACTURING INDUSTRY Group I Sec. 140.1 False advertising. 140.2 Deceptive marking, branding, or de- vices. 140.3 Misrepresentation of vehicle. 140.4 Deceptive concealment, 140.6 Misrepresentation of pigment. 140.6 Misrepresentation of white lead. 140.7. Imitation of trade-marks, trade names, etc. 140.8 Defamation of competitors or dis- paragement of their products. 140.9 Commercial bribery. 140.10 False involeing. 140.11 Use of short-weight containers. 140.12 False guarantee. 140.18 Discrimination. AurTHorITY: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: 4 FR 2708, June 30, 1939, unless otherwise noted. § 140.1 False advertising. Making, or causing to be made or published, any faise, misleading or de- ceptive statement or representation, by way of advertisement or otherwise, con- cerning the grade, quality, quantity, sub- stance, character, size, material, content, origin, preparation, manufacture or dis- tribution of any industry product, or in any other material respect, is an unfair trade practice. § 140.2 Deceptive marking, branding, or devices. The sale or offering for sale of any product of the industry by any faise or deceptive means or device, or the false or deceptive marking or branding of products of the industry, with respect to Title 16—Commercial Practices the grade, quality, quantity, use, mate- rial, content, preparation, manufacture or distribution of such products, or in any other material respect, is an unfair trade practice. § 140.3 Misrepresentation of vehicle. The marking, branding, advertising or representing of any industry product as “Pure Putty,” “Pure Linseed Putty,” “Linseed Oil Putty,” or by words, signs, abbreviations or other representations of similar import or meaning, as descrip- tive of putty the vehicle of which is not composed wholly of pure linseed oil, is an unfair trade practice. Nothing in this section, however, shall be construed as prohibiting the use in such putty of nec- essary or desirable amounts of drier: Provided, The presence of such drier is fully and nondeceptively disclosed on the label and purchasers of the putty are informed of such content of drier. § 140.4 Deceptive concealment. (a) In the case of wood sash putty, in which mineral or other oils are used in the vehicle as an adulterant or as a sub- stitute for linseed oil, in whole or in part, it is an unfair trade practice to conceal or fail or refuse to disclose the presence of such adulterant or substitute oils, with the capacity and tendency or effect of thereby misleading or deceviing the pur- chasing or consuming public. (b) Nondisclosure, or concealment from purchasers, of any ingredient of a product offered for sale or sold as or for putty where such nondisclosure or con- cealment is practiced by the seller with the tendency and capacity or effect of thereby misleading or deceiving the pur- chasing or consuming public, is an unfair trade practice. § 140.5 . Misrepresentation of pigment. The marking, branding, advertising or representing of any industry product as “Chalk Putty,” “Chalk Whiting Putty” or “True Chalk Whiting Putty,” or by words, signs, abbreviations or other rep- resentations of simllar import or mean- ing, as descriptive of putty the pigment of which is not composed wholly of pure chalk whiting, is an unfair trade practice. § 140.6 Misrepresentation of white lead. It is an unfair trade practice, directly or by Implication, to advertise, describe, mark, brand, label or otherwise repre- sent any putty (a) as containing white lead when such is not the fact; or (b) as 610