Putty Manufacturing Industry

16 CFR Part 140 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)

§ 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

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containing more white lead than is in
fact present in the product; or (c) as
being white lead putty when the same
in fact contains no white lead or when
the putty does not contain white lead in
sufficient proportion to impart to the
product substantial und effectual white
lead characteristics or properties; or (d)
to advertise, describe, mark, brand, label
or represent putty in any other manner
which has the capacity and tendency or
effect of misleading or deceiving the pur-
chasing or consuming public as to the
presence of lead or as to the kind, char-
acter or percentage thereof contained in
the products.

§ 140.7 Imitation of trade-marks, trade
names, etc.

The practice of imitating or causing to
be imitated, or directly or indirectly pro-
moting the imitation of, the trade-
marks, trade names or other exclusively
owned symbols or marks of identification
of competitors, having the capacity,
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public, is an unfair trade practice.

§ 140.8 Defamation of competitors or
disparagement of their products.

The defamation of competitors by
falsely imputing to them dishonorable
conducts, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dis-
paragement of the grade, quality or man-
ufacture of the products of competitors,
or of their business methods, selling
prices, values, credit terms, policies or
services, or conditions of employment, is
an unfair trade practice.

§ 140.9 Commercial bribery.

Directly or indirectly to give, or permit
to be given, or offer to give, money or
anything of value to agents, employees or

1In respect to putty marketed through
dealer-channels of trade to the consuming
public, represented or sold as containing lead
or as being white lead putty, disclosure shall
be made on the label or container of the kInd
or type of lead, whether carbonate or sul-
phate, and the total percentage of lead con-
tained in the product, to the end that mis-
representation or deceptive concealment as
to the lead content of the product may be
avoided and prevented. And the failure or
refusal to make such disclosure with the
capacity and tendency or effect of thereby
misleading or deceiving the purchasing or
consuming public is an unfair trade practice.

Trade Commission § 140.13

representatives of customers or prospec-

. tive customers, or to agents, employees or

representatives of competitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or
principals, as an inducement to influence
their employers or principals to purchase
or contract to purchase any industry
products from the maker of such gift or
offer, or to influence such employers or
principals to refrain from dealing or con-
tracting to deal with competitors, is an
unfair trade practice.

§ 140.10 False invoicing.

Withholding from or inserting in in-
voices, bills of lading, delivery receipts or
other documents of title any statements
or information by reason of which omis-
sion or insertion a false record is made,
wholly or in part, of the transactions
represented on the face of such invoices,
bills of lading, delivery receipts or other
documents of title, with the effect of
thereby misleadimg or deceiving the pur-
chasing or consuming public, is an unfair
trade practice.

§ 140.11 Use of short-weight containcrs.

The selling or offering for sale of
putty in so-called short-weight con-
tainers or packed in odd-size or odd-
shaped containers or packages simulat-
ing in size or shape standard size or
shaped containers or packages which
are known to the public as standard
containers of definite capacity, with the
tendency and capacity or effect of mis-
leading or deceiving the purchasing or
consuming public as to the contents of
such containers or packages or the
amount of putty contained therein, is an
unfair trade practice.

§ 140.12 False guarantec.

The making of any guarantee as to the
durability or service of any industry
product which is untrue or which is im-
practicable or impossible to fulfill be-
cause of contingencies such as, but not
limited to, workmanship or maintenance
over which the manufacturer or guaran-
tor has no control, or which otherwise
has a tendency, capacity or effect of de-
ceiving or misleading the purchasing or
consuming public, is an unfair trade
practice.

§ 140.13 Discrimination.

(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,

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§ 140.13

2

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 rebate,
refund, discount, credit, or other form
of price differential, where such rebate,
“refund, discount, credit, or other form
of price differential effects a discrimina-
tion in price between different purchas-
ers 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 substan-
tially 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, 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 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 thelr 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 conditlons 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 prac-

2 Paragraph (a) of § 140.13 shall not be con-
strued as embracing practices prohibited by
paragraphs (b), (c) and (da) of this section.

Title 16—-Commercial Practices

tice 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 & 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 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 consideratlon for any services
or facilities furnished by or through
said customer in connection with the
processing, handling, sale, or offering
for sale of any products or commodities
mnanufactured, 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 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 facillties con-
nected with the processing, handling,
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 recelve a discrimination in

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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, 1528; 15 U.S.C. 13, 13a, 13b, 21e)

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 mames or
marks.

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

142.6-2 Describing wood components and
wood imitations.

142.6-3 Identity of woods.

142.7 Deceptive use or change of cabinets.

142.8 Alteration or removal of serial num-
bers.

142.9 [Reserved]

142.10 Deception as to the convertibility of
g television receiving set to services
other than those for which 1t was
originally manufactured.

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

142.12 Deception as to being “new.”

142.13 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.

143.16 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.

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

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

142.22 Unfair threats of infringement sults.

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

142.24 Consignment distribution.

142.25 Use of lottery.

142.26 Defamation of competitors or false

disparagement of their products.

Trade Commission § 149.2

Sec.

142.27 Enticing away employees of com-
petitors.

142.28 Procurement of competitors’ con-
fidential information.

142.29 Commercial bribery.

142.30 Exclusive deals.

142.31 Push money.

142.32 Prohibited discrimination.

AvuTuHoriry: Secs. 6(g), 5, 33 Stat. 722, 719;
15 US.C. 46, 45, unless otherwise noted.

Source: 20 FR 4533, June 28, 1955, 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 receiving 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, sell, 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.

§ 142.2 “All-wave,” ‘“‘world-wave,”
“world-wide wave,” “standard broad-
cast,” etc.

In the application of the rules in this
part, and for the purpose of avoiding
confusion, misunderstanding, and de-
ception:

(a) Except as provided in paragraph
(b) of this section, the terms “all-wave,”

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