Curled Hair Industry
16 CFR Part 143 · Trade practice rules · in the Code of Federal Regulations 1943-1976 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1943 CFR
Text (1976 edition, OCR)
Chapter |—Federal discrimination: Provided, however, That nothing contained in this sectton shall pre- vent a seller rebutting the prima facile case thus made by showing that hits 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 @ competitor, or the services or facilities fur- nished by a competitor. See section 2-b, Clayton Act. PART 143—-CURLED HAIR INDUSTRY Group I Sec, 143.1 Misbranding. 143.2 Misrepresentation of industry prod- ucts. 148.8 Deceptive nondisclosure. 143.4 Misuse of the term “hair,” etc. 148.6 Substitution of products. 148.6 False invoicing. 143.7. Imitation or simulation of trade- marks, trade name, brands or labels. 143.8 Commercial bribery. 143.9 Defamation of competitors or dispar- agement of their products. 143.10 Inducing breach of contract. 148.11 Discrimination, AuTHorITY: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: 5 FR 172, Jan. 12, 1940, unless otherwise noted. § 143.1 Misbranding. The false or deceptive marking or branding of products of the industry with respect to the grade, quality, quan- tity, use, size, material, content, sub- stance, new or secondhand conditions, origin, preparation, manufacture or dis- tribution of such products, or in any other material respect, is an unfair trade practice. § 143.2 Misrepresentation of industry products. It is an unfalr trade practice to make or publish, or cause to be made or pub- Ushed, directly or indirectly, any false, misleading or deceptive statement or representation, by way of advertisement or otherwise, concerning the grade, qual- ity, quantity, use, size, material, content, substance, origin, new or secondhand condition, preparation, manufacture or distribution of any product of the indus- try, or in any other material respect. § 143.3 Deceptive nondisclosure. (a) Nondisclosure of secondhand hair or fiber. To sell or offer for sale any in- Trade Commission § 143.5 dustry product containing, in whole or in part, any hair or fiber which has previ- ously been used in any article or for any purpose, without making full and non- deceptive disclosure in selling literature, tags or labels, and in invoices, of the fact that such hair or fiber ls secondhand or used, is an unfair trade practice. (b) Nondisclosure of kind of hair. To the end that purchasers may.be cor- rectly informed and that unfair meth- ods of competition and unfair or decep- tive acts or practices may be avoided and prevented in the sale or offering for sale of curled hair or curled hair prod- ucts, full and nondeceptive disclosure should be made by members of the in- dustry in selling literature, tags or la- bels, and in involces, of the kind of hair contained in said merchandise soid or offered for sale by them, whether horse tail, cattle tail, horse mane, hog, or other kind of hair, together with the propor- tion of each kind of hair contained therein; and it is an unfair trade prac- tice to fail or refuse to make such dis- closure to purchasers where such non- disclosure or the concealment of the kind of halr contained in the product is practiced by the seller with the tend- ency and capacity or effect of thereby misleading or deceiving purchasers or the consuming public. (c) Nondisclosure of vegetable fiber, etc. The concealment of, or the failure to disclose, the kind and proportion of any vegetable fiber or material other than hair contained in any curled hair or purported curled hair product sold by members of the industry, with the tend- ency and capacity or effect of thereby misleading or deceiving purchasers of the consuming public, is also an unfair trade practice. § 143.4 Misuse of the term “‘hair,” etc. The use of the word “hair” to describe any industry product consisting of hair mixed with sisal, tampico, kapok, or other vegetable fibers, without disclosure of the proportion and kind of hair and of vege- table fibers present in the product, with the tendency and capacity or effect of misleading or deceiving the purchasing or consuming public, or the use of the term “hair” or word, term or represen- tation of similar import in any false, misleading or deceptive manner what- soever, is an unfair trade practice. § 143.5 Substitution of products. The practice of shipping or delivering products which do not conform to sam- 627 § 143.6 ples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without the consent of the pur- chasers to such substitutions and with the tendency and capacity or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 143.6 False invoicing. Withholding from or inserting in an invoice, billing or statement any material information by reason of which omission or insertion a false record is made, wholly or in part, of the transaction which such invoice or billing or statement purports to represent, with the effect of thereby misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 143.7 Imitation or simulation of trade- marks, trade names, brands or labels. The imitation or simulation of the trade-marks, trade names, labels or brands of competitors, with the tendency and capacity or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 143.8 Commercial bribery. It is an unfair trade practice for a member of the industry directly or in- directly to glve, 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’ custom- ers 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 products manufac- tured or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or con- tracting to deal with competitors. § 143.9 Defamation of competitors or disparagement of their products. The defamation of competitors by falsely imputing to them dishonorable conduct, 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 the business methods, selling Title 16—Commercial Practices prices, values, credit terms, policies or services, is an unfair practice. § 143.10 Inducing breach of contract. Inducing or attempting to induce the breach of existing 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 hamperlng, injuring or prejudicing competitors in their busi- nesses, is an unfair trade practice. § 143.11 Discrimination. (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrim- ination. It is an unfair trade practice 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 differentlal, where such rebate, re- fund, 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 purchasers involved therein are in commerce, 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 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- tlon, 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 sec- tion shall prevent persons engaged in sell- ing goods, wares, or merchandise in com- merce from selecting their own customers in bona fide transactions and not in re- straint 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) 628 Chapter |—Federal Trade Commission 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- Jescence 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, 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 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 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 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 facllities furnished by or through such customer in connection with the processing, han- dling, 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 competing in the distribution of such products or commod- ities. (a) Prohibited discriminatory serviccs or facilities. It is an unfair trade practice 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 processing, by contracting to furnish or by furnishing, or by contributing to the furnishing of, any services or facilities connected 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. § 143.11 (e) Inducing or receiving an illegal dis- crimination 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 foregoing provisions of this section. (f) Purchases by schools, colleges, uni- versities, public libraries, churches, hos- pitals, and charitable institutions not operating for profit. The foregoing provi- sions of this section relate to practices within the purview of the Robinson-Pat- man Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations ex- pressed in the amendment to such Robin- son-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 Amer- ica in Congress assembled, That nothing in the Act approved June 19, 1936 (Public Num- bered 692, Seventy-Fourth Congress, second 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, hospitais, and charitable insti- tutions not operated for profit. (Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15 U.S.C, 13, 18a, 18b, 18c, 21a) PART 144—SARDINE INDUSTRY Group I Sec. 144.1 Definitions. 144.2 Sardines unfit for use. 144.3 Misuse of words “natural style.” 144.4 Misrepresenting “seconds.” 144.5 Misrepresentation of industry prod- ucts. 144.6 Deceptive depictions. 144.7 Imitatlon or simulation of trade- marks, trade name, brands or labels. 1448 Use of slack-filled or short-weight containers. 144.9. Defamation of competitors or dispar- agement of their products. 144.10 Substituting inferior products for those ordered. 144.11 Misuse of word “free.” 144.12 Fictitious prices. 144.13 False involcing. 144.14 Inducing breach of contract. 144.15 Commercial bribery. 144.16 Enticing away employees of competi- ors. 144.17 Unfair threats of infringement suits. 144.18 Consignment distribution. 629