Umbrella Industry

16 CFR Part 145 · Trade practice rules · in the Code of Federal Regulations 1943-1977 (14 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1943 CFR

Text (1977 edition, OCR)

Chapter |—Federal Trade Commission

Be tt 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, 1986 (Public,
Numbered 692, Seventy-Fourth Congress,
second session), known as the Robinson-
Patman Antidiscrimination Act, shall apply
to purchases of their supplies for their own
use by schools, colleges, universities, public
Ubraries, churches, hospitals, and charitable
institutions not operated for profit.

(Sec, 3, 88 Stat. 780, as amended, secs. 2, 3,
4, 49 Stat. 1527, 1528, ch. 288, 52 Stat. 446;
156 U.S.C. 18, 18a, 18b, 18c, 218)

§ 144.21 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 in-
directly, to use or promote the use of any
unfair trade practice specified in this
part.

Grovur II

§ 144.101 Cost records.

It is the Judgment of the industry that
each member should independently keep
proper and accurate records for deter-

his costs.
§ 144.102 Repudiation or cancellation
of contracts.

Lawful contracts are business obliga-
tions which should be performed in letter
and in spirit. The repudiation or can-
cellation of contracts by sellers on a
rising market or by buyers on a declining
market is condemned by the industry.

COMMITTEE ON TRADE PRACTICES
§ 144.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicabie to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1966]

PART 145—-UMBRELLA INDUSTRY

Sec.

145.0 Definition.

Group I

145.1 Deception as to used, rebuilt, or
second-hand products.

145.2 Misrepresentation as to character of
business.

146.8 Substitution of products.

145.4 Identification and disclosure -of
fiber or material content of
covers.

145.5 False invoicing. -

145.6 Misuse of the word “free,” etc,

145.7 Fictitious or deceptive pricing,

145.8 Guarantees, warranties, etc.

§ 145.4

Sec.

145.9 Deception (general).

145.10 Selling below cost.

145.11 Combination or coercion to fix
prices, suppress competition, or
restrain trade.

145.12 Inducing breach of contract.

145.18 Defamation of competitors or dis-
paragement of thelr products.

145.14 Commercial bribery.

146.15 Enticing away employees of com-
petitors.

146.16 Consignment distribution,

146.17 Discriminatory returns.

145.18 Prohibited discrimination.

146.19 Atding or abetting use of unfair
trade practices.

Group IT

145.101 Repudiation of contracts.

145.102 Return of merchandise.
AvTHoRITY: Secs. 6, 5, 38 Stat, 721, 719;
15 U.6.0, 46, 45, unless otherwise noted.
Source: 15 FR 8617, June 9, 1950, unless
otherwise noted.

§ 145.0 Definition.

As used in this part the term “um-
brellas” shall mean all kinds and types
of umbrellas and parasois, whether
portable or stationary, and shall include
beach, lawn, and tractor umbrellas. The
products of the industry consist of um-
brellas as so defined and include handles,
frames, tips, covers, and other parts or
accessories for umbrellas.

Group I

§ 145.1 Deception as to used, rebuilt,
or secoud-hand products.

(a) In the sale, offering for sale, or
distribution of umbrellas, it is an unfair
trade practice for any industry member
to represent, directly or indirectly, that
any umbrella is new when such is not the
fact; or for any industry member to sell,
offer for sale, or distribute umbrellas
under circumstances or conditions hav-
ing the capacity and the tendency or
effect of causing purchasers or prospec-
tive purchasers to be led to believe that
the umbrellas are wholly new when such
is not the fact.

(b) Umbrellas which have the appear-
ance of being new, but which contain
rebuilt, used, or second-hand parts, shall
have affixed to them durable tags or la-
beis on which disclosure is made of the
fact that a specified part thereof has been
subjected to previous use, and such tags
or labels shall be of size and conspleu-
ousness as to reasonably assure of notice
to purchasers and prospective purchasers
of such umbrellas. Similar require-

545


§ 145.2

ments shall be considered as applicable
to the marketing of used, rebuilt, or sec-
ond-hand parts or accessories of um-
brellas.

§ 145.2 Misrepresentation as to char-
acter of business,

It is an unfair trade practice for any
industry member, by trade or corporate
name or otherwise, to represent, directly
or indirectly, that he is an umbrelia
manufacturer, or that he owns or con-
trols a factory engaged in the manufac-
ture of umbrellas, when such is not the
‘fact, or In any other manner to misrep-
resent the character, extent, or type of
his business.

§ 145.3 Substitution of products.

The practice of shipping or delivering
umbrellas, parts thereof, or accessories
thereof, which do not conform to sam-
ples submitted, to specifications upon
which the sale is consummated, or to
representations made prior to securing
the order, without the consent of the
purchasers to such substitutions, and
with the capacity and tendency or effect
of misleading or deceiving purchasers or
prospective purchasers, is an unfair
trade practice.

§ 145.4 Identification and disclosure of
fiber or material content of covers.

(a) In the sale, offering for sale, or
distribution of umbrellas, it is an unfair
trade practice to misrepresent or decep-
tively conceal the identity of the fiber or
material content of any umbrella cover.

(b) Identification and disclosure of
fiber and other material content of um-
brella covers shall be made in accord-
ance with the applicable requirements of
the Group I fiber identification rules ap-
proved and promulgated by the Com-
mission, such as the Group I rayon rules
in Part 123 of this chapter,’ promulgated
October 26, 1937, relating to products
containing rayon in whole or in part,
and the Group I silk rules in Part 135
of this chapter, promulgated November 4,
1938, 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 whenever
applicable to the products of this indus-
try. (Copies of the rayon industry and
silk industry trade practice rules re-

1Part 123 was superseded by Part 204 of
this chapter

Title 16—-Commercial Practices

ferred to will be furnished by the Com-
mission upon request.)
§ 145.5 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 capacity
and tendency or effect of thereby mis-
leading or deceiving purchasers or pro-
spective purchasers, is an unfair trade
practice.

§ 145.6 Misuse of the word “free,” etc.

Use of the word “free,” or any word
or term of similar import, in advertising
or otherwise, to designate or describe any
umbrella, part, accessory or service
which is not in truth and in fact a gift
or gratuity, or is not given to the recip-
jent thereof without requiring the pur-
chase of other merchandise or requiring
the performance of some service inuring
directly or indirectly to the benefit of
the industry member using such word,
is an unfair trade practice.

§ 145.7 Fictitious or deceptive pricing.

(a) It is an unfair trade practice for
any member of the industry to repre-
sent, in advertising or otherwise, that
the price of any umbrella, part, or ac-
cessory has been reduced from what is
in fact a fictitious price, or that such
price is a reduced or a special price when
it is in fact the regular selling price of
such umbrella, part, or accessory, or
that the regular price thereof is higher
when such is not the fact, or otherwise to
falsely or deceptively represent the past
or current price of any umbrella, part,
or accessory.

() It is an unfair trade practice for
any member of the industry, directly or
indirectly, to use or to supply to deaiers,
or to aid or assist in the use of, price
tags, labeis, or similar devices which are
false or fictitious, or which such mem-
ber has reason to belleve are intended
to be used or will be used by dealers or
salesmen for the purpose of misleading
or deceiving the purchasing or consum-
ing public in regard to price, vaiue, or in
any other material respect.

§ 145.8 Guarantees, warranties, etc.

It is an unfair trade practice to use or
cause to be used any guarantee or war-
ranty which is false, misleading, decep-
tive, or unfair to the purchasing or

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Chapter I—Federal

consuming public, whether in respect to
the kind, quality, composition, service-
ability, value, durability, or method of
manufacture, of any umbrella, part, or
accessory, or as to the time or character
of the guarantee or warranty, or in any
other respect, or whether deceptive or
misleading by reason of being incom-
pletely or confusingly stated, impracti-
cable of fulfillment, or through failure
of the guarantor or warrantor scrupu-
lously to fulfill the terms of his guaran-
tee or warranty.

§ 145.9 Deception (general).

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,
depiction, label, mark, brand, or other-
wise, concerning the grade, quality,
weight, character, durability, fastness of
color, finish, size, material, fiber or other
content, origin, construction, treatment,
preparation, manufacture, or distribu-
tion of eny umbrella, part, or accessory,
or in any other material respect.

§ 145.10 Selling below cost.

The practice of selling umbrellas,
parts or accessories at a price less than
the cost thereof to the seiler, with the
purpose or intent, and where the effect
may be, to injure, suppress, or stifie com-
petition or tend to create a monopoly in
the production or sale of such products,
is an unfair trade practice. As used in
this section, the term “cost” means the.
total cost to the selier of any such trans-
actions of sale, including the costs of ac-
quisition, processing, preparation for
marketing, sale, and delivery of such
products,

§ 145.11 Combination or coercion to fix
prices, suppress competition, or re-
strain trade.

It is an unfair trade practice for a
member of the Industry:

(a) To use, directly or indirectly, any
form of threat, intimidation, or coercion
against any member of the industry or
other person to unlawfully fix, maintain,
or enhance prices, suppress competition,
or restrain trade; or

(b) To enter Into or take part in,
directly or indirectly, any agreement,
understanding, combination, conspiracy,
or concerted action with one or more
members of the industry, or with one or
more other persons, to unlawfully fix,

Trade Commission § 145.15
maintain, or enhance prices, suppress
competition, or restrain trade.

§ 145.12 Iuducing 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 faise 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, injur-
ing, or prejudicing competitors in their
business, is an unfair trade practice.

§ 145.13 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
manufacture of the products of competi-
tors, or of the source or origin of raw
materials or component parts used in
their products, or of their business
methods, selling prices, values, credit
terms, policies, or services, is an unfair
trade practice.

§ 145.14 Commercial bribery.

It is an unfair trade practice for a
member of the industry, directly or indi-
rectly, 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 custemers 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 umbrellas, parts, or
accessories, manufactured 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 umbrellas, parts, or acces-
sories of competitors or from dealing or
contracting to deal with competitors.

§ 145.15 Enticing away employees of
competitors.

Wilfully enticing away the employees
of competitors with the purpose and ef-
fect of unduly hampering, injuring, or
prejudicing competitors in their busi-
nesses and destroying or substantially
lessening competition is an unfair trade
practice.

5AT


§ 145.16

Norte: Nothing in this section shall be con-
strued as prohibiting employees or agents
from seeking more favorable employment.

§ 145.16 Consignment distribution.

It is an unfair trade practice for any
member of the industry to employ the
practice of shipping umbrellas, parts, or
accessories on consignment or pretended
consignment for the purpose and with
the effect of artificially clogging or clos-
ing trade outlets and unduly restricting
competitors’ use of said trade outlets in
getting their products to consumers
through regular channels of distribu-
tion, thereby injuring, destroying, or
preventing competition, or tending to
create a monopoly or to unreasonably
restrain trade. Nothing in this section
shall be construed as restricting or pre-
venting consignment shipping or mar-
keting of umbrellas, parts, or accessories
in good falth where suppression of com-
petition, restraint of trade, or undue in-
terference with competitors’ use of the
usual channels of distribution, is not
effected.

§ 145.17 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
customer-purchaser of umbrellas, parts,
or accessories, bought from such mem-
ber of the industry for resale, by con-
tracting to furnish, or furnishing in
connection therewith, upon terms not
accorded to all competing customer-
purchasers on proportionally equal
terms, the service or facility whereby
such favored purchaser is accorded the
privilege of returning umbrellas, parts,
or accessories so purchased and receiv-
ing therefor credit or refund of pur-
chase price: Provided, however, That
nothing in §§ 145.1 to 145.19 shall pro-
hibit or be used to prevent the return

1 As used in this part, the word “commerce”
means “trade or commerce among the several
States and with foreign nations, or between
the District of Columbia or any Territory of
the United States and any State, Territory, or
foreign nation, or between any insular pos-
sessions or other places under the jurisdic-
tion of the United States, or between any
such possession or place and any State or
Territory of the United States or the District
of Columbia or any foreign nation, or within
the District of Columbia or any Territory or
any insular possession or other place under
the jurisdiction of the United States.”

Title 16—Commercial Practices

of umbrellas, parts, or accessories by
purchaser, for credit or refund of pur-
chase price, when and because such um-
brellas, parts, or accessories have not
been properly labeled by the seller as to
fiber content, or have been otherwise
falsely or deceptively labeled or repre-
sented or when and because such um-
brellas, parts, or accessories are defec-
tive in material, workmanship, or in any
other respect are contrary to warranty
or purchase contract. (See also § 145.102,
Group II.)

§ 145.18 Prohibited discrimination.2

(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price discrimi-
nation. In the marketing in commerce
of umbrellas, parts, or accessories of like
grade and quality for use, consumption,
or resale within the jurisdiction of the
United States, and subject to subpara-
graphs (1), (2), and (3) of this para-
graph, it is an unfair trade practice for
any member of the industry engaged
therein to discriminate in price between
different purchasers 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
such industry member or with any per-
son who knowingly receives the benefit
of such discrimination or with their
customers. The inhibitions against such
discrimination in price shall be appli-
cable irrespective of whether the dis-

crimination in the price itself is effected

in the form, or through the means, of
rebates, refunds, discounts, credits, al-
lowances, or other form of price differ-
ential.

(1) However, nothing contained in
this paragraph shall prevent differentials
which make only due allowance for dif-
ferences in the cost of manufacture, sale,
or delivery resulting from the differing
methods or quantities in which um-
brellas, parts, or accessories are sold or
delivered to said purchasers.

(2) Nor shall anything contained in
this paragraph prevent persons engaged
in selling such umbrellas, parts, or acces-
sories In commerce from selecting their
own customers in bona fide transactlons
and not in restraint of trade.

(3) Nor shall anything contained in
this paragraph prevent price changes
from time to time where made in re-
sponse to changing conditions affecting
either the market for the umbrellas,

548


Chapter I—Federal

parts, or accessories concerned, or the
marketability of the umbrellas, parts, or
accessories, such as, but not limited to,
actual or imminent deterioration of per-
ishable goods, obsolescence of seasonal
goods, distress sales under court process,
or sales in good falth in discontinuance
of business in the products concerned.

(b) Prohibited brokerage or commis-
sions. In the selling of umbrellas, parts,
or accessories in commeree, it is an
unfair trade practice for any member of
the industry engaged therein to pay or
grant, or to receive or accept, any com-
mission, brokerage, or other compensa-
tion, or any allowance or discount in leu
thereof, except for services rendered in
connection with the sale or purchase of
such umbrellas, parts, or accessories,
either to the other party to such trans-
action or to an agent, representative, or
other intermediary therein, where such
agent, representative, or other inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect
control, of any party to such trans-
action other than the person by whom
such compensation is so granted or paid.

(c) Prohibited advertising or promo-
tional allowances, etc. In the selling of
umbrellas, parts, or accessories in com-
merce by any member of the industry,
and in the course thereof, it is an unfair
trade practice for such member to pay
or contract for the payment of any ad-
vertising or promotional allowances or
any other thing of vaiue to or for the
benefit of his customer as compensation
or in consideration for certain services
or facilities furnished by or through
such customer, uniess such payment or
consideration is avallable on propor-
tlonally equal terms to all other cus-
tomers of such member competing in the
distribution of such umbrellas, parts, or
accessories.

(1) As used tn paragraph (c) of this
section, the certain services or facilities
referred to are such as are furnished by
or through the customer in connection
with the processing, handling, sale, or
offering for sale, of such industry mem-
ber’s umbrellas, parts, or accessories.

(d) Prohibited discrimination in serv-
ices or facilities. In the sale of um-
brellas, parts, or accessories bought for
resale, with or without processing, it is
an unfalr trade practice for any mem-
ber of the industry engaged in com-
merce to discriminate in favor of one
purchaser against another purchaser by
‘furnishing certain services or facilities

Trade Commission § 145.102

upon terms not accorded to all compet-
ing purchasers on proportionally equal
terms.

(1) Sald services or facilities referred
to in this paragraph are such as are
connected with the processing, handling,
sale, or offering for sale, of the umbrellas,
parts, or accessories, purchased, and the
term “furnishing” as used in this para-
graph shall be construed as including
contracting to furnish, and contributing
to the furnishing of, the services or
facllities. ‘

(e) Inducing or receiving an illegal
discrimination in price. It is an unfair
trade practice for any member of the
industry, in the course of commerce in
which he is engaged, knowingly to induce
or receive a discrimination in price
which is prohibited by the provisions in
paragraphs (a) to (d) of this section.

(f) Exemptions. The inhibitions of
this section shall not apply to purchases
of their suppiies for their own use by
schools, colleges, universities, publle H-
braries, churches, hospitals, and chari-
table institutions not operated for profit.

§ 145.19 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 §§ 145.1
to 145.18.

Grovp IT

§ 145.101 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.

§ 145.102 Return of merchandise.

The practice, by members of the in-
dustry, of selling merchandise and later
permitting the purchaser to return it
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 the re-
quirements and limitations set forth in
the provisions of § 145.17, and subject
also to the general limitation that mem-
bers of the industry shall not engage in
any combination cr conspiracy in re-
straint of trade or use of any other

549


§ 146.1
illegal methods in the regulation, con-
trol, or prevention of the return of mer-
chandise.

PART 146—TUNA INDUSTRY

Grovur I

8e0.

146.1 Definitions.

1462 Deceptive designations.

1463 Deceptive concealment of species and
quality.

146.4 Misuse of terms “extra fanoy,” “extra
select,” etc.

146.5 #Misrepresentation of industry prod-
ucts in general.

146.6 Deceptive depictions in general.

146.7 Misuse of term “Tonno,” foreign in-
signia, etc.

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

1468 Use of slack-filled or short-weight
containers.

146.10 Defamation of competitors or dispar-
agement of their products.

146.11 Substituting inferior products for
those ordered.

146.13 Misuse of word “free.”

146.18 Fictitious prices.

146.14 False invoicing.

146.156 Inducing breach of contract.

146.186 Commercial bribery.

146.17 Enticing away employees of competi-
tors.

146.16 Unfair threats of infringement suits.

146.19 Consignment distribution.

146.20 Selling below cost.

146.21 Discrimination.

146.22 Unlawful interference with raw ma-
terial purchases.

146.28 Aiding or abetting use of unfair trade
practices.

Grour I

146.101 Cost records.
146.102 Repudiation or cancellation of con-
tracts.

COMMITTEE ON TRADE PRACTICES
146.201 Industry committee.

AvuTHortrr: The provisions of this Part 146
issued under secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: The provisions of this Part 146

eppear at 10 F.R. 7568, June 28, 1945, unless
otherwise noted.

Group I
§ 146.1 Definitions.

For the purpose of this part and in its
application the following definitions re-
specting canned tuna and canned tuna
products shall apply:

(a) Fancy tuna. (1) The term “fancy
tuna” as herein used shall be deemed to
be the descriptive term for choice cuts
of cooked tuna, from fish weighing not

Title 16—Commercial Practices

more than sixty (60) pounds round
weight, packed in cans with large pieces
of sclid meat and with one or two smal!
pieces of solid meat added, if necessary,
to bring the contents up to required net
weight, but not including any flakes (nor
any grated or shredded tuna) added at
the time of packing.

(2) The term “fancy white meat tuna”
as used in this section shall be deemed to
be the descriptive term for like choice
cuts of albacore (Germo alalunga)
packed in the same manner.

(3) The expression “choice cuts”
means large choice pieces of cooked tuna
composed of tender solid meat of selected
light color and fine texture, and free from
dark meat, bones, skin, extraneous tissue,
debris, and any substance or condition
impairing quality.

(b) Standard tuna. (1) The term
“standard tuna” as used in this section
shall be deemed to be the descriptive
term for wholesome cooked tuna meat,
not restricted as to size of fish, which
when packed contains at least 75 percent
large pieces of solid meat and is free from
dark meat, bones, skin, extraneous tissue,
and debris.

(2) The term “standard white meat
term “grated tuna” or “shredded tuna”
deemed to be the descriptive term for
like large pieces of wholesome solid alba-
core (Germo alalunga), packed in the
same manner and free from dark meat,
bones, skin, extraneous tissue, and debris.

(c) Grated or shredded tuna. (1) The
term “grated tuna” or “shredded tuna”
as used in this section shall be deemed to
be the descriptive term for small uniform
pieces of wholesome cooked tuna meat
produced in this form by a mechanical
process. The pieces shall be free from
dark meat, bones, skin, extraneous tissue,
and debris, and tuna meat used for this
type of pack shall be of a kind and qual-
ity at least equal to that employed in
packing “standard tuna” as described in
paragraph (b) (1) of this section.

(2) The term “grated white meat tuna”
or “shredded white meat tuna” as used in
this section shall be deemed to be the
descriptive term for ike small uniform
pieces of wholesome cooked albacore
(Germo alalunga), prepared and packed
tn the same manner, and free from dark
meat, bones, skin. extraneous tissue, and
debris. The tuna meat used shall be of a
kind and quality at least equal to that
employed in packing “standard white
meat tuna” as described in paragraph
(b) (2) of this section.

550