Folding Paper Box Industry

16 CFR Part 147 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)

§ 146.22

which amendment was approved May 26,
1938, and reads as follows:

Be tt enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That noth-
ing in the act approved June 19, 1936 (Pub-
lic, 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
libraries, churches, hospitals, and charitable
institutions not operated for profit.

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4,
49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 16
US.C. 18, 18a, 18b, 18¢, 21a)

§ 146.22 Unlawful interference with raw
material purchases.

It is an unfair trade practice for any
member of the industry, by means of any
monopolistic practices or through combi-
nation, conspiracy, coercion, boycott,
threats, or any other unlawful means,
directly or indirectly, to interfere with a
competitor’s right to purchase his raw
materials and supplies from wlhomsoever
he chooses, or to sell his product to
whomsoever he chooses.

§ 146.23 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

§ 146.101 Cost records.

It is the judgment of the industry that
each member should independently keep
proper and accurate records for deter-
mining the costs.

$ 146.102 Repndiation 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 ris-
ing market or by buyers on a declining
market is condemned by the industry.

COMMITTEE ON TRADE PRACTICES
§ 146.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
try committee established under this
part.

[21 F.R. 1174, Feb. 21, 1966]

Title 16—Commercial Practices

PART 147—FOLDING PAPER BOX

INDUSTRY
Group I

Sec.

147.1 Misrepresentation of industry prod-
ucts.

147.2 Misrepresentation as to character of
business.

1473 Misrepresenting products as con-
forming to standards.

147.4 Misbranding.

147.6 Use of deceptive selling methods.

147.6 Substitution of products.

147.7 Faise and misleading price quota-
tions, etc.

147.8 Inducing breach of contract.

147.9 Defamation of competitors or dis-
paragement of their products.

147.10 Enticing away employees of competi-
tors.

147.11 Unfair threats of infringement suits.

147.12. Commercial bribery.

147.13 Procurement of competitors’ confl-
dential information by unfair
means and wrongful use thereof.

147.14 Imitation or simulation of trade-
marks, trade names, brands, or
labels.

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

147.16 Discrimination.

147.17 False invoicing.

147.18 Aiding or abetting use of unfair
trade practices.

Grovur IT

147.101 Repudiation or cancellation of con-

tracts.

147.102 Cost records.

AuvrHokrIrr: The provisions of this Part 147
issued under secs. 6(g), &, 38 Stat. 722, 710;
15 US.C. 46(g), 45, unfess otherwise noted.

Sourcz: The provisions of this Part 147 ap-
pear at 5 F.R. 1338, Apr. 5, 1940, unless other-
wise noted.

Group I

§ 147.1 Misrepresentation of industry
products.

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

or otherwise, concerning the grade,
quality, quantity, use, size, matertal,
finish, strength, thickness, content,

origin, preparation, manufacture, or dis-
tribution of any product of the in-
dustry, or in any other material re-
spect.
§ 147.2 Misrepresentation as to charac-
ter of business.

(a) It is an unfair trade practice for

any person, partnership, or corporation,

644


Chapier I—Federal

by trade or corporate name or otherwise,
to hold himself or itself out as being a
manufacturer or producer of folding
paper boxes or allied products when such
is not true in fact.

(b) It is an unfair trade practice for
any person, partnership, or corporation,
in the conduct of business, to misrepre-
sent in any manner the character, na-
ture, or status of the business of such
person, partnership, or corporation.

§ 147.3 Misrepresenting products as
conforming to standards.

Falsely or deceptively representing,
through advertising, stamping, branding,
or otherwise, that any product of the in-
dustry conforms to a required or recog-
nized standard of size, construction,
weight, or quality, when such is not the
fact, is an unfair trade practice.

§ 147.4 Misbranding.

The false or deceptive marking or
brandimg of products of the industry with
respect to the grade, quality, quantity,
use, size, materlal, finish, strength, thick-
ness, content, origin, preparation, manu-
facture, or distribution of such products,
or in any other material respect, is an
unfair trade practice.

§ 147.5 Use of deceptive selling meth-
The sale or offering for sale of any
product of the industry by any false or
deceptive means or device which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public as to the grade, qual-
ity, quantity, use, size, material, finish,
strength, thickness, content, origin,
preparation, manufacture, or distribu-
tion of any product of the Industry, or
in any other material respect, is an un-
fair trade practice.
§ 147.6 Substitution of products.

The practice of shipping or delivering
products 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, or with
the capacity and tendency or effect of
misleading or deceiving the purchasing
or consuming public, is an unfair trade
practice.

§ 147.7 False and misleading price quo-
tations, etc.

The publishing or circulating by any
member of the industry of false or mis-

Trade Commission § 147.12
leading price quotations, price lists,
terms or conditions of sale, with the ca-
pacity and tendency or effect of thereby
misleading or deceiving the purchasing
or consuming public, is an unfair trade
practice.

§ 147.8 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 hampering, injuring, or
prejudicing competitors in their busi-
nesses, is an unfair trade practice.

§ 147.9 Defamation of competitors or
disparagement of their products.

The defamation of competitors by
falsely imputing to them dishonorabie
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dis~
Pparagement of the grade, quality, or
manufacture of the products of com-~
petitors, or of their business methods,
selling prices, values, credit terms, poli-
cles, or services, is an unfair trade
practice.

§ 147.10 Enticing away employees of
competitors.

Willfully enticing away the employ-~
ees of competitors with the purpose
and effect of unduly hampering, in-
juring, or prejudicing competitors in
their businesses is an unfair trade prac~

ce,

§ 147.11 Unfair threats of mfringement
suits.

The circulation of threats of suit
for infringement of patents or trade-
marks among customers of prospective
customers of competitors, not made
in good faith but for the purpose
or with the effect of harrassing or intimi~
dating such customers or prospective
customers, or of unduly hampering, in-
juring, or prejudicing competitors in
their business, is an unfair trade prac-

ce,

§ 147.12 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 per~
mit or cause to be given, money or any-~
thing of value to agents, employees, or

645


§ 147.13

representatives of customers or prospec-
tive customers, or to agents, employees,
or representatives of competitors’ cus-
tomers or prospective customers, with-
out the knowledge of their employers
or principals, as an inducement to
influence their employers or principals
to purchase or contract to purchase
products manufactured or sold by
such industry member or the maker of
such gifts or offer, or to influence such
employers or principals to refrain from
dealing in the products of competitors or
from dealing or contracting to deal with
competitors.

§ 147.13. 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
misleading statements or representa-
tions, by the impersonation of one in
authority, or by any other unfair means,
and to use the information so obtained
in such a manner as to injure such com-
petitor in his business or to suppress
competition or unreasonably restrain
trade.

§ 147.14 Imitation or simulation of
trade-marks, trade names, brands, or
labels.

The imitation of simulation of the
trade-marks, trade names, brands, or
labels of competitors, with the capac-
ity and tendency or effect of misleading
or deceiving the purchasing or consum-
ing public, is an unfair trade practice.

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

It is an unfair trade practice for a
member of the industry or any person,
firm, partnership, corporation, or asso-
ciation:

(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 mem-
bers of the industry, or with one or more
persons, firms, partnerships, corpora-

Title 16—Commercial Practices

tions, or associations, to fix, maintain,.
or enhance prices, suppress competition,
or restrain trade.

§ 147.16 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 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 rebate, 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 com-
petition or trend 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 discrimina-
tion 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 froin 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 their 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 conditions affecting either (i)
the market for the goods concerned, or
(li) 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 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

646


Chapter I—Federal

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 inter-
mediary therein where such intermediary
is acting in fact for or m 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.

(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 connection with the process-
ing, handling, sale, or offering for saie
of any products or commodities manu-
factured, sold, ar 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 wlthout proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not
accorded to all purchasers on propor-
tlonally 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 was prohibited by the forego-
ing provisions of this section.

Purchases by schools, colleges, uni-
versities, public libraries, churches, hos-

Trade Commission § 147.102

pitals, and charitable institutions not
operated for profit. The foregoing pro-
visions 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 limitatlons, ex-
pressed in the amendment to such Rob-
inson-Patman Antidiscrimination Act,
which amendment was approved May 26,
1938, and reads as foliows.

Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That noth-
ing in the Act approved June 19, 1936 (Pub-
lic, Numbered 692, Seventy-Fourth Congress,

second session), known as the Robinson- .

Patman Antidiscrimination Act shall apply
to purchases of their supplies for thelr own
use by schools, colleges, universlties, public
libraries, churches, hospltals, and charitable
institutions not operated for profit.

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 8,
4, 49 Stat. 1527, 1528, ch. 233, 52 Stat. 446;
15 U.S.C. 13, 13b, 13¢, 21a)

§ 147.17 False invoicing.

Withholding from or inserting in in-
voices any statement or information by
reason of which omission or insertion a
false record is made, wholly or in part, of
the transaction represented on the face
of such invoices with the effect of there-
by misleading or deceiving the purchas-
ing or consuming public, is an unfair
trade practice.

§ 147.18 Aiding or abetting use ot 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.

Group II
§ 147.101 Repudiation or cancellation
of contracts.

Lawful contracts or business obliga-
tlons which should be performed in
letter and in spirit. The repudlation
or cancellation of contracts by sellers
on 2 rising market or by buyers on
a declining market is condemned by the
industry.

§ 147.102 Cost records.
It is the judgment of the Industry that
each meinber should independently keep

proper and accurate records for de-
termining his costs.

647