Consumer Law Library

Beauty And Barber Equipment And Supplies Industry

16 CFR Part 153 · Trade practice rules · in the Code of Federal Regulations 1941-1968 (7 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1968 CFR · Earliest edition: 1941 CFR

Text (1968 edition, OCR)

Title 16—Chapter |

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 provisions
of this section.

Note: This section is based on the pro-
visions of section 2 of the Clayton Act as
amended by the Robinson-Patman Act.

[Rule 14]

§ 152.15 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. [Rule 15]

Group II

§ 152.101 Information as to treatment
and care of products.

The practice, by producers, manufac-
turers, distributors and vendors, of fur-
nishing and disseminating, through tags,
labels, advertisement, or other publicity,
accurate information as to the proper
treatment, care and washing of hosiery
products is approved and recommended
as a desirable practice to follow in the
interest of enabling consumers to obtain
and enjoy full benefit of the desirable
qualities and service of such products.

Nore: This section is not to be construed
as relieving anyone of the necessity of com-
plying with the requirements of the Wool
Products Labeling Act of 1939 or the require-
ments of the Textile Fiber Products Identifi-
cation Act or with the rules and regulations
issued under such Acts,

[Rule A]

PART 153—BEAUTY AND BARBER
EQUIPMENT AND SUPPLIES _IN-
DUSTRY

Sec.

153.1
153.2
153.3

Group I

Deception as to Industry products.

Misuse of word “free”.

Misrepresentation as to price reduc-
tions.

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

False invoicing.

“Push money”, “spiffs’’, etc.

Inducing breach of contract,

Defamation of competitors or dispar-
agement of their products.

Aiding or abetting use of unfair trade
practices.

153.4

153.5
153.6
153.7
153.8

153.9

§ 153.3

COMMITTEE ON TRADE PRACTICES

Sec.
153.201 Industry committee.

AvutTHorirr: The provisions of this Part
153 issued under secs. 6(g), 5, 38 Stat, 722,
719; 15 U.S.C. 46(g), 45.

Source: The provisions of this Part 153
appear at 6 F.R. 3980, Aug. 9, 1941, unless
otherwise noted.

Group I

§ 153.1 Deception as to industry prod-
ucts.

It is an unfair trade practice directly
or indirectly to cause or promote
the sale, distribution, or use of any prod-
uct of the industry by means of adver-
tisements, descriptions, photographs,
depictions, engravings, insignia, designs,
illustrations, brands, labels, radio broad-
casts, or other representations or selling
methods,

(a) Which have the capacity and tend-
ency or effect of misleading or deceiving
the purchasing or consuming public with
respect to the manufacture, processing,
packing, distribution, origin, grade, qual-
ity, quantity, serviceability, size, sub-
stance, content, condition, material,
character, or price, or results obtainable
from or attendant upon the use thereof;
or

(b) Which are false, misleading, or
deceptive by reason of the concealment
or nondisclosure of material fact; or

(¢) Which are false, misleading, or de-
ceptive in any other respect.

Nore: Among the inhibitions of this rule,
but not in Hmitation thereof, is the “false
advertisement” of any “cosmetic”, “device”,
or “drugs’, as such terms are defined in

section 15 of the Federai Trade Commission
Act.

§ 153.2 Misuse of word “free’’.

The use of the word “free”, or the
equivalent thereof, where not properly or
fairly qualified when the article is in fact
not free, with the capacity and tendency
or effect of misleading or deceiving the
purchasing or consuming public, is an
unfair trade practice.

§ 153.3 Misrepresentation as to price re-
ductions.

It is an unfair trade practice for
any member of the industry to repre-
sent, in advertising or otherwise, that
the price of any article, commodity,
or other product, has been reduced from
what is in fact a fictitious price, or that


§ 153.4

such price is a reduced or a special price
when such price is in fact the regular
selling price of such article, commodity,
or other product, or that the regular
price thereof is higher when such is not
the fact, or to otherwise falsely or de-
ceptively represent the past or current
price of any article, commodity, or other
product.

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

The imitation of trademarks, trade
names, labels, brands, or containers,
or any other distinctive and exclu-
sively owned words, phrases, sub-
tities, or marks of competitors, with the
capacity and tendency or effect of there-
by misieading or deceiving the purchas-
ing or consuming public, is an unfair
trade practice.

§ 153.5 False invoicing.

Withholding from or inserting in an
invoice, billing, or statement any mate-
rial information by reason of which
omission or insertion a false record is
made, wholly or in part, of the trans-
action 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.

97 66,

§ 153.6 .

It is an unfair trade practice for any
member of the industry, directly or indi-
rectly, to give, pay, or contract to pay,
to any clerk or salesperson of any cus-
tomer-dealer handling two or more com-
petitive brands of merchandise, ‘push
money”, “spiffs”, or any other bonus,
gratuity, or payment, as an inducement
or encouragement to push or promote the
sale of such member’s product or products
over competing products of other mem-
bers in the industry,

(a) With the capacity and tendency
or effect of thereby causing the purchas-
ing or consuming public, when making
purchases of such products, to be misled
or deceived into the erroneous belief that
such clerk or salesperson is free from any
such special interest or influence, or is
not so subsidized or paid by such mem-
ber; or

(b) With the capacity and tendency
or effect of thereby hampering and un-
duly restricting the legitimate, free, and
full use and enjoyment of such retail

“Push money spiffs’’, etc.

18

Title 16—Chapter |

trade outlets for the distribution to the
public of competing products; or

(c) With the purpose or effect, directly
or indirectly, of otherwise substantially
lessening competition or unreasonably
restraining trade in the marketing of
the products of the industry; or

(d) With the effect of thereby bring-
ing about the granting of an illegally dis-
criminatory service, payment, or price
contrary to section 2 of the Clayton Act
as amended by the act of Congress ap-
proved June 19, 1936, known as the Rob-
inson-Patman Act.

(e) Nothing in this section shall be
construed to prohibit any sales plan
which involves no deception, illegal dis-
crimination, monopolistic practices, or
other illegal effects or practices.

§ 153.7 Inducing breach of eontract.

Inducing or attempting to induce the
breach of existing iawful 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.

§ 153.8 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 dispar-
agement of the grade, quality, or manu-
facture of the products of competitors, or
of their business methods, seliing prices,
values, credit terms, policies, or services,
is an unfair trade practice.

§ 153.9 Aiding or abetting use of unfair
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 the
sections of this part.

COMMITTEE ON TRADE PRACTICES

§ 153.201

The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-

Industry committee.


Title 16—Chapter |

try commitee established under this
part.
[21 F.R. 1174, Feb. 21, 1956]

PART 154—-LUGGAGE AND RELATED
PRODUCTS INDUSTRY

Sec.

154.0 Definitions.

154.1 Deception (general).

154.2 Deception as to composition.

154.3 Deceptive practices as to aniline
finish, graining, embossing and
processing.

154.4 Deception as to hardware, frame or
box.

154.5 Misuse of the terms “waterproof,”
“dustproof,” ‘“warpproof,” “scuff-
proof” and “‘scratchproof.”

154.6 False invoicing.

154.7 Substitution of products.

154.8 Commercial bribery.

154.9 Defamation of competitors or false
disparagement of their products.

154.10 Procurement of competitors’ confi-
dentlal information.

154.11 Unfair threats of infringement suits.

154.12 Deceptive use and imitation of trade
or corporate names, trade-marks,
etc,

154.18 Guarantees, warranties, etc.

154.14 Coercing purchase of one product as
a prerequisite to the purchase of
other products.

154.15 Inducing breach of contract.

154.16 Misrepresentation as to character of
business.

154.17 Deception in distribution of special
lots.

154.18 Use of the word “free.”

154.19 Deceptive pricing.

154.20 Use of gift enterprise or lottery

: schemes.

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

154.22 Unfair interference.

154.23 Prohibited discrimination.

154.24 Discriminatory returns.

154.25 Consignment distribution.

154.26 Exclusive dealing.

154.27 Aiding or abetting use of unfair

trade practices.

AvuTHORITY: The provisions of this Part
154 issued under secs. 6, 5, 38 Stat. 721, 719;
15 U.S.C. 46, 45.

Source: The provisions of this Part 154
appear at 27 F.R. 6217, June 30, 1962, unless
otherwise noted.

§ 154.0 Definitions.

Industry member. Any person, firm,
corporation or organization engaged in
the manufacture, sale or distribution of
any industry products as defined below.

Industry products. Industry products

19

§ 154.2

consist of all kinds and type of trunks,
suitcases, traveling bags, sample cases,
instrument cases, brief cases, ring bind-~
ers, billfolds, wallets, key cases, coin
purses, card cases, french purses, dress~
ing cases, stud boxes, tie cases, jewel
boxes, travel kits, gadget bags, camera
bags, and similar articles, of any com-
position. Ladies’ handbags are not
included.

§ 154.1 Deception (general).

It is an unfair trade practice to sell,
offer for sale, or distribute industry
products by any method, or under any
circumstance or condition which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public with respect to the
kind, grade, quality, quantity, material
content, thickness, finish, serviceability,
durability, price, origin, size, weight, ease
of cleaning, construction, manufacture,
processing, or distribution of any prod-
uct of the industry or part thereof, or
in any other material respect. [Rule 1]

§ 154.2 Deception as to composition.

(a) In the sale, offering for sale, or
distribution of industry products, it is
an unfair trade practice to misrepresent
the composition of any industry product
or part thereof, or to fail to disclose, in
the manner hereinafter set forth (see
paragraph (b) (9) of this section), ma-
terial facts concerning the composition
of an industry product when the failure
to do so has the capacity and tendency
or effect of deceiving purchasers or pro-
spective purchasers.

(b) The foregoing provisions of this
section are to be construed as, but not
limited to:

(1) Split leather. Requiring disclo-
sure’ of the fact that an industry prod-
uct, or part thereof, is made of split
leather if the split leather is visible or if
any representation is made as to the
composition thereof. For example, a
disclosure such as,

Split Cowhide

Note: For purposes of this part leather
from portions of hides or skins which have
been split into two or more thicknesses, other

than the grain or hair side, shall be con-
sidered split leather.

(2) Imitation or simulated leather.
Requiring that when an industry prod-
uct or part thereof is made of non-

1See subparagraph 9 of this paragraph.