Rayon And Silk Dyeing, Printing, And Finishing Industry
16 CFR Part 155 · Trade practice rules · in the Code of Federal Regulations 1941-1976 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1941 CFR
Text (1976 edition, OCR)
§.154.94 in commerce, in the course of such com- merce, knowingly to induce or receive a discrimination in price, advertising or promotional allowances, or services or facilities, prohibited by the foregoing provisions of this section. [Rule 23] § 154.24 Discriminatory returns. It is an unfair trade practice for any member of the industry to discriminate in favor of one customer-purchaser against another customer-purchaser of industry products, bought from such member of the industry for resale, by contracting to furnish, or furnishing in connection therewith, upon terms not ac- corded to all customer-purchasers on proportionally equal terms, the service or facility whereby such favored cus- tomer is accorded the privilege of return- ing industry products so purchased and receiving therefor credit or refund of purchase price: Provided, however, That nothing in this part shall prohibit or be used to prevent the return of merchan- dise by purchaser for credit or refund of purchase price: Provided, however, That merchandise has not been properly labeled by the seller in accordance with this part or has been otherwise falsely or deceptively labeled or represented, or when and because such merchandise is defectlve in materlal, workmanship, or fn any other respect is contrary to war- ranty or purchase contract: And pro- vided, further, That nothing herein shall prohibit a purchaser from exchanging the current season’s merchandise for dif- ferent sizes of the same style number in order to balance purchaser’s_ stock. (Nothing in this section is intended to modify or affect any of the requirements of § 154.23 entitled “‘Prohlbited Discrim- ination.”) (Rule 241 § 154.25 Consignment distribution. (a) It is an unfair trade practice for any member of the industry to employ the practice of shipping industry prod- ucts on consignment without the ex- press request or prior consent of the purchasers. (b) Nothing in this section shall be construed to authorize any understand- ing or agreement, combination or con- spiracy, or planned common course of action, by and between industry mem- bers, mutually to conform or restrict their practice of shipping goods on con- signment. [Rule 25] Title 16—Commercial Practices § 154.26 Exclusive dealing. It is an unfair trade practice for any member of the industry engaged in com- merce, in the course of such commerce, to lease or make a sale or contract for sale of any industry product, for use, consumption, or resale within any place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or pur- chaser thereof shall not use or deal in the goods of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale, or such condition, agreement, or under- standing, nay be to substantially lessen competition or tend to create a monopoly in any line of commerce. [Rule 26] § 154.27 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 prohibited by this part. [Rule 27] PART 155—RAYON AND SILK DYE- ING, PRINTING, AND FINISHING INDUSTRY Group I Sec. 165.1 Misbranding and misrepresentation. 155.2 Deceptive concealment. 155.3 Substitution of products, 155.4 Imitation or simulation of trade- marks, trade names, etc. 155.5 Defamation of competitors. 165.6 Disparagement of products of com- petitors. 155.7 Commercial bribery. 155.8 Procurement of competitors’ con- fidential information by unfair means and wrongful use thereof. 155.9 Inducing breach of contract. 155.10 Unlawful interference, 155.11 Unfair threats of infringement suits. 155.12 Coercing purchase of one product as a@ prerequisite to the purchase of other products. 155.18 Bogus independents. 155.14 Selling below cost. 155.15 Discrimination; prohibited discrimt- natory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. 155.16 “End piece pilfering,” false invoicing, etc. Chapter |—Federal Group II Sec. 155.101 Repudiation of contracts. 165.102 Cost records, 155.103 Arbitration. AUTHORITY: The provisions of this Part 155 issued under secs. 6(g), 5, 38 Stat. 722.719; 16 U.S.C. 46(g), 45 unless otherwise noted. Source: The provisions of this Part 155 appear at 6 F.R. 6369, Dec. 12, 1941, unless otherwise noted. Group I § 155.1 Misbranding and misrepresenta- tion. The false or deceptive marking or branding of products of the industry, or the making or publishing of any false or deceptive advertisements, statements, or representations, concerning the dye- ing, printing, bleaching, finishing, or processing of any products of the indus- try, or concerning their quality, quantity, weighting, fiber content, or preparation, or in any other material respect, is an unfair trade practice. § 155.2 Deceptive concealment. It is an unfair trade practice for any member of the industry to use, or directly or indirectly to assist others in the use of, any deceptive selling method or other deceptive act or practice by concealing or failing to disclose textile content, weighting, and other information re-~ quired to be disclosed by Parts 123 and 135 of this subchapter, or other appli-~ cable rules; or by any other means to engage in deceptive selling methods. § 155.3 Substitution of products. The practice of shipping or delivering preducts which do not conform to sam- ples submitted, or to representations made prior to securing the order, without the consent of the customers to such substitutions, cr with the capacity and tendency or effect of misleading or de- ceiving the purchasing or consuming public, is an unfair trade practice. § 155.4 Imitation or simulation of trade- marks, trade names, ete. The imitation or simulation of the trade-marks, trade names, brands, or labels of competitors, with the tendency and capacity or effect of thereby mis- leading or deceiving the purchasing or consuming public, is an unfair trade practice. Trade Commission § 155.9 § 155.5 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable business conduct, inability to perform contracts, questionable credit standing, or by other false representations, is an unfair trade practice. § 155.6 Disparagement of products of competitors, The false disparagement of the grade, quality, quantity, weighting, fiber con- tent, character, or processing of competi- tors’ products or service is an unfair trade practice. § 155.7 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 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 prin- cipals, as an inducement to influence their employers or principals to contract for the processing of goods or products by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing with competitors. § 155.8 Procurement of competitors’ confidential information by unfair means and wrongful use thereof. Obtaining information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements, by the impersonation of one in authority, or by any other unfair means, and using the information so obtained in such a man- ner as to injure said competitor in his business or to suppress competition or unreasonably restrain trade, is an unfair trade practice. § 155.9 Inducing breach of contract. Inducing or attempting to induce the breach of existing lawful contracts be- tween competitors and their customers cr 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, injur-~ § 155.10 ing, or prejudicing competitors in their businesses, is an unfair trade practice. § 155.10 Unlawful interference. It is an unfair trade practice for any member of the industry, by means of any monopolistic practices, or through com- bination, conspiracy, coercion, boycott, threats, or any other unlawful means, directly or indirectly, to interfere with a competitor’s right to purchase his ma- terials and supplies from whomsoever he chooses, or to seli to whomsoever he chooses. 8155.11 Unfair threats of infringement suits. The circulation of threats of sult for infringement of patents or trade-marks among customers or prospective custom~ ers of competitors, not made in good faith but with the effect of intimidating such customers or prospective customers, or of hampering or injuring competitors in their businesses, is an unfair trade practice. § 155.12 Coercing purchase of one prod- uct as a prerequisite to the purchase of other products. The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be to sub- stantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade prac- tice. § 155.13 Bogus independents. It is an unfair trade practice to sell or offer to sell industry products through a pretended independent concern in such manner as to mislead or deceive custom- ers or prospective customers into the er- roneous belief that such concern is in- dependent and in competition with that member of the industry owning or con- trolling such concern. § 155.14 Selling below cost. ’ The practice of selling industry prod- ucts below the seller’s cost, when pursued with wrongful intent of thereby injuring a@ competitor and where the effect of such practice is to unreasonably restrain trade. tend to create a monopoly, or substan. tially lessen competition, is an unfair trade practice. 28 Title 16—Commercial Practices This section is not to be construed as prohibiting all sales below cost, but only such selling below the seller’s cost as is resorted to and pursued as a monopolistic practice with the wrongful intent re- ferred to and coupled with the effect of unreasonably restraining trade, tending to create a monopoly, or substantially lessening competition. The costs referred to in this section are actual costs of the respective seller and not some other figure or average costs in the Industry determined by an indus- try cost survey or otherwise. § 155.15 Discrimination; prohibited dis- criminatory prices, or rebates, re funds, discounts, credits, etc., which effect unlawful price discrimination. (a) General. It is an unfalr trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any re- bate, refund, discount, credit, allowance for alleged imperfect workmanship after material has been cut, or other form of price differential, where such rebate, refund, discount, credit, allowance for alleged imperfect workmanship, or other form of price differential, effects a dis-~ crimination in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved therein are in com- merce, 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- 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 de- livery 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 Chapter |-——Federal Trade Commission 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 (ii) the marketability of the goods, such as, but not Hmited 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 commis- stons. 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 inter- mediary therein where such intermediary is acting in fact for or in behalf, or is sub- ject to the direct or indirect control, 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 in- dustry 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 facili- ties furnished by or through such cus- tomer in connection with the processing, handling, 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. (ad) 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 29 § 155.16 purchaser or purchasers of a commodity bought for resale, with or without proce . 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 ac- corded to all purchasers on proportion- ally 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 is prohibited by the pro- visions of this section. (f) Purchases by schools, colleges, unt~ versities, public libraries, churches, hose pitals and charitable institutions not operated for profit. The foregoing provisions of this section relate to prac- tices within the purview of the Robinson- Patman Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations expressed in the amendment to such Robinson - 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 America in Congress assembled, That nothing in the Act approved June 18, 1836 (Public, Numbered 692, Seventy-fourth Congress, second session), known as the Roblnson- Patman Antldiscrlmination 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. 780, as amended, secs. 2, 8, 4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15 U. S. C. 18, 19a, 13b, 13c, 212) § 155.16 “End piece pilfering,’’ false invoicing, etc. (a) In the course of or in cone nection with conduct of business by any member of the industry involv- ing the sale of, or contract to furnish, products of the industry to his customers, it is an unfair trade practice for any such member to use the device or scheme of faise invoicing or of so-called end Piece pilfering or of any other device or scheme characterized by deception or fraud. | § 155.101 (b) For purposes of this section, end piece pilfering shal] mean the pilfering, purloining, or unauthorized conversion to his own use, by any member of the industry, of fabrics or yarn, or pieces thereof, belonging to his customers and bailed to such member for dyeing, print- ing, finishing, bleaching, or other processing. Group II § 155.101 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in let- ter and in spirit. The repudiation of contracts by sellers on a rising market or by buyers on a declining market ls con- demned by the industry. § 155.102 Cost records. It is the judgment of the industry that each member should independently keep proper and accurate records for deter- mining his costs. § 155.103 Arbitration. The industry approves the practice of handling business disputes between members of the industry and their cus- tomers in a fair and reasonable manner, coupled with a spirit of moderation and good will, and every effort should be made by the disputants themselves to compose their differences. If unable to do s0, they should, if possible, submit these disputes to arbitration. PART 157—-CATALOG JEWELRY AND GIFTWARE INDUSTRY Norte: FTC Order File No. 21-515, 22 FR. 4567, June 28, 1957, provides in part that Part 23 of this chapter supersedes Part 157 with respect only to jewelry items covered in Part 157. Group I Bec. 157.1 Misbranding and misrepresentation. 1572 Passing off inferior sterling silver- ware as that of superior grade, etc. 157.3 Deceptive pricing. 157.4 Misrepresentation of character of business, 157.5 Deceptive set-up of disclosed infor- mation, 157.6 Commercial bribery. 157.7 Imitation of trade-marks, trade names, etc. 157.88 Combination or coercion to fix prices, suppress competition, or re- strain trade. 1579 Discrimination. 30 Title 146—Commercial Practices Sec, 167.10 Atding or abetting use of unfair trade practices. AvTHorITY: The provisions of this Part 157 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Source: The provisions of this Part 157 appear at 8 F.R. 17256, Dec. 28, 1943, unlesa otherwise noted. Group I § 157.1 Misbranding and misrepresenta- tion. . (a) The use on any product or article offered for sale, sold, or distributed of any marks, brands, or labels which are false, misleading, or deceptive in respect of such product or article, or in respect of the grade, quality, quantity, use, size, weight, material content, origin, prepa- ration, manufacturer, or distribution thereof, or which are false, misleading, or deceptive in any other respect, is an unfair trade practice. (b) It is an unfair trade practice to make or publish, or cause to be made or published, in advertisements, catalogs, bulletins, circulars, or by radio, or in any other manner, any statement or repre- senation which is false, misleading, or deceptive in respect of any product or article offered for sale, sold, or distrib- uted, or in respect of the grade, quality, quantity, use, size, weight, material con- tent, origin, preparation, manufacture, or distribution thereof, or which is false, misleading, or deceptive in any other respect. 8 157.2 Passing off inferior sterling silverware as that of superior grade, etc. It is an unfair trade practice to pass off, directly or indirectly, through any means or device, any sterling silverware of a certain grade, quality, thickness, or weight as and for sterling silverware of superior grade, quality, thickness, or weight, with the capacity and tendency or effect of misleading or deceiving pur- chasers or prospective purchasers. § 157.3 Deceptive pricing. (a) It is an unfair trade practice to use, in advertisements, catalogs, bul- letins, circulars, or other printed matter, distributed to consumers, dealers, pur- chasing agents, cooperative buying groups or others, any price marks, price designations, or so-called prices, or fig- ures, words, or marks purporting to be