Musical Instrument And Accessories Industry
16 CFR Part 158 · Trade practice rules · in the Code of Federal Regulations 1944-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1944 CFR
Text (1977 edition, OCR)
§ 157.10
competing in the distribution of such
products or commodities.
(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
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing of, any services or facilities con-
nected 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 force-
going provisions of this section.
(f) Purchases by schools, colleges, uni-
versities, public libraries, churches, hos-
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 limitations ex-
pressed in the amendment to such Rob-
inson-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 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
Ubraries, 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, 62 Stat. 446; 15
U.S.C. 18, 18a, 18b, 13c, 21a)
§ 157.10 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 the
sections in this part.
30
Title 16—Commercial Practices
PART 158—MUSICAL INSTRUMENT
AND ACCESSORIES INDUSTRY
Group I
Sec.
168.1 Misrepresentation and misbranding.
1682 Deceptive testimonials.
1583 Misrepresentation as to the design-
ing, use, or endorsement of musical
instruments.
158.4 Misrepresentation as to price reduc-
ductions.
158.6 Use of “bait” advertising.
158.6 Deception es to rebuilt, used, con-
verted, reconstructed, restyled,
repossessed, or second-hand
products.
1658.7 Misrepresentation as to being manu-
facturer, importer, wholesaler, job-
ber, distributor, or retailer, and
; prices in relation thereto.
158.8 Deception as to origin.
158.9 Misrepresentation as to installment
sales contracts, their terms or con-
ditions, etc.
158.10 Deception in respect of Keyboard or
number of keys.
168.11 Defamation of competitors or dis-
paragement of their products.
158.12 Inducing breach of contract.
158.18 “Push money,” “gratuities,” etc.
188.14 Misuse of word “free,” ete.
168.16 Selling below cost.
168.16 Discriminstion.
158.17 Aiding or abetting use of unfair
trade practices.
Group It
158.101 Publication of price lists and terme
of sale.
CoMMITTEE of TRADE PRACTICES
168.201 Industry committee.
AvTHorIrr: The provisions of this Part 158
issued under secs. 6(g), 5, 838 Stat. 722, 710;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: The provisions of this Part 158
appear at 9 FR. 1362, Feb. 3, 1944, unlesa
otherwise noted.
Group I
§ 158.1 Misrepresenting and
branding.
In the course of or in connection -
with selling, distribution, or promot-
ing the sale or distribution of any
industry products, it is an unfair trade
practice to use or cause to be used any
trade promotional literature, advertising
matter, guarantee, warranty, mark,
brand, label, designation or representa-
tion, however disseminated or published,
which directly, or by implication or
mis-
Chapter I—Federal
otherwise, has the capacity and tendency
or effect of misleading or deceiving pur-
chasers or prospective purchasers in re-
spect to the grade, quality, quantity,
substance, character, make, type, price,
nature, size, tone, orlgin, use, endorse-
ment, appearance, performance, con-
struction, specifications, finish, material
content, or preparation of such product,
or in any other material respect.
§ 158.2 Deceptive testimonials.
In the course of or in connection with
selling distributing, or promoting the sale
or distribution of any industry product,
it Is an unfair trade practice to use or
‘cause to be used any testimoniais, written
or oral, which are false, misleading, or
‘deceptive as to the merits or qualities of
such industry product, or which are false,
misleading, or deceptive in any other
material respect.
Note: Under this section, the following
types of testimonials are among those which
should not be used, namely:
(a) Testimonials previously given in re-
spect of a product of a manufacturer or dis-
tributor but which are deceptive by reason of
‘being so old as no longer to be applicable to
the products or instruments currently pro-
‘duced by such manufacturer or sold by such
distributor.
(b) Testimonials which deceptively pur-
Port to be in support of the merits of the
‘instruments or products endorsed but which
-were in fact given because of advertising
‘benefits and other considerations and not
‘because of the merits of such instruments or
‘products or the testifier’a good-faith belief in
‘the merits thereof.
(c) Testimonials which deceptively pur-
port or imply that the testifier regularly or
Principally usee the instrument or make of
instrument endorsed, when in fact the testi-
fier does not use the instrument, cr uses it
only to a minor or insubstantial extent and
not regularly or principally.
(d) Testimonials which deceptively rep-
tesent, purport, or imply, directly or indi-
rectly, that the endorsement therein ts or
has been given by the testifier as his un-
biased, unsubeidized, or bona fide endorse-
ment of the instrument, when in fact such
testimonial was procured by or given solely
because of a financial or other consideration
or subsidy received by or for the benefit of
such testifler.
(e) Testimonials which in any respect are
untrue, or which contain inferences or im-
plications not fully justified by the facts, or
which are in any other way deceptive or
misleading by reason of undisclosed facts or
circumstances or for any other reason.
31
Trade Commission § 158.5
$158.3 Misrepresentation as to the de-
signing, use, or endorsement of mv-
sical instruments.
In the course of or in connection with
selling, distributing or promoting the
sale or distribution of any industry prod-
uct, it Is an unfair trade practice to
represent, directly or indirectly, through
advertising or otherwise, that a musi-
cian, composer, orchestra leader, or other
person or organization, designed, uses or
endorses a particular musical instru-
ment or instruments or other products of
the industry, when such is not the fact.
§ 158.4 Misrepresentation as to price re-
ductions.
It is an unfair trade practice for any
member of the industry to represent, in
advertising or otherwise, that the price
of any industry product 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 product, or that the reg-
ular price thereof is higher when such
is not the fact, or otherwise to falsely or
deceptively represent the past or current
price of any industry product.
§ 158.5 Use of “bait” advertising.
(a) In the course of or in connection
with selling, distributing, or promoting
the sale or distribution of any industry
product, it is an unfair trade practice to
publish or use advertising, or other repre-
sentations written or oral, which have
the capacity and tendency or effect of
misleading or deceiving purchasers or
prospective purchasers into the belief
that a larger supply of such products is
available to purchasers at the advertised
or stated price or prices than is in fact
So available, or that industry products so
offered for sale or sold under such repre-
sentations or conditions are of high grade
or quality when such is not true in fact.
(b) It is also an unfair trade practice
to advertise, represent or describe the
prices at which any musical instruments
or accessories are offered for sale as being
the “balance due” or unpaid portion on
&@ previous sale under a conditional or
time-payment contract, when such is not
true in fact, or when such advertisement,
representation or offer is otherwise false,
misleading or deceptive.
§ 158.6
§ 158.6 Deception as to rebuilt, used,
converted, reconstructed, restyled,
repossessed, or second-hand prod-
nets.
(a) It is an unfair trade practice for
any member of the industry to sell, offer
for sale, advertise or otherwise represent
any musical instrument or accessory (1)
as being new when it ts in fact rebuilt,
used, repossessed, or second-hand; or (2)
as being of new design or new style when
it has been converted, reconstructed, or
restyled from a used instrument or ac-
cessory and such fact is deceptively con-
cealed.
(b) It is an unfair trade practice for
any member of the industry to advertise
or otherwise represent, directly or indi-
rectly, that he owns or has in his posses-
sion for sale new, rebuilt, used, repos-
sessed, or second-hand musical instru-
ments or accessories of a particular type,
make, or description, when such is not
true in fact.
(c) In the sale or distribution of musi-
cal instruments or accessories which are
rebuilt, used, repossessed, or second-
hand, it is an unfair trade practice to fail
or refuse to make full and nondeceptive
disclosure of the fact that such instru-
ments or accessories are not new, but are
rebuilt, used, repossessed, or second-
hand, as the case may be, such failure or
refusal to disclose having the capacity
and tendency or effect of misleading or
deceiving purchasers or prospective pur-
chasers.
8158.7 Misrepresentation as to being
mannfacturer, importer, wholesaler,
jobber, distributor, or retailer, and
prices in relation thereto.
(a) It is an unfair trade practice for
any person, partnership, corporation or
organization, by trade or corporato name
or otherwise, to represent or to hold him-
self or itself out as being the manufac-
turer, importer, wholesaler, jobber,
distributor, or retailer of any industry
product advertised, offered for sale, sold
or distributed, when such is not the
fact.
(b) It isan unfair trade practice to use
any other deceptive or misleading device,
method or representation respecting the
character, nature or status of the busi-
ness of any person, concern or organi-
zation engaged in selling or promoting
the sale of any industry product.
(c) It is an unfair trade practice for
any member of the industry, whether
32
Title 16—Commercial Practices
selling as manufacturer, importer, whole-
saler, Jobber, distributor, or retailer, to
misrepresent his prices as being either
wholesale or retail prices when such is
not true in fact, or to otherwise misrep-
resent his prices.
8158.8 Deception as to origin.
In respect to musical instruments or
accessories made wholly or partially ina
foreign country, or from parts manufac-
tured in a foreign country and assembled
into the finished product in the United
States, it is an unfair trade practice:
(a) To offer for sale, sell, or distribute
any such musical instruments or acces-
sories under marks, stamps, brands,
labels, or representations which have the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers into the erroneous
belief that such products were produced
wholly within the United States; or
(b) To offer for sale, sell, or distribute
any such musical instruments or acces-
sories without the same being conspicu-
ously marked, stamped, branded, or
labeled so as to indicate clearly and non-
deceptiveiy the country of origin of such
products, the failure, refusal, or omission
to so mark, stamp, brand, or label such
products having the capacity and tend-
ency or effect of thereby promoting,
abetting, or effectuating the marketing
of such products under conditions which
are Inisleading or deceptive to purchasers
or prospective purchasers.
(c) Nothing in this section shall be
construed as relieving any member of the
industry or other party of the necessity
of complying with the requirements of
the customs laws or regulations, or other
applicable provisions of law or regula-
tions, relating to the marking of im-
ported articles.
8158.9 Misrepresentation as to install.
ment sales contracts, their terms or
conditions, etc.
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 statements or
representations, through advertising or
otherwise, concerning installment sales
contracts used or their terms or condi-
tions, including down payments, interest,
carrying charges, etc., or respecting any
other matter relative to such contracts
or their terms or conditions.
Chapter |—Federal
§ 158.10 Deception in respect of key-
board or number of k.
cys.
(a) It is an unfair trade practice to
cause any piano having less than the
standard or 88-note keyboard to be rep-
resented or passed off, directly or indi-
rectly, as and for a piano having such
standard or 88-note keyboard.
(b) Tt is an unfair trade practice to
cause any other musical instrument hav-
ing less than the full or standard key-
board or number of keys to be repre-
sented or passed off, directly or indi-
rectly, as and for a musical instrument
having such full or standard keyboard
or number of keys.
$158.11 Defamation of competitors or
disparagement of their prodncts.
The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representatlons, or the false dis-
paragement of the grade, quality, quan-
tity, substance, character, make, type,
price, nature, size, tone, origin, appear-
ance, performance, construction, specifi-
cations, finish, material content, or
preparation of the products of competi-
tors, or of their business methods, selling
prices, values, credit terms, policies or
services, is an unfair trade practice.
8158.12 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-
ness, is an unfair trade practice.
§ 158.13 “Pash money,” “gratuities,”
etc.
It is an unfair trade practice for any
member of the industry to bribe by
giving or contracting to give or causing
to be given, or by loaning or causing to
be loaned, directly or indirectly, to any
orchestra leader, band leader, offictal,
singer, musician, music teacher, or any
other person, employed by another, or
to the agent or representative of, or to
any one else on behalf of, such orchestra
leader, band leader, official, singer, mu-
Trade Commission § 158.16
sician, music teacher, or other person,
any “push money,” gift, bonus, fee, gra-
tuity, payment, discount, refund, rebate,
royalty, service, musical instrument, fa-
vor or other thing or act of value, as an
inducement to such individual to play
or use or cause to be played or used,
in a public performance, any musical in-
strument or accessory of such industry
member in either of the following cases:
(a) Without the knowledge and con-
sent of said employer; or
(b) With or without the knowledge
and consent of sald employer, where the
effect may be substantially to lessen com-
petition or tend to create a monopoly or
unreasonably restrain trade in the mar-
keting of such musical instruments or
accessories, or where the effect is to be
mislead or deceive purchasers or pros-
pective purchasers.
§ 158.14 Misuse of word “free,” ete.
The use of the word “free,” or the
equivalent thereof, when the article is in
fact not free with the capacity and tend-
ency or effect of misleading or deceiving
purchasers or prospective purchasers, is
an unfair trade practice.
§ 158.15 Selling below cost.
The practice of selling industry prod-
ucts below the seller’s cost with the in-
tent and with the effect of injuring a
competitor and where the effect may be
substantially to lessen competition or
tend to create a monopoly or unreason-
ably restrain trade is an unfair trade
practice; all elements recognized by good
accounting practice as proper elements
of such cost shall be included in deter-
mining cost under this section. The
costs, however, which are referred to in
the rule are actual costs of the respective
seller and not some other figure or av-
erage costs in the industry determined
by an industry cost survey or otherwise.
$158.16 Discrimination.
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price dis-
crimination. It is an unfair trade prac-
tice 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 rebate, refund, discount, credit,
or other form of price differential,
where such rebate, refund, discount,
credit, or other form of price differential
§ 158.16
effects a discrimination in price between
different 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 competi-
tion 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,
consumption, or resale within any place
under the jurisdiction of the United
States;
(2) That nothing contained in this
section shali 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
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 ()
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, ob-
solescence 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 com-
missions. 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 Heu
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 intermedi-
ary 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 pald.
Title 16—Commercial Practices
(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 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
availabie on proportionaliy equal terms
to all other customers competing in the
distribution of such products or com-
modities.
(d) Prohibited discriminatory serv-
ices 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 proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the fur-
nishing 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 tlegal
discrimination in price. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which is prohibited by the provi-
sions of this section.
(f) Purchases by schools, colleges, un-
versities, public libraries, churches, hos-
pitals, and charitable institutions not
operated for profit. The foregoing pro-
visions of this section relate to practices
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 noth-
ing in the Act approved June 19, 1986 (Pub-
lic, Numbered 692, Seventy-fourth Congress,
second session), known as the Robinson-
Chapter [—Federal
Patman Antidiscrimination Act, shall apply
to purchases of thelr supplies for their own
use by schools, colleges, universities, public
libraries, churches, hospitals, and charitable
institutions not operated for profit.
(Sec. 2, 83 Stat. 730, as amended, seca. 2, 3, 4,
49 Stat. 1627, 1628, ch. 283, 62 Stat. 446; 16
U.S.C. 13, 18a, 18b, 18¢, 21a)
$8158.17 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.
Grovr
§ 158.101 Publication of price lists and
terms of sale.
The industry approves the practice of
each individual member of the industry
independently publishing and circulat~
ing to the purchasing trade his own price
lists fully setting forth his terms of sale.
COMMITTEE ON TRADE PRACTICES
§ 158.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
try committee established under this
part.
{21 FR. 1174, Feb. 21, 1966)
PART 160—WATER HEATER
INDUSTRY
Group I
Bec.
160.1 Misrepresentation in general.
160.2 Misrepresentation as to character of
business.
1603 Deceptive use of trade or corporate
names, or trade-marks, etc.
160.4 Other false or deceptive selling
methods.
160.5 Guarantees, warranties, etc.
160.6 Misuse of terms “close-outa,” “dis-
continued lines,” “special bar-
gains,” etc.
160.7 Misrepresentation as to installment
sales contracts, thelr terms, con-
ditions, etc.
160.8 Misrepresenting products as con-
forming to standard.
100.9 Deception as to rebuilt or second-
hand products.
160.10 Imitation of trade-marks, trade
names, etc.
160.11 Fictitious prices.
160.12 Combination or coercion to fix
prices, suppress competition or
restrain trade.
35
Trade Commission § 160.1
Sec.
160.18 Defamation of competitors or dis-
paragement of their products.
160.14 Substitution of products.
160.15 False invoicing.
160.16 Inducing breach of contract.
160.17 Use of lottery schemes.
160.18 Commercial bribery.
160.19 Enticing away employees of com-
petitors.
160.20 Procurement of competitors’ confi-
dential information by unfair
means and wrongful use thereof.
160.21 Unfair threats of infringement
suite.
160.22 Coercing purchase of one product
as a@ prerequisite to the purchase
of other products.
160.28 Unlawful interference.
160.24 Selling below cost.
160.25 Discrimination.
160.26 Price discrimination making
small deliveries at price appli-
cabie only to larger quantities.
160.27 Discriminatory returns.
160.28 Deception through failure to dif-
erentiate between wholesale and
retail transactions.
160.29 Aiding or abetting use of unfalr
trade practices.
Grove II
160.101 Publication of price lists and tsrms
of sale.
160.102 Repudiation of contracts.
160.1038 Maintenance of accurate records.
160.104 Arbitration.
160.105 Fictitious bids.
100.106 Coercion in sales.
AUTHORITY: The provisions of this Part 160
issued under secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 46, unless otherwise noted.
Source: The provisions of this Part 160
appear at 10 F.R. 447, Jan. 11, 1946, unless
otherwise noted.
Grovp I
§ 160.1 Misrepresentation in general.
It is an unfair trade practice to use, or
cause or promote the use of, any adver-
sing by radio, newspapers, magazines
or other media, or any trade promotional
literature, label, brand, mark, designa-
tion or representation (whether in the
form of a guarantee, warranty, or other-
wise), however disseminated or pub-
lished:
(a) Which has the capacity and tend-
ency or effect of misleading or deceiving
the purchasing or consuming public with
respect to the quality, grade, size, ca-
pacity, properties, durability, service-
ability, life, or performance of any
product of the industry, or with respect