Razor And Razor Blade Industry
16 CFR Part 161 · Trade practice rules · in the Code of Federal Regulations 1945-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1945 CFR
Text (1977 edition, OCR)
Chapter I—Federal Trade Commission dustry, the commingling of the two types of business in such manner as to have the caapcity and tendency or effect to mis- leading or deceiving purchasers or prospective purchasers is an unfair trade practice. § 160.29 Aiding or abetting use of un- fair trade practices. It is an unfair trade practice for any person to ald, abet, coerce, or induce an- other, directly or indirectly, to use or premote the use of any unfair trade practice specified in §§ 160.1 to 160.29. Grour IL § 160.101 Publication of price lists and terms of sale. (a) The industry approves the practice of each individual member of the in- dustry independently publishing and circulating to the purchasing trade his own price lists. (b) The industry apprcves the prac- tice cf making the terms of sale a part of all published price schedules. § 160.102 Repndiation 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. § 160.103 Maintenance of accurate rec- ords. It is the judgment of the industry _that each member should independently keep proper and accurate records for determining his costs. § 160.104 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 so they should, if possible, submit these disputes to arbitration. § 160.105 Fictitious bids. When submitting bids, all bidders should make their bids in good faith and on a fully competitive basis. The use by any member of the industry of fake or fictitious bids, having the tendency or ‘41 § 160.106 effect of destroying competition and securing unfair advantage, is condemned by the industry. § 160.106 Coercion in sales. The use of buying power to force un- economic or unjust terms of sale upon sellers, and the use of selling power to force uneconomic or unjust terms of sale upon sellers, and the use of selling power to force uneconomic or unjust terms of sale upon buyers are condemned by the industry. PART 161—-RAZOR AND RAZOR BLADE INDUSTRY * Group I Sec. 161.1 Misrepresentation as to character of business. . 161.2 Defamation of competitors or dis- paragement of their products. 161.3 Commercial bribery. 161.4 Misrepresentation in general. 1615 Substitution of products. 161.6 Misuse of the word “free,” etc. 161.7. Use of lottery schemes, etc. 1618 Deceptive pricing. 161.9 Selling below cost. 161.10 Discrimination. 161.11 Imitation or simulation of trade- marks, trade names, etc. 161.12 Misrepresentation as to earnings of sales representatives. 161.18 Enticing away empioyees of competi- tors. 161.14 Passing off substandard or defective products as and for regular or first quality merchandise. 161.15 Razor blades for industrial use or for purposes other than human shav- ing. Grovr I 161.101 Repudiation of contracts. 161.102 Arbitration. 161.103 Cost records. 161.104 Proper identification of origin of blades and suitable packaging. AvutTHorITY: The provisions of this Part 161 issued under secs. 6(g), 5, $8 Stat. 722, 719; 15 US.O. 46(g), 45, unless otherwise noted. Source: The provisions of this Part 161 appear at 10 FR 7390, June 20, 1945, unless otherwise noted. 1Such adjustment as may be necessary on the part of members of the industry to bring their practices into full harmony with this part shall be made as promptly as possible and within 60 days hereof. This shall not, however, be construed as meanwhile permit- ting use of practices which are false, mis- leading, or deceptive, or which are otherwise contrary to law. § 161.1 Group I § 161.1 Misrepresentation sas to char acter of business. (a) It is an unfair trade practice for any person, partnership, corporation, or other concern, by trade or corporate name or otherwise, to hold himself or it- self out as being a manufacturer or pro- ducer of razors, razor blades, or allied products when such is not true in fact. (b) It is an unfair trade practice for any person, partnership, corporation, or other concern, in the conduct of busi- ness, to misrepresent, directly or indi- rectly, in advertising, directory listings, labeling, or otherwise, the character, na- ture, or status of the business of such person, partnership, corporation, or other concern. § 161.2 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 competitors’ products in any respect, or of their business methods, selling prices, values, credit terms, pol- icles, or services, is an unfair trade practice. § 161.3. 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 purchase or contract to purchase products manu- factured or sold by such industry mem- ber or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or con- tracting to deal with competitors. § 161.4 Misrepresentation in general. It is an unfair trade practice for any member of the industry to use, or cause or promote the use of, any trade promo- tional literature, advertising matter, tes- Title 16—Commercial Practices timonial, guarantee, warranty, mark, brand, label, designation, or representa- tion, however disseminated or published, which has the capacity and tendency or effect of misleading or deceiving the pur- chasing or consuming public: (a) With respect to the type, kind, grade, quality, composition, weight, thickness,’ rust-resistant or other prop- erties, quantity, use, size, design, con- struction material, finish, strength, tests, durability, serviceability, flexibility, sharpness, extent or character of per- formance, price, value, content, or origin; or (b) With respect to the type, kind, brand, composition, or quality of steel or substance of which a razor blade, razor, or other industry product is manufac- tured, or the character, extent, or type of sharpening or other treatment applied to any such products; or (c) With respect to any guarantee, warranty, endorsement, acceptance, ap- proval, or use of any industry product by any person, organization, or group; or (ad) With respect to the manufacture, distribution, or marketing of any indus- try product; or in any other respect. $161.5 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 decelving the purchasing or consuming public, is an unfair trade practice, § 161.6 Misuse of the word “free,” ete. It is an unfair trade for any member of the industry to use the term “free,” or any other term or representa- tion of similar import or meaning, to de- scribe, designate, or refer to any industry product which is not given to the re- cipient thereof without cost and uncondi- tionally. ‘“Thin” dlades. Among the misrepresen- tations proseribed by this rule are d tions or representations to the effect that blades are “thin” or are “thin blades” when im fact such blades have a thickness greater than that recognized in the industry as prop- erly applicable to “thin blades.” Under such recognized practice “thin” blades should not have a thickness greater than .004 of an inch. Chapter I—Federal § 161.7 Use of lottery schemes, etc. It is an unfair trade practice to sell, distribute, or promote the sale or dis- tribution of any industry product or other merchandise by means of a game of chance, gift enterprise, or lottery scheme. § 161.8 Deceptive pricing. (a) 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 @ special price when It is in fact the reg- ular selling price of such product, 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 industry product. (b) It is an unfair trade practice for any member of the industry, directly or indirectly, to use or to supply to dealers, or to aid or assist in the use of, price tags, labels, or similar devices which are false or fictitious, or which such member has reason to believe are intended to be used or will be used by dealers or salesmen for the purpose of misleading or deceiving the purchasing or consuming public in regard to price, value, or in any other material respect. $161.9 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 ele- ments of such cost shall be included in determining cost under this rule. The costs, however, which are referred to in the rule, are actual costs of the respec- tive seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise. § 161.10 Discrimination. (a) Prohibited discriminatory prices, or rebates, refunds, so-called free goods, discounts, credits, etc., which effect un~ lawful price discrimination. It is an un- fair 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 in- Trade Commission § 161.10 directly, any rebate, refund, so-called free goods, discount, credit, or other form of price differential, where such rebate, refund, so-called free goods, discount, credit, or other form of price differential, 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: Pro- vided, however, (1) That the goods in- volved 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 oniy due allowance for differences in the cost of manufacture, sale, or deliv- ery 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 (i) the market for the goods concerned. or (i) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obso- iescence 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 commerce, in the course of such com- merce, to pay or grant, or to receive or accept, anything of vaiue as a commis- sion, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the saie or purchase of goods, wares, or merchandise, elther to the other party to such transaction or to an agent, representative, or other inter- mediary therein where such intermediary 43 § 161.11 is acting in fact for or in 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. (c) Prohibited advertising or promo- tional aliowances, 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 facil- ities 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 com- modities. (d) Prohibited discriminatory services or facilities. It is an unfair trade prac- tice for any member of the industry to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facil- ities connected with the processing, han- dling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on propor- tionally equal terms. (e) Inducing or receiving an Megat 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 forego- ing provisions of this section. (f) Purchases by schools, colleges, unt- versities, public librartes, 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 Hotse of Representatives of the United States of Amer- Title 16—Commercial Practices ica in Congress assembled, That nothing in the Act approved June 19, 1936 (Public, Num- bered 692, Seventy-fourth Congress, second session), known as the Robinson-Patman Antidiscrimination Act, shall apply to pur- chases of their supplies for their own use by schools, colleges, universities, public libraries, churehes, hospitals, and charitable institu- tions not operated for profit. (Sec. 2, 88 Stat. 780, as amended, secs, 2, 8, 4, 49 Stat. 1527, 1528, ch. 288, 52 Stat. 446; 15 U. 8. O. 18, 18a, 18b, 18c, 21a) 8161.11 Imitation or simulation of trade-marks, trade names, etc. The imitation or simulation of the trade-marks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. $161.12 Misrepresentation as to earn- ings of sales representatives. It is an unfair trade practice for any member of the industry to make or pub~ lish, or cause to be made or published, directly or indirectly, any false, mislead- ing, or deceptive statement or represen- tation, by way of advertisement or other- wise, concerning: (a) The salary, commission, income, earnings, or other remuneration which agents, canvassers, solicitors, or other sales representatives receive or may re~ ceive; or (b) The chances or opportunities for such remuneration. 8161.13 Enticing away employees of competitors. Willfully enticing away the employees of competitors with the purpose and ef- fect of unduly injuring or hampering competitors in their business and de- stroying or substantially lessening com- petition is an unfair trade practice. 8161.14 Passing off substandard or de- fective products as and for regular or first quality merchandise. (a) It is an unfair trade practice to advertise, offer for sale, seil, or cause to be sold razors or razor blades which are “seconds”, or which are substandard, defective, or of low quality as and for razors or blades of higher grade or qual- ity or as and for razors or blades which are 1 not substandard, defective, or “sec- onds.” (b) If and when razors or razor blades which are “seconds,” substandard, or de- fective are placed on the market, they should be marked as such clearly and Chapter !—Federal conspicuously on the outside of the sealed or closed wrapper in which they are sold to the purchasing or consuming public; and it is an unfair trade practice to con- ceal the fact that such razors or razor blades are “seconds”, substandard, or de- fective, such concealment having the ca- pacity and tendency or effect of mislead- ing or deceiving the purchasing or con- suming public. Nors 1. As used in this section the term “substandard” as applied to razor blades shall embrace razor blades which are “seconds” or which are defective for any reason, including steel razor blades which are defective and inferior by reason of: (a) The steel of which the blade is manu- factured not being of uniform well spheroi- dized cementite structure with carbide par- ticles of uniform size and distribution; or not having proper carbon content (carbon content of not less than 1.15 percent or more than 1.35 pereent is deemed generally desir- able and proper); or (b) The cutting edge or edges not having been properly hardened and tempered equal to a hardness of 90 to 92 on a Rockwell 16N Scale, Superficial Hardness Tester; or (c) The flexible type blade not having been properly tempered so as to permit the blade to fiex sufficiently without breaking in the razor for which it is intended or sold; or (a4) The biade not having been evenly or keenly sharpened; or (e) The cutting edge or edges showing nicks with a dimension greater than .005 af an ineb, or wire edges, when viewed micro- scopically at a magnification of 50 diameters; or (f) Not having proper dimensions oar measurements necessary to fit effectively and in a precise manner, without exceasive or insufficient blade exposure, the razor for which it is intended or sold; or (g) Not being free from rust, or not having been effectively protected against rust when placed on the market. Nore 2. As used in this rule the word “sub- standard” as applied to safety razors shall be construed to include the following: Safety razors which are not of such con- struction and material as to assure an ade- quate and effective blade seating and blade exposure; or which are subject to warping to such an extent as to prevent an adequate and effective blade seating or blade exposure: or which have such rough edges, burrs, pin holes or other imperfections or such flaws, defects, or susceptibillty to rusting as to ma- terlally affect their usability adversely; or which are of such construction, material, or workmanship as not to permit of tight assem- bly without breaking or cracking: or which are “seconds” or not first quality products by reason, of such defective or inferfor material, construction, or workmanship. Trade Commission § 161.104 8161.15 Razor blades for industrial use or for purposes other than buman shaving. To the end that confusion and decep- tion may be avoided and prevented, razor blades placed on the market to be sold for industrial uses only or for uses other than human shaving shall be suit- ably marked to show such fact, as for ex- ample: “For Industrial Use Only.” The selling of any such razor blades as or for razor blades manufactured or suitable for human shaving when such is not the fact, is an unfair trade practice. Grovr IT $ 161.101 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in letter and in spirit. The repudiation of con- tracts by seliers on a rising market or by buyers on a declining market is con- demned by the industry. $ 161.102 Arbitration. The industry approves the practice of handling business disputes between mem- bers of the industry and their customers in a fair and reasonable manner, coupled with a spirit of moderation and good will, and every effort shouid be made by the disputants themselves to compose the differences. If unable to do so they should, if possible, submit these disputes to arbltration. § 161.103 Cost records. It is the Judgment of the industry that each member should independently keep proper and accurate records for deter- mining his costs. : § 161.104 Proper identification of origin of blades and suitable packaging. In the interest of identification and the prevention of confusion and decep- tion, all steel razor blades when placed on the market should be impressed or etched with the name or identifying trade-mark of the manufacturer or of the responsible distributor introducing such blade into the channels of trade. Each packet of razor blades should be marked to show the number of blades contained in the package. Each blade should also be suitably wrapped or pack- aged to afford security in handling and protection against damage or dulling contact with the cutting edge of the blade. 45