Artificial Limb Industry

16 CFR Part 165 · Trade practice rules · in the Code of Federal Regulations 1946-1978 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1978 CFR · Earliest edition: 1946 CFR

Text (1978 edition, OCR)

§ 162.201 ;
COMMITTEE ON TRADE PRACTICES

§ 162.201 Industry committee.

The provisions of §16.1'! of this
chapter shall be applicable to an in-
dustry committee established under
this part.

(21 FR 1174, Feb. 21, 1956]

PART 165—ARTIFICIAL LIMB
INDUSTRY

Grovur I

Sec.

165.1 Deception (general).

165.2 Disclosures to be made before sale.

185.3 Representation or promise that prod-
uct will “fit”.

165.4 Protection of public with respect to
apparent agency.

165.5 Deceptive testimonials or depictions.

165.6 Deceptive demonstrations.

165.7 Misuse of terms ‘custom made,”
“custom built,” “tailored,” eto.

165.8 Guarantees, warranties, etc.

165.9 Misrepresenting products as con-
forming to standard.

165.10 Deception as to rebuilt or second-
hand products.

165.11 Substitution of products.

165.12 False invoicing.

165.13 Misrepresentation as to installment
sales contracts, their terms, conditions,
etc.

165.14 Misrepresentation as to charactcr of
business.

165.15 Deception through failure to differ-
entiate between wholesale and retail
transactions.

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

165.17 Procurement of competitors’ confi-
dential information by unfair means and
wrongful use thereof.

165.18 Unfair threats of infringement
suits.

165.19 Deceptive use of trade or corporatc
names, trade-marks, etc.

165.20 Misuse of the word ‘‘free,” etc.

165.21 Coercing purchase of one product as
& prerequisite to the purchase of other
products.

165.22 Fictitious prices.

165.23 Inducing breach of contract.

165.24 Enticing away employees of com-
petitors.

165.25 Combination or coercion to fix
prices, suppress competition, or restrain

e.
165.26 Discrimination.

‘16CFR 16.1 was deleted at 36 FR 3116,
Feb. 18, 1971.

Title 16—Commerclal Practices

Sec.
165.27 Aiding or abetting use of unfair
trade practices.

Grovor II

165.101 Disapproval of solicitation when
benefits unlikely.

165.102 Cooperation with doctors.

165.103 Importance of personal fitting.

165.104 Minimizing importance of “fit” by
exploitation of less important features.

165.105 Sharing of improved techniques.

AvrTnHonrity: Secs. 6(g), 5, 37 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: 11 FR 4147, Apr. 16, 1946, unless
otherwise noted.

Grovur I

§ 165.1 Deception (general).

(a) It is an unfair trade practice to
seli, offer for sale, or distribute any in-
dustry product, or promote the sale or
distribution thereof, by any method or
under any circumstance or condition
which has the capacity and tendency
or effect of deceiving purchasers or
prospective purchasers as to the con-
struction, composition, design, model,
origin, manufacture, value, quallty,
weight, absence of noise in operation,
strength, durability, life expectancy,
appearance, fit, comfort, allgnment,
utility, ease of operation, or safety to
wearer, of such product, or in any
other material respect; or to mislead
purchasers or prospective purchasers
with respect to the need for repair,
maintenance, or replacement of parts,
of such product aftor its purchase and
use, or with respect to any service of-
fered concerning maintenance of prod-
uct or training of purchaser in the use
thereof.

(b) In this connection, under para-
graph (a) of this section, it is an unfair
trade practice to represent or infer,
unless such be wholiy true and nonde-
ceptive, that the product:

(1) Wili give use and satisfaction to
wearer equivalent or nearly equivalent
to that afforded by the human limb or
other body member for which the
product is proposed as a substitute; or
that such product

(2) Has the appearance of, or cannot
be detected from the human limb or
body member; or :

(3) Is in compliance with any Gov-
ernment specifications or standard; or

44


Chopter |—Federal Trade Commission

(4) Has the latest improvements in
construction composition, design, ap-
pearance, or utility; or

(5) Is immune from damage or im-
pairment by water; or

(6) Has the approval of any doctor,
hospital, or Government agency or of-
ficial.

(c) The inhibitions of this section
shall apply with respect to every spe-
cies of advertisement or form of repre-
sentation, whether in newspapers, pe-
riodical, telephone directory, sales
catalog, sales promotional literature,
on the radio, or otherwise, or whether
by use of any word, design, sound, or
combination thereof; and such inhibi-
tions shall also apply with respect to
labeling and to impressions created by
reason of fallure to reveal limitations
or material facts.

§ 165.2 Disclosures to be made before sale.

It is an unfair trade practice for any
member of the industry to fail to dis-
close to any purchaser of an industry
product, prior to his or her purchase
or making of contract for purpose
thereof from such member:

(a) Any and all latent defects of
which such member is aware, or has
reason to believe exist, with respect to
the product being offered for sale; and

(b) The fact that the degree of use-
fulness and benefit to be derived by
the wearer will be dependent in sub-
stantial part upon the place and char-
acter of his or her amputation, the
condition of his or her stump or body
member to which the product is to be
fitted and applied, his or her age,
strength, agility, and state of health,
and his or her diligence and persis-
tence in accustoming himself or her-
self to the use of such product, devel-
opment of muscles, and acquiring skill
in ane manipulation and use thereof;
an

(c) In the case of a recent amputa-
tion, or of the prospective purchaser’s
previous nonuse of a prosthetic device,
the fact that shrinkage of his or her
stump is likely to occur by reason
whereof the product, though fitting
properly at time of delivery, may not
continue to be in proper fit after such
shrinkage; such nondisclosure having
the capacity and tendency or effect of
deceiving purchasers or prospective

45

§ 165.4

purchasers as to the true efficacy or
benefit to be derived from such prod-
uct.

Nore: Textile articles or accessories sold
by members of the industry are to be la-
beled or marked with respect to their fiber
content as required by applicable provisions
of law or regulation. For example, stump
socks containing or purporting to contain
wool are subject to the requirements of the
Wool Products Labeling Act and the regula-
tions issued thereunder.

§ 165.3 Representation or promise that
product will “fit.”

It is an unfair trade practice for any
member of the industry to represent,
promise, or guarantee that any indus-
try product wili be made to fit any in-
dividual purchaser or prospective pur-
chaser thereof, when such representa-
tion, promise, or guarantee is not
made in good faith or the industry
member is not possessed of the requi-
site skill, knowledge, and equipment to
assure of his ability to fulfill such rep-
resentation, promise, or guarantee.

Nore 1: An industry prosthetic device
shall not be considered as fitting unless
properly shaped and sized for the stump or
body member to which it is to be applied, is
in proper allgnment and conformity with
the physique of the person to wear such
product, and affords the optimum of com-
fort and use on the part of the wearer
thereof without injury to stump or other
body member. In cases where there is any
likelihood of shrinkage of stump after fit-
ting and delivery of the product, full expla-
nation of such shrinkage should be made to
the purchaser and the necessity of refitting
by reason thereof should be ciearly pointed
out to him.

NOTE 2: It is the consensus of the industry
that the term ‘perfect fit’? should not be
used by members, as perfection is not at-
tainable.

§ 165.4 Protection of public witb respect
to apparent agency.

(a) It is an unfair trade practice for
any member of the industry to aid or
abet any person in effecting a decep-
tion of purchasers or prospective pur-
chasers as to his or her authority to
represent and make commitments in
behalf of such industry member.

(b) For an industry member to
supply any person, not his agent, with
samples, sales literature, guarantees of
such industry member, or any indices


§ 165.5

ef agency, and accept orders secured
by such person and then refuse to ful-
fill the commitments implied to such
purchaser by the use of such samples,
sales literature, ete., is an unfair trade
practice.

§ 165.5 Deceptive testimonials or depic-
tions.

(a) It is an unfair trade practice for
a member of the industry to use any
testimonial of a user of any prosthetic
device, or of any other person, or to
use any picture or depiction, which is
false, misleading, or deceptive in any
respect.

(b) It is an unfair trade practice to
cause any testimonial or picture of a
user of a prosthetic device to be em-
ployed in a manner having the capac-
ity and tendency or effect of mislead-
ing or deceiving purchasers or prospec-
tive purchasers into the belief that:

(1) Such testimonial was given, or
that the picture was taken and is
being used, without solicitation or pay-
ment of any consideration, when such
is not the fact; or

(2) That the testimonial or picture
pertains to the certain kind, model, or
make of prosthetic device which is
being offered for sale, when such is
not the fact.

(c) No member of the industry
should use any testimonial which he
has good reason to believe contains
untrue or exaggerated statements, or
display any plcture of a wearer of any
prosthetic device, or other depiction,
which serves to create a false impres-
sion as to the actual utillty, appear-
ance, or benefits derived from the use
of such device. To avoid misunder-
standing or deceptlon, proper testi-
monials and pictures of wearers of
such devices should be accompanied
by a disclosure of pertinent data, such
as the date of the making thereof, the
make, manufacture, model, and com-
position of the certain device worn by
the person at the time of his or her
making of such testimonial or the
taking of such picture, together with
disclosure as to the place of his or her
amputation, his or her age at the time
of loss of limb or body member, and
the period of time that he or she has
been using such device.

46

Title 16—Commercial Practices

$165.6 Deceptive demonstrations.

(a) In the sale, offering for sale, or
distributing of an industry product, or
in promoting the sale or distribution
thereof, it is an unfair trade practice
to demonstrate any such product in a
manner or under circumstances having
the capacity and tendency or effect of
creating a false impression as to the
actual benefits from the use thereof
that may reasonably be expected to be
had by a purchaser or prospective pur-
chaser of such or a similar industry
product.

(b) In this connection, to avoid mis-
understanding or deception, no dem-
onstration of an industry product
should be made to a purchaser or pro-
spective purchaser unless in conjunc-
tion therewith, and before sale or con-
tract for sale is made, there is full dis-
closure as to:

(1) The make, model, and composi-
tion of the particular product demon-
strated;

(2) The age of the demonstrator at
the time of his or her loss of limb or
body member, the place of his or her
amputatlon, and the period of time
that such demonstrator has been
using a prosthetic device of the kind
demonstrated;

(3) The fact that similar benefits
and use on the part of the person or
persons to whom the product is dem-
onstrated may not be realized by
reason of difference of place of ampu-
tation, condition of stump, age, occu-
pation, health, agility, strength, or in-
abillty or disposition to accustom him-
self or herself to, and become skillful
in the use of, such device; and

(4) The fact that the demonstrator
is in the employ of selier, or has an in-
terest in effecting a sale of the prod-
uct, or is otherwise not wholly disin-
terested in the promotion of the sale
of such product.

§ 165.7 Misuse of terms “custom made,”
“custom built,” “tailored,” etc.

In the sale, offering for sale, or dis-
tribution of industry products, it is an
unfair trade practice for a member of
the industry to use the terms “custom
made,” “custom built,” “tailored,” or
any other word or term of similar
import, as descriptive of any prosthet-
ic device when such device is not one


Chopter I—Federal Trade Commission

that has been or will be made, aligned,
sized, and fitted to the individual
needs and specifications of a consum-
er-purchaser as distinguished from a
product which is a ready-made or
stock prosthetic device.

§ 165.8 Guarantees, warranties, etc.

(a) Guarantees which afford pur-
chasers or users substantial and ade-
quate protection, and are fully and
fairly stated or disclosed and scrupu-
lously adhered to by the guarantor,
are desirable and recommended. It is
an unfair trade practice to use or
cause to be used any guarantee which
is false, misleading, deceptive, or
unfair to the purchasing or consuming
public.

(b) Under this section guarantees of
the foliowing type or character shall
not be used:

(1) Guarantees containing state-
ments, promises, representations, or
assertions which have the capacity
and tendency or effect of misleading
and deceiving as to quality, physiologi-
cal changes, fit, comfort, or utility
under use; or

(2) Guarantees which are so used or
are of such form, text, or character as
to import, imply, or represent that the
guarantee is broader than is in fact
true, or that the guarantee covers the
entire product or certain parts thereof
which are not in fact covered, or will
afford more protection to purchasers
or users than is in fact true; or

(3) Guarantees in which any condi-
tion, qualification, or contingency ap-
plied by the guarantor thereto is not
fully and  nondeceptively stated
herein, or is stated in such manner or
form as to be deceptively minimized,
obscured, or concealed, wholiy or in
part; or

(4) Guarantecs which are stated,
phrased, or set forth in such manner
that although the statements con-
tained therein are literally and techni-
cally true, the whole is misleading in
that purchasers or users are not made
sufficiently aware of certain contin-
gencies or conditions which are appli-
cable to such guarantees and material-
ly lessen the value thereof as a guar-
antee to purchasers or users; or

(5) Guarantecs which purportedly
extend for such indefinite or unlimit-

47

§ 165.10

ed period of time or for such long
period of years as to have the capacity
and tendency or effect of thereby mis-
leading or deceiving purchasers or
users into the belief that the product
has or is definitely known to have
greater degree of serviceability, utility,
comfort, or durability in actual use
than is in fact true; or

(6) Purported gnarantees in the
form of documents, promises, repre-
sentations, or other form which are
represented or held out to be guaran-
tees when they are not such in fact, or
when they are service contracts of the
type which are not guarantees, or
when they involve any deceptive or
misleading use of the word ‘“(Guaran-
tee” or term of similar import; or

(7) Guarantees issued, or directly or
indirectly caused to be used, by any
member of the industry when or
under which the guarantor fails or re-
fuses to scrupulously observe his obli-
gations thereunder or fails or refuses
to make good on claims coming rea-
sonably within the terms of the guar-
antee; or

(8) Guarantees which in themselves
or in the manner of their use are oth-
erwise false, misleading, or deceptive.

(c) This section shali be applicable
not only to guarantees but also to war-
ranties, to purported warranties and
guarantees, and to any promise or rep-
resentation in the nature of or pur-
porting to be a guarantee or warranty.

§ 165.9 Misrepresenting products as con-
forming to standard.

Representing, through advertise-
ment or otherwise, that any products
of the industry conform to a standard
recognized in or applicable to the in-
dustry when such is not the fact, with
the capacity and tendency or effect of
misleading or deceiving the purchas-
ing or consuming public, is an unfair
trade practice.

§ 165.10 Deception as to rebuilt or second-
band products.

(a) It is an unfair trade practice for
any member of the industry to seil,
offer for sale, advertise, or otherwise
represent, any product of the industry
as being new when such is not the
fact.


§ 165.11

(b) In the marketing of rebuilt or
second-hand products of the industry,
or parts thereof, or the marketing of
products containing rebuilt or second-
hand parts, it is an unfair trade prac-
tice to fail or refuse to make full and
nondeceptive disclosure, by mark, tag,
or label, or other writing supplied pur-
chaser, of the fact that such product
or parts are not new but are used, re-
bulit, or second-hand, as the case may
be, such failure or refusal to disclose
having the capacity or tendency or
effect of misleading or deceiving the
purchasing or consuming public.

$165.11 Suhstitution of products.
The practice of shipping or deliver-

ing products which do not conform to .

samples submitted, to specifications
upon which the sale is consummated,
or to representations made prior to se-
curing the order, without the consent
of the purchasers to such substitu-
tions, or with the capacity and tenden-
cy or effect of misleading or deceiving
the purchasing or consuming public, is
an unfair trade practice.

§ 165.12 False invoicing.

It is an unfair trade practice to with-
hold from or insert in invoices any
statements or information by reason
of which omission or insertion a false
record is made, wholly or in part, of
the transactions represented on the
face of such invoices, with the effect
of thereby misleading or deceiving the
purchasing or consuming public.

§ 165.13 Misrepresentation as to install-
ment sales contracts, their terms, con-
ditions, 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 statement or
representation, through advertising or
otherwise, concerning installment
sales contracts used or their terms and
conditions, including down payments,
interest, carrying charges, ete., or re-
specting any other matters relative to
such contracts or their terms and con-
ditions.

Title 16—Commerclal Practices

§ 165.14 Misrepresentation as to character
of husiness.

It is an unfair trade practice for any
concern, in the course of or in connec-
tion with the distribution of industry
products, to represent, directly, or in-
directly, that it is a manufacturer of
industry products, or that it owns or
controis a factory making such prod-
ucts, when such is not the fact, or in
any other manner to misrepresent the
character, extent, or type of its busi-
ness.

§ 165.15 Deception through failure to dif-
ferentiate between wholesale and retail
transactions.

It is an unfair trade practice for any
member of the industry to represent
or imply that any of his sales are at
wholesale or at wholesale price, when
such is not the fact. When sales at
wholesale and at retail are made in
the same establishment, such differen-
tiation between the two types of trans-
actions should be made as is necessary
to prevent misunderstanding or decep-
tion of purchasers.

§ 165.16 Defamation of competitors or dis-
paragement of their products.

The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform con-
tracts, questionable credit standing, or
by other false representations, or the
false disparagement of competitors’
products in any respect, or of their
business methods, selling prices,
values, credit terms, policies, or ser-
vices, is an unfair trade practice.

§ 165.17 Procurement of competitors’ con-
fidential information hy unfair means
and wrongfui use thereof.

It is an unfair trade practice for any
member of the industry to obtain in-
formation concerning the business of a
competitor by bribery of any employee
or agent of such competitor, by false
or misleading statements or represen-
tations, by the impersonation of one in
authority, or by any other unfair
means, and to use the information so
obtained in such manner as to injure
said competitor in his business or to
suppress competition or unreasonably
restrain trade.

48


Chopter |—Federal Trade Commission

8165.18 Unfair threats of infringement
suits.

The circulation of threats of suit for
infringement of patents or trade-
marks among customers or prospective
customers of competitors, not made in
good faith but for the purpose or with
the effect of thereby harassing or in-
timidating such customers or prospec-
tive customers, or of unduly hamper-
ing, injuring, or prejudicing competi-
tors in their business, is an unfair
trade practice.

$165.19 Deceptive use of trade or corpo-
rate names, trade-marks, etc.

The use of any trade name, corpo-
rate name, trade-mark, or other trade
designatlon which has the capacity
and tendency or effect of misleading
or deceiving the purchasing or con-
suming public as to the character,
name, nature, or origin of any product
of the industry, or any material used
therein, or which is false or misleading
in any other respect, is an unfair trade
practice.

$165.20 Misuse of the word “free,” etc.

It is an unfair trade practice for any
member of the industry to use the
term “free,” or any other term or rep-
resentation of similar import or mean-
ing, to describe, designate, or refer to
any industry product which is not
given to the recipient thereof without
cost and unconditionally.

§ 165.21 Coercing purehase of one product
as a prerequisite to the purchase of
otber praducts.

The practice of coercing the pur-
chase of one or more products as a
prerequisite to the purchase of one or
more other products, where the effect
may be to substantially lessen compe-
titlon or tend to create a monopoly or
to unreasonably restrain trade, is an
unfair trade practice.

§ 165.22 Fictitious prices.

It is an unfair trade practice to seli
or offer for sale industry products at
prices purported to be reduced from
what are in fact fictitious prices, or to
seli or offer for sale such products at a
purported reduction in price when
such purported reduction is in fact fic-

§ 165.26

titious or is otherwise misleading or
deceptive.

§ 165.23 Inducing breach of contract.

It is an unfair trade practice to
induce or attempt to induce the
breach of existing lawful contracts be-
tween competitors and their custom-
ers, or their suppliers, by any false or
deceptive means whatsoever, or will-
fully to interfere with or obstruct the
performance of any such contractual
duties or services by any such means,
with the purpose or effect of unduly
hampering, injuring or prejudicing
competitors in their business.

§ 165.24 Enticing away employees of com-
petitors.

It is an unfair trade practice for any
member of the industry willfully to
entice away employees of competitors
with the purpose or effect of thereby
unduly hampering or injuring com-
petitors in their business and destroy-
ing or substantially lessening competi-
tion.

§ 165.25 Combination or coereion to fix
prices, suppress competition, or re-
strain trade.

It is an unfair trade practice for a
member of the industry or any other
Person:

(a) To use, directly or indirectly, any
form of threat, intimidation, or coer-
cion against any member of the indus-
try or other person to unlawfully fix,
maintain, or enhance prices, suppress
competition, or restrain trade.

(b) To enter into or take part in, di-
rectly, or indirectly, any agreement,
understanding, combination, conspir-
acy, or concerted action with one or
more members of the industry, or with
one or more other persons, to unlaw-
fully fix, maintain, or enhance prices,
suppress competition, or restrain
trade.

§ 165.26 Discrimination.

(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price dis-
crimination. It is an unfair trade prac-
tlee for any member of the industry
engaged in commerce, in the course of
such commerce to grant or allow, se-
cretly or openly, directly or indirectly,

49


§ 165.26

any rebate, refund, discount, credit, or
other form of price differential, where
such rebate, refund, discount, credit,
or other form of price differential, ef-
fects 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 substantialiy to lessen
competition or tend to create a mo-
nopoly in any line of commerce, or to
injure, destroy, or prevent coinpetition
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 shali prevent differentials
which make oniy due aliowance for
differences in the cost of manufacture,
sale, or delivery resulting from the dif-
fering methods or quantities in which
such commodities are to such purchas-
ers sold or delivered;

(3) That nothing contained in this
section shali prevent persons engaged
in selling goods, wares, or merchandise
in commerce from selecting their own
customers in bona fide transactlons
and not in restraint of trade;

(4) That nothing contained in this
section shali prevent price changes
from time to time where made in re-
sponse to changing conditions affect-
ing either (i) the market for the goods
concerned, or (li) the marketability of
the goods, such as, but not limited to,
actuai or imminent deterioration of
perishable goods, obsolescence of sea-
sonal goods, distress sales under court
process, or sales in good faith in dis-
continuance of business in the goods
concerned.

(b) Prohibited brokerage and com-
missions. It is an unfair trade practice
for any member of the industry en-
gaged in commerce, in the course of
such commerce, to pay or grant, or to
receive or accept, anything of value as
a commission, brokerage, or other
compensation, or any aliowance or dis-
count in lieu thereof, except for ser-
vices rendered in connection with the
sale or purchase of goods, wares, or

Titie 16—Commercial Practices

merchandise, either to the other party
to such transaction or to an agent,
representative, or other intermediary
therein where such intermediary 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 whoin 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
industry engaged in commerce to pay
or contract for the payment of adver-
tising or promotional aliowances or
any other thing of vaiue to or for the
benefit of a custoiner of such member
in the course of such commerce as
compensation or in consideration for
any services or facilities furnished by
or through such customer in connec-
tion with the processing, handiing
sale, or offering for sale of any prod-
ucts or commodities manufactured,
sold, or offered for sale by such
member, unless such payment or con-
sideration is available on proportional-
ly equal terms to ali other customers
competing in the distribution of such
products or commodities.

(d) Prohibited discriminatory ser-
vices or facilities. It is an unfair trade
practice for any member of the indus-
try to discriminate in favor of one pur-
chaser 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 facilities connected
with the processing, handling, sale, or
offering for sale of such commodity so
purchased upon terms not accorded to
ali purchasers on proportionaliy 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 provi-
sions of this section.

(f) Purchases by schools, colleges,
universities, public libraries, churches,
hospitals, and charitable institutions
not operated for profit. The foregoing
provisions of this section relate to
practices within the purview of the

50


Chapter |—Federal Trade Commissian

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 amend-
ment 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
(Public, Numbered 692, Seventy-fourth Con-
gress, second session), known as the Robin-
son-Patman Antidiscrimination, Act, shall
apply to purchases of their supplies for
their own use by schools, colleges, universi-
ties, public libraries, churches, hospitals,
and charitable institutions not operated for
profit.

(g) Purchases by U.S. Government;
applicability of Robinson-Patman
Antidiscrimination Act to same. In an
opinion submitted to the Secretary of
War under date of December 28, 1936,
the U.S. Attorney-General advised
that the Robinson-Patman Antidis-
crimination Act “is not applicable to
Government contracts for supplies”
(39 Opinions, Attorney-General 539).

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3,
4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446;
15 U.S.C. 13, 13a, 13b, 13¢, 21a)

§ 165.27 Aiding or abetting use of unfair
trade practices.

It is an unfair trade practice for any
person to aid, abet, coerce, or induce
another, directly or indirectiy, to use
or promote the use of any unfair trade
practice specified in this part.

Grovr II

§ 165.101 Disapproval of solicitation when
benefits unlikely.

The industry condemns the practice
of soliciting or promoting the sale of
any of its products to persons who by
reason of their physical state, age or
infirmity, cannot be expected to
obtain reasonable use and benefit
from such products. This rule shall
not be regarded as preventing the pur-
chase of an industry product by any
person who requests such a device,
notwithstanding such person may not
thereby obtain a reasonable degree of
use and benefit therefrom.

51

§ 165.105

§ 165.102 Cooperation with doctors.

The industry fully realizes that the
interest of amputees is best promoted
by the cooperation of the doctor and
industry member with respect to the
site of amputation and the type and
fitting of industry products, and as to
the appropriate time for consideration
by the patient of the purchase of a
prosthetic device. The industry
pledges its members to give every as-
sistance and advice to doctors prior to
and after the amputation that the am-
putee may have the optimum of bene-
fit from the industry product which
he may iater purchase and use, wheth-
er or not such industry member sells,
or has opportunity to soiicit the pur-
chase of, his products; and to do every-
thing possible to promote mutual trust
and confidence between the industry
and members of the medical profes-
sion.

§ 165.103 Importance of personal fitting.

The industry disapproves of the
practice of undertaking to supply an
artificial limb that will fit an amputee
by mail-order specifications and with-
out personal fitting thereof, as it be-
lieves that satisfactory and proper fit
cannot be attained except by personal
fitting. This rule shall not be con-
strued as prohibiting sale of artificial
limbs by mail order without personal
fitting, when no misrepresentation is
made, directly or by implication, as to
fit.

§ 165.104 Minimizing importance of “fit”
hy exploitation of less important fea-
tures.

It is the concensus of the industry
that proper fit and alinement are of
vital importance with respect to the
satisfactory use of its products by am-
putees and should not be minimized
by the undue exploitation of other as-
pects or features of less importance.

§ 165.105 Sharing of improved techniques.

Believing that the interest of ampu-
tees is its first concern, the industry
favors the making avallable to ali of
its members and the general public
any improved technique that may be
used or developed by any of its mem-
bers in respect to the making, fitting,


§ 175.0

alining, or servicing of industry prod-
ucts. Further, the industry desires to
be an active and cooperative factor in
all progressive developments of im-
proved techniques that will contribute
to the welfare and comfort of all am-
putees.

PART 175—OFFICE MACHINE
MARKETING INDUSTRY

Grovr I

Sec.

175.0 Definitions.

175.1 Deception (general).

1752 Deceptive concealment of fact that
machine is not new.

175.3 Misuse of the terms “new,” ‘“demon-
strator,” “factory rebuilt,” ‘rebuilt,”
“remanufactured,” ‘‘reconditioned,” and
“overhauled” as applied to office ma-
chines.

175.4 Typewriters; deception as to being
“new.”

175.5 Typewriters; misuse of the terms
“demonstrator,” “factory rebuilt,” “re-

built,” “remanufactured,” ‘recondi-
tioned,” and “overhauled” as applied to
typewriters.

175.6 Alteration or removal of serial num-
bers.

175.7 Deception as to “discontinued” or
“obsolete” modeis.

175.8 Misrepresentation as to character of
business.

175.9 Misrepresenting products as con-
forming to standard.

175.10 Substitution of products.

175.11 Guarantees, warranties, etc.

175.12 Misrepresentation as to installment
sales contracts, their terms, conditions,

etc.

175.13 False invoicing.

175.14 Misuse of the terms ‘“‘special,”’ ‘‘bar-
gain,” ‘‘close-outs,” ‘discontinued Lines,’’
etc.

175.15 Fictitious prices.

175.16 False and misleading price quota-
tions.

178.17 Inducing breach of contract.

175.18 Enticing away employees.

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

175.20 Commercial bribery.

175.21 Procurement of competiters’ confi-
dential information by unfair means and
wrongful use thereof.

175.22 Unfair threats of infringement
sults.

175.23 Coercing purehase of one product as
@ prerequisite to the purchase of one or
more other products.

175.24 Exclusive or preemptive deals to
eliminate or suppress competition.

Title 16—Commerciai Practices

Sec.

175.25 Prohibited discrimination.

175.26 Aiding or abetting use of unfair
trade practices.

Grovp IT
175.101 Record keeping.

COMMITTEE ON TRADE PRACTICES
175.201 Industry committee.

Avruoniry: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: 13 FR 856, Feb. 26, 1948, unless
otherwise noted.

Grovur I

8175.0 Definitions.

“Office machines’: As used in this
part the term “office machines” shall
include all machines and mechanical
devices which have for their principal
function the performance, or alding in
the performance, of office work, or the
training or schooling for office work;
also, parts and accessories for such
machines and devices. The term
“office machines” shall embrace both
power-driven and manually-operated
machines and devices of the character

‘mentioned, whether new or not new,

and without exception shall include,
but not be limited to, typewriters,
stenotype machines, bookkeeping ma-
chines, adding machines, addressing
machines, calculating machines, dupli-
cating machines, autograph registers,
and dictating machines, of all kinds,
wherever used and whether station-
ary, portable, or other type.

Products of the industry embrace all
such office machines as above defined,
including parts and accessories there-

or.

§ 175.1 Deception (general).

It is an unfair trade practice to make
or cause to be made, directly or indi-
rectly, verbally or through advertising,
pictorial representation, invoice, tag,
label, mark, or writing upon the prod-
uct itself, or otherwise, any false, mis-
leading, or deceptive statement or rep-
resentation concerning the construc-
tion, composition, utility, perfor-
mance, condition, age, name, serial
number, model, durability, life expec-
tancy, speed, ease of operation, manu-
facture, distribution, price, or terms or
condition of sale, lease, or rental, of

52