Household Fabric Dye Industry

16 CFR Part 171 · Trade practice rules · in the Code of Federal Regulations 1949-1976 (11 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1949 CFR

Decisions that mention this industry's rules (1)

Text (1976 edition, OCR)

§ 169.20

commodity so purchased upon terms not
accorded to all purchasers on propor-
tionally 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, uni-
versities, public libraries, churches, hos-
pitals, and charitable institutions not op-
erated for profit. The foregoing provi-
sions 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-
json-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 thelr own
use by schools, colleges; universities, public
libraries, 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. 288, 52 Stat. 446;
15 U. 3. C, 18, 18a, 13b, 18¢, 21a)

8169.20 Aiding or abetting use of un-
fair trade practices.

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

PART 171—HOUSEHOLD FABRIC
DYE INDUSTRY

Group I

Sec.

171.0 Definitions.

171.1 Misuse of the terms “all fabric”, “all
purpose”, and similar representa-
tions, as applied to industry dyes
or tints.

1712 Misrepresentations as to coverage of

dyes or tints.

Title 16—Commercial

Practices

Sec. .

1713 Misrepresentations as to colors or
shades obtainable.

171.4 Use of the words “fast”, “fadeless”,
“fade-proof”, “unfadable”’, ‘“‘sun-
fast”, “wash-fast’’, and representa-
tions of similar import.

171.5 Deception respecting efficacy of color
removers.

171.6 Disclosure of sponsor and other in-
formation.

171.7. Guarantees, warranties, etc.

171.8 Confusion as to “tint” and “dye’’.

171.9 Other forms of deception.

171.10 Improper use of demonstrators and
payment of “spiffs”, “push money”,
etc.

171.11 Exclusive or pre-emptive deals to
eliminate or suppress competition.

171.12 Advertising or promotional allow-
ances,

171.138 Other discriminations contrary to
law.

171.14 Miscellaneous unfair trade practices.

171.15 Aiding or abetting use of unfair trade

practices. ’

AvuTHorRITr: The provisions of this Part
171 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 171
appear at 12 FR, 3478, May 29, 1947; 12 F.R.
3689, June 6, 1947, unless otherwise noted.

Group I
§ 171.0 Definitions,

As used in this part, the following
terms shall have the respective definition
set forth below:

(a) Industry product. Shall mean
any dye, tint, or color remover marketed
for use in the home in connection with
fabrics.

(b) Fabric. Shall mean any material
Cincluding yarn) which is spun, woven,
knitted, or felted from natural and/or
man-made textile fibers or filaments,
which material is commercially produced
and used in garments, household fur-
nishings or decorations in the home.

(c) Dye. Shall mean a preparation
marketed by industry members for home
use in restoring color or imparting a new
or different color to fabrics by dyeing or
tinting them.

(d) Color remover. Shall mean a
preparation marketed by industry mem-
bers for home use in removing color
and/or removing stains from fabrics
preparatory to re-dyeing or re-tinting
them, or for home use in removing stains
from white fabrics.


Chapter |—Federal Trade Commission

§ 171.1 Misuse of the terms “all fab-
ric,” “all purpose’’ and similar repre-
sentations, as applied to industry dyes
or tints.

(a) “All fabric’; unqualified use. It
is an unfair trade practice to use the
term “all fabric”, or representations of
similar import, as descriptive of a dye
or tint which, applied as directed, will
not dye or tint to the specified or rep-
resented color or shade, or to a close
simulation thereof, all types and kinds
of fabrics commercially produced and
used in garments, household furnish-
ings or home decorations; subject, how-
ever, to the following:

(1) “All fabric’; qualified use. When
the product, applied as directed, will ef-
fectively dye or tint to the specified or
represented color or shade, or to a close
simulation thereof, all types and kinds
of fabrics commercially produced and in
use in garments, household furnishings
or home decorations, with the exception
of certain fabrics which are commercially
produced and in such use in minor pro-
portion, nothing in this section shall be
construea aS prohibiting the use as de-
scriptive of such aye or tint of the term
“all fabric”, provided it is accompanied
with a statement and qualification in
close conjunction which nondeceptively
discloses such fabric limitation or excep-
tions, as for example:

All Fabric
Except Fiber Glass
or

All fabric dye for wool, cotton, linen, rayon,
nylon, and silk. Not recommended for use on
any other fibers or fabrics than those named.

(2) Disclosure as to necessity for re-
moval of color. If to produce any speci-
fied or represented color or shade, or
close simulation thereof, it is necessary
that the fabric to be dyed or tinted be,
or be reduced to, white or nearly white,
or be of a certain color, nothing in this
section shall be construed as prohibiting

“use of the term “all fabric” by reason of
such fact, provided disclosure thereof is
made reasonably sufficient to inform the
buying public and avoid misunderstand-~
ing and deception of purchasers, either
by statement on the consumer package,
in color cards and instructions, or other-
wise.

(b) “All purpose”. All the foregoing
provisions with respect to the term “all
fabric” shall also be applicable with like

58-064—-7 6-7

89

§ 171.3

force and effect to the term “all pur-
pose”, and representations of similar im-
port, as applied to any dye or tint of this
industry: Provided, however, That in
connection with the use of the term “all
purpose” it shall also be clearly and con-
spicuously stated that the product is a
dye or tint for fabric. It is an unfair
trade practice to use the term “all pur-
pose”, or representations of similar im-
port, contrary to any of the requirements
of this section as specified.

§ 171.2 Misrepresentations as to cover-
age of dyes or tints,

It is an unfair trade practice for any
member of the industry to give a false
or misleading statement or approxima-
tion of the size of article or quantity of
fabric which the dye or tint in the re-
spective packages offered for sale by such
member will satisfactorily color to the
respective shades or colors designated:
Provided, however, That reasonably ap-
proximations, truthfully and nondecep-
tively stated may be given.

Norg: As to misrepresentation regarding

coverage or efficacy of color remover, see
§ 171.5.

§ 171.3 Misrepresentations as to colors
or shades ohtainahle.

It is an unfair trade practice to use
any form of representation respecting
color or shade which directly or by im-
plication is false, misleading, or decep-
tive. Pursuant to this section:

(a) It is an unfair trade practice, in
sellmg or promoting the sale of packages
of dye or tint, to use color cards or color
iNustrations of any kind in relation to
such packages when the respective colors
and shades shown by such color cards or
illustrations do not accurately represent
or closely simulate the colors and shades
which the contents of the respective
packages produce when applied as di-
rected.

(b) If to obtain any specified or rep-
resented color or shade, or close simula-
tion thereof, it is necessary that the fab-
ric to be dyed or tinted be, or be reduced
to, white or nearly white, or be of a
certain color, this fact is to be truthfuliy
and nondeceptively disclosed in a man-
ner reasonably sufficient to inform the
buying public and avoid misunderstand-
ing or deception of purchasers of the
product.


$171.4

§ 171.4 Use of the words “fast”, “fade-
jess”, ‘‘fade-proof”, “anfadable” .
“sun-fast”, “wash-fast”, and repre-

sentations ‘of similar import.

(a) In respect of any dye or tint, or
the color or shade to be produced
thereby, it is an unfair trade practice:

(1) To describe such as being “fast”,
“fadeless”, ‘“fade-proof’, “unfadable”, or
by representation of similar import, un-
less the color and shade produced by
such dye or tint, applied as directed, will
not show any substantial change, fading,
or deterioration of color throughout the
useful life of the dyed or tinted articie
under ordinary conditions of use or

(2) To describe such as being “wash-
fast”, “sunfast”, or by representations of
similar import, unless the color and
shade produced by such dye or tint, ap-
plied as directed, will show no substan-
tial change, fading, or deterioration of
color throughout the useful life of the
dyed or tinted article from such wash-
ing or exposure to sunlight, respectively,
as such article is likely to be subjected to
during its useful life.

(b) It is an unfair trade practice to
use any other false, misleading, or de-
ceptive representations respecting the
fastness or durability of the color or
shade produced or to be produced by
any dye or tint.

(c) Nothing in this section shall be
construed as prohibiting use of the word
“fast” as part of the description of the
durability of the color or shade produced
or to be produced by any dye or tint when
used in a representation which clearly,
truthfully, and nondeceptively sets forth
the measurable minimum degree of fast-
ness or durability of the dye or shade to
the respective color-destroying contin-
gencies, factors, or agencies which the
fabrics, or products made therefrom, may
be or are likely to be subjected, as for
example:

Fast to 30 hours exposure to sunlight; or

Fast to perspiration; or

Fast to hand-washing in lukewarm water,

§ 171.5 Deception respecting efficacy
of color removers.

It is an unfair trade practice to mis-
represent, directly or indirectly, the
effectiveness of a color remover, either
as to the types or quantity of dyestuffs
it will remove or the kinds, types, or
quantity of fabric upon which it is effec-
tive. Under this section no representa-
tion shall be made that a color remover
will remove all color or stain from a

90

Title 16——Commercial Practices

fabric, or will make a fabric white, or
will restore a fabric to its original color,
unless such representation be unequiv-
ocally true and nondeceptive.

§ 171.6 Disclosure of sponsor and other
information.

(a) In the interest of avoiding irre-
sponsible and anonymous products, the
outside of the packages in which the
industry’s products are sold to the con-
suming public should bear the name and
jocation of the place of business of the
manufacturer or producer, or of the per-
son or concern placing the product on
the market.

(b) Directions for use of industry
products should be placed on the out-
side of the package in which the prod-
uct is sold or a clear statement placed
on the outside of the package that direc-
tions for use are contained inside. In
the event any special equipment not or-
dinarily found in the home is required
for satisfactory application, such fact
should be stated on the outside of the
package.

(c) The practice of omitting from the
outside of the package the information
specified in paragraphs (a) and (b) of
this section, with the capacity and tend-
ency or effect of thereby misleading or
deceiving the public, is an unfair trade
practice.

§ 171.7 Guarantees, warranties, etc.

(a) It is unfair trade practice to use
any guarantee respecting an industry
product, or advertisement or representa-
tion in relation thereto, which is false,
misleading, or deceptive because it does
not make reasonable disclosure of the
conditions or limitations of the guaran-
tee or which fs false, misleading, or de-
ceptive for any other reason.

(b) Without in any way limiting the
foregoing provisions of this section,
guarantees of the following type or char-
acter shall not be used:

(1) Guarantees containing statements,
“romises, or assertions which have the
capacity or tendency to mislead or de-
ceive any purchaser in any material re-
spect as to the utility or efficacy of the
industry product.

(2) Guarantees which are so used or
which are of such form, text, or char-
acter as to import, imply, or represent
that the guarantee is broader or will af-
ford more protection to purchasers or
users than is in fact true.


Chapter I—Federal

(3) Guarantees in which any condi-
tion, qualification, or contingency ap-
plied in practice by the guarantor is
deceptively concealed and is not fully
and nondeceptively stated therein or is
stated in such manner or form as to be
deceptively minimized, obscured, or con-
cealed in whole or in part.

(4) Guarantees which are stated,
phrased, or set forth In such manner
that although the words used are liter-
ally and technically true, the whole is
misleading in that purchasers or users
are not made sufficiently aware of certain
contingencies or conditions which are
applicable to such guarantees and which
materially lessen the value thereof as a
guarantee to purchasers or users.

(5) Guarantees which purportedly ex-
tend for such indefinite or unlimited pe-
riod of time or for such long period of
years as to have the capacity and tend-
ency or effect of thereby misleading or
deceiving purchasers or users into the
belief that the product has or is defi-
nitely known to have a greater degree of
serviceability, utllity, or efficacy in actual
use than is in fact true.

(6) Guarantees issued, or directly or
indirectly caused to be used, in respect
of an industry product, when or under
which the guarantor fails or refuses to
observe scrupulously his obligations
thereunder or fails or refuses to make
good on claims coming reasonably with-
in the terms of the guarantee.

(1) Guarantees which in themselves,
or in the manner of their use, are other-
wise false, misleading, or deceptive in
any material respect.

(c) This section shall be applicable
not only to guarantees, but also to war-
ranties, purported warranties and guar-
antees, and to any promise or represen-
tation in the nature of or purporting to
be a guarantee or warranty.

$171.8 Confusion as to
“dye”.

It appears that through the years
during which the public has been sup-
plied with home dyes and tints by this
industry there has grown up a substan-
tial understanding on the part of con-
sumers that in the main “tinting” re-
quires a dye bath of lesser temperature
than does “dyeing;” that, therefore, a
tint is in general regarded as easier to
apply than a dye and less likely to be in-
‘Jurious to fabrics which may be adversely
affected by high temperatures. In view
of this situation, it is important that
members of the industry safeguard their

“tint” and

Trade Commission § 171.10
advertising, labeling, and selling prac-
tices against the possibility of misleading
or deceiving the public through represen-
tations that any of their products is as
easy to apply and as harmless to all fab-
rics as a tint where such is not the fact,
or by other use of the words “tint” and
“dye” in such manner as to be confusing
or misleading to the public. It is an un-
fair trade practice to mislead or deceive
the public in any such respect.

Likewise, it appears to be the consen-
sus of opinion that “dyeing” may be ex-
pected to achieve, in most cases, a sub-
stantially greater degree of durability of
color than “tinting.” It is an unfair
trade practice to represent that “tint-
ing” achieves durability of color equiva-
lent to the durability of color achieved by
“dyeing” except in those cases in which
such representation is unequivocally true.

§ 171.9 Other forms of deception.

It is an unfair trade practice to offer
for sale, sell, or distribute any industry
product, or to promote the sale or use
thereof, by any method or under any cir-
cumstance or condition which has the
capacity and tendency to mislead or de-
ceive purchasers, prospective purchasers,
or the public, in any material respect,
whether concerning the utility or efficacy
of the product, its newness or exclusive
character, or the results to be achieved
by its use, the quantity to be used, the
grade, composition, ingredients, ease or
method of application, safety, origin,
sources of manufacture of the product,
or concerning any other inatter.

§ 171.10 Improper use of demonstra-
tors and payment of “spiffs”, “push
money”’, etc.

(a) It is an unfair trade practice for
any member of the industry to furnish
demonstrators, or pay, reimburse, or al-
low in whole or in part the compensation
of demonstrators, or to pay or grant
“push money,” “spiffs,” or any other bo-
nus, gratuity, payment, or allowance to
any dealer or distributor or to any clerk,
salesperson, or employee of a dealer or
distributor, with the purpose or effect of
inducing, encouraging, or causing such
customer-dealer, or his clerk, salesper-
son, or einployee, to give preferential
sales effort to such member's products
over competing industry products or to
discourage the purchase of a competi-
tor’s products by the public:

(1) Where the capacity and tendency
or effect of such practices is to cause the

91


§ 171.11

public when making purchases of indus-
try products to be misled or deceived into
the erroneous belief that said demonstra-
tors, dealers, or salespersons are free
from such special Interest or influence or
are not so subsidized, paid, or employed
by such industry member; ?

(2) Where the effect of any such prac-
tice is to hamper and unduly restrict the
legitimate, free, and full use and enjoy-
ment of such trade outlets for the distri-
bution of competing industry products;
or

(3) Where the purpose or effect of any
such practice is to substantially lessen
competition or unreasonably restrain
trade or tend to create a monopoly in the
marketing of industry products; or

(4) Where the effect of such practices
is to bring about, or to serve as a means
of bringing about, a discrimination in
price, service, facilities, or other practice
contrary to the provision of the Robin-
son-Patman Act.

(b) NothIng in thls sectlon shall be
construed as prohibiting the furnishing
of actual demonstrators, namely, persons
who are skilled in the demonstration of,
and in educating the public in respect to,
the application and use of the product
and who actually perform such demon-
strations, when such demonstrators are
furnished and employed in such manner
and under such conditions as not to in-
volve any of the inhibited tendencies,
results, or effects specified in paragraph
(a), (1), (2), (3); and (4) of this sec-
tion.

§ 171.11 Exclusive or pre-emptive deals
to eliminate or suppress competition.
Wherever the effect may be to sub-
stantially lessen competition, or tend to
create a monopoly, it is an unfair trade
practice for any member of the industry
to purchase or otherwise acquire, in
whole or in part, from a distributor or
dealer the stock of competing products
of any competitor of such industry mem-
ber, to make loans to a distributor or
dealer, to guarantee a distributor or
-dealer increased profits as compared with
‘profits previously obtained in the han-
dling of competitive industry products,
or to furnish or promise to furnish to a

3’ Means or methods employed to prevent de-
ceptive tendencies or effects tn the use of
demonstrators or the payment of push money,
spiffs, etc., must be such as will permit of full
compliance with the Robinson-Patman Act.

92

Title 16—Commercial Practices

distributor or dealer anything of value,
when such acts or practices are done:

(a) Upon any express or implied con-
dition, agreement, or understanding,
that the distributor or dealer will dis-
continue handling competitive industry
products and will handle such member’s
industry products exclusively: or

(b) As an inducement to the distribu-
tor or dealer to discontinue handling
competitive industry products; or

(c) As an inducement to the distribu-
tor or dealer to eliminate or reduce the
display space accorded to, or derogate
the display of, competing industry prod-
ucts and to grant a greater amount of ~
display space, or accord a more favorable
display, to such industry member’s
products,

§ 171.12 Advertising or promotional al-
lowances.

(a) It is an unfair trade practice for
any member of the industry to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of value to or for the benefit of any
of his customers as a compensation or in
consideration for certain services or fa-
cilities, unless such payment or consld-
eration is available on proportionally
equal terms to all his other customers
competing in the distribution of his prod-
ucts or commodities.

(b) Said certain services or facilities
referred te in paragraph (a) of this
section are such as are furnished by
or through the customer in connection
with the processing, handling, sale, or
offering for sale of any product or com-
modity manufactured, sold, or offered
for sale by such industry member in the
course of his commerce.

§ 171.13 Other
trary to law.

In the course of marketing industry
products in commerce, it is an unfair
trade practice to discriminate in price
directly or by means of discriminatory
discounts, rebates, refunds, or other
means; to pay or receive certain broker-
age or commissions; or to furnish serv-
ices or facilities on terms not accorded
to all customers on proportionally equal
terms; if and when such respective prac-
tices are pursued under the circum-
stances and conditions bringing the prac-
tices withlIn the inhibitions of the
Robinson-Patman Act as amended.

(49 Stat. 1526-1528; 52 Stat. 446; 15 U.8.0,
18, 18a, 138b, 18c,. 21a)

discriminations con-


Chapter —Federal

§ 171.14 Miscellaneous unfair trade
practices.

It is an unfair trade practice:

(a) To refer, in advertisements or rep-
resentations in respect of a dye or tint,
to weaves or fabrics in such manner as
to confuse and mislead or deceive pur-
chasers or prospective purchasers;

(bo) To use any trade name, corporate
name, trade-mark, or other trade desig-
nation in such a manner as to have the
capacity: and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public as to the character,
name, nature, or origin of any product of
the industry, or any material used
therein, or in any other material respect;

(c) For any concern, in the course of
or in connection with the distribution of
industry products, to represent, directly
or indirectly, that it is a manufacturer
of industry products, or that it owns or
controls a factory or laboratory making
such products, when such is not the fact,
or in any other manner to misrepresent
the character, extent, or type of its busi-
ness;

(d) To defame competitors by: imput-
ing to them falsely any dishonorable con-
duct, inability to perform contracts,
questionable credit standing, or to make
any other false representation or false
disparagement of such competitor or of
any industry product of any such com-
petitor in any respect, or of such com-
petitor’s business methods, selling prices,
values, credit terms, policies, or services;

(e) Unlawfully to induce or attempt to
induce the breach of existing lawful con-
tracts between any industry member and
his customer or supplier by any means
whatsoever or to interfere with or ob-
struct the performance of any such con-
tractual duties or services by any such
means;

(f) Directly or indirectly to give, offer
to give, or permit or cause to be given,
money or anything of value to agents,
employees, or representatives of custom-
ers or prospective customers, or to
agents, employees, or representatives of
any other industry member’s customers
or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase products manufac-
tured or sold by any industry member,
or to influence such employers or prin-
cipals to refrain froin dealing in the
products of any other industry member

Trade Commission $172.1
or from dealing or contracting to deaf:
with any other industry member;

(g) To employ or otherwise procure:
any person to disparage deceptively any
other industry member or the industry’
product of any industry member.

§ 171.15 Aiding or abetting use of un-
fair trade practices,

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

PART 172—VERTICAL TURBINE
PUMP INDUSTRY

Group I

Bec.

172.1 Misrepresentation.

172.2 False or deceptive selling methoda.

172.3. Guarantees, warranties, etc.

172.4 Misrepresenting products as conform-
ing to standard.

172.5 Deception as to rebuilt or used prod<
ucts.

172.6 Fictitious prices.

172.7 Defamation of competitors or dispar«
agement of their products.

172.8 False invoicing.

172.9 Inducing breach of contract.

172.10 Commercial bribery.

172.11 Enticing away employees of competi«-
tors.

172.12 Selling below cost.

172.18 Discrimination.

172.14 Combination or coercion to fix prices,
suppress competition, or restrain
trade.

172.15 Aiding or abetting use of unfair trade
practices,

Group IL

172.101 Publication of price ists and terms

of sale.

172,102 Maintenance of accurate records.
172.103 Arbitration.

COMMITTEE ON TRADE PRACTICES

172.201 Industry committee.

AvTHorITy: The provisions of this Part
172 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 17%
appear at 12 F.R. 3913, June 17, 1947, unless
otherwise noted.

Group I
§ 172.1 Misrepresentation.

It is an unfair trade practice to use, or
cause or promote the use of, any adver-
tising by radio, newspapers, magazines or
other media, or any trade promotional

93