Trade Practice Rules For The Household Fabric Dye Industry

16 CFR Part 171 · Trade practice rules · in the Code of Federal Regulations 1947-1947 (1 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1947 CFR · Earliest edition: 1947 CFR

Decisions that mention this industry's rules (1)

Text (1947 edition, OCR)

Chapter I—Federal Trade Commission

leading, or deceptive conditions or cir-
cumstances, or in any manner which has
the capacity and tendency or effect of
causing the purchasing or consuming
public to be misled or deceived in respect
of the protection or immunity of such
product from magnetization or of aiding,
abetting, or causing salesmen, dealers, or
other marketers to mislead, deceive, or
confuse the purchasing or consuming
public in respect thereto or in any other
respect.

(b) Use of the term “nonmagnetic.”
Nothing in this section shall be con-
strued as prohibiting use of the term
“nonmagnetic” as descriptive of a watch,
watch movement, or any part thereof, if
the same is immune to magnetization, or
cannot be magnetized under any condi-
tions of use, or other conditions which
are or may be encountered by users.

(c) Use of the term “antimagnetic.”
Nothing in this section shall be con-
strued as prohibiting the use of the term
“antimagnetic” as descriptive of a watch
or watch movement which is of such
composition, construction, or treatment
that the metal or substance in the bal-
ance, hairspring, and other parts of the
movement essential to accurate time-
keeping is such that the daily rate of the
watch or watch movement, in a demag-
netized condition, will not be changed by
more than 15 seconds as a result of hav-
ing been placed in an electrical field of
not less than 60 Gauss and therein kept
for at least 5 seconds in each of the fol-
lowing positions: .

Vertical (with pendant in any position),

Horizontal (with dial either up or down);

Provided, however, That in the use of
such term “antimagnetic” no representa-
tion is made, directly or by implication,
whether by the addition of absolute or
superlative adjectives or by depiction or
other form of representation indicating
or tending to indicate that the freedom
or immunity of such watch or watch
movement from the possibilities of mag-
netization is greater or more certain than
is in fact true. [Rule 5]

PART 171—TRADE PRACTICE RULES
FOR THE HOUSEHOLD FABRIC
DYE INDUSTRY [ADDED]

Sec.
171.0 Definitions. :
171.1 Misuse of the terms “‘all fabric”, “ali

purpose”, and similar representa-
tions, as applied to industry dyes
or tints.

§ 171.1

Sec.

171.2 Misrepresentations as to coverage of
dyes or tints.

171.8. 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 Disciosure of sponsor and other in-
formation.

171.7 Guarantees, warranties, etc.

171.8 Confuslon 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,

171.13 Other discriminations contrary to
law. :

171.14 Miscellaneous unfair trade practices.

171.15 Aiding or abetting use of unfair trade
practices. :

AutTHoriry: §§171.0 to 171.15, inclusive,

issued under 38 Stat. 717, as amended; 15
U.S. C. 41, et seq.

Source: §§ 171.0 to 171.15, inclusive, con~
tained in File No, 21-402, Federal Trade Com-
mission, May 29, 1947, 12 F.R. 3478, 3689.

§171.0 Definitions. As used in this
part, the following terms shall have the
respective definitions 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
Gncluding 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.

(a) 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.

8171.1 Misuse of the terms “all fab-
ric’, “all purpose’ and similar repre-
sentations, as applied to industry dyes or

Page 2805


§ 171.2

tints—(a) “All fabrie”; 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
construed as prohibiting the use as de-
scriptive of such dye 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
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-

Page 2806

Title 16—Commercial Practices

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 herein specified. [Rule
1]

$171.2 Misrepresentations as to cover-
age of dyes or tints. It is an unfair trade
practice for any member of the industry
to glve a false or misleading statement
or approximation of the size of article or
quantity of fabric which the dye or tint
in the respective packages offered for sale
by such member will satisfactorily color
to the respective shades or colors desig-
nated: Provided, however, That reason-
able approximations, truthfully and non-
deceptively stated may be given.

Nore: As to misrepresentation regarding
coverage or efficacy of color remover, see
§ 171.5 (Rule 5).

[Rule 2]

§ 171.3 Misrepresentations as to colors
or shades obtainable. It is an unfair
trade practice to use any form of repre-
sentation respecting color or shade which
directly or by implication is false, mis-
leading, or deceptive. Pursuant to this
section:

(a) It is an unfair trade practice, In
selling or promoting the sale of packages
of dye or tint, to use color cards or color
illustrations 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 truthfully
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. [Rule 3]

$171.4 Use of the words “fast”, “fade-
less’, “fade-proof”’, “unfadable’, “sun-
fast”, “wash-fast”, and representations
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:


Chapter I—Federal Trade Commission

(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 article
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, wili 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.

[Rule 4]

§ 171.5 Deception respecting efficacy
of color removers. It is an unfair trade
practice to misrepresent, directly or in-
directly, the effectiveness of a color re-
mover, either as to the types or quan-
tity of dyestuffs it will remove or the
kinds, types, or quantity of fabric upon
which it is effective. Under this section
no representation shall be made that a
color remover will remove all color or
stain from a fabric, or will make a fab-
ric white, or will restore a fabric to its
original color, unless such representation
be unequivocally true and nondeceptive.
[Rule 5]

§ 171.7

$171.6 Disclosure of sponsor and
other information. (a) In the interest
of avoiding irresponsible and anonymous
products, the outside of the packages in
which the industry’s products are sold to
the consuming public should bear the
name and location of the place of busi-
ness of the manufacturer or producer,
or of the person 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. [Rule 6]

8171.7 Guarantees, warranties, etc.
(a) It is unfair trade practice to use any
guarantee respecting an industry prod-
uct, or advertisement or representation
in relation thereto, which is false, mis-
leading, or deceptive because it does not
make reasonable disclosure of the condi-
tions or limitations of the guarantee or
which is false, misleading, or deceptive
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,
promises, 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.

(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

Page 2807


§ 171.8

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-
nitély Known to have a greater degree of
serviceabllity, utility, 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 wlth-
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. [Rule 7]

§171.8 Confusion as to “tint” and
“dye’. It appears that through the
years during which the public has been
supplied 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 whlch may be adversely
‘affected by high temperatures. In view
of this situation, it Is important that
members of the Industry safeguard their
advertising, labeling, and selling prac-
tices agalnst the possibllity 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,

Page 2808

Title 16—Commercial Practices

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. [Rule 8]

§ 171.9 Other forms of deception. It
is an unfair trade practice to offer for
sale, sell, or distribute any industry prod-
uct, or to promote the sale or use thereof,
by any method or under any circum-
stance or condition which has the capac-
ity and tendency to mislead or deceive
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 achleved
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 matter. [Rule
9]

§ 171.10 Improper use of demonstra-
tors and payment of “spiffs’, “push mon-
ey”, etc, (a) It is unfair trade practice
for any member of the industry to fur-
nish demonstrators, or pay, reimburse, or
allow In whole or In part the compensa-
tion 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 employee, 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
public when making purchases of indus-
try products to be mlsled or deceived into
the erroneous belief that said demonstra-
tors, dealers, or salespersons are free
from such special interest or influence or


Chapter I—Federal Trade Commission

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 substantlally 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 section 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 tendencles,
results, or effects: specified in paragraph
(a), (1), (2), (3), and (4) of this sec-
tion. [Rule 10]

§171.11 Exclusive or pre-emptive
deals to eliminate or suppress competi-
tion. 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
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 wlll dis-
continue handling competitive industry

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

§ 171.13
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. [Rule 11]

§ 171.12 Advertising or promotional
allowances. (a) It is an unfair trade
practice for any member of the industry
to pay or contract for the payment of ad-
vertising 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 cer-
tain services or facilities, unless such
payment or consideration is available on
proportionally equal terms to all his
other customers competing in the dis-
tributlon of his products or commodities.

(b) Said certain services or facllities
referred to in paragraph (a) of this
section are such as are furnished by
or through the customer in connection
with the processing, handling, sale, or -
offerlng for sale of any product or com-
modity manufactured, sold, or offered
for sale by such Industry member in the
course of his commerce.” [Rule 12]

§ 171.18 Other discriminations con-
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 discrimina-
tory 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-

2 As used in §§ 171.12 and 171.13 (Rules 12
and 18) and as defined in the Clayton Act,
the word “commerce” means “trade or com-
merce among the several States and with
foreign nations, or between the District of
Columbia or any Territory of the United
States and any State, Territory, or foreign
nation, or between any insular possessions
or other places under the jurisdiction of
the United States, or between any such pos-
session or place and any State or Territory
of the United States or the District of Colum-
bia or any foreign nation, or within the Dis-
trict of Columbia or any Territory or any
insular possession or other place under the
jurisdiction of the United States.”

Page 2809


§ 171.14

tices are pursued under the circum-
stances and conditions bringing the prac-
tices within the inhibitions of the
Robinson-Patman Act as amended. (49
Stat. 1526-1528; 52 Stat. 446). [Rule
13]

§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;

(b) 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;

(ad) 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) Uniawfully to induce or attempt to
_ induce the breach of existing lawfui 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

Page 2810

Title 16—-Commercial Practices

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 from dealing in the
products of any other industry member
or from dealing or contracting to deal
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. [Rule
14) :

§ 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 in-
duce another, directly or indirectly, to
use or promote the use of any unfair
trade practice specified in this part.
[Rule 15]

PART 172—VERTICAL TURBINE
PUMP INDUSTRY [ADDED] ,

Sec,

172.1. Misrepresentation.

172.2 False or deceptive selling methods.

1723 Guarantees, warranties, etc.

1724 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.

172.13 Discrimination.

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

172.15 Aiding or abetting use of unfair trade
practices.

AvurHoRITY: §§ 172.1 to 172.15, inclusive,

issued under 38 Stat. 717, as amended; 15
U. 8. C. 41, et seq.

Source: §§ 172.1 to 172.15, inclusive, con-
tained in File No, 21-400, Federal Trade
Commission, June 17, 1947, 12 F.R. 3913,

§ 172.1 Misrepresentation. It is an
unfair trade practice to use, or cause
or promote the use of, any advertising
by radlo, newspapers, magazines or other
media, or any trade promotional litera-
ture, label, brand, mark, designation, or
representation (whether in the form of

-@ guarantee, warranty, or otherwise),

however disseminated or published,