Trade Pamphlets Binding Industry Of The New York City Trade Area
16 CFR Part 179 · Trade practice rules · in the Code of Federal Regulations 1949-1949 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1949 CFR · Earliest edition: 1949 CFR
Text (1949 edition, OCR)
§ 178.40 (f) Purchases by schools, colleges, universities, public libraries, hospitals, and charitable institutions not operated for profit. The foregoing provisions of this section relate to practices within the purview of the Robinson-Patman Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations expressed in the amendment to such Robinson-Pat- man 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 Amer- 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, shali apply to pur- chases of their suppiies for their own use by schools, colleges, -universities, public li- braries, churches, hospitals, and charitabie institutions not operated for profit. (Sec. 2, 38 Stat. 730, as amended, secs, 2, 3, 4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15 U. S. C. 18, 18a, 13b, 18c, 21a) § 178.40 Aiding or abetting use of un- fair trade practices. It is an unfair trade practice for any person, firm, or corpo- ration to aid, abet, coerce, or induce an- other, directly or indirectly, to use or promote the use of any unfair trade prac- tice specified in §§ 178.0 to 178.40. GROUP IT § 178.101 Shipping chicks to fictitious consignees, etc. The industry condemns the practice of disposing of baby chicks by shipping them to fictitious consignees or without an order from, or consent of, the consignee, necessitating the sale of such undeliverable shipments at public auction by agents of the common car- rier in order to secure payment for trans- portation costs. Such practice is deemed by the industey to be harmful to the chicks and to facilitate the spread of dis- ease. Moreover, it should be noted that the use of such methods in a manner which is contrary to the provisions of § 178.14 is an unfair trade practice. § 178.102 Failure to give notice of change in shipping schedule. The in- dustry condemns the practice of sellers of baby chicks failing to give proper no- tice to their customers of any change in shipping schedule thereby causing in- convenience and loss to purchasers. The practice of any deception in this respect is inhibited by the provisions of § 178.1. Page 542 Title 16—-Commercial Practices § 178.103 Failure to ship chicks as promptly as agreed upon. The industry condemns the practice of failing to ship baby chicks to customers as promptly as has been agreed upon, which practice frequently results in injury to the chicks and inconvenience and loss to custom- ers. The practice of any deception in this respect is inhibited by the provisions of § 178.1. § 178.104 Arbitration. The industry approves the practice of handling busi- ness disputes between members of the industry and their customers in a fair and reasonable manner, coupled with a spirit of moderation and good will, and every effort should be made by the dis- putants themselves to compose their dif- ferences. If unable to do so they should, if possible, submit these disputes to arbi- tration. § 178.105 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in let- ter and in spirit. The repudiation of contracts by seiiers on a rising market or by buyers on a declining market is condemned by the industry. Part 179-—Trade Pamphlet Bind- ing Industry of the New York City Trade Area GROUP I Sec. 179.1 Procurement of competitors’ confi- dential information by unfair means and wrongful use thereof. Discrimination. Commercial bribery. Defamation of competitors, Transactions below cost. Enticing away employees of competi- tors. 179.7 Inducing breach of contract. AUTHORITY: §§ 179.1 to 179.7 issued under sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g). Interpret or apply sec. 5, 38 Stat. 719, as amended; 15 U. S: C. 45. Other statutory provisions interpreted or applied are cited to text In parentheses. Source: §§ 179.1 to 179.7 appear at 13 F. R. 9319. - § 179.1 Procurement of competitors’ confidential information by unfair means and wrongful use thereof. It is an un- fair trade practice for aay member of the industry to obtain information concern- 179.2 179.3 179.4 179.5 179.6 ‘ing the business of a competitor by brib- ery of an employee or agent of such com- Chapter I—Federal Trade Commission petitor, by false or misleading state- ments or representations, by the imper- sonation of one in authority, or by any other unfair means, and to use the in- formation so obtained in such manner as to injure said competitor in his business or to suppress competition or unreason- ably restrain trade. $179.2 Discrimination—(a) Prohib- ited discriminatory prices, or rebates, re- funds, discounts, credits, etc., which ef- fect unlawful price discrimination. It is an unfair 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 indirectly, any rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, 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 substantialiy 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 involved in any such transaction are sold for use, con- sumption, or resale within any place un- der the jurisdiction of the United States; (2) That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery re- sulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in com- merce from selecting their own custom- ers in bona fide transactions and not in restraint of trade; (4) That nothing herein contained shall prevent price changes from time to time where made in response to chang- ing conditions affecting either (i) the market for the goods concerned, or (ii) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obso- § 179.2 lescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned. (b) Prohibited brokerage and com- missions. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such com- merce, to pay or grant, or to receive or accept, anything of value as a commis- sion, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of goods, wares, or merchandise, either to the other party to such transaction or to an agent, representative, or other inter- mediary therein where such intermedi- ary is acting in fact for, or in behalf, or is subject to the direct or indirect con- trol, of any party to such transaction other than the person by whom such compensation is so granted or 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 advertis- ing 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 compensa- tion or in consideration for any services or facilities furnished by or through such customer in connection with the proc- essing, handling, sale, or offering for sale of any products or commodities manu- factured, sold, or offered for sale by such member, unless such payment or consid- eration is available on proportionally equal terms to all other customers com- peting in the distribution of such prod- ucts or commodities. (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 fa-~ cilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportion- ally equal terms. (e) Inducing or receiving an illegal discrimination in price. It is an unfair Page 543 § 179.3 trade practice for any member of the in- dustry engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the forego- ing provisions of this section. (f) Purchases by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operdted for profit. The foregoing pro- visions of this section relate to practices within the purview of the Robinson-Pat- man Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations ex- pressed in the amendment to such Rob- inson-Patman Antidiscrimination Act, which amendment was approved May 26, 1938, and reads as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That noth- ing in the Act approved June 19, 1936 (Pub- lic, Numbered 692, Seventy-fourth Congress, second session), known as the Robinson- *Patman Antidiscrimination Act, shall apply to purchases of their supplies for their own use by schoois, colleges, universitles, public’ libraries, churches, hospitals, and charitable institutions not operated for profit. (g) Purchases by U. S. Government; applicability of Robinson-Patman Anti- discrimination Act to same. In an opin- ion submitted to the Secretary of War under date of December 28, 1936, the U. S. Attorney-General advised that the Robinson-Patman Antidiscrimination 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, 18a, 13b, 13c, 21a) § 179.3. Commercial bribery. It is an unfair trade practice for any member of the industry, dlrectly or indirectly, to give, or offer to give, or permit or cause to be given, money or anything of value to agents, employees, or representatives of customers or. prospective customers, or to agents, employees, or representa- tives of competitors’ customers or pro- spective customers, without the knowl- edge of their employers or principals, as an inducement to influence their em- ployers or principals to purchase or con- tract to purchase material and binding service from the maker of such gift or offer, or to infiuence such employers or principals to refrain from dealing or contracting to deal with competitors. Page 544 Title 16—Commercial Practices §179.4 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, question- able credit standing, or by other false representations, or the false disparage- ment of the grade or quality of their work, or of their business methods, values, credit terms, or policies, or in any other respect, is an unfair trade practice, §179.5 Transactions below cost. The practice of selling materials and service below the seller’s cost, when pursued with wrongful intent of thereby injuring a competitor and where the effect of such practice is to unreasonably restrain trade, tend to create a monopoly, or sub- stantially lessen competition, is an unfalr trade practice. This section is not to be construed as prohibiting all transactions below cost, but only such selling below the seller’s cost as is resorted to and pursued as a monopolistic practice with the wrongful intent referred to and coupled with the effect of unreasonably restraining trade, tending to create a monopoly, or sub- stantially lessening competition. The costs referred to in the sectlon are actual costs of the respective seller and not some other figure or average costs in the industry determined by an indus- try cost survey or otherwise. 8179.6 Enticing away employees of competitors. Willfully enticing away the employees of competitors, with the pur- pose and effect of thereby hampering or injuring competitors In their business and destroying or substantially lessen- ing competition, is an unfair trade prac- tice. Note: Nothing in this section shall be construed as prohibiting empioyees or agents from seeking more favorable employment. §179.7 Inducing breach of contract. Inducing or attempting to induce the breach of existing lawful contracts be- tween competitors and their customers or their suppliers by any false or decep- tive means whatsoever, or interfering with or obstructing the performance of any such contractual duties or services by any such means, with the purpose and effect of unduly hampering, injuring, or prejudicing competitors in their business, is an unfair trade practice.