Oil Heating Industry Of The New England States Group
16 CFR Part 183 · Trade practice rules · in the Code of Federal Regulations 1973-1973 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1973 CFR · Earliest edition: 1973 CFR
Text (1973 edition, OCR)
Chapter I—Federal PART 183—OIL HEATING INDUSTRY OF THE NEW ENGLAND STATES Group I Sec. 183.1 Misrepresentation as to available supply of fuel oil or other indus- try products. 183.2 Deceptive advertising and misrep- resentation. 183.3 Deception as to rebuilt or second- hand products. 183.4 Misuse of word “free,” etc. 183.5 Selling below cost. 183.6 Commercial bribery. 183.7 Use of “loss leaders.” 183.8 Discrimination. 183.9 Guarantees, warranties, etc. 183.10 Coercing purchase of an industry product or industry service as a prerequisite to the purchase, lease, or loan of another industry prod- uct or industry service. 183.11 Defamation of competitors or dis- paragement of their products or services. 183.12 Aiding or abetting use of unfair trade practices. Group II 183.101 Cost records. 188.102 Rule compliance. AvuTHOorRITY: The provisions of this Part 183 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: The provisions of this Part 183 appear at 14 FR. 3582, June 30, 1949, unless otherwise noted. Group I § 183.1 Misrepresentation as to avail- able supply of fuel oil or other indus- try products. (a) It is an unfair trade practice for any member of the industry to use, or cause or promote the use of, any false or deceptive representation, in ad- vertisements or otherwise, as to the pres- ent or future availability or adequacy of supplies of fuel oi! or other industry products to meet the needs of users or prospective users. (b) Nothing in this section shall be construed as inhibiting an industry mem- ber from expressing opinions as to the probable adequacy of supplies of fuel oil or other industry products when such opinions are based on information of au- thoritative and reliable character which the industry member honestly believes and when, in conjunction with the ex- pressed opinion, the industry member makes disclosure of the source of infor- mation on which he is relying and it is 84-059—-73-——_10 Trade Commission § 183.3 made clear that he is expressing an opin- ion based on such information. § 183.2 Deceptive advertising and mis- representation. (a) It is an unfair trade practice for any member of the industry to use, pub- lish, circulate, or cause or promote the use, publication, or circulation: (1) Of any false or deceptive price quotations, price lists, or terms, or con-~ ditions of sale; or (2) Of any representation which is false or tends untruthfully to indicate, by use of title, designation, or otherwise, that any distributor or dealer has been specifically designated by the manufac- turer or wholesale distributor to deal in, handle, install, or service a particular brand of industry product, or that any mechanic or other employee used in con- nection with the installation of or serv- icing of an industry product has under- gone a course of special training; or (3) Of any false, misleading, or de- ceptive statement or representation with respect to the grade, quality, perform-~- ance, construction, composition, design, model, efficiency, safety, or economy of any industry product, or with respect to the origin, manufacture, or distribution of any industry product, or with respect. to the installation or servicing of an industry product; or of any statement r representation which is false, mis- leading, or deceptive in any other respect. (b) The provisions of this section shall apply to said false, misleading, or decep- tive statements or representations re- gardiess of the medium used for their dissemination, whether by oral or writ- ten communication or by radio, news- paper, magazine, trade promotional or advertising literature, or other media, or whether by brand, mark, label, or other-~ wise. § 183.3 Deception as to rebuilt or sec- ond-hand products. (a) It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise, or otherwise represent any product of the industry as being new when such is not the fact. (b) In the marketing of rebuilt or second-hand products of the industry, or parts thereof, or in the marketing of products containing rebullt or second- hand parts, it is an unfair trade prac- 137 $ 183.4 tice to conceal or fail or refuse to fully and nondeceptively disclose by effective means of identification (such as by tag, label, stamp, or mark firmly affixed to the products, or the immediate con- tainers therecf in which sold and de- livered to the consumer, or by invoice, bill or delivery slip accompanying the article and delivered to the purchaser therewith) the fact that such products, or all or certain parts contained therein, are not new, or are used, second-hand, rebuilt, repaired, or refinished after use, such concealment and nondisclosure having the capacity and tendency or effect of misleading the purchasing or consuming public. § 183.4 Misuse of word “free,” etc. It is an unfair trade practice to use the term “free,” or any other term of similar import or meaning, to describe, desig- nate, or refer to any industry product or industry service which is not given to the recipient thereof without cost and unconditionally. § 183.5 Selling below cost. (a) The practice of selling or offering for sale industry products and services 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 un- fair trade practice. (b) This section is not to be construed as prohibiting all sales below cost, but only such selling below the seller’s cost as is resorted to and pursued as a monopo- Nstic practice with the wrongful intent referred to and coupled with the effect of unreasonably restraining trade, tend- ing to create a monopoly, or substantially lessening competition. (c) The costs referred to in this sec- tion are actual costs of the respective seller and not. some other figure or aver- age costs in the industry determined by an industry cost survey or otherwise. § 183.6 Commercial bribery. It is an unfair trade practice for a member of the industry to give, or offer to give, or pcrmit or cause to be given, di- rectly or indirectly, money or anything of value to agents, employees, or representa- tives of customers or prospective custom- ers, or to agents, employees, or represent- atives of competitors’ customers or Title 16—Commercial Practices prospective customers, without the knowledge of their employers or prin- cipals, ar an inducement to influence their employers or principals to pur- chase, or contract to purchase, any in- dustry product or industry service, or to influence such employers or principals to refrain from purchasing the industry products or industry services of competi- tors or from dealing or contracting to deal with competitors. § 183.7 Use of “loss leaders.” The practice of selling any industry product or industry service below the seller’s cost as a “loss leader” to induce the purchase of some other industry product or industry service, the sale of the latter being used to recoup the loss sustained on the “loss leader” product or service so sold, with the capacity, tend- ency, or effect of misleading or deceiv- ing purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 183.8 Discrimination.’ (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etec., which effect unlawful price discrimi- nation, It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such com- merce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential (whether in the form of product installation or maintenance services or otherwise) , 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 substantially to lessen competition or tend to create a 1 As used in this section, the word “com- merce” means “trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Ter- ritory 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 possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States.” 138 Chapter I]—Federal monopoly in any line of commerce, or to injure, destroy, or prevent competi- tion 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, con- sumption, or resale within any place under the jurisdiction of the United States; (2) That nothing contained in this paragraph shall prevent differentials which make only due allowance for dif- ferences in the cost of manufacture, saie, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing contained in this paragraph shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade; (4) That nothing contained in this paragraph shall prevent price changes from time to time where made in re- sponse to changing conditions affecting either (i) the market for the goods con- cerned, or (ii) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obsolescence 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 interme- diary is acting in fact for or in behalf, or ts 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 in- dustry engaged in commerce to pay or contract for the payment of advertising Trade Commission § 183.8 or promotional allowances or any other thing of value to or for the benefit of a customer of such Member, In the course of such commerce, as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, han- djing, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such member, uniess such payment or consideration is available on proportionaliy equal terms to all other customers competing in the distribution of such products or com- modities. (ad) 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 contribut- ing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for saie of such commodity so purchased upon terms not accorded to ail 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 forego- ing provisions of this section. (f) Purchases by schools, colleges, uni- versities, public libraries, churches, hos- pitals, and charitable institutions not operated for profit. The foregoing pro- visions of this section relate to practices within the purview of the Robinson-Pat- man Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations ex- pressed in the amendment to such Rob- inson-Patman Antidiscrimination Act, which amendment was approved May 26, 1938, and reads as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That noth- ing in the act approved June 19, 1936 (Puh- 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 schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit. (52 Stat. 446; 15 U.S.C. 18c) 139 § 183.9 § 183.9 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 scrupulously ad- hered 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, de- ceptive or unfair to the purchasing or consuming public, (6) Under this section guarantees of the following type or character shall not be used: (1) Guarantees containing statements, representations, or assertions which have the capacity and tendency or effect of misleading and deceiving in any respect; 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 heating system or particular parts thereof which are not in fact covered, or will afford more protection to pur- chasers 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 therein, or is stated in such manner or form as to be deceptively minimized, obscured, or concealed, wholly or in part; or (4) Guarantees which are stated, phrased, or set forth in such manner that although the statements contained therein are literally and technically true, the whole is misleading in that pur- chasers or users are not made sufficiently aware of certain contingencies or condi- tions applicable to such guarantee which materially lessen the value or protection thereof as a guarantee to purchasers or users; or (5) Guarantees which purportedly ex- tend for such an indefinite or unlimited period of time or for such a long period of years as to have the capacity and tendency or effect of thereby misleading or deceiving purchasers or users into the belief that the product has or is def- finitely known to have greater degree of serviceability or durability in actual use than is in fact true; or (6) Guarantees which have the ca- pacity and tendency or effect of other- wise misrepresenting the performance, serviceability, durability, or lasting qual- ities of the product, such as, for example, & guarantee extending for a certain Title 16—Commercial Practices number of years or other long period of time when the ability of the product to last, endure, or remain serviceable for such period of time has not been estab- lished by actual experience or by compe- tent and adequate tests definitely show- ing in either case that the product has such lasting qualities under the condi- tions encountered or to be encountered in the respective locality where the prod- uct is sold and used under the guaran- tee; or . (7) Purported guarantees in the form of documents, promises, representations or other form which are represented or held out to be guarantees when such is not the 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 “guarantee” or term of similar import: or (8) Guarantees issued, or directly or indirectly caused to be used, by any member of the industry when or under which the guarantor fails or refuses to scrupulously observe his obligations thereunder or fails or refuses to make good on claims coming reasonably with- in the terms of the guarantee; or (9) Guarantees which in themselves or in the manner of their use are other- wise false, misleading, or deceptive. (c) This section shall 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 purport- ing to be a guarantee or warranty. § 183.10 Coercing purchase of an in- dustry product or industry service as a prerequisite to the purchase, lease, or loan of another industry product or industry service. The practice of coercing the purchase of one or more industry products or in- dustry services as a prerequisite to the purchase, lease, or loan of one or more other industry products or induStry serv- ices, when the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably to restrain trade, is an unfair trade practice. § 183.11 Defamation of competitors or disparagement of their products or services. The defamation of competitors by falsely imputing to them dishonorable. conduct, inability to perform contracts, questionable credit standing, or by other false representations, or the false dis-- 140 Chapter |—Federal Trade Commission paragement of competitors’ products in any respect, or of their business methods, selling prices, values, credit terms, poli- cies, or services, is an unfair trade practice. § 183.12 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 §§ 183.1 to 183.11. Group It § 183.101 Cost records. It is the judgment of the industry that each member should independently keep proper and accurate records for deter- mining his costs. § 183.102 Rule compliance. It is the judgment of the industry that fair dealing and ethical business conduct call for a strict adherence by industry members to the principles of Group I rules in the entire conduct of their af- fairs, and the industry recommends that each member pledge his voluntary ac- ceptance of the rules in §§ 183.1 to 183.12. PART 185—PEAT INDUSTRY Sec. 185.0 Definitions. Group Tf 185.1 Misrepresentation in general. 185.2 Improper designation of product as “Peat.” 185.3 Use of the terms “Moss Peat” and “Peat Moss.” 185.4 Deceptive use of trade or corporate names, or trade-marks, etc. 185.5 Misrepresentation as to character of business. 185.6 Misrepresenting products as con- . forming to standard. 185.7 Imitation of trade-marks, trade names, etc. 185.8 Procurement of competitors’ confi- dential information by unfair means and wrongful use thereof. 185.9 Defamation of competitors or dis- paragement of their products. 185.10 Substitution of products. 185.11 Commercial bribery. 185.12 Combination or coercion to fix prices, suppress competition, or restraln trade. 185.18 Prohibited discrimination. 185.14 Coercing purchase of one product as ' a prerequisite to the purchase of other products. 185.15 Aiding or abetting use of unfair trade practices. § 185.2 Group II Sec. 185.101 Products to be sold on dry measure Dasis. AuTHoRITy: The provisions of this Part 185 issued under secs. 6, 6, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Sourcs: The provisions of this Part 185 ap- pear at 15 F.R. 197, Jan. 13, 1950, unless otherwise noted. § 185.0 Definitions. As used in the regulations in this part, the terms “industry product” and “peat” shall be understood as having the foliow- ing meanings: (a) Industry product. Any product marketed for use as a soil conditioner, or for any agricultural or horticultural pur- pose, which is composed, or is represented as being composed, wholly or in part of peat; also, any product marketed for any such purpose which is composed, or is represented as being composed, wholly or in part of a humus or muck derived from peat. (b) Peat. Any partly decomposed vegetable matter which is accumulated under water or in a water-saturated en- vironment through decomposition of mosses, sedges, reeds, tule, trees, or other plants. Group I § 185.1 Misrepresentation in general. The practice of selling, advertising, de- scribing, or otherwise representing in- dustry products in a manner which has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public in respect to the grade, quality, or quantity of the product, its price, value, efficacy, composition ingredients, nature, use, preparation, manufacture, or distribution, or in any other material respect, is an unfair trade practice. § 185.2 Improper designation of prod- uct as “Peat.” It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise, brand, label, or otherwise designate or represent as “Peat”, any product which is not in fact composed predominantly of peat to the extent that at least 75 percent! of the product is composed of peat, with such other ma- terials as may be present in the content, 1The percentage to which reference 1s here made is to be understood as a weight percentage determined on the basis of the product being substantially free of moisture. 141