Fine And Wrapping Paper Distrlbuting Industry
16 CFR Part 189 · Trade practice rules · in the Code of Federal Regulations 1975-1975 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1975 CFR · Earliest edition: 1975 CFR
Text (1975 edition, OCR)
Chapter |—Federal that uniform standards, which are equi- table as between buyer and seller and fair to the trade and purchasing public, be used in the settlement of disputes con- cerning the quality of the industry's goods. Nothing in this section, however, shall be construed as warranting classifi- cation of any fabric of the industry as a “first” when not fully qualified for such designation; and in this connection, in- dustry members recognize it as their obligation to in nowise contribute to any misrepresentation or deception as to grade, quality, or otherwise, in the further marketing of the fabric or prod- ucts made therefrom. PART 189-—FINE AND WRAPPING PAPER DISTRIBUTING INDUSTRY Group I Bec. 189.1 Misrepresentation in general. 189.2 Misrepresentation as to the charac- ter of business. 189.3 Deception as to available supply of advertised merchandise. 189.4 False invoicing. 189.5 Faise and misleading price quota- tions, etc. 189.6 Misrepresenting products as con- ferming to standard. 189.7 Imitation or simulation of trade- marks, trade names, ete. 189.3 Deceptive use of trade or corporate names, trade-marks, etc. 189.9 Substitution of products. 189.10 Enticing away employees of com- petitors. 189.11 Procurement of competitors’ con- fidential information by unfair means and wrongful use thereof. 189.12 Defamation of competitors or dis- paragement of their products. 189.18 Selling below cost. 189.14 Combination or coercion to fix prices, suppress competition, or restrain trade. 189.15 Prohibited discrimination. 189.16 Coercing purchase of one product as & prerequisite to the purchase of other products. 189.17 Abetting use of unfair trade prac- tices. Group II 189.101 Arbitration. 189.102 Return of merchandise. 189.108 Price lists. 189.104 Cost records. 189.105 Dissemination of credit informa- tion. 189.106 Repudiation of contracts. . 189.107 Saturday-Sunday closing 189.108 Labor conditions. 189.109 Statistical information. Trade Commission § 189.4 ComMMITTEE ON TRADE PRACTICES Sec. 189.201 Industry committee. AvuTHORITY: The provisions of this Part 189 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C, 46, 45, unless otherwise noted. Sovugcr: The provisions of this Part 189 appear at 15 F.R. 2901, May 16, 1950, unless otherwise noted. Group I § 189.1 Misrepresentation in general. It is an unfair trade practice to use, or cause or promote the use of, any trade promotional literature, advertising mat- ter, mark, brand, label, designation, or other representation, however dissemi- nated or published, which has the capac- ity and tendency or effect of misleading or deceiving purchasers or prospective purchasers with respect to the grade, quallty, quantity, price, value, origin, size, weight, strength, thickness, use, prepa- ration, composition or “furnish”, pack- ing, count, finish, manufacture, or distribution of any product of the indus- try, or in any other material respect. Nore: The word “furnish” as used in this section means the composite ingredients fed into a paper-making machine to produce a particular kind of paper. § 189.2 Misrepresentation as to the character of business. It is an unfair trade practice for any member of the industry, in the course of or in connection with the distribution or sale of industry products, to represent, directly or indirectly, that he is a manu- facturer, wholesaler, distributor, or re- tailer of industry products when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business. § 189.3 Deception as to available supply of advertised merchandise. The advertising or offering for sale of small and inadequate supplies (whether as closeouts or otherwise) of well-known brands of products at greatly reduced or bargain prices without disclosure of the quantity or of the inadequacy of the sup- ply available at such prices, with the capacity and tendency or effect of thereby misleading or deceiving the pur- chasing or consuming public, is an unfair trade practice. § 189.4 False invoicing. Withholding from or inserting in an invoice, billing, or statement any mate- 155 § 189.5 rial information by reason of which omission or insertion a false record is made, wholly or in part, of the transac- tion which such involce, billing, or state- ment purports to represent, with the purpose and effect of thereby misleading or deceiving purchasers, prospective pur- chasers, or the consuming public, is an unfair trade practice. § 189.5 False and misleading price quo- tations, etc. The publishing or circulating by any member of the industry of false or mis- leading price quotations, price lists, or terms or conditions of sale, with the ca- pacity and tendency or effect of thereby misleading or deceiving purcliasers or prospective purchasers, is an unfair trade practice. § 189.6 Misrepresenting products as con- forming to standard. Representing, through advertisement or otherwise, that any products of the in- dustry conform to a standard recognized in or applicable to the industry when such is not the fact, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 189.7 Imitation or simulation of trade- marks, trade names, etc. The imitation or simulation of the trade-marks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 189.8 Deceptive use of trade or cor- porate names, trade-marks, etc. The use of any trade name, corporate name, trade-mark, or other trade desig- nation which has the capacity and tendency or effect of misleading or de- ceiving the purchasing or consuming public as to the name, nature, or origin of any product of the industry or of any material used therein, or which is faise or misleading in any other respect, ts an unfair trade practice. § 189.9 Substitution of products. The practice of shipping or delivering products which do not conform to sam- ples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without the consent of the purchasers to such substitution and with Title 16—Commercial Practices the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. Nore: Nothing in this section shall be con- strued as preventing the application of such tolerances as are agreed upon between buyer and seller or are otherwise deemed reasonable and proper and where no misrep- resentation or deception of the purchasing public is practiced or promoted in relation to the product or ite deviation from sam- ple or specifications. § 189.10 Enticing away employees of competitors, It is an unfair trade practice for any member of the industry wilfully to entice away employees of competitors with the intent and effect of thereby unduly ham- pering or injuring competitors in their business and destroying or substantially lessening competition: Provided, That nothing in this section shall be construed as prohibiting employees or agents from seeking or obtaining more favorable employment. § 189.11 Procurement of competitors’ confidential information by unfair means and wrongful 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 faise or mis- leading statements or representations, 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 busi- mess or to suppress competition or unreasonably restrain trade. § 189.12 Defamation of competitors or disparagement of their products. 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- paragement of the products of competi- tors in any respect, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice, § 189.13 Selling below cost. The practice of selling industry prod- ucts below the seller’s cost, when pur- sued with wrongful intent of thereby injuring a competitor and where the effect of such practice is to unreasonably 156 Chapter |1—Federal Trade Commission restrain trade, tend to create a monop- oly, or substantially lessen competition, is an unfair trade practice. (a) 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 monop- olistic practice with the wrongful intent referred to and coupled with the effect of unreasonably restraining trade, tending to create a monopoly, or substantially lessening competition. (b) The costs referred to in the section are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise. § 189.14 Combination or coercion to fix prices, suppress competition, or re- stram 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 coercion against any member of the industry or other person to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade; or (b) To enter into or take part in, di- rectly or indirectly, any agreement, understanding, combination, conspiracy, or concerted action with one or more members of the industry, or with one or more other persons, to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade. $189.15 Prohibited discrimination.’ (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrim- ination. In the marketing in commerce of products of the industry of like grade and quality for use, consumption, or resale within the jurisdiction of the United States, and subject to subpara- 1 As used throughout this section the word “commerce” means “trade or commerce 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 foretgn nation, or between any insular possessions or other piaces 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 Co- \umbia or any Territory or any inswar pos- session or other place under the jurisdiction of the United States.” § 189.15 graph (1) (i), di) and (ili) of this paragraph, it is an unfair trade practice for any member of the industry engaged therein to discriminate in price between different purchasers where the effect thereof may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, de- stroy, or prevent competition with such industry member or with any person who knowingly receives the benefit of such discrimination or with their customers. (1) The inhibitions against such dis- crimination in price shall be applicable irrespective of whether the discrimina- tion in price itself is effected in the form. or through the means, of rebates, re- funds, discounts, credits, allowances, or other form of price differential. (i) However, 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 the prod- ucts are sold or delivered to said pur- chasers. (ii) Nor shall anything contained in this paragraph prevent persons en- gaged in selling products in commerce from selecting their own customers in bona fide transactions and not in re- straint of trade. (iii) Nor shall anything contained in this paragraph prevent price changes from time to time where made in re- sponse to changing conditions affecting the market for or the marketability of the goods concerned, such as but not limited to actual or imminent deteriora- tion of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discon- tinuance of business in the goods con- cerned. (b) Prohibited brokerage or commis- sions. In the selling of industry products in commerce, it is an unfair trade prac- tice for any member of the industry en- gaged therein to pay or grant, or to re- ceive or accept, any commission, broker- age, or other compensation, or any allow- ance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of such products, either to the other party to such trans- action 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 in- direct control, of any party to such trans- 157 § 189.16 action other than the person by whom such compensation is so granted or paid. (c) Prohibited advertising or promo- tional allowances, etc. In the selling of industry products in commerce by any member of the industry, and in the course thereof, it is an unfair trade prac- tice for such member to pay or contract for the payment of anything of value to or for the benefit of his customer as com- pensation or in consideration for certain services or facilities furnished by or through such customer, unless such pay- ment or consideration is available on pro- portionally equal terms to all other cus- tomers of such member competing in the distribution of such products. (1) As used in this paragraph, the cer- tain services or facilities referred to are such as are furnished by or through the customer in connection with the process- ing, handling, sale, or offering for sale, of such industry member’s products. (d) Prohibited discrimination in serv- tees or facilities. In the sale of industry products bought for resale, with or with- out processing, it is an unfair trade prac- tice for any member of the industry to discriminate in favor of one purchaser against another purchaser by furnishing certain services or facilities upon terms not accorded to all purchasers on pro- portionally equal terms. (1) Said services or facilities referred to in this paragraph are such as are con- nected with the processing, handling, sale, or offering for sale, of the products purchased, and the term “furnishing” as used in this paragraph shall be con- strued as including contracting to fur- nish, and contributing to the furnishing of, the services or facilities. (e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the industry, in the course of commerce in which he is engaged, knowingly to induce or receive a discrimination in price which is prohibited by the provisions in paragraphs (a) to (d) of this section. (f) Exemptions. The inhibitions of this section shall not apply to purchases of their supplles for their own use by schools, colleges, universities, public ll- braries, churches, hospitals, and chari- table institutions not operated for profit. § 189.16 Coercing purchase of one product as a prerequisite to the pur- chase of other products. The practice of coercing the purchase of one or more products as a prerequisite Title 16—Commercial Practices to the purchase of one or more other products, where the effect may be to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice. § 189.17 Abetting use of unfair trade Practices. It is an unfair trade practice for any person, firm, or corporation to abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in §§ 189.1 to 189.16. Group It § 189.101 Arbitration. The industry approves the practice ot handling business disputes between members of the industry and their cus- tomers and suppliers in a fair and rea- sonable manner, coupled with a spirit of moderation and good will, and every effort should be made by the disputants themselves to compose their differences. If unable to do so they should, if possible, submit these disputes to impartial ar- bitration. § 189.102 Return of merchandise. The practice, by members of the indus- try, of selling merchandise and. later permitting the purchaser to return it for credit or refund of purcliase price, with- out just cause, creates waste and loss, increases the cost of doing business to the detriment of both the industry and the public, and is condemned by the in- dustry, subject, however, to the require- ments and limitations named in § 189.15. § 189.103 Price lists. The industry approves the practice of each individual member of the industry independently publishing and circulating to customers and prospective customers his own price lists. The industry also approves the practice of such member including his terms of sale, independ- ently arrived at, as part of his own pub- lished price list. § 189.104 Cost records. (a) It is the judgment of the industry that each member should independently keep proper and accurate records for determining his costs. (b) It is the judgment of the industry that the individual and independent use by any member of sound cost-accounting methods, whereby such member’s own 158 Chapter |—Federal costs are individually and independently determined by him, is in the pubiic inter- est and is recommended by the industry. (c) It is understood that no action shall be taken under this section which shall be in conflict with any provision of jaw or any provision of any order of the Federal Trade Commission with respect to the industry, nor shall any person be expected to use or adopt any cost-ac- counting method or system, or to comply therewith, except as he may desire. 8 189.105 Dissemination of credit in- formation. The industry records its approval of the distribution among members of the industry of information covering delin- quent and slow credit accounts insofar as such may be lawfully done. 8 189.106 Repudiation of contracts. Lawful contracts are business obliga- tions which should be performed in let- ter and in spirit. The repudiation of contracts by sellers or by buyers is con- demned by the industry. 8 189.107 Saturday-Sunday closing. In the interest of the public and indus- try employees, it is recommended by the industry that the members adhere to the usual practice of not opening their places of business on Saturdays and Sundays for the transaction of business. 8 189.108 Labor conditions. It is the judgment of the industry that the elimination of oppressive child labor and the establishment of adequate mini- mum wages and reasonable maximum hours of work by all members of the in- dustry are principles to be encouraged as being in the public interest and con- ducive to fair competition. § 189.309 Statistical information. The members of the industry believe that the collection and publication in the widest possible manner of statistics re- specting market information on the operations of the industry as a whole will prove helpful to ali interested parties. Such statistics shall not be compiled. disseminated, or used in any mauner which has the effect of revealing the identity of an industry member, infor- mation peculiar to the operations of an industry member, or transactions en- gaged in by an industry member or a buyer of industry products; nor shall any person be compelled to furnish any data contemplated by this section. Trade Commission § 189.201 The compilation, dissemination, or use of any statistical information shall not provide for nor result in any action vio- lative of law or in conflict with the provisions of any order issued by the Federal Trade Commission with respect to the members of this industry. It is further understood that no action shall be taken under this section which, directly or indirectly, would tend to ef- fectuate the collective, collusive, or co- operative fixing or maintenance of prices, or other restraints of trade. COMMITTEE ON TRADE PRACTICES § 189.201 Industry committee. The provisions of § 16.1 of this sub- chapter shall be applicable to an indus- try committee established under this part. [21 F. R. 1174, Feb. 21, 1956] PART 190—SHOE FINDERS INDUSTRY Group I 8ec. 180.1 Discrimination. 190.2 Inducing breach of contract. 190.3 False invoicing. 190.4 Selling below cost. 190.5 Commercial bribery. 190.6 Coercing purchase of one product as a prerequisite to purchase of other products. 190.7 Defamation of competitors. 190.8 Disparagement of competitor's products. 190.9 Misrepresentation as to character of business. 190.10 Deception (general). 190.11 Deception through upgrading or misrepresentation of grade or quality. 190.12 Misuse of terms “close-outs,” “obso- lete items,” “discontinued lines,” etc. 190.18 Enticing away employees of com- petitors, 190.14 Combination or coercion to fix prices, interfere with purchases of supplies, suppress competition, or restrain trade. Group IT 190.101 Maintenance of accurate records. 190.102 Price lists. AurnHorrrry: The provisions of this Part 190 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: The provisions of this Part 190 appear at 15 FR 4000, June 22, 1950, unless otherwise noted. 159