Shoe Finders Industry
16 CFR Part 190 · Trade practice rules · in the Code of Federal Regulations 1959-1976 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1959 CFR
Text (1976 edition, OCR)
Chapter |-——Federal
costs are individually and independently
determined by him, is in the public 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
law 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.
$ 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 siow credit accounts insofar
as such may be lawfully done.
§ 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.
$ 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.
§$ 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.
§$ 189.109 Statistical information.
The members of the industry believe
that the collection and publication In the
widest possible manner of statistics re-
‘specting market informeticn on the
operations of the industry as a whole will
prove helpful to all interested parties.
Such statistics shall not be compiled,
disseminated, or used in any manner
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-
wy committee established under this
part.
[21 P. R. 1174, Feb. 21, 1956]
PART 190—SHOE FINDERS
INDUSTRY
Groour I
Sec.
190.1 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 ofr
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.
Gxrour It
190.101 Malntenance of accurate records.
190.102 Price sts,
Avrnortrr: The provisions of this Part
190 issued under seca. 6, 5, 38 Stat. 721, 719;
15 U.S.C. 46, 48, unless otherwise noted.
Sourcr: The provisions of this Part 190
appear at 15 FR 4000, June 22, 1950, unless
otherwise noted.
159
$190.1
Grour I
§ 190.1 Discrimination.’
(a) Prohibited discriminatory prices,
or discounts, rebates, refunds, credits,
etc., which effect unlawful price discrim-
ination. 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 dis-
count, rebate, refund, credit, or other
form of price differential (whether In the
guise of free goods or otherwise), where
such discount, rebate, refund, credit, or
other form of price differential, effects a
discrimination in price between dif-
ferent purchasers of goods of like
grade and quality, where either or any
of the purchases involved therein
are in commerce, and where the ef-
fect thereof may be substantially to
lessen competition 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: Provided, however,
(1) That the goods involved in any
such transaction are sold for use, cou-
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, sale,
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 cus-
tomers in bona fide transactions and not
in restraint of trade;
2As used throughout $190.1, 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 foreign nation, or
between any insular possessions or other
Places under the jurisdiction of the United
Btates, or between any such possession or
piace 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 jurisdic-
tion of the United States.”
Title 16—Commercial Practices
(4) That nothing contained in this
paragraph shall 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 and commis-
sions. Itis 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 au agent, representative, or other in-
termediary therein, where such inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect
control, of any party to such transac-
tion other than the person by whom
such compensation is so granted or paid.
(ce) Prohibited advertising or promo-
ttonal 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 adver-
tising 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 compenss-
tion or in consideration for any services
or facilities furnished by or through such
customer in connection with the process-
ing, 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 con-
sideration 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
engaged in commerce to discriminate
in favor of ove purchaser against an-
other purchaser or purchasers of a com-
modity bought for resale, with or without
processing, by contracting to furnish or
furnishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
160
Chapter l—Federal Trade Commission
sale, or offering for sale of such com-
modity so purchased upon terms not ac-
eorded to all competing purchasers on
proportionally 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 in paragraphs (a) .to (d) of this
section.
(f{) Exemptions. The inhibitions of
this section shall not apply to purchases
of their supplies for their own use by
schools, colleges, universities, public
libraries, churches, hospitals, and char-
itable institutions not operated for
‘profit.
§ 190.2 Inducing breach of contract.
It is an unfair trade practice to induce
or attempt to induce the breach of exist-
ing lawful contracts between competitors
and their customers or their suppliers by
any false or deceptive means whatsoever,
or to interfere with or obstruct the per-
formance 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.
$190.3 False invoicing.
(a) Withholding from or inserting in
invoices, or sales purchase slips, any
statements or information by reason of
which omission or insertion a false record
is made, wholly or in part, of the trans-
actions represented on the face of such
invoices, or sales purchase slips, with the
effect of thereby misleading or deceiving
purchasers, prospective purchasers, or
the buying public, is an unfair trade
practice.
(b) To falsify, remove, or fail to fur-
nish, any invoice, sales purchase slip, or
other record, with the effect of thereby
deceiving purchasers, prospective pur-
‘chasers, or the buying public, is an un-
fair trade practice.
§ 190.4 Selling below cost.
The practice of selling products of the
industry at a price less than the cost
thereof to the seller, with the purpose or
intent, and where the effect may be, to
‘injure, suppress, or stifle competition or
tend to create a monopoly in the produc-~
tion or sale of such products, ls an unfair
trade practice. As used in this section,
§ 190.9
the term “cost” means the total cost to
the seller of any such transactions of
sale, including the costs of acquisition,
processing, preparation for marketing,
sale, and delivery of such products,
§ 190.5 Commercial. bribery.
It is an unfair trade practice for a
member of the industry, directly or indi-
rectly, to give or offer to give, or permit
or cause to be given, money or anything
of value to agents, employees, or repre-
sentatives of customers or prospective
customers, or to agents, employees, or
representatives of competitors’ customers
or prospective customers without the
knowledge of their employers or prin-
cipals, as an inducement to influence
their employers or principals to pur-
chase or contract to purchase any shoe
service supplles, equipment, or material
sold by such industry member or the
maker of such gift or offer, or to in-
fluence such employers or principals to
refrain from dealing in the products of
competitors or from dealing or contract-
ing to deal with competitors.
§ 190.6 Coereing purchase of one prod-
uct as a prerequisite to purchase of
other products.
The practice of coercing the purchase
of one or more products as a prerequisite
to the purchase of one or more other
products, where the effect may be to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade, is an unfair trade
practice.
§ 190.7 Defamation of competitors.
The defamation of competitors by
falsely imputing to them dishonorable
business conduct, inability to perform
contracts questionable credit standing,
or by other false imputations, is an un-
fair trade practice.
§190.8 Disparagement of competitor's
products.
The false disparagement of the grade,
quality, quantity, character, or process-
ing of a competitor’s products or services
is an unfair trade practice.
$190.9 Misrepresentation as to charac-
ter of bnsineas.
It is an unfair trade practice for any
industry member, in the course of or in
connection with the sale, offering for
sale, or distribution of any industry
products, to represent that such industry
161
§ 190.10
member is a finder, wholesaler, Jobber, or
distributor of industry products, or is an
agent or sub-agent of a finder, whole-
saler, jobber, or distributor of industry
products, when such is not the fact; or in
any other manner to misrepresent the
character, extent, or type of business
engaged in by such industry member.
§ 190.10 Deception (general).
(a) It is an unfair trade practice to
sell, offer for sale, or distribute, or to
promote the sale or distribution of, any
industry product by any method or
under any circumstance or condition
which has the capacity and tendency or
effect of deceiving purchasers, prospec-
tive purchasers, or the buying public,
with respect to the kind, quality, utility,
serviceability, price, size, durability, ap-
pearance, origin, manufacture, treat-
ment, or processing of any industry prod-
uct, or in any other material respect.
(b) This section is applicable to every
kind of deceptive representation,
whether in newspaper, periodical, tele-
phone directory, sales catalog, sales pro-
motional Hterature; or in the form of a
label, mark, or brand on, attached to, or
accompanying the product or its con-
tainer; and whether made verbally or
in writing. The inhibitions of this sec-
tion apply not only to affirmative repre-
sentations, but also to situations where
deception is effected by reason of failure
to reveal material facts.
§ 190.11 Deception through upgrading
or misrepresentation of grade or
quality.
In the sale, offering for sale, or distri-
bution of shoe leather, whether in the
form of bends, strips, whole soles, half
soles (taps), or other form, it is an unfair
trade practice for any industry member:
(a) To mark, label, advertise, or other-
wise represent any such product as be-
ing the producer’s, tanner’s, manufac-
turer’s, cutter’s, or other’s “first,”
“choice,” “prime,” or other designated
grade or quality, when such is not the
fact; or
(b) To use any trade or grade mark,
representation, or designation as to qual-
ity of leather which is false, or which is
calculated to have or has the capacity
and tendency or effect of misleading or
deceiving purchasers, prospective pur-
chasers, or the buying public into the
erroneous belief that such leather is of a
higher grade or quality than is in fact
true.
Titlo 16—Commercial Practices ‘
§ 190.12 Misuse of terms “close-outs,”
“obsolete items,” “discontinued
lines,” ete.
It is an unfair trade practice to offer
for sale, sell, distribute, advertise,
describe, or otherwise represent, regular
lines of industry products as “close-outs,”
“obsolete items,” “discontinued lines,”
“special bargains,” or by words or repre-
sentations of similar import, when such
are not true in fact; or to so offer for sale,
sell, distribute, advertise, describe, or
otherwise represent industry products
where the capacity and tendency or ef-
fect thereof is to lead purchasers, pro-
spective purchasers, or the buying public
to believe that any such products are
being offered for sale or sold at greatly
reduced prices, or at so-called “bargain”
prices, when such is not the fact.
$190.13 Enticing away employees of
competitors.
Wilfully enticing away the employees
of competitors with the purpose and ef-
fect of thereby unduly hampering or
injuring competitors in their business
and destroying or substantially lessening
competition is an unfair trade practice:
Provided, however, That nothing in this
section shall be construed as prohibiting
employees from obtaining more favorable
employment.
§ 190.14 Combination or coercion to fix
prices, interfere with purchases of
supplies, suppress competition, or re-
strain trade.
It is an unfair trade practice for a
member of the industry:
(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 unlawfuily fix,
maintain, or enhance prices, suppress
competition, or restrain trade; or
(c) By means of any monopolistic
practices or through combination, con-
spiracy, coercion, boycott, threats, or any
other unlawful means, directly or indi-
rectly, to interfere with a competitor’s |
right to purchase his supplies from
whomsoever he chooses, or to sell his
product to whomsoever he chooses.
162
Chapter |!—Federal Trade Commission
Groor I
8 190.101 Maintenance of accurate reo-
ords,
It is the judgment of the industry that
each member should independently keep
proper and accurate records for deter-
mining his costs,
§ 190.102 Price lists.
(a) The industry approves the prac-
tice of each individual member of the
industry independently publishing and
circulating to the purchasing trade his
own price lists,
(b) The industry approves the prac-
tice of making the terms of sale a part
of all published price schedules,
PART 191—VENETIAN BLIND
INDUSTRY
Bec.
191.0 Definitions.
Grour I
191.1 Deception as to product being a
“venetian blind.”
191.2 Misuse of terms “custom built,”
“made to order,” etc.
191.8 Misrepresenting products as con-
forming to standard.
191.4 Misrepresentation as to being 4
manufacturer, wholesaler, jobber,
distributor, or retailer, and cone
cerning prices in relation thereto.
191.5 Deception as to Used or rebuilt
products.
191.6 Passing off substandard or defective
products as and for regular or
first quality merchandise.
191.7 Guarantees, warranties, ets.
191.8 Misuse of the word “free.”
191.9 Palse invoicing.
191.10 Deceptive pricing.
191.11 Other forms of deception.
191.12 Selling below cost.
191.13 Substitution of products.
191.14 Consignment distribution.
191.15 Commercial bribery.
191.16 Imitation of trade-marks, trade
names, etc.
191.17 Defamation of competitors or dis-
paragement of thelr products.
191.18 Procurement of competitors’ confl-
dential information by unfair
Means and wrongful use thereof.
191.19 Enticing away employees of com-
petitors.
191.20 Unfair threats of infringement
suits.
191.21 Inducing breach of contract.
191.22. Unlawful coercion and combination
in restraint of trade.
191.28 Tie-in sales; coercing purchase of
one product as a prerequisite to
purehase of other products.
191.24 Discrimination.
§ 191.2
Sec.
191.28 Unlawful interference with com-
petitors’ purchases or sales.
191.26 Aiding or abetting use of unfair
trade practices.
Grour Ix
191.101 Arbitration,
191.102 Coercion in sales.
AUTHORITY: The provisions of this Part 191
issued under secs. 6, 5, 388 Stat. 721, 719; 18
U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 191
appear at 15 F.R. 4129, June 28, 1950, unless
otherwise noted.
$191.0 Definitions.
As used in this part the terms “indus-
try products” and “industry member”
shall have the following meanings,
respectively:
(a) Industry products. The products
of the industry consist of (1) venetian
blinds of all types, (2) parts of venetian
blinds, including slats, tape, cord, hard-
ware, facia, head bars, bottom rails, and
other findings, and (3) venetian blind
accessories.
(b) Industry member. Any person,
firm, corporation, or organization en-
gaged in the manufacture, assembly,
sale, or distribution of venetian blinds
or parts, or accessories therefor,
Group I
8191.1 Deception as to product being
a “venetian blind.”
It is an unfair trade practice to repre-
sent any product as being a venetian
blind unless such product consists of
numerous thin slats and other parts
which are so assembled as to afford con-
trol of the admission of light and alr
through any size window, door, or aper-
ture for which the product is designed
by permitting of the raising, lowering,
and holding of the slats at different po~
sitions, and the simultaneous opening,
closing, tilting, and setting thereof at
any angle, by easy manual operation, the
slats remaining parallel to each other,
and their ends in alignment throughout
any such operation.
8191.2 Misuse of terms “custom built,”
“made to order,” ctc.
In the sale, offering for sale, or distri-
bution of venetian blinds, it is an unfair
trade practice for an industry member to
use the terms “custom built,” “made to
order,” or any other words or terms of
similar import, as descriptive of any
168