Guides For The Rebuilt, Reconditioned And Other Used Automobile Parts Industry

16 CFR Part 20 · Guides · in the Code of Federal Regulations 1980-1995 (16 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1995 CFR · Earliest edition: 1980 CFR

Text (1995 edition, OCR)

§19.4

(b) Among the metals which may be
considered as corrosion (and rust) re-
sistant are:

Pure Nickel.
Gold Alloys of not less than 10 Kt. fineness.
Austenitic stainless steels. (Guide 3)

$19.4 Deception as to origin or place
of manufacture.

In the sale, offering for sale, or dis-
tribution of industry products, it is an
unfair trade practice:

(a) To misrepresent the origin or
place of manufacture of an industry
product or any part thereof; or

(b) Subject to the exemptions herein-
after specified, to fail to adequately
disclose to purchasers and prospective
purchasers that an industry product, or
substantial part thereof? is of foreign
origin, or has been manufactured, proc-
essed, or assembled in a foreign coun-
try. .

NOTE 1: The disclosure required by para-
graph (b) of this section shall be in the form
of a legible marking or stamping on the in-
dustry product, or on a label or tag affixed

thereto, which is of such degree of perma-

nency as to remain on or attached to the
product, in legible form, until consummation
of the consumer sale thereof, and of such
conspicuousness as to be likely observed and
read by purchasers and prospective pur-
chasers making casual inspection of the
product; and if such industry product is
packaged, or mounted in a container, or on a
display card, and is offered for consumer sale
in such form, then the marking or stamping
shall also appear on the front or face of such
packaging, container, or display card, and be
so positioned as to clearly have application
to the product so packaged or mounted, and
shall also be of such degree of permanency as
to remain thereon until consummation of
consumer sale of the product, and of such
conspicuousness as to be likely observed and
read by purchasers and prospective pur-
chasers making casual inspection of the
product as so packaged or mounted. The dis-
closure shall name the foreign country of or-
igin or manufacture, and when not applica-
ble to the entire product shall specify the
part or parts.to which it has applicability.

3Parts which are to be considered as sub-
stantial include the skeletons or interliners
of the expansion type bands, whether of the
entire length of the band or but a substantial
portion of such length, and whether caps and
end pieces are affixed thereto before or after
the importation of such skeletons or
interliners.

16 CFR Ch. | (1-1~95 Edition)

Ezemptions. To be regarded as exempt from
the disclosure requirements of paragraph (b)
of this section are:

Sheet, strip, wire, tubing, and similar basic
material when imported in that form:

Parts of industry products which after
their importation are subjected to processing
or manufacturing in this country, or are
merged with another or other parts of do-
mestic manufacture, and as a consequence of
such processing, manufacturing, or merger,
no longer retain the appearance and essen-
tial characteristics possessed by them at the
time of their importation.

NOTE 2: The affixing in this country of do-
mestically manufactured caps and end pieces
to imported skeletons of expansion type
bands is not to be regarded as so changing
the appearance and essential characteristics
of such skeletons as to exempt them from
the disclosure requirements of paragraph (b)
of this section.

Rivets, springs, screws, bolts, washers, and
similar small parts which are imported in an
unassembled state;

Natural stones and cultured pearls which
are used as decorative settings of industry
products.

NOTE 3: Nothing in this section is to be
construed as relieving any industry member
from compliance with the requirements of
custom laws of the U.S. having application
to industry products and parts imported
from a foreign country. [Guide 4]

PART 20—GUIDES FOR THE REBUILT,
RECONDITIONED AND OTHER
WSED AUTOMOBILE PARTS INDUS-

Sec.

20.0 Definitions.

20.1 Deception as to previous use of prod-
ucts.

20.2 Deception as to identity of rebuilder,
remanufacturer, reconditioner or reliner.

20.3 Misrepresentation as to condition of
products and misuse of the terms ‘“‘re-
built,”’ “factory rebuilt,’’ ‘‘remanufac-
tured,” etc.

AUTHORITY: Secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45.

Source: 44 FR 11182, Feb. 27, 1979, unless
otherwise noted.

$20.0 Definitions.

Industry member. Any person, firm,
corporation or organization engaged in
the sale or distribution of any industry
product as defined below.

Industry products. Industry products
are automotive parts and automotive
assemblies which have been used or

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Federal Trade Commission

which contain used parts, whether such
parts or assemblies have been rebuilt,
remanufactured, reconditioned, re-
lined, or otherwise. The term ‘‘auto-
motive assemblies” as herein used
mean any part or assembly designed
for an automobile, truck, motorcycle,
tractor or similar self-propelled vehi-
cle. Industry products include, but are
not limited to, armatures, generators,
starters, carburetors, clutches, dis-
tributors, connecting rods, crank-
shafts, cylinder blocks, engine assem-
blies, fuel pumps, brakes, master and
wheel brake cylinders, power brakes,
shock absorbers, starter drives, sole-
noids, automatic transmissions, regu-
lators, spark plugs, springs, windshield
wiper motors and water pumps. Auto-
mobile tires are not products of the in-
dustry.

§20.1 Deception as to previous use of
products.

(a) It is an unfair trade practice to
represent, directly or by implication,
that any industry product is new or un-
used, or that any part of an industry
product is new or unused when such is
not the fact, or to misrepresent the ex-
tent of previous use thereof.

(b) It is an unfair trade practice for
an industry member to offer for sale or
sell any industry product unless a clear
and conspicuous disclosure that such
product has been used or contains used
parts is made in all the industry mem-
ber’s advertising, sales promotional lit-
erature and invoices concerning the
product, on the container in which the
product is packed and if the product
has been rebuilt, remanufactured, re-
conditioned or has the appearance of
being new, on the product with suffi-
cient permanency to remain thereon
after installation for a reasonable pe-
riod of time under ordinary conditions
of use, and in such manner that said
disclosure cannot be easily removed or
obliterated.

(1) Form of disclosure. The disclosure
that an industry product has been used
or contains used parts as required by
this section may be made by use of a
word such as, but not limited to,
“Used,’’ “Secondhand,” ‘‘Repaired,’’
“Remanufactured,’’ ‘‘Reconditioned,”’
“Rebuilt,’’ or ‘‘Relined,”” whichever is
applicable to the product involved. On

§ 20.2

invoices to the trade only the disclo-
sure required by this section may be
made by use of any number, mark, or
other symbol which is clearly under-
stood by all purchasers receiving such
invoices as meaning that the products,
or parts thereof, identified on the in-
voices have been used.

(2) Conspicuousness of disclosure. The
disclosure required by this section
shall be of such size or color contrast
and so placed as to be readily notice-
able to purchasers or prospective pur-
chasers reading advertising, sales pro-
motional literature, or invoices con-
taining same, or reading any represen-
tation as to content on the container
in which an industry product is packed,
or inspecting an industry product be-
fore installation, or with a minimum of
disassembly after installation.

(c) It is an unfair trade practice to
place any means or instrumentality in
the hands of others whereby they may
mislead purchasers or prospective pur-
chasers as to the previous use of
industry products or parts thereof.
(Guide 1)

§20.2 Deception as to identi
builder, remani
reconditioner or reliner.

(a) It is an unfair trade practice to
misrepresent the identity of the re-
builder, remanufacturer, reconditioner
or reliner of an industry product.

(b) In connection with the sale or of-
fering for sale of an industry product if
the identity of the original manufac-
turer of the product, or the identity of
the manufacturer for which the prod-
uct was originally made, is revealed
and the product was rebuilt, remanu-
factured, reconditioned or relined by
other than the manufacturer so identi-
fied, it is an unfair trade practice to
fail to disclose such fact wherever ei-
ther of said manufacturers is identified
in advertising and sales promotional
literature concerning the product, on
the container in which the product is
packed, and on the product, in close
conjunction with, and of the same per-
manency and conspicuousness as, the
disclosure of previous use of the prod-
uct required by this section. Examples
of disclosures considered to be in com-
pliance with the requirements of this
section are as follows:

of re-
acturer,

135


§20.3

(1) Disclosure of the identity of the
rebuilder as, for example:

Rebuilt by John Doe Co.

(2) Disclosure that the product was
rebuilt by an independent rebuilder as,
for example:

Rebuilt by an Independent Rebuilder
(3) Disclosure that the product was

rebuilt by other than the manufacturer
so identified as, for example:

Rebuilt by other than XYZ Motors

(4) Disclosure that the product was
rebuilt for the identified manufacturer,
if such is the case, as for example:

Rebuilt for KYZ Motors
[Guide 2]

§ 20.3 Misrepresentation as to condi-
tion of on of products and misuse of the
built,” “factory rebuilt,”
comanufactured,” etc.
(a) It is an unfair trade practice to
use, or cause or promote the use of,
any statement or representation in ad-

vertising, on containers, on industry

products, or elsewhere, which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers as to the condition
of an industry product, or the extent
that an industry product has been re-
paired or reconstructed.

(b) It is an unfair trade practice to
use the words ‘‘Rebuilt,’’ ‘““Remanufac-
tured,” or words of similar import, as
descriptive of an industry product
which, since it was last subjected to
any use, has not been dismantled and
reconstructed as necessary, all of its
internal and external parts cleaned and
made free from rust and corrosion, all
impaired, defective or substantially
worn parts restored to a sound condi-
tion or replaced with new, rebuilt! or
unimpaired used parts, all missing
parts replaced with new, rebuilt! or
unimpaired used parts, and such re-
winding or machining and other oper-
ations performed as are necessary to
put. the industry product in sound
working condition.

(c) It is an unfair trade practice to
represent an industry product as ‘‘Fac-

1In accord with the provisions of this para-
graph (b).

16 CFR Ch. | (1-1-95 Edition)

tory Rebuilt’? unless the product was
rebuilt as described in paregraph (b) of
this section at a factory generally en-
gaged in the rebuilding of such prod-
ucts. (See also §20.2) (Guide 3]

PART 21—GUIDES FOR THE MIRROR
INDUSTRY

Sec.
21.0 Definitions.
21.1 Deception (general).
21.2 Misrepresentation of kind or type of in-
dustry products.

AUTHORITY: Secs. 6, 5, 38 Stat. 721, 719; (15
U.S.C. 46, 45).

SouRcE: 44 FR 11183, Feb. 27, 1979, unless
otherwise noted.

$21.0 Definitions.

As used in this part the terms ‘‘In-
dustry Member’ and “Industry Prod-
ucts’? shall have the following mean-
ing:

(a) Industry member. Any person, firm,
corporation or organization (including
manufacturers, wholesalers, jobbers,
importers, retailers, etc.) engaged in
the manufacture, sale, offering for sale,
or distribution of industry products as
defined below:

(b) Industry products. All kinds and
types of mirrors both utilitarian and
decorative.

(c) For the purposes of this part the
following definitions shall apply:

Plate glass. A transparent glass, the
two surfaces of which are flat and par-
allel so that they give clear and undis-
torted vision and reflection, manufac-
tured either by floating hot glass in
ribbon form upon a heated liquid of
greater density than that of glass or by
grinding and polishing a ribbon of glass
formed between two rolls.

Window glass. A transparent glass
which has been drawn or rolled, has
glossy, fire polished surfaces and a
characteristic waviness of its surfaces
which is visible when viewed at an
acute angle or in reflected Hight. Win-
dow glass is sometimes referred to in
the industry as sheet or shock glass.

$21.1 Deception (general).

It is an unfair trade practice for any
industry member in connection with
the sale, offering for sale, or distribu-
tion of industry products to use any

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