Feather And Down Products Industry
16 CFR Part 200 · Trade practice rules · in the Code of Federal Regulations 1959-1971 (7 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1971 CFR · Earliest edition: 1959 CFR
Decisions that mention this industry's rules (13)
Text (1971 edition, OCR)
§ 199.103
§ 199.103 Repudiation of contracts.
Lawful contracts are business obliga-
tions which should be performed in
letter and in spirit. The repudiation of
contracts by sellers on a rising market,
or by buyers on a declining market, is
condemned by the industry.
§ 199.104 Manner of disclosure of type
of canvas material.
It is the recommendation of the indus-
try that denomination of the type of
canvas material of which a canvas cover
is made be in accord with the nomencla-
ture and definitions contained in Com-
mercial Standard CS28-46 (Cotton
Fabric Tents, Tarpaulins, and Covers) of
the National Bureau of Standards.
PART 200—FEATHER AND DOWN
PRODUCTS INDUSTRY
Sec.
200.0 Definitions.
Group I
200.1 Misrepresentation and deception in
general.
200.2 Deceptive pictures or symbols.
200.3 Identification and disclosure of kind
and type of filling material in
industry products.
200.4 Disclosure as to covering materials.
200.5 Second-hand feathers, down, and
other components.
200.6 Cleanliness of feathers, down, and
other components.
200.7 Disclosure as to size.
200.8 Guarantees, warranties, etc.
200.9 Fictitious price lists.
200.10 Use of lottery schemes.
200.11 Misrepresentation as to character
of husiness.
200.12 False invoicing.
200.18 Combination or coercion to fix
prices, suppress competition, or
restrain trade.
200.14 Prohibited discrimination.
200.15 Discriminatory returns.
200.16 Commercial bribery.
200.17 Defamation of competitors or false
disparagement of their products.
200.18 Aiding or abetting use of unfair
trade practices.
Group IT
200.101 Use of size marks and labels.
COMMITTEE ON TRADE PRACTICES
200.201 Industry committee.
AvTHoRITY: The provisions of this Part 200
issued under secs. 6, 5, 38 Stat. 721, 719; 16
U.S.C. 46, 45, unless otherwise noted.
Sovugrce: The provisions of this Part 200 ap-
pear at 16 F.R. 3550, Apr. 26, 1961, unless
otherwise noted.
Title 16—Commercial Practices
§ 200.0 Definitions.
(a) As used in this part the term “in-
dustry products’ means and includes all
pillows, cushions, comforters, sleeping
bags, and similar products, which are
wholly or partially filled with feathers or
down,
(b) Members of the industry are the.
persons, firms, corporations and organ-
izations engaged in the business of man-
ufacturing, processing, distributing or
marketing in commerce any such indus-.
try products.
Nore: Nothing in this part shail be con-
strued as relleving any member of the in-
dustry of the necessity of complying with.
the requirements of Stute laws or regula-
tions or other laws or regulations applicable
to the products of this industry.
Group I
§ 200.1 Misrepresentation and deception.
in general.
It is an unfair trade practice to use,
or cause or promote the use of, any trade
promotional literature, advertising, mat-
ter, guarantee, warranty, mark, brand,
label, trade name, picture, design or de-
vice, designation, or other type of oral
or written representation, however dis-
seminated or published, which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers:
(a) With respect to the type, kind,
grade, quality, quantity, weight, size,
color, origin, durability, processing,
testing, construction, manufacture, dis-
tribution, or customary or regular price,
of any industry product, or concerning:
any component, contents, or covering of
such product; or
(b) With respect to the colorfastness,.
finish, thread count, weight, pattern,
material, type of fiber or weave, or
feather- or down-resistant qualities of
the sewn, permanent, or removable-
cover or covering of any industry prod-
uct; or
_(c) Which in any other materia] re-
spect has the capacity and tendency or-
effect of misleading or deceivimg the-
purchasing or consuming public.
§ 200.2 Deceptive pictures or symbols..
It is an unfair trade practice, in con-
nection with the offering for sale, sale,
or distribution of industry products, to-
use as part of a label, advertisement,
trade name, or other representation, any-
depiction of a waterfowl or other picture,.
216
Chapter I—Federal Trade Commission
symbol, or design which, either alone or
in conjunction with accompanying
words, phrases, or other representations,
has the capacity and tendency or effect
of misleading or deceiving purchasers or
prospective purchasers into the belief
that the product is composed (in whole
or in part) of feathers or down when
such is not the fact, or is composed (in
whole or in part) of feathers or down
from fowl of the type or color repre-
sented by suth words, pictures, or other
symbols, when such is not the fact.
§ 200.3 Identification and disclosure of
kind and type of filling material in
industry products.
(a) In the sale, offering for sale, or
distribution of industry products, it is an
unfair trade practice to misrepresent or
deceptively conceal the identity of the
kind or type of filling material contained
in any of such products, or of the kinds
or types, and proportions of each, when
the filling material is a mixture of more
than one kind or type. Such identifica-
tion and disclosure shall be made by tag
or label securely affixed to the outside
covering of each product and in invoices
and all advertising and trade promo-
tional literature relating to the product;
and when the filling material is a mix-
ture of more than one kind or type, each
kind and type shall either be listed in the
order of its predominance by weight, or
be listed with an accompanying dis-
closure of the fraction or percentage by
weight of the entire mixture which it
represents.
(») Identification of the kind and type
of feather and down stock by use of any
of the terms listed and defined in this
paragraph will be considered proper
when in accord with the definition set
forth for such term:
(1) Down. The undercoating of
waterfowl, consisting of clusters of the
light, fiuffy filaments growing from one
quill point but without any quill shaft.
(2) Down fiber. The barbs of down
plumes separated from the quill points.
(3) Waterfowl feathers. Goose
feathers, duck feathers, or any mixture
of goose and duck feathers.
(4) Feathers (or natural feathers).
Bird or fowl plumage having quill shafts
and barbs and which has not been proc-
essed in any manner other than by wash-
ing, dusting, and sterilizing.
(5) Quill feathers (or quills). Wing
feathers or tail feathers or any mixture
of wing and tail feathers.
§ 200.3
(6) Crushed feathers. Feathers
which have been processed by 8, crushing
or curling machine which has changed
the original form of the feathers with-
out removing the quill.
(i) Stripped feathers. The barbs of
feathers stripped from the quill shaft
but not separated into feather fiber.
(8) Feather fiber. The barbs of
feathers which have been completely
separated from the quill shaft and any
aftershaft and which are in nowise
joined or attached to each other.
(9) Chopped feathers. Feathers
which have been subjected to a chopping
or cutting process and as a result have
been chopped or cut into pieces.
(10) Damaged feathers. Feathers,
other than crushed, chopped, or stripped,
which are broken, damaged by insects,
or otherwise materially injured.
(ce) Tolerance: '
(1) Subject to the restrictions and
limitations of this paragraph, the filling
material of an industry product may be
represented as being of but one kind or
type when 85 percent of the weight of
all filling material contained in the
product is of the represented kind or
type; or may be represented as being of
a mixture of two or more kinds or types
with accompanying disclosure of a frac-
tion or percentage of the weight of the
entire mixture represented by each if
the fraction or percentage shown is not
at variance with the actual proportion
of the weight of the entire mixture rep-
resented by each such kind or type by
more than 15 percent of the stated frac-
tion or percentage.
(2) Limitations and restrictions:
(i) When the filling material of an
industry product is represented, directly
or indirectly, as being wholly of down,
any proportion within the tolerance per-
centage provided for in subparagraph
(1) of this paragraph which is not down
shall consist principally of down fiber
and/or small, light, and fluffy waterfowl
feathers, shall contain no quill feathers,
crushed feathers, or chopped feathers,
and shall not contain damaged feathers,
quill pith, quill fragments, trash, or any
matter foreign to feather and down
stock in excess of 2 percent by weight of
the filling material contained in the
product or which in the aggregate ex-
ceeds 5 percent of such weight.
1The tolerance provided for in this para-
graph fs to be understood as being an allow-
ance for error and as not embracing anv
intentional adulteration
217
§ 200.4
Gi) When the filling material of an
industry product is represented, directly
or indirectly, as being wholly of water-
fow] feathers, any proportion within the
tolerance percentage provided for in sub-
paragraph (1) of this paragraph which
is not waterfowl feathers shall not con-
tain non-waterfowl feathers in excess of
5 percent by weight of the filling mate-
rial in the product, nor quill pith, quill
fragments, trash, or any matter foreign
to feather and down stock in excess of
2 percent by weight of the filling mate-
rial in the product or which in the aggre-
gate exceeds 5 percent of such weight;
and, unless nondeceptively disclosed in
the representation, not in excess of 5
percent by weight of the filling material
of the product shall consist of water-
fow] quill feathers, waterfowl damaged
feathers, waterfowl crushed feathers, or
waterfowl chopped feathers.
dii) When the filling material of an
industry product is represented, directly
or indirectly, as being wholly of feathers
(or natural feathers), any proportion
within the tolerance percentage provided
for in subparagraph (1) of this para-
graph which is not natural feathers
shall not contain quill pith, quill frag-
ments, trash, or any matter foreign to
feather and down stock in excess of 2
percent by weight of the filling material
in the product or which in the aggregate
exceeds 5 percent of such weight; and,
unless nondeceptively disclosed in the
representation, not in excess of 5 percent
by weight of the filling material of the
product shall consist of crushed feathers,
chopped feathers, quill feathers, or dam-
aged feathers.
div) When the filling material of an
industry product is represented, directly
or indirectly, as being wholly of a mix-
ture of down and feathers, or of down
and more than one kind or type of
feathers, or of feathers of more than one
kind or type, any proportion, or the ag-
gregate of any proportions, of the filling
material of the product at yariance with
the representation, but within the toler-
ance percentage provided for in sub-
paragraph (1) of this paragraph, shall
not contain quill pith, quill fragments,
trash, or any matter foreign to feather
and down stock in excess of 2 percent by
weight of the filling material in the prod-
uct or which in the aggregate exceeds
5 percent of such weight; and, unless
nondeceptively disclosed in the repre-
sentation, not in excess of 5 percent by
Title 16—Commercial Practices
weight of the filling material of the prod-
uct shall consist of crushed feathers,
chopped feathers, quill feathers, or dam-
aged feathers.
Nore: It is the consensus of the industry
that determination as to whether any rep-
resentation is violative of the provisions of
this sectlon should be based on an average
of the results of tests of at least two prod-
ucts of the same type when same are readily
available for testing, and that a proper
method of testing such product would be as
follows:
Samples of approximately equal weight and
size should be drawn from at least three
@ifferent locations in the product. Such
samples should then be thoroughly mixed so
as to assure of substantially uniform dis-
tribution of each Kind and type of compo-
nent material. From such mixture a test
sample of not less than 3 grams weight should
be drawn. The kinds and types of materials
in said test sample should then be identified
and separated and each kind or type then
separately weighed and the percentage by
weight of each Kind and type computed from
such weights. The identification of the vari-
ous Kinds and types of feather and down
stock in the test sample should be made by a
competent feather and down analyst.
(d) Nothing in this section is to be
construed as relieving industry members
from complying with the requirements
of § 200.5 when the filling material of
any industry product, or any component
thereof, is used or second-hand, or from
complying with the requirements of
§ 200.6 “Cleanliness of feathers, down,
and other components.”
§ 200.4 Disclosure as to covering ma-
terials,
It is an unfair trade practice to mis-
represent or deceptively conceal the type
or Kind of fabric or other material used
in covers and cases of industry products,
or the fiber or material content of any
inner, outer, permanent, or removable
covers Or cases.
Norz: Products containing rayon, silk, or
linen shall be identified as to their fiber and
material content In labels, invoices, and
advertisements, in accordance with the re-
quirements of trade practice rules hereto-
fore promulgated by the Commission for the
Rayon Industry, Silk Industry, and Linen
Industry.
Products containing, purporting to con-
tain, or in any way represented as contain-
ing, wool, reprocessed wool, or reused wool,
shall be labeled in accordance with the re-
quirements of the Wool Products Labeling
Act of 1939 and the rules and regulations
issued thereunder (Part 800 of this chapter).
218
Chapter I—Federal
§ 200.5 Second-hand feathers, down,
and other components.
To offer for sale, sell, or distribute any
industry product containing any com-
ponent which has previously been used
in any product, or used for any purpose,
without clearly disclosing that fact in
describing, advertising, labeling, invoic-
ing and selling such product, and in all
representations concerning the product,
is an unfair trade practice. It is likewise
an unfair trade practice to misrepresent
or deceptively conceal the type, kind, or
amount of such components, or to use
with reference to said products descrip-
tive words, phrases, labels, or other rep-
resentations which have the capacity
and tendency or effect of misleading or
deceiving purchasers or prospective pur-
chasers concerning the effect on said
material of such prior use or concerning
the type, extent, method, or effect of
any reprocessing, renovation, or resteri-
lization of such material.
Nore: Disclosure that feathers or down
have been previously used may be made by
clear and consptfcuous use of the term “sec-
ond-hand.” Designatlon of such material
as “reworked” or “reprocessed,” or use
of similar phrases, without further clear
and conspicuous statement that such ma-
terial is not new or has been previously used,
{is deemed misleading.
§ 200.6 Cleanliness of feathers, down,
and other components.
It is an unfair trade practice to sell
or distribute for sale to the ultimate con-
sumer, without full and nondeceptive
disclosure concerning the unclean, un-
sanitary, and unsterilized nature of the
contents, any industry product contain-
ing feathers, down, or other components
which have not been sterilized and prop-
erly washed or otherwise properly
cleaned, or containing used or second-
hand feathers, down, or any other com-
ponents which have not been re-sterilized
and re-cleaned, such practice having the
capacity and tendency or effect of caus-
ing purchasers or consumers to be misled
or deceived by reason of concealment or
nondisclosure of the condition of the
feathers, down, or other contents of such
product.
Nore: Standard tests, such as the New York
State Oxygen Test, should be used to de-
termine whether feathers and down have
been properly cleaned. Such a test may
be made tn the following manner:
Trade Commission § 200.7
Ten grams of feathers and down are trans-
ferred to a glass Jar or similar container and
1 Mter of distilled water at room tempers-
ture is added. The material is thoroughly
wetted by shaking and placed in an incuba-
tor at 25° C. for one hour. It ts then filtered
through 19-cm. coarse filter paper, and 100
ml. of filtrate are pipetted Into a porcelatn
casserole. The liquid is made just acid to
litmus with 6 N sulfuric acid and 1 ml
of acid is added tn excess. The solution ts
titrated in the cold with 0.1 N potass!um
permanganate by adding 2-drop portions and
then stirring until a pink color persists for
60 seconds.
The number of milliliters of potassium per-
manganate used is noted, and calculated to
number of grams of oxygen per 100,000 grams
of sample (oxygen number). 1 ml. of 0.1N
KMnO,=0.8 mg. of oxygen=80, oxygen,
number.
Materlal having an oxygen number above
20 shall be deemed to be not properly cleaned.
§ 200.7 Disclosure as to size.
(a) In connection with the offering
for sale, sale, or distribution of industry
products, it is an unfair trade practice
to misrepresent or deceptively conceal
the size of any product, or to advertise,
mark, brand, stamp, tag, label, or other-
wise represent or describe, any industry
product in a manner having the capacity
and tendency or effect of misleading or
deceiving purchasers or prospective pur-
chasers as to the size or any dimension
of such product.
(b) In the application of this section,
the following standards and tolerances
shall be observed to the end that confu-
sion, misunderstanding, deception, and
unfair competitive practices may be
avoided and prevented.
(1) Representations concerning the
size of a product shall set forth or indi-
cate the finished size of the product
(that is, the dimensions of the product
as offered for saie) in a clear, definite.
and unambiguous manner.
EXAMPLE: Elther “Finished Slze—21x27” or
“Size 21x27” is a proper label for a product
with a finished size 21 inches wide and 27
inches long. A size label stating only “21x
27” is also deemed a representation that
such is the finished size.
(2) In the case of representations con-
cerning the finished size of industry
products, a tolerance on each dimension
of one-fourth inch for pillows and one
inch for comforters will be allowed.
EXAMPLE: A pillow labeled “Size 21x27”
is within the tolerance if the measurement
of its shortest end and side ts not less than
219
50-034—-71——-15
§ 200.8
20%x2634 and the measurement of its long-
est end and side is not more than 2114x274.
(3) Truthful disclosure of the cut size
of a product's cover before sewing and
filing may be made in conjunction with.
and with no greater conspicuousness
than, any disclosure of the finished size
of the product. when explanation is made
of the meaning of such cut size, and when
such disclosure is made in a clear, defi-
nite, and unambiguous manner that does
not mislead or deceive the purchaser or
prospective purchaser concerning the
finished size of the product.
ExaMPLE: A finished product size label stat-
ing only “Cut Size—21 x 27"' does not comply
with the foregoing rule. A proper label could
read: “Finished Size—-20 x 26; Cut Size of
Cover Before Sewing and Fiiling—21 x 27."
§ 200.8 Guarantees, warranties, etc.
(a) It isan unfair trade practice to use
or cause to be used any guarantee which
{s false, misleading, deceptive, or unfair
to the purchasing or consuming public.
‘b> The foilowing types of guarantees
are examples of those considered unfair
trade practices and in violation of this
section:
(1) 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,
and guarantees which in themselves or
in the manner of their use are otherwise
false, misleading, or deceptive.
(2) Guarantees which purportedly ex-
tend for indefinite or unlimited periods
of time, or for such long periods of years,
as to have the capacity and tendency
or effect of thereby misleading or deceiv-
ing purchasers or users into the belief
that the product has or is definitely
known to have a greater degree of serv-
iceability or durability in actual use than
is in fact true.
(3) Guarantees which have the ca-
pacity and tendency or effect of other-
wise misrepresenting the serviceability,
durability, or lasting qualities of the
product, or of its feather and down con-
tent, or of its fabric covering or of any
mothproofing or other special treat-
ment or quality of such product.
‘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.
Title 16—Commercial Practices
§ 200.9 Fictitious price lists.
The publishing or circulating by any
member of the industry of false or mis-
feading price quotations, price lists,
terms or conditions of sale, or reports as
to production or sales, with the capacity
and tendency or effect of misleading or
deceiving purchasers, prospective pur-
chasers. or the consuming public. or the
advertising. sale, or offering for sale of
industry products at prices purporting
to be reduced from what are in fact
fictitious prices, or at purported reduc-
tions in price when such purported re-
ductions are in fact fictitious or are
otherwise misleading or deceptive. is an
unfair trade practice.
§ 200.10 Use of lottery schemes.
The offering or giving of prizes, pre-
miums, or gifts in connection with the
sale or distribution of industry products,
or as an inducement thereto, by any
scheme which involves a lottery or
scheme of chance, and the sale or dis-
tribution of industry products by any
method or plan which involves a lottery
or scheme of chance, are unfair trade
practices.
§ 200.11 Misrepresentation as to charac-
ter of husiness.
It is an unfair trade practice for any
member of the industry to represent,
directly or indirectly, through the use
of any word or term in his corporate or
trade name, in his advertising or other-
wise, that he is a manufacturer of feather
and down products, or that he is the
owner or operator of a factory or pro-
ducing company manufacturing them,
or that he owns, maintains, or operates
a research laboratory devoted to feather,
down, pillow, comforter, or bedding re-
search and development, when such is
not the fact, or in any other manner to
misrepresent the character, extent.
voiume, or type of his business.
§ 200.12 False invoicing.
Withholding from or inserting in in-
voices any statements or information by
reason of which omission or insertion a
false or misleading record is made,
wholly or in part, of the transactions
represented on the face of such invoices,
with the purpose or effect of thereby
misleading or deceiving purchasers,
prospective purchasers, or the consuming
public, is an unfair trade practice.
|24 F.R. 4827, May 29, 1959]
220
Chapter I—Federal Trade Commission
§ 200.13 Combination or coercion to fix
prices, 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 unlawfully to fix, maintain,
or enhance prices, suppress competition,
or restrain trade; or
(b) To enter into or take part in,
directly 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, unlawfully to fix,
maintain, or enhance prices, suppress
competition, or restrain trade.
§ 200.14 Prohibited discrimination.’
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., 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, ercdit. or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different pur-
chasers of goods of like grade and qual-
ity, where either or any of the purchases
involved therein are in commerce, and
where the effect thereof may be substan-
tially to lessen competition or tend to
create a monopoly in any line of com-
merce, 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 gocds involved in any
such transaction are sold for use, con-
sumption, or resale within any place
4As used tn 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,”
§ 200.14
under the jurisdiction of the United
States;
(2) That nothing in this paragraph
shall prevent dlfferentiais 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 commcdities are
to such purchasers sold or delivered;
(3) That nothing in this paragraph
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 in this paragraph
shall prevent price changes from time to
ume where made in response to changing
conditions affecting the market for or the
marketability of the goods concerned,
such as but not limited to actual or im-
minent 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 commis-
sions. It is an unfair trade practice for
any member of the industry eugaged 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 in-
termediary therein, where such inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect con-
trol, of any party .« such transaction
other than the persu:: by whom such
compensation is so graated 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 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 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
saie of any products or commodities
manufactured, sold, or offered for sale
by such member, unless such payment
or consideration is available on pro-
221
§'900.15
portionally equal terms to all other cus-
‘tomers competing in the distribution of
such products or commodities.
(d) Prohibited discriminatory services
or facilities. It is an unfair trade
practice for any member of the industry
engaged in commerce 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
facilities connected with the processing,
handling, sale, or offering for sale of
such commodity so purchased upon
terms not accorded to all coinpeting pur-
chasers 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 fore-
going provisions of this section.
(f) Exemptions. The inhibitions of
this section shall not apply to pur-
chases of their supplies for their own
use by schools, colleges, universities,
public libraries, churches, hospitals, and
charitable institutions not operated for
profit.
‘Nore: In complaint proceedings charging
discrimination in price or services or facili-
ties furnished, and upon proof having been
made of such discrimination, the burden of
rebutting the prima. facie case thus made
by showing justification shall be upon the
person charged; and unless Justification
shall be affirmatively shown, the Commission
ts authorized to issue an order terminating
the discrimination: Provided, however, That
nothing in this section shall prevent a seller
rebutting the prima facie case thus made
by showing that his lower price or the
furnishing of services or facllities to any
purchaser or purchasers was made in good
faith to meet an equally low price of a
competitor or the services or facilities fur-
ished by a competitor. (See sec. 2 (b)
Clayton Act.)
§ 200.15 Discriminatory returns.
It is an unfair trade practice for any
member of the industry to discriminate
in favor of one customer-purchaser
against another customer-purchaser of
industry products, bought from such
member of the industry for resale, by
contracting to furnish, or furnishing in
connection therewith, upon terms not
accorded to all customer-purchasers on”
proportionately equal terms, the service
Title 16—Commercial Practices
or facility whereby such favored pur-
chaser is accorded the privilege of re-
turning industry products so purchased
and receiving therefor credit or refund
of purchase price: Provided, however,
That nothing in §§ 200.1 to 200.18 shall
prohibit or be used to prevent the return
of merchandise by purchaser, for credit
or refund of purchase price, when and
because such merchandise has not been
properly labeled by the seller in accord-
ance with the rules in this part, or has
been otherwise falsely or deceptively
labeled or represented, or when and be-
cause such merchandise is defective in
material, workmanship, or in any other
respect is contrary to warranty or pur-
chase contract.
§ 200.16 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’ custom-
ers or prospective customers without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase industry products
manufactured or sold by such industry
member or the maker of such gift or
offer, or to infiuence such employers or
principals to refrain from dealing in the
products of competitors or from dealing
or contracting to deal with competitors.
§ 200.17 Defamation of competitors or
false disparagement of their prod-
ucts.
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 thelr business
methods, selling prices, values, credit
terms, policies, or services, is an unfair
trade practice.
§ 200.18 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 §§ 200.1
to 200.18. : mee .
222
Chapter I—Federal
Group II
§ 200.101 Use of size marks and labels.
The industry approves the practice of
marking and labeling ali industry prod-
ucts in a manner which accurately and
nondeceptively discloses the size of such
products and disapproves the practice
of distributing and selling industry prod-
ucts which are not thus marked or
labeled with respect to size.
COMMITTEE ON TRADE PRACTICES
§ 200.201 Industry committee.
The provisions of §16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1956]
PART 201—SEAM BINDING
INDUSTRY
Bec.
201.0 Definition of “seam binding.”
Group I
201.1 Mtsrepresentation and misbranding.
201.2 Identification and disclosure of fiber
or material content.
201.38 Disclosure of yardage.
201.4 Deception respecting type of edge.
201.5 Deception as to origin.
201.6 Selling below cost.
201.7 False invoicing.
201.8 Consignment distribution.
201.9 Combination or coercion to fix prices,
suppress competition, or restrain
trade.
201.10 Prohibited discrimination.
201.11 Aiding or abetting use of unfair
trade practices.
AurnHorrry: The provisions of this Part 201
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 201 ap-
pear at 16 F.R. 6367, June 30, 1951, unless
otherwise noted.
§ 201.0 Definition of “seam binding.”
As used in this part, the term “seam
binding” shall be understood as embrac-
ing any narrow fabric (other than bias
bmding) having a woven, cut, or other
kind of edge, and which is of the type
used in the manufacture of wearing ap-
parel to prevent ravelling or fraying at
seams and hems.
Group I
§ 201.1 Misrepresentation
branding.
It is an unfair trade practice for any
member of the industry to use, or cause
or promote the use of. any trade promo-
and mis-
Trade Commission § 201.3
tional literature, advertisement matter,
guarantee, mark, brand, label, desig-
nation, or other form of representation,
however disseminated or published,
which has the capacity and tendency or
effect of misleading or deceiving pur-
chasers or prospective purchasers with
respect to the grade, quality, freedom
from imperfections, color fastness, wash-
ability, fiber or material content, yard-
age, size, origin, fabrication, type of
edge, manufacture, finishing, or distribu-
tion of any seam binding, or which is
false, misleading, or deceptive in any
other material respect.
§ 201.2 Identification and disclosure of
fiber or material content.
(a) In the sale, offering for sale, or
distribution of seam binding, it is an
unfair trade practice to misrepresent or
deceptively conceal the fiber or material
content of any such product.
‘b) Seam binding containing rayon,
silk, or linen shall be identified as to its
fiber and material content in labels, in-
voices, and advertisements, in accord-
ance with the requirements of trade
practice rules heretofore promulgated by
the Commission for the rayon industry,
silk industry, and linen industry: Pro-
vided, That seam binding containing,
purporting to contain, or in any way
represented as containing wool, re-
processed wool, or reused wool, shall be
labeled in accordance with the require-
ments of the Wool Products Labeling
Act of 1939 and the rules and regulations
issued thereunder.
Nore: A copy of the above-mentioned trade
practice rules, and of the Wool Products
Labeling Act of 1989 and the rules and reg-
ulations issued thereunder, may be obtained
from the Commission by any industry mem-
ber making request therefor.
§ 201.3 Disclosure of yardage.
In order that purchasers may not be
deceived as to the yardage of seam bind-
ing and that misrepresentation and de-
ceptive concealment in respect thereto
may be avoided and prevented, the mini-
mum yardage of the article should be
clearly and nondeceptively marked on
the product or on the disks, spools, bolts,
cards, or other form of immediate pack-
aging of the product; and the sale, offer
for sale, or distribution of any seam bind-
ing not so marked, with the tendency and
capacity or effect of misleading or de-
ceiving purchasers or the consuming
public, is an unfair trade practice.
223