Narrow Industry Fabrics

16 CFR Part 207 · Trade practice rules · in the Code of Federal Regulations 1971-1971 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1971 CFR · Earliest edition: 1971 CFR

Text (1971 edition, OCR)

§ 206.102

§ 206.102 Dissemination of credit in-
formation.

The industry records its approval of
distributing to its members information
covering delinquent and slow accounts
insofar as this may lawfully be done.

§ 206.103 Products to be sold on dry

measure basis or by count.

The industry recommends that indus-
try products be sold only on a dry meas-
ure basis or by count.

§ 206.104 Bulblets to be sold separately
from bulbs.

The industry recommends that in the
interest of avoiding confusion and de-
ception of purchasers, gladiolus bulblets
be sold and offered for sale separately
from gladiolus bulbs, except when a
definite number of each is stated.

§ 206.105 Disclosure of size of bulbs.

It is the consensus of the industry that
the size of gladiolus bulbs should be
specified in all advertisements and sales
promotional literature relating to such
products, that such size should be the
measurement of the diameter of the
bulb, and that such measurement should
be stated in inches (e. g., 1% inches, %
inch, ete.), it being the view of the indus-
try that failure to disclose size, a dis-
closure of the circumference measure-
ment rather than the dlameter, or the
stating of the measurement in centi-
meters rather than In inches, is not in the
interest of fair competition in the indus-
try and is not in the interest of the buy-
ing public: Provided, That nothing in
this section is intended to disapprove the
practice of indicating the size of the
diameter of gladiolus bulbs by number
only in listings and offerings for sale
confined to wholesale buyers and jobbers
in accordance with the classification set
forth in § 206.2 (c).

PART 207—-NARROW FABRICS

INDUSTRY
Sec.
207.0 Definition.
Group I
207.1 Deception (general).
207.2 Misrepresentation as to character of
business.
207.3 Disclosure as to foreign origin of
imported narrow fabrics.
207.4 Seiling below cost.
207.5 False or deceptive selling methods.
207.6 Tie-in sales; coercing purchase of

one product as a prerequisite to
the purchase of other products.

Title 16—Commercial Practices

Sec.

2077 Substitution of products.

207 8 Consignment distribution.

207.9 False invoicing.

207.10 Unlawful coercion or combinations
in restraint of trade.

207.11 Commercial bribery.

207.12 Enticing away employees cf compet-
itors.

207.13 Defamation of competitors ur false
disparagement of their products.

207.14 Procurement of competitor's confi-
dential information by unfair
means and wrongful use tbereof.

207.15 Imitation or simulation of trade-
marks, trade names, etc.

207.16 Inducing breach of contract.

207.17 Unfair threats of infringement suits.

207.18 Prohibited discrimination.

207.19 Untawful interference with com-
petitors’ purchases or sales.

207.20 Selling of products which are “sec-
onds’” or which have latent
defects

207.21 Aiding or abetting use of unfair
trade practices.

Group IT

207.101 Arbitration.

207.102 Repudtation of contracts.

207.103 Dissemination of credit informa-
tion.

207.104 Coercion in sales.

207.105 Filing of trade-marks, etc.

207.106 Gtving of samples.

207.107 Use of written sales contracts.

207.108 Price lists.

COMMITTEE ON TRADE PRACTICES
207.201 Industry committee.

AUTHORITY: The provisions of this Part 207
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 207 ap-
pear at 17 F.R. 885, Jan. 30, 1952, unless
otherwise noted.

§ 207.0 Definition.

As used in this part the term “narrow
fabrics” shall mean any nonelastic woven
fabric of twelve inches or less in width
having a selvage edge on either side, ex-
cept ribbon and seam binding.

Grovup I

§ 207.1 Deception (general).

It is an unfair trade practice for any
industry member to use, or cause or pro-
mote the use of, any advertising matter.
guarantee, warranty, trade promotional]
literature, mark, brand, label, or other
representation, however disseminated or
published, which has the capaclty and
tendency or effect of misleading or de-
ceiving purchasers, prospective pur-
chasers, or the consuming public with

244.


Chapter |—Federal

respect to the grade, quality, length,
weight, size, use, colorfastness, material,
composition, construction, fabrication,
manufacture, distribution, origin, or
price or terms of sale, of narrow fabrics,
or which is false, misleading, or deceptive
in any other material respect.

§ 207.2 Misrepresentation as to charac-
ter of business.

In the sale, offering for sale, or distri-
bution of narrow fabrics, it is an unfair
trade practice for any industry member
to represent that he is a manufacturer of
narrow fabrics unless he owns and oper-
ates, or directly and absolutely controls,
a loom or looms, factory or mill, wherein
is made any and all narrow fabrics sold or
offered for sale by such member as the
manufacturer thereof, or in any other
manner to misrepresent the character,
extent, or type of his business.

§ 207.3 Disclosure as to foreign origin
of imported narrow fabrics.

With respect to any narrow fabrics
which have been imported from a foreign
country into the United States in the
ereige or other unfinished state, or in a
finished or semi-finished state, it is an
unfair trade practice:

(a) To offer for sale, seli, or distribute
any such narrow fabrics under marks,
stamps, brands, labels, or representa-
tions which have the capacity and tend-
ency or effect of misleading or deceiving
purchasers, prospective purchasers, or
the consuming public into the belief (1)
that such narrow fabrics were woven or
fabricated in the United States, when
such is not the fact; or (2) that they were
dved, finished, redyed, or refinished else-
where than in the United States, when
sveh is not true: or

(db) To offer for sale, sell, or distribute
uny such narrow fabrics without the
same being marked, stamped, branded,
or labeled so as to indicate clearly and
nondeceptively (1) the country of origin
of the narrow fabrics, or (2) that such
narrow fabrics were woven or fabricated
in said country and were dyed or fin-
ished, or redyed or refinished, in the
United States, as the case may be, where
the failure, refusal, or omlssion to so
mark, stamp, brand, or label such nar-
row fabrics has the capacity and tend-
ency or effect of thereby promoting, abet-
ting, or effectuating the marketing of
such products under conditions which
are misleading or deceptive to pur-

Trade Commission § 207.6
chasers, prospective purchasers, or the
consuming public.

(Nothing in this section shall be con-
strued as relieving any member of the
industry or other party of the necessity
of complying with the requirements of
the customs laws or regulations, or other
applicable provisions of law or regula-
tion, relating to the marking of importer
articles.)

§ 207.4 Selling below cost.

The practice of selling narrow fabrics
at a price less than the cost thereof to
the seller, with the purpose or intent, and
where the effect may be, to injure, sup-
press, or stifle competition, or tend to
create a monopoly in the production or
sale of such products, is an unfair trade
practice. As used in this section the term
“cost” means the total cost to the seller.
including the costs of acquisition, proc-
essing, preparation for marketing, sale.
and delivery.

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 monopolistic
practice with the wrongful intent re-
ferred to and where the effect may be
unreasonably to restrain trade, tend to
create a monoply, or substantially les-
sen competition.

All elements recognized by good ac-
counting practice as proper elements of
such cost shall be included in determin-
ing cost under this section. The costs
referred to in the section are actual costs
of the respective seller and not some
other figure or average costs in the in-
dustry determined by an industry cost
survey or otherwise.

§ 207.5 False or deceptive selling meth-
ods.

To use or promote the use of any sell-
ing method or credit term which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public is an unfair trade
practice.

§ 207.6 Tie-in sales; coercing purchase
of one product as a prerequisite to
the 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 sub-
stantially to lessen competition or tend

245


§ 207.7

to create a monopoly or unreasonably to
restrain trade is an unfair trade practice.

§ 207.7 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 substitutions and
with the capacity and tendency or effect
of misleading or deceiving purchasers,
prospective purchasers, or the consuming
public, is an unfair trade practice.

§ 207.8 Consignment distribution.

It is an unfair trade practice for any
industry member to use the practice of
shipping narrow fabrics on consignment
or pretended consignment for the pur-
pose and with the effect of artificially
clogging or closing trade outiets and un-
duly restricting competitors’ use of said
trade outiets in getting their products to
consumers through regular channels of
distribution, thereby injuring, destroy-
ing, or preventing competition or tending
to create a monopoly or unreasonably: to
restrain trade: Provided, however, That
nothing in this section shall be construed
as restricting or preventing consignment
shipping or marketing of narrow fabrics
in good faith where suppression of com-
petition, restraint of trade, or undue in-
terference with competitors’ use of the
usual channels of distribution, is not
effected. Nor shall anything in this
section be construed to.authorize any
agreement, understanding, or planned
common course of action by and between
industry members mutuaily to conform
or restrict their practice of shipping
goods on consignment with the intent or
effect of lessening competition. -

§ 207.9 False invoicing.

Withholding from or inserting in in-
voices or sales slips any statement or
information by reason of which omission
or insertion a false record is made, wholly
or in part, of the transactions repre-
sented on the face of such invoices or
sales slips, with the capacity and tend-
ency or effect of thereby misleading or
deceiving purchasers, prospective pur-
chasers, or the consuming public, is an
unfair trade practice.

Title 16——Commercial Practices

§ 207.10 Unlawful coercion or combina-
tions in restraint of trade.

It is an unfair trade practice for any
industry member:

(a) To use, directly or indirectly, any
form of threat, intimidation, or ccer-
cion against any industry member 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 planned com-
mon course of action. understanding or
agreement. combination or conspiracy,
with one or more members of the indus-
try, or with any other person or persons,
unlawfully to fix, maintain, or enhance
the price of any goods or otherwise sup-
press competition or restrain trade.

§ 207.11 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 vaiue to agents, employees, or repre-

- sentatives of custoimers or prospective

customers, or to agents, employees, or

‘representatives of competitors’ custom-

ers or prospective customers, without the
knowledge of their employers or prin-
cipals,-as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry mem-
ber or the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing in the products
of competitors or from dealing or con-

- tracting to deal with competitors.

§ 207.12 Enticing away employees of
competitors.

It is an unfair trade practice for any
industry member wilfully to entice away

-employees of competitors with the intent

and effect of thereby unduly hampering
or injuring competitors in their busi-
ness 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.

§ 207.13 Defamation of competitors or
false disparagement of their prod-
ucts.

The defamation of competitors by
falsely imputing to them dishonorabie

246


Chapter I—Federal Trade Commission

conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dis-
paragement of the grade, quality, or
manufacture of the products of competi-
tors, or of their business methods, selling
prices, values, credit terms, policies, or
services, or conditions of employment, is
an unfair trade practice.

§ 207.14 Procurement of competitor’s
confidential information by unfair
means and wrongful use thereof.

It is an unfair trade practice for any
industry member to obtain information
concerning the business of a competitor
by bribery of an employee or agent of
such competitor, by false or misleading
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-
ness or to suppress competition or un-
reasonably restrain trade.

§ 207.15 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 purchasers, prospective pur-
chasers, or the consuming public, is an
unfair trade practice.

§ 207.16 Inducing breach of contract.

Inducing or attempting to induce the
breach of existing lawful contracts be-
tween competitors and their customers
or their suppliers, or interfering with or
obstructing the performance of any such
contractual duties or services, under any
circumstance having the capacity and
tendency or effect of substantially in-
juring or lessening present or potential
competition, is an unfair trade practice.

Nothing in this section is intended to
imply that it is improper for any indus-
try member to solicit the business of a
customer of a competing industry mem-
ber; nor is the section to be construed
as in anywise authorizing any agree-
ment, understanding, or common course
of action by two or more industry mem-
bers not to solicit business from the cus-
tomers of either or any of them or from
customers of any other industry mem-
ber.

§ 207.18

§ 207.17 Unfair threats of infringement
suits.

The circulation of threats of suit for
infringement of patents or trade-marks
among customers or prospective custom-
ers of competitors, not made in good
faith but for the purpose or with the
effect of thereby harassing or intimidat-
ing such customers or prospective cus-
tomers, or of unduly hampering, injur-
ing, or prejudicing competitors in their
business, is an unfair trade practice.

§ 207.18 Prohibited discrimination.’

(a) Prohibited discriminatory prices,
rebates, refunds, discounts, credits, etc.,
which effect unlawful price discrimina-
tion. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, to grant or allow, secretly or
openly, directly or indirectly, any rebate,
refund, discount, credit, or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different purchas-
ers of goods of like grade and quality,
where either or any of the purchases
involved therein are in commerce, and
where the effect thereof may be 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 custom-
ers of either of them: Provided, however:

(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place
under the jurisdiction of the United
States;

(2) That nothing contained in this
paragraph shall prevent differentials

1As used in this section, the word “com-
merce” means “trade or commerce among the
several States and with foreign nations, or
between the District of Columbia or any
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 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.” -

247


§ 207.19

which make only due allowance for dif-
ferences in the cost of manufacture, saie,
or delivery resulting from the differing
methods or quantities in which such
commodities are to such purchasers sold
or delivered;

(3) That nothing contained in this
paragraph shall prevent persons engaged
in selling goods, wares, or merchandise
in commerce from selecting their own
customers in bona fide transactions and
not in restraint of trade;

(4) That nothing contained in this
paragraph shail prevent price changes
from time to time where made in re-
sponse to changing conditions affecting
the market for or the marketability of
the gocds concerned, such as but not
limited to obsolescence of seasonal goods,
distress sales under court process, or
sales in good faith in discontinuance of
business in the goods concerned.

(bo) Prohibited brokerage and com-
missions. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
merce, to pay or grant, or to receive or
accept, anything of value as a commis-
sion, brokerage, or other compensation,
or any allowance or discount in lieu
thereof, except for services rendered in
connection with the sale or purchase of
goods, wares, or merchandise, either to
the other party to such transaction or to
an agent, representative, or other inter-
mediary therein where such intermedi-
ary is acting in fact for or in behalf, or is
subject to the direct or indirect control,
of any party to such transaction other
than the person by whom such compen-
sation is so granted or paid.

(ec) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce, to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of value to or for the benefit of a
customer of such member in the course of
such commerce as compensation or in
consideration for any services or facil-
ities furnished by or through such cus-
tomer in connection with the processing,
handling, sale, or offering for sale of any
products or commodities manufactured,
sold, or offered for sale by such member,
uniess such payment or consideration is
available on proportionally equal terms
to ali other customers competing in the

Title 16—-Commercial Practices

distribution of such products or com-
modities.

(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 one purchaser against another
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not
accorded 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 forego-
ing provisions 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 chari-
table institutions not operated for profit.

NoTe: 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 shail be upon the per-
son charged; and unless justification shall be
affirmatively shown, the Commission is au-
thorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shall prevent a
seller rebutting the prima facie case thus
made by showing that his lower price or the
furnishing of services or faciiities to any
purchaser or purchasers was made in good
faith to meet an equally low price of a com-
petitor, or the services or facilities furnished
by a competitor. (See section 2 (b). Clayton
Act.)

§ 207.19 Unlawful interference with
competitors’ purchases or sales.

It is an unfair trade practice for any
industry member, by means of any mo-
nopolistic practices or through combina-
tion, conspiracy, coercion, boycott,
threats, or any other unlawful means,
directly or indirectly, to interfere with a
competitor’s right to purchase his raw
materials and supplies froin whomsoever

248


Chapter I—Federal

he chooses, or to sell his product to
whomsoever he chooses.

§ 207.20 Selling of products which are
peconds” or which have latent de-
ects.

It is an unfair trade practice for
any industry member to offer for sale,
sell. or cause to be sold, narrow fabrics
which are “seconds,” or which have la-
tent defects, whether designated as spe-
cial lots, close-outs, obsolete construc-
tions, or otherwise, without making full
and nondeceptive disclosure, by tag or
iabei attached to the fabrics, and in all
invoices, advertising, and trade promo-
tional literature, of the fact that such
narrow fabrics are “seconds,” or have
latent defects, as the case may be.

§ 207.21 Aiding or abetting use of un-
fair trade practices.

It is an unfair trade practice for any
person, firm, organization, or corpora-
tion to aid, abet, coerce, or induce an-
other, directly or indirectly, to use or
promote the use of any unfair trade prac-
tice specified in this part.

Group It
§ 207.101 Arbitration.

The industry approves the practice of
handling business disputes between
members of the industry and their cus-
tomers in a fair and reasonable 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 arbitration.

§ 207.102 Repudiation of contracts.

Lawful contracts, either written or
oral, are business obligatlons 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 equally reprehen-
sible and is condemned by the industry.
§ 207.103 Dissemination of credit in-

formation.

The industry records its approval of
distributing to its members informa-
tion covering delinquent and slow ac-
counts insofar as it may lawfully be
done.

§ 207.104 Coercion in sales.

The use of buying power to force un-
economic or unjust terms of sale upon

Trade Commission § 207.108
sellers, and the use of selling power to
force uneconomic or unjust terms of sale
upon buyers, are condemned by the
industry.

§ 207.105 Filing of trade-marks, etc.

To void confusion within the industry,
it 1s recommended that each member
thereof voluntarily file with a qualified
agency designated by the industry ail
trade-marks, trade names, labels, or
brands used by such member, and that
such information be made equally avail-
able to all members of the industry and
to the public.

§ 207.106 Giving of samples.

The industry disapproves the giving of
samples without charge except only as
may be necessary to acquaint purchasers
or prospective purchasers with the grade
or quality of the product offered for sale,
and where the giving of such samples
by any member of the industry is not
practiced or accomplished in such way
or to such extent as to effectuate an
illegal discrimination in price contrary
to the provisions of § 207.18.

§ 207.107 Use of written sales contracts.

In order to avoid ambiguity and mis-
understanding between buyers and
sellers, all purchases and sales of prod-
ucts of the industry exceeding one piece.
regardless of the total value thereof,
should be made by written contract,
signed by the buyer and seller. Such
written contract should set forth the
actual terms and conditions of the sale
involved.

Wherever practicable, the delivery of
all merchandise of any quantity should
be made against a written receipt signed
by the purchaser or a qualified agent or
employee of the purchaser.

The provisions of this section shall not
be construed as sanctioning or approv-
ing any agreement among competitors,
or any planned common course of action
among competitors, to agree upon, or to
fix, specify, or determine, the prices, dis-
counts, terms, or conditions of sale to
be covered in any sales contract or trans-
action, but these shall be open to indi-
vidual negotiation between the seller and
buyer, subject to the requirements of
8§ 207.1 to 207.21 and applicable pro-
visions of law.

§ 207.108 Price lists.

(a) The industry approves the prac-
tice of each industry member inde-
pendently publishing and circulating to

249


§ 207.201

the purchasing trade his.own price lists.

(b) The industry approves the prac-
tice of individual industry members in-
dependently making the terms of sale a
part of all published price schedules.

COMMITTEE ON TRADE PRACTICES
§ 207.201 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 209—-GROCERY INDUSTRY

Bec.
209.0 Definitions.
Group I
SUBGROUP A
209.1 Statutory basis of §§ 209.3 to 209.8.
209.2 Definition of “commerce.”
209.3 Prohibited discrimination in price.
209.4 Prohibited brokerage and commis-
sions, etc.
209.5 Prohibited discrimination in adver-
tising or promotional allowances.
209.6 Prohibited discrimination in services
or facilities.
209.7 Prohibited inducing or receiving dis-
crimination in price. .
209.8 Exemptions from §§ 209.3 to 209.7.
SUBGROUP B
209.9 Statutory basis of §§ 209.11 .to
209.25. . :
209.10 Definition of “purchasing public.”
209.11 Prohibited wrongful seiiing below
cost.
209.12 Faise use of the term “bargain” pro-
hibited.
209.18 Prohibited use of fictitious price.
209.14 Prohibited use of any false or mis-
leading term of sale.
209.15 Prohibited use of any false or mis-
leading invoice, etc.
209.16 Prohibited misrepresentation of
available product suppiy.
209.17 Prohibited use of any misleading or
deceptive selling method.
209.18 Prohibited misrepresentation in gen-
eral.
209.19 Prohibited defamation of competi-
tor. ;
209.20 Prohibited enticing of competttor’s
employee.
209.21 Prohibited substitution of compett-
tor’s product.
209.22 Prohibited interference with com-
petitor’s contract.
209.28 Prohibited coercion of purchase.
209.24 Prohibited use of lottery scheme.
209.25 Prohibited forms of trade restraints
(unlawful price fixing, etc.)
: SUBGROUP C
209.26 Prohibited use of unfair exclusive

deals.

Title 16——-Commercial Practices

SUBGROUP D

Sec.
209.27 Prohibited aiding or abetting use of
unfair trade practices.

COMMITTEE ON TRADE PRACTICES
209.201 Industry committee.

AvuTHoriry: The provisions of this Part 209
issued under secs. 6, 5, 88 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Sovrce: The provisions of this Part 209 ap-
pear at 17 F.R. 2357, Mar. 19, 1952, unless
otherwise noted.

Note: FTC Order, File No. 21-452, 21 F. R
265. Jan. 13. 1956. provides in part that Part
22, Frozen Food Industry. of this subchapter.
supersedes Part 209 with respect to persons,
firms, corporations, and organizations en-
gaged in the production and/or marketing of
vegetables, fruits, juices, fish and shellfish,
baked goods, and other miscellaneous pre-
pared foods, which are packed, marketed, and
delivered to the uitimate consumer in a
frozen state. (Not included as products of
the frozen food industry are meats and poul-
try, and frozen dairy products including ice
cream and sherbets.)

§ 209.0 Definitions.

The term “member of the industry,”
as used in this part, means any person
engaged in the business of marketing one
or more products to or in the grocery
trade. The term “person,” as thus used,
means any individual, partnership, cor-
poration, association, or other orga-
nization. :

Group I
SUBGROUP A
§ 209.1 Statutory basis of §§ 209.3 to
209.8.

Sections 209.3 to 209.8 contain rules
which repeat the statutory language in
section 2 (a) and (c) to (f) of the Clay-
ton Act, as amended by: the Robinson-
Patman Act and otherwise. This law is
qualified by the following meet-competi-
tion provisions in section 2(b) of the
Clayton Act:

Upen proof being made, at any hearing on
a complaint under this section, that there
has been discrimination in price or services
or facilities furnished, the burden of rebut-
ting the prima-facie case thus made by show-
ing justification shall be upon the person
charged with a violation of this section, and
unless justification shall be affirmatively
shown, the Commission is authorized to issue
an order terminating the discrimination:
Provided, however, That nothing herein con-
tained shall prevent a seller rebutting the
prima-facie case thus made by showing that
his lower price or the furnishing of services

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