Consumer Law Library

Steel Office Furniture Industry

16 CFR Part 21 · Trade practice rules · in the Code of Federal Regulations 1938-1959 (4 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1959 CFR · Earliest edition: 1938 CFR

Text (1959 edition, OCR)

$19.14

common course of action, or to become a
party to any such understanding, agree-
ment, combination, or conspiracy.

§ 19.14 Enticing away employees of
competitors. Knowingly enticing away
employees or sales representatives of
competitors under any circumstance
having the capacity and tendency or ef-
fect of substantially injuring or lessen-
ing present or potential competition is
an unfair trade practice: Provided, That
nothing in this section shall be construed
as prohibiting employees from seeking
more favorable employment, or as pro-
hibiting employers from hiring or offer-
ing employment to employees of com-
petitors in good faith and not for the
purpose of injuring, destroying, or pre-
venting competition.

§19.15 Misrepresenting products as
conforming to standard. Representing,
through advertising, personal solicita-
tion, or otherwise, that any product of
the industry conforms to a standard
recognized in or applicable to the indus-
try when such is not the fact, is an unfair
trade practice.

§19.16 Push money. It is an unfair
trade practice for any industry member
to pay or contract to pay anything of
value to a salesperson employed by a
customer of the industry member, as
compensation for, or as an inducement
to obtain, special or greater effort or
service on the part of the salesperson in
promoting the resale of products sup-
plied by the industry member to the
customer:

(a) When the agreement or under-
standing under which the payment or
payments are made or are to be made is
without the knowledge and consent of
the salesperson’s employer; or

(b) When the terms and conditions
of the agreement or understanding are
such that any benefit to the salesperson
or customer is dependent on lottery or
chance; or

(c) When any provision of the agree-
ment or understanding requires or con-
templates practices or a course of con-
duct unduly and intentionally hampering
sales of products of competitors of an
industry member; or

(d) When, because of the terms and
conditions of the understanding or
agreement, including its duration, or the
attendant circuinstances, the effect may
be to substantially lessen competition or
tend to create a monopoly; or

Page 142

Title 16—Commercial Practices

(e) When similar payments are not
accorded to salespersons of competing
customers on proportionally equal terms
in compliance with sections 2 (d) and (e)
of the Clayton Act.

Nore: Payments made by an industry.
member to a salesperson of a customer under
any agreement or understanding that all or
any part of such payments its to be trans-
ferred by the salesperson to the customer, or
is to result in a corresponding decrease in the
salesperson’s salary, are not to be considered
within the purview of this section, but are
to be considered as subject to the require-
ments and provisions of section 2 (a) of the
Clayton Act,

§19.17 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 in-
duce another, directly or indirectly, to
use or promote the use of any unfair
trade practice specified in the rules in
this part.

COMMITTEE ON TRADE PRACTICES

§ 19.201 Industry committee. The
provisions of § 16.1 of this subchapter
shall be applicable to an industry com-
mittee established under this part.

[21 P. R. 3218, May 16, 1956]

Part 20—Public Seating Industry
COMMITTEE ON TRADE PRACTICES [ADDED]

Sec.
20.201 Industry committee

$20.201 Industry committee. The
provisions of $16.1 of this subehapter
shall be applicable to an industry com-
mittee established under this part.

(Sec. 6, 38 Stat. 721; 15 U.8.C.48) [21 F. R.
1174, Feb. 21, 1956}

Part 21-——Steel Office Furniture
Industry [Revoked]

CopiIricaTIon: Part 21 was revoked, 20 F, R.
3023, May 5, 1955.

Part 21-—Corsef, Brassiere, and
Allied Products Industry
[Added]

Sec.

21.0 Definitions.
GROUP I

Prohibited discrimination.
Misrepresentation in general.

211
21.2