Industrial Bag And Cover Industry
16 CFR Part 213 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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 tor in his business or to suppress com- petition or unreasonably restrain trade. § 212.9 Prohibited forms of trade re- straints (unlawful price fixing, etc.). It is an unfair trade practice for any member of the industry, either directly or indirectly: (a) To enter into or take part in any understanding, agreement, combination, or conspiracy, or any planned common course of action, with one or more Mem- bers of the industry, or with any other person or persons, unlawfully to fix, maintain, or enhance the price of any goods, or otherwise unlawfully to, re- strain trade; or (b) To use any form of threat, intimi- dation, or coercion to induce apy mem- ber of the industry, or other person or persons, to become a party to any such understanding, agreement, combination, or conspiracy, or any such planned com- mon course of action. § 212.10 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 indirectly, to use or promoto the use of any unfair trade practice specified in this part. Grovur I § 212.101 Publishing of rates and charges. . The industry approves the practice of each individual member independently establishing and openly stating and pub- lishing his rates and charges with appli- cable terms and conditions. § 212.102 Excessive extension of credit and unsound collateral or unsecured loans, - Reasonable extension of credit and the making of secured loans at pre- yailing interest rates to storers and cus- tomers is normal warehouse business. However, extending excessive credit, and making or offering to make collateral or unsecured loans not in conformity with current sound banking principles, are condemned by the industry. § 212.103 Dissemination of credit in- formation. The industry records its approval of distributing to its members information covering delinquent and slow accounts in so far as this may lawfully be done. Trade Commission § 213.0 COMMITTEE ON TRADE PRACTICES § 212.201 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] 213—INDUSTRIAL BAG AND PART COVER INDUSTRY Sec. 218.0 Definitions. Grour I 213.1 Misrepresentation and misbranding of industry products. 218.2 #Misrepresentation as to character of business. 213.3 Misrepresenting products asa con- forming to starfdard. 213.4 Prohibited discrimination. 213.55 Substitution of products. 218.6 False and misleading price quota- tions, etc. 213.7 Deceptive use of trade or corporate names, trade-marks, etc. 218.8 Inducing breach of contract. 213.9 Defamation of competitors or false disparagement of their products. 213.10 Commercial bribery. 213.11 Procurement of competitors’ confi- dential information. 213.12 Prohibited forms of trade restraints (unlawful price fixing, etc.). 218.13 False invoicing. 218.14 Selling below cost. 218.16 Enticing away employees of compet- itors. 213.16 Aiding or abetting use of unfair trade practices. Group IT 213.101 Arbitration. 218.102 Price lists. 213.108 Maintenance of accurate records. COMMITTEE ON TRADE PRACTICES 213.201 Industry committee. AurHoriry: The provisions of this Part 213 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 46, unless otherwise noted. Source: The provisions of this Part 218 ap- pear at 18 F.R. 4555, Aug. 4, 1953, unless otherwise noted. § 213.0 Definitions. (a) Products of this industry include such bags, covers, and liners as are made of paper and/or paperboard and are de~ signed for use in containing and/or pro- tecting products of varying shapes and sizes during transit or storage. Many imdustry products are custom made to 263 § 213.1 specifications of the purchaser for speci- fied flexible form-fitting packaging re- quirements. Not included are (1) paper shipping sacks of standard sizes and types which are used as containers for loose small grain or small unit materials, such as cement, flour, poultry feed, and salt, or (2) ordinary paper bags used by retail stores in the marketing of their products to consumer-purchasers, or (3) rigid or foiding cardboard boxes, (b) Industry products consist prin- cipally of, but are not limited to, the following standard paper and paper- board items: Mattress and pad bags. All paper bags used for packaging bedding, upholstered pads, or similar sleeplng equipment, Can bags. All bags used for packaging empty metal, papem or fibre cans; usually constructed with kraft paper sides and paperboard bottoms. Upholstered furniture bags. All paper bags used for shipping or protecting uphol-~ stered furniture. Hand-made and semt-hand-made bags and covers. Custom-made paper bags for indus- trial product packaging. Includes case goods bags for packaging or protection of furniture other than upholstered, including home ap- pliances and office furniture and equipment. Casket covers. Paper covers normally used as dust protectors for shipment or storage of caskets. Tubing. Flexible paper tubes sold in cut lengths or in a continuous roll, maximum width of 12 inches and minimum length of 24 Inches (for protection of wooden hoe han- dies, etc.). Freight-car liners and freight-car cetling liners. Used to line the ceiling, sides, and floor of freight cars for protection of raw materials and manufactured products while in transit. Prefabricated water-reststant paper case liners. The water-resisting agent used may be any one of the foilowing, but is not Mmited to: (1) Asphalt laminated, (2) wax or resin laminated, (3) waxed, or (4) coated. Group I § 213.1 Misrepresentation and misbrand- ing of industry products. It is an unfair trade practice to make or publish, or cause to be made or published, | by way of advertising, label, or otherwise, any statement or representation which directly, or by reason of concealment of material fact, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective pur- chasers concerning the grade, quality, quantity, use, size or size symbol, mate- rial, finish, strength, thickness. composi- Title 16—Commercial Practices tion, origin, preparation, manufacture, or distribution of any product of the industry, or in any other material re- spect. § 213.2 Misrepresentation as to charac- ter of business. It is an unfair trade practice for any industry member, in the course of or in connection with the distribution of in- dustry products, to represent, directly or indirectly, that he is a manufacturer of industry products, or that he owns or controls a factory making such products, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business, § 213.3 Misrepresenting products as con- forming to standard. Representing through advertising, personal solicitation, or otherwise, that any product of the industry conforms to a standard recognized in or appiicable to the industry when such is not the fact is an unfair trade practice. § 213.4 Prohibited discrimination. (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, ete., 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, credit, or other form of price differential, where such rebate, re- fund, discoimt, credit, or other form of price differential, effects a discrimination in price between different purchasers 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 substantialiy to lessen competition or tend to create a mo- nopoly in any line of commerce, or to injure, destroy, or prevent competition 1As used in § 213.4, the term “commerce” means ‘trade or commerce among the sev-~ eral States and with foreign nations, or be- tween the District of Columbia or any Territory of the United States and any State, Territory, or forelgn nation, or between any insular possessions or other places under the jurisdictlon of the United States, or between any such possession or place and any State or Territory of the United States or the Dis- trict of Columbla or any foreign nation, or within the District of Columbia or any Terrt- tory or any insular possession or other place under the jurisdiction of the United States. 264 Chapter I—Federal with any person who either grants or knowingiy 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, con- sumption, or resaie 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 deiivered; Nore: This proviso shall not be con- strued as permitting an industry member to allow a price differential to a customer, whether in the form of a quantity price discount, rebate, or other form, through billing as a single order an aggregate of the amount of two or more orders of such customer on which the industry member makes separate deliveries, when the price differential allowed is not based on a net savings in cost of manufacture, sale, and dellvery of the products to said customer resulting from the different method and _quantity in which the products are sold and delivered to sald customer, or is more than due allowance for such net savings; nor is this proviso to be construed as permitting an Industry member to allow a price dlffer- ential to a customer, whether in the form of a quantity price discount, rebate, or other form, when, pursuant to agreement or un- derstanding by the industry member and the customer, delivery of the products pur- chased is to be delayed or made in install- ments so as to involve storage cost to the industry member, and when as & result of such cost or otherwise, the price differential allowed is not based on 8 net savings in cost of manufacture, sale, and delivery of the products to said customer resulting from the different method and quantity in which the products are sold and delivered two said customer, or is more than due allowance for such net savings. (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 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 obsolescence of seasonal goods, 26 58-064—76——18 Trade Commission § 213.4 distress sales under court process, or saies 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 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 intermediary 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 transaction other than the person by whom such compensation is so granted 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 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 facll- 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, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or com- modities. . (a) Prohibited discriminatory serve ices 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 proc- essing, by contracting to furnish or furnishing, or by contributing to the fur- nishing of, any services or facilities, in- cluding storage, connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all compet- ing purchasers on proportionally equal terms. (e) Inducing or receiving an illegal discrimination in price. It is an unfair ~ 19) § 213.5 trade practice for any member of the in- dustry 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 of 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 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 shall be upon the per- son charged; and unless justification shall be affirmatively shown, the Commission 1s authorized to issue an order terminating the discrimination: Provided, however, That nothing contained in this section shall pre- vent a seller rebutting the prima facie case thus made by showing that his lower price or the furnishing of services or facilities 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. § 213.5 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 rep- - resentations made prior to securing the order, without the consent of the pur- chasers to such substitutions, or falsely representing the reason for making a substitution, with the capacity and tend- ency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. Note: Nothing tn this section shall be construed as preventing the application of such tolerances as are agreed upon between buyer and seller or are otherwise deemed reasonable and proper and where no mis- representation or deception of the purchas- ing public is practiced or promoted in rela- tion to the product or its deviation from samples or specifications. § 213.6 False and misleading price quo- tations, etc. The publishing or circulating to pur- chasers or prospective purchasers by any member of the industry of false or mis- leading price quotations, price Lists, or terms or conditions of sale, with the capacity and tendency or effect of there- by misleading or deceiving purchasers or Title 16—Commercial Practices prospective purchasers, is an unfair trade practice. [24 F.R. 4327, May 29, 1959] § 213.7 Deceptive use of trade or cor porate names, trade-marks, etc. The use of any trade name, corporate name, trade-mark, or other trade desig- nation which has the capacity and tend- ency or effect of misleading or deceiving the purchasing or consuming public as to the name, nature, or origin of any prod- uct of the industry, or of any material used therein, or which is false or mis- leading in any other respect, is an unfair trade practice, § 213.8 Inducing breach of contract. (a) Knowingly inducing or attempting to induce the. breach of existing lawful contracts between competitors and their customers or their suppliers, or interfer- ing with or obstructing the performance of any such contractual duties or serv- ices, under any circumstance having the capacity and tendency or effect of sub- stantialiy injuring or lessening present or potential competition, is an unfair trade practice. (b) Nothing in this section is intended - to imply that it is improper for any in- dustry member to solicit the business of a@ customer of a competing industry member; nor is the section to be con- strued as in anywise authorizing any agreement, understanding, or planned common course of action by two or more industry members not to solicit business from the customers of either of them, or from customers of any other industry member. § 213.9 Defamation of competitors or false disparagement of their prod- ucts. It is an unfair trade practice: (a) To defame competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, or ques- tionable credit standing; or by other false representations; or (b>) To falsely disparage a competi- tor’s products, business methods, selling prices, values, credit terms, policies, or services. § 213.10 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- 266 Chapter —Federal Trade Commission 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 purchase or contract to purchase products manu- factured or sold by such industry member 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 contract- ing to deal with competitors. § 213.11 Procurement of competitors’ confidential information. It is an unfair trade practice for any member of the industry to obtain infor- mation concerning the business of a com- petitor by bribery of an employee or agent of such competitor, by false or mis- leading statements or representations, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained so as sub- stantially to injure competition or unrea- sonably restrain trade. § 213.12 Prohibited forms of trade re- straints (unlawful price fixing, etc.).? It is an unfair trade practice for any member of the industry, either directly or indirectly, to engage in any planned common course of action, or to enter into or take part in any understanding, agreement, combination, or conspiracy, with one or more members of the in- 3 The inhibitions of this section are subject to Public Law 542, approved July 14, 1952, €6 Stat. 632 (the McGuire Act) which pro- vides that with respect to a commodity which bears, or the label or container of which bears, the trade-mark, brand, or name of the producer or distributor of such com- modity and whlch is in free and open com- petition with commodities of the same gen- eral class produced or distributed by others, @ seller of such a commodity may enter into &@ contract or agreement with a buyer thereof which establishes a minimum or stipulated price at which such commodity may be re- sold by such buyer when such contract or agreement is lawful as applied to intrastate transactions under the laws of the State, Territory, or territorial jurisdiction in which the resale is to be made or to which the commodity is to be transported for such resale, and when such contract or agreement is not between manufacturers, or between wholesalers, or between brokers, or between factors, or between retailers, or between persons, firms, or curporations in competi- tion with each other. § 913.14 dustry, or with any other person or per- sons, to fix or maintain the price of any goods or otherwise unlawfully to restrain trade; or to use any form of threat, in- timidation, or coercion to induce any member of the industry or other person or persons to engage in any such planned common course of action, or to become @ party to any such understanding, agreement, combination, or conspiracy. § 213.13 False invoicing. (a) Withholding from or inserting in invoices any statements or information by reason of which omission or inser- tion a false or misleading record is made, wholly or in part, of the transactions represented on the face of such invoices, with the capacity and tendency or effect of thereby misleading or deceiving pur- chasers, prospective purchasers, or the consuming public, is an unfair trade practice. . (b) The practice of delivering prod- ucts in a number less than called for on the delivery record or invoice (so-called “short count’), with the capacity and tendency or effect of thereby misleading or deceiving the purchasing or consum- ing public, ls an unfair trade practice. [24 F.R. 4827, May 29, 1959] § 213.14 Selling below cost. (a) The practice of selling products of the industry at a price less than the cost thereof to the seller, with the intent or purpose, 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, is an unfair trade practice. (b) 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. All eleinents recognized by good accounting practice as proper ele- ments of such cost shall be included in determining cost under this section. The costs referred to in this section are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise. (c) 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 with the wrongful intent or purpose referred to and where the effect may be to injure, destroy, or prevent competition, or tend to create a monopoly. 267 § 913.15 § 213.15 Enticing away employees of competitors. ; Knowingly enticing away employees or sales representatives of competitors under any circumstance having the ca- pacity and tendency or effect of sub- stantially injuring or lessening present or potentiai 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 competitors in good faith and not for the purpose of injuring, destroying, or pre- venting competition. § 213.16 Aiding or abetting use of un- fair trade practices. It Js 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 this part. Group I § 213.101 Arbitration. The industry approves the practice of handling business disputes between members of the industry, or between members of the industry and their cus- tomers or suppliers, in a fair and reason- abie manner, coupled with a spirit of moderation and good will, and every ef- fort should be made by the disputants themselves to compose their differences. If unable to do so they should, if pos- sible, submit these disputes to impartial arbitration. § 213.102 Price lists. The industry approves the practice of each individual member of the industry independently adopting, publishing, and circulating to customers and prospective customers his own price lists. The in- dustry also approves the practice of such member including his terms of sale, independently arrived at, as part of his own published price list. § 213.103 Maintenance of accurate rec- ords. It 1s the judgment of the industry that each member should independently Keep proper and accurate records for determining his cost based on sound cost-accounting methods. Title 16—Commercial Practices COMMITTTEE ON TRADE PRACTICES § 213.201 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 214—HEARING AID INDUSTRY Bec. 214.0 Definitions, 214.1 MUsrepresentation in. general. .214.2 Guarantees, warranties, etc. 214.3 Bait advertising. 214.4 Misrepresentation of earnings of salesmen or agents. 214.5 Misrepresentation as to character of business, etc. 214.6 Deception as to benefit of services or advice of a physician, etc. 214.7 Deception as to visibility, construc- tion, ete. 241.8 Deception as to availability of suit- able batteries. 214.9 Deception respecting novelty of products. 214.10 Misrepresenting a commercial hear- ing ald establishment. 214.11 Deceptive advertising of hearing aid parts, accessories or components. 214.12 Misrepresenting installment sales contracts, 214.18 Deceptive endorsements, testimo- nials, etc, 214.14 Deception as to used or rebuilt products, 214.15 Deception respecting tests, accept- ance, or approval, 214.16 Defamatlon of competitors or false disparagement of their products. 214.17 Deceptlve use or imitation or simu- lation of trade or corporate names, trademarks, etc. 214.18 Procurement of competitor’s confi- dential information. 214.19 Unfair threats of infringement suits. 214.20 Inducing breach of contract. 214.21 Commercial bribery. 214.22 Prohibited forms of trade restralnts (unlawful price fixing, etc.). 214.23 Arrangements to exclude sale of com- petitors’ products. 214.24 Aiding or abetting use of unfair trade practices. AvuTHorITY: The provisions of this Part 214 issued under secs. 8, 5, 838 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: The provisions of this part 214 appear at 80 FR.-9056, July 20, 1965, unless otherwise noted. § 214.0 Definitions. (a) “Industry products” consist of all instruments and devices designed for or represented as aiding, improving, or cor- recting defective hearing, and parts and accessories therefor. 268 -