Consumer Law Library

Hearing And Industry

16 CFR Part 214 · Trade practice rules · in the Code of Federal Regulations 1974-1974 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1974 CFR · Earliest edition: 1974 CFR

Text (1974 edition, OCR)

§ 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 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
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 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 this
part.

Group II

§ 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-
able 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 is 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,

°

a

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

Sec.

214.0 Definitions.

214.1 Misrepresentation 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 aid establishment.

214.11 Deceptive advertising of hearing aid.
parts, accessories or components.

214.12 Misrepresenting installment sales:
contracts.

214.13 Deceptive endorsements, testimo-
Dials, etc. '

214.14 Deception as to used or rebuilt
products.

214.15 Deception respecting tests, accept-
ance, Or approval.

214.16 Defamation of competitors or false

: disparagement of their products.

214.17 Deceptive 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 restrainta
(unlawful price fixing, etc.).

214.23 Arrangements to exclude sale of com-
petitors’ producta.

214.24 Alding or abetting use of unfair

trade practices.

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

Source: The provisions of this part 214

appear at 30 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.

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Chapter |—Federal

(b) “Industry members” are persons,
firms, corporations, and organizations
engaged in the manufacture, distribu-
tion, or sale of any industry products as
defined above.

§ 214.1 Misrepresentation in general.

It is an unfair trade practice for any
industry member to use, or cause or pro-
mote the use of, any trade promotional
literature, advertising matter, testi-
monial, guarantee, warranty, mark, in-
Signia, depiction, brand, designation, or
representation, however disseminated or
publisned, which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers, or of aiding, abetting, or caus-
ing sales agents, dealers, distributors, or
other marketers to mislead or deceive the
purchasing or consuming public.

(a) With respect to the grade, qual-
ity, quantity, origin, novelty, price, cost,
terms of sale, use, construction, size,
composition, dimensions, type, design,
development, visibility, durability, per-
formance, fit, appearance, efficacy, bene-
fits, cost of operation, resistance to
climatic conditions, or physiological
benefits of any industry product, or the
psychological well-being induced by an
industry product; or

(b) With respect to any service or ad-
justment offered, promised, or to be sup-
plied to purchasers of any industry
product; or

(c) With respect to the manufacture,
distribution, or marketing of any indus-
try product; or

(d) With respect to the scientific or
technical knowledge, training, experi-
ence, or other qualifications of an indus-
try member, or of any of his employees,
relating to the selection, fitting, adjust-
ment, maintenance, or repair of industry
products; or

(e) In any other material respect.

Norse: This section shall be construed as
prohibiting the false advertisement of hear-
ing alds or devices as the term “false adver-
tisement” is defined Im section 15 of the
Federal Trade Commission Act.

{Rule 1}
§ 214.2 Guarantees, warranties, etc.
(a) It is an unfair trade practice to
represent in advertising or otherwise
that a product is “guaranteed” without
clear and conspicuous disclosure of:
(1) The nature and extent of the
guarantee, and

Trade Commission § 214.3

(2) Any material conditions or Hmi-
tations in the guarantee which are im-
posed by the guarantor, and

(3) The manner in which the guar-
antor will perform thereunder, and

(4) The identity of the guarantor.
(The necessary disclosure requires that
any guarantee made by the dealer or
vendor, which is not backed up by the
manufacturer, must make it clear that
the guarantee is offered by the dealer or
vendor only.)

(b) Representations that a product is
“guaranteed for life” or has a “lifetime
guarantee,” in addition to meeting the
above requirements, shali contain a con-
spicuous disclosure of the meaning of
“life” or “lifetime” as used (whether that
of the purchaser, the product or other-
wise).

(c) Guarantees shall not be used which
under normal conditions are impractical
of fulfillment or which are for such a
period of time or are otherwise of such
nature as to have the capacity and
tendency of misleading purchasers or
prospective purchasers into the belief
that the product so guaranteed has a
greater degree of serviceability, durabil-
ity, or performance capability in actual
use than is true in fact.

(d) This section has application not
only to “guarantees” but also to “war-
ranties,” to purported “guarantees” and
“warranties,” and to any promise or rep-
resentation in the nature of a “guar-
antee” or “warranty.” [Ruie 2]

§ 214.3 Bait advertising.

It is an unfair trade practice for an
industry member to offer for sale any in-
dustry product when the offer is not
a bona fide effort to seli the product so
offered as advertised and at the ad-
vertised price.

Nore: In determining whether there has
been a violation of this section, considera-
tion will be given to acts or practices indicat-
ing that the offer was not made in good
faith for the purpose of selling the advertised
product, but was made for the purpose of
contacting prospective purchasers and selling
them a product or products other than the
product offered. Among acts or practices
which will be considered in making that
determination are the following:

1. The creation, through the initial offer
or advertisement, of a false impression of
tbe product offered in any material respect;

2. The refusal to show, demonstrate, or
sell the product offered In accordance with
the terms of the offer;

3. The disparagement, by acts or words,
of the product offered, or the disparagement

269


§ 214.4

of the guarantee, credit terms, availability
of service, repairs or parts, or in any other
respect, in connection with it;

4. The showing, demonstrating, and in
the event of sale, the delivery, of a product
which is unusable or impractical for the
purpose represented or impiied in the offer;

5. The refusal, in the event of sale of the
product offered, to deliver such product to
the buyer within reasonable time thereafter;

6. The failure to have available a quantity
of the advertised product at the advertised
price sufficient to meet reasonably antioi-
pated demands.

It is not necessary that each act or prac-
tice set forth above be present in order to
estabiish that a particular offer is violative
of this section.

(Rule 3]

§ 214.4 Misrepresentation of earnings
of salesmen or agents.

It is an unfair trade practice for any
industry member to make or publish, or
cause to be made or published, any ad-
vertisement, offer, statement, or other
form of representation, which directly or
by implication is faise, misleading or
deceptive:

(a) Concerning the salary, commis-
sion, income, earnings, or other remu-
neration which agents, canvassers, solici-
tors, or sales representatives receive or
may receive; or

(b) Concerning any conditions or con-
tingencies affecting such remuneration
or the opportunities therefor. (Rule 4]

§ 214.5 Misrepresentation as to charac-
ter of business, etc.

It is an unfair trade practice for any
industry member faisely to represent, di-
rectiy or indirectly, through the use of
any word or term in his corporate or
trade name, tn his advertising or other-
wise: .

(a) That he is a manufacturer of hear-
ing aids or devices, or of batteries, parts,
or accessories therefor; or

(b) That he is the owner or operator
of a factory or producing company man-
ufacturing such products; or

(c) That he owns or maintains a lab-
oratory devoted to hearing aid re-
search, testing, experimentation, or de-
velopment; or

to misrepresent in any other material
respect the character, extent, or type of
his business. [Rule 5]

§ 214.6 Deception as to henefit of serv-
ices or advice of a pbysieian, etc.

(a) In connection with the sale or

offering for sale of industry products,

Title 16——Commercial Practices

it is an unfair trade practice for any in-
dustry member to represent, directly or
by implication, that the services or ad-
vice of a physician have been used in
the designing or manufacturing of in-
dustry products, or will be used or made
available in the selecting, fitting, ad-
justing, or testing of industry products
relative to the individual needs of con-
sumer-purchasers, when such is not the
fact.

(b) The prohibitions of this section
are applicable to the use of the terms
“doctor,” “physician,” “otologist,” or
“otolaryngologist”; to any abbreviations,
variations, or derivatives of such terms;
and to the use of any symbol, depiction,
or representation having a medical con-
notation.

(c) It is also an unfair trade practice
to use, in advertising or otherwise, the
words “prescribe” or “prescription,” or
any abbreviation, variation or derivative
thereof or symbol therefor, in referring
to or describing any industry product,
unless such product was made pursuant
to a prescription given by a physician:
Provided, however, That the word “pre-
scription” or words of similar meaning
may be used to refer to or describe an
industry product which was speciaily
made to compensate for the hearing loss
of a particular purchaser in accordance
with directions furnished by a qualified
person other than a physician, when
such words are accompanied by a clear
and conspicious disclosure that the
“prescription” was not based on a med-
ical examination and that the person
issuing it was not a physician. [Rule 61

§ 214.7 Deception as to visibility, con-
struction, etc.

It is an unfair trade practice for any
industry member:

(a) To represent, directly or by impli-
cation, through the use of such words or
expressions as “invisible,” “hidden,”
“hidden hearing,” “compitetely out of
sight,” “conceal your deafness,” “hear in
secret,” “unnoticed even by your closest
friends,” “‘no one will know you are hard
of hearing,” “your hearing loss is your
secret,” “no one need know you are wear-
ing a hearing aid,” “hidden or out of
sight when inserted in the ear canai,”
or by any other words or expressions of
similar import, that any hearing aid,
device, or part is hidden or cannot be
seen unless such is the fact.

(b) To use in advertising the words or
expressions, “no cord,” “cordless,” “100

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Chapter |I—Federal Trade Commission

percent cordless,” “no unsightly cord
dangling from your ear,” “no wires,”
“no tell-tale wires,” or other words or
expressions of similar import, unless
such representations are true and unless,
in close connection therewith and with
equal prominence, a clear and adequate
disclosure is made that a plastic tube
(or similar device) runs from the
instrument to the ear if such is the fact.

(ec) To use in advertising the words or
expressions, “no button,” “no ear but-
ton,” “no buttons or receivers in either
ear,” or other words or expressions of
similar import, unless such representa-
tions are true and unless, in close con-
nection therewith and with equal prom-
inence, a clear and adequate disclosure
is made that an ear mold or plastic tip is
inserted in the ear if such is the fact.

(d) To represent, directiy or by impli-
cation, that a hearing aid utilizing bone
conduction has certain specified features
such as the absence of anything in the
ear, or leading to the ear, or the like,
without disclosing clearly and conspic-
uously that the instrument operates on
the bone-conduction principle and that
in many cases of hearing loss this type of
instrument may not be suitable. (Ruie
7]

§ 214.8 Deception as to availability of

suitable batteries.

It is an unfair trade practice for any
industry member to represent, directly
or by implication, that batteries sold
only by such industry member or other
specified person or concern, or bearing a
specified brand, label, or other identify-
ing mark, are the only ones suitable for
use in a particular type or make of hear-
ing aid or device when such is not the
fact. [Rule 8]

§ 214.9 Deception respecting novelty of
products.

(a) It is an unfair trade practice to
use any advertisement or other repre-
sentation which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers into the belief that any hearing
ald or device, or part or accessory there-
of, is a new invention or involves a new
mechanical or scientific principle, when
such is not the fact.

(b) Representations of the following
or similar types, when not fully justified
by the facts, are among those prohibited
by this section: “Amazing new discov-
ery,” “revolutionary new imvention,”

§ 214.13

“radically new and different,” “sensa-
tional new laboratory development,” “re-
markable new electronic device,” ‘‘brand-
new invention,” “marvelous new hearing
invention,” ‘new scientific aid,” and
“miracle.” [Rule 9]

§ 214.10 Misrepresenting a commercial
hearing aid establishment.

(a) It is an unfair trade practice for
an industry member to represent, directly
or by implication, that a commercial
hearing aid establishment is a govern-
mental or public one, or is a nonprofit
medical, educational, or research institu-
tion, through the use of terms having a
medical, professional, or scientific con-
notation, such as, “Hearing Center,”
“Hearing Institute,” “Hearing Bureau,”
“Hearing Clinic,” “State’s Hearing Clin-
ic,” “State’s Speech and Hearing Cen-
ter,” or similar representations.

(b) Nothing in this section is under-
stood to preclude an industry member
from representing if such be the fact,
that he owns, operates, or controls a
“Hearing Aid Center,” or from using
other words or expressions which clearly
and nondeceptively identify the mem-
ber’s establishment as a commercial
hearing aid enterprise. [Rule 10]

§ 214.11 Deceptive advertising of hear-
ing aid parts, accessories or compo-
nents.

It is an unfair trade practice for an
industry member to use or cause to be
used, any type of advertising or promo-
tional literature depicting or describing
only a single part, accessory, or compo-
nent of any hearing aid or device, such
as a battery on the finger, a transistor
held in the hand, etc., in such manner as
to have the capacity and tendency to
mislead or deceive purchasers or pro-
spective purchasers into the erroneous
belief that the said part, accessory, or
component is all that needs to be worn
or carried. [Rule 11]

§ 214.12 Misrepresenting installment
sales contracts.

It is an unfair trade practice for an in-
dustry member falsely to represent an.
installment sales contract respecting
hearing aids, devices, parts or accessories.
as @ lease or rental plan. ([Ruie 12]

§ 214.13 Deceptive endorsements, testi-
monials, etc.

It is an unfair trade practice for an in-
dustry member to advertise or otherwise
represent:

271


§ 914.14

(a) That a particular individual, or-
ganization, or institution endorses, uses,
or recommends such member’s hearing
aids, devices, or other industry products
when such is not the fact; or

(b) That a particular individual wears
such member’s hearing aids or devices
when such is not the fact. (Rule 13]

§ 214.14 Deceptiou as to used or rebuilt
products.

(a) It is an unfair trade practice for
any industry member to represent, di-
rectly or indirectly, that any industry
product or part thereof is new, unused,
or rebuilt, when such is not the fact.

(b) In the marketing of an industry
product which has been used, or which
contains used parts, it is an unfair trade
practice to fail to make full and non-
deceptive disclosure of such fact in all
advertlsing and promotional literature
relating to the product, on the container,
box, or package in which such product is
packed or enclosed and, if the product
has the appearance of being new, on the
product itself. The required disclosure
may be made by use of such words as
“Used,” “Secondhand,” “Repaired,” or
“Rebuilt,’’ whichever is applicabie to the
product involved.

(c) It is an unfair trade practice to
misrepresent the identity of the rebuilder
of an industry product. If the rebuild-
ing of an industry product was done by
other than the original manufacturer, it
is also an unfair trade practice to fail
to disclose such fact wherever the orig-
inai manufacturer is identified. [Rule
14]

§ 214.15 Deception respecting tests, ac-
ceptance, or approval.

In the sale, distribution, or promotion
of hearing aids or devices, it 1s an unfair
trade practice for any industry member:

(a) To represent or to use any seals,
emblems, shields, or other insignia which
represent, directly or by implication, in
any manner that a hearing aid or device
has been tested, accepted, or approved
by any individual, concern, organization,
group, or association, unless such is the
fact and unless the hearing aid or device
has been tested by such individual, con-
cern, organization, group, or association
in such manner as reasonably to insure
the quality and performance of the in-
strument in relation to its intended usage
and the fulfillment of any material
claims made, implied, or intended to be
supported by such representation or
insignia; or

Title 16—Commercial Practices

(b) To represent that a hearing aid or
device tested, accepted, or approved by
any individual, concern, organization,
group, or association has been subjected
to tests based on more severe standards
of performance, workmanship, and
quality than is in fact true; or

(ec) To make any other false, mislead-
ing or deceptive representation respect-
ing the testing, acceptance, or approval
of a hearing aid or device by any in-
dividual, concern, organization, group, or
association.

Note: Under this section, it is not neces-
sary for each individual hearing aid or device
to be tested where the method employed is a
sample testing and full and nondeceptive
disclosure of this fact ts given in all adver-
tising and otherwise.

[Rule 15)

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

(a) It is an unfair trade practice to
defame competitors by falsely imputing
to them dishonorable conduct, inability
to perform contracts, questionable credit
standing, or by other false representa-
tions, or falsely to disparage the products
of competitors in any respect, or their
business methods, selling prices, values,
credit terms, policies, or services.

Nore: The use of “bait” or “biind” adver-
tisements as a means of accomplishing such
defamation or false disparagement is deemed
to be within the prohibitions of this section.

(b) Under this section, it is an unfair
trade practice for an industry member:

(1) To display competitive products
in his show window, shop, or in his ad-
vertising in such manner as falsely to
disparage them; or

(2) To represent falsely that competi-
tors are unrellable but that the dis-
parager is not; or

(3) To quote prices of competitive
hearing aids or devices without disclos-
ing that they are not the present current
prices, or to show, demonstrate, or rep-
resent competitive models as being the
current models when such is not the fact.
{Rule 16]

§ 214.17 Deceptive use or imitation or
simulation of trade or corporate
names, trademarks, etc.

It is an unfair trade practice for any
industry member:

(a) To imitate or simulate the trade-
marks, trade names, brands, or labels of

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Chapter |—Federal Trade Commission

competitiors, with the capacity and tend-
ency or effect of misleading or deceiving
purchasers or prospective purchasers; or

(b) To use in his advertising the name,
mode] name, or trademark of a particu-
lar manufacturer of hearing aids in such
manner as to imply a relationship with
the manufacturer that does not exist or
otherwise to mislead or deceive pur-
chasers or prospective purchasers; or

(c) To use any trade name, corporate
name, trademark, or other trade desig-
nation, which has the capaclty and tend-
ency or effect of misleading or deceiving
purchasers or prospective purchasers as
to the name, nature, or origin of any
product of the industry, or of any ma-
terial used therein, or which is false, de-
ceptive, or misleading in any other ma-
terial respect. (Rule 17]

§ 214.18 Procurement of competitor’s
confidential information.

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 so as substan-
tially to injure competition or unreason-
ably restrain trade. [Rule 18]

§ 214.19 Unfair threats of infringement
suits.

The circulation of threats of suit for
infringement of patents or trademarks
among customers or prospective cus-
tomers of competitors, not made in good
faith but for the purpose or with the
effect of harassing or intimidating such
customers or prospective customers, or
of unduly hampering, injuring, or preju-
dicing competitors in their business, is an
unfair trade practice. [Rule 19]

§ 214.20 Inducing breach of contract.

(a) It is an unfair trade practice for
any industry member knowingly to in-
duce or attempt to induce the breach of
existing lawful contracts between com-
petitors and their customers or between
competitors and their suppliers, or to
interfere with or obstruct the perform-
ance of any such contractual duties or
services, under any circumstance hav-
ing the capacity and tendency or effect
of substantially injuring or lessening
competition.

(b) Nothing in this section is intended
to imply that it is improper for any in-

§ 214.22

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, or sell to, the customers of either
of them, or the customers of any other
industry member. [Rule 20]

§ 214.21 Commercial bribery.

It is an unfair trade practice for an
industry member, directly or indirectly,
to give, or offer to give, or permit or cause
to be given, money or anything of value
to agents, employees, or representatives
of customers or prospective customers,
or to agents, employees, or representa-
tives of competitors’ customers or pro-
spective customers, without the knowl-
edge of their employers or principals, as
an inducement to influence their em-
ployers or principals to purchase or con-
tract to purchase products sold or offered
for sale by such industry member, 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. [Rule
21)

§ 214.22 Prohihited 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

1The prohibitions of this section are sub-
ject to Public Law 542, approved July 14,
1952, 66 Stat. 632 (the McGuire Act, com-
monly referred to as the Fair Trade Amend-
ment) which provides that with respect to
a@ commodity which bears, or the label or
container of which bears, the trademark,
brand, or name of the producer or distributor
of such commodity and which is in free and
open competition with commodities of the
same general ciass produced or distributed
by others, a seiler of such a commodity may
enter into a contract or agreement with a
buyer thereof which establishes a minimum
or stipulated price at which such commodity
may be resold by such buyer when such con-
tract or agreement is lawful as applied to In-
trastate 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
resaie, and when such contract or agreement
is not between manufacturers, or between
wholesalers, or between brokers, or between
factors, or between retailers, or between per-
sons, firms, or corporations in competition
with each other.

278


§ 214.23

common course of action, or to enter into
or take part in any understanding, agree-
ment, combination, or conspiracy, with
one or more members of the industry, or
with any other person or persons, to fix
or maintain the price of any goods or
otherwise unlawfully to restrain trade;
or to use any forin of threat, intimida-
tion, or coercion to induce any member
of the industry or other person or per-
sons to engage in any such planned com-
mon course of action, or to become a part
to any such understanding, agreement,
combination, or conspiracy. [Rule 22]

§ 214.23 Arrangements to exclinde sale

of competitors’ products.
p

It is an unfair trade practice for any
member of the industry to sell or con-
tract for the sale of any industry prod-
ucts, whether patented or unpatented,
for use or resale, or to fix a price charged
therefor, or discount from, or rebate
upon, such price, on the condition, agree-
ment, or understanding that the pur-
chaser thereof shall not use or deal in
new, used, or rebuilt products of a com-
petitor or competitors of such industry
meinber where the effect of such sale or
contract for sale, or such condition,
agreement, or understanding, may be to
substaritially lessen competition or tend
to create a monopoly in any line of com-
merce. [Rule 23]

§ 214.24 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 prohibited by this
part. (Ruie 24]

PART 215—PORTRAIT PHOTO-
GRAPHIC INDUSTRY

Sec.
215.0 Definitions.
Group I

215.1 Misrepresentation (general).

215.2 Deception as to character of business.

215.3 Deception as to business status,
training, skill, etc.

215.4 Misrepresentation as to equipment
and methods used. ‘

215.5 Misrepresentation as to finishing and

. coloring.

215.6 Misrepresentation as to “made for
exhibit purposes.”

215.7 Misrepresentation as to “contests.”

215.8 Deceptive use of coupons.

215.9 Misuse of the word “free.”

215.10 Misuse of the term “you have been

seiected,” etc.

Title 16—Commercial Practices

Sec.
215.11
215.12

Guarantees, warranties, etc.

Deceptive use of odd-style frames,
etc.

Misrepresentation as to samples, etc.

Deceptive pricing.

Deceptive use and imitation of trade
Or corporate names, trade-marks,
etc.

Use of lottery.

Defamation of competitors or false
disparagement of their products.

Selling below cost.

Aiding or abetting use of unfair
trade practices.

AUTHORITY: The provisions of this Part 215
issued under secs. 6, 5, 88 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 215 ap-
pear at 18 F.R. 5506, Sept. 15, 1953, unlesa
otherwise noted.

§ 215.0 Definitions.

As used in this part the terms “indus-
try member” and “industry product”
shall have the following meanings,
respectively:

(a) Industry member. Any person,
firm, corporation, or organization en-
gaged in the business of taking and
selling photographs of human beings.

(b) Industry products. Photographs
of human beings, whether in black and
white or in color, and duplicates, en-
largements, and reductions of such
photographs. Also, frames and acces-
sories for such photographs when sold in
combination therewith.

Note: Motion pictures or photographs
which are to be used primarily or exclusively
in theater exhibition or television broad-
casting, or for appearance in newspapers,
magazines, books, or some form of com-
mercial advertisement, are not to be con-
sidered as industry products and persons,
firms, corporations, and organizations en-
gaged exclusively in taking or seliing such
photographs or pictures are not to be con-
sidered as “industry members.”

Group I
§ 215.1 Misrepresentation (general).

(a) In connection with the sale, offer-
ing for sale, or distribution of industry
products, it is an unfair trade practice
for any industry member to make any
representation concerning the size, qual-
ity, kind of finish, workmanship, or price,
of any industry product, or concerning
the experlence or competency of the in-
dustry member or his employees in the
taking or processing of portraits, or con-
cerning the equipment and facilities used
by the industry member in the taking or

215.13
215.14
215.15

215.16
215.17

215.18
215.19

O74.