Consumer Law Library

Portrait Photographic Industry

16 CFR Part 215 · Trade practice rules · in the Code of Federal Regulations 1959-1978 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1978 CFR · Earliest edition: 1959 CFR

Text (1978 edition, OCR)

§ 214.23

ly or indirectly, to engage in any
planned common course of action, or
to enter into or take part in any un-
derstanding, agreement, combination,
or conspiracy, with one or more mem-
bers 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 form of threat, intimidation, 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 a part
to any such understanding, agreement,
combination, or conspiracy. [Rule 22]

$214.23 Arrangements to exciude sale of
competitors’ products.

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 condi-
tion, agreement, or understanding
that the purchaser thereof shall not
use or deai in new, used, or rebullt
products of a competitor or competi-
tors of such industry member where
the effeet of such sale or contract for
sale, or such condition, agreement, or
understanding, may be to substantial-
ly lessen competition or tend to create

referred to as the Fair Trade Amendment)
which provides that with respect to a com-
modity which bears, or the labei or contain-
er 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
genera] class produced or distributed by
others, a seller 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 cemmodity
may be resoid by such buyer when such con-
tract or agreement is lawfui as applied to in-
trastatc 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 agree-
ment is not between manufacturers, or be-
tween wholesalers, or between brokers, or
between factors, or between retailers, or be-
tween persons, firms, or corporations in
competition with each other.

Title 16—Commercial Practices

a monopoly in any line of commerce.
{Rule 23)

$214.24 Aiding or abetting use of unfair,
trade practices.

It is an unfair trade practice for any
person, firm or corporation to aid,
abet, coerce, or induce another, direct-
ly or indirectly, to use or promote the
use of any unfair trade practice pro-
hibited by this part. [Rule 24)

PART 215—PORTRAIT
PHOTOGRAPHIC INDUSTRY

Sec.
215.0 Definitions.

Group I

215.1 Misrepresentation (general).

215.2 Deception as to character of busi-
ness.

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 Misrepresentatlon 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
selected,” etc.

215.11 Guarantees, warranties, etc.

215.12 Deceptive use of odd-style frames,
etc,

215.13  Misrepresentation as tc samples,
ete.

215.14 Deceptive pricing.

215.15 Deceptive use and imitation of trade
or corporato names, trade-marks, etc.

215.16 Use of lottery.

215.17 Defamation of competitors or false
disparagement of their products.

215.18 Selling below cost.

215.19 Aiding or abetting use of unfair
trade practices.

Avur#Horiry: Secs. 5, 6, 38 Stat. 721, 719; 15
U.S.C. 45, 46, unless otherwise noted.

Source: 18 FR 5506, Sept. 15, 1953, unless
otherwise noted.

§215.0 Definitions.

As used in this part the terms “in-
dustry member” and “industry prod-
uct” shall have the following mean-
ings, respectively:

(a) Industry member. Any person,
firm, corporation, or organization en-

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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,
enlargements, and reductions of such
photographs. Also, frames and acces-
sories for such photographs when sold
in combination therewith.

Nore: Motion pictures or photographs
which are to be used primarily or exclusive-
ly in theater exhibition or television broad-
casting, or for appearance in newspapers,
magazines, books, or some form of commer-
cial advertisement, are not to be considered
as industry products and persous, firms, cor-
porations, and organizations engaged exclu-
sively in taking or selling such photographs
or pictures are not to be considered as “‘in-
dustry members.”

Grovur I

$215.1 Misrepresentation (general).

(a) In connection with the sale, of-
fering for sale, or distribution of in-
dustry products, it is an unfair trade
practice for any industry member to
make any representation concerning
the size, quality, kind of finish, work-
manship, or price, of any industry
product, or concerning the experience
or competency of the industry
member or his employees in the taking
or processing of portraits, or concern-
ing the equipment and facilities used
by the industry member in the taking
or processing of portraits, which has
the capacity and tendency or effect of
deceiving purchasers or prospective
purchasers.

(b) The inhibitions of this section
are applicable to any and all advertis-
ing or sales promotional presentations
of an industry member, whether ap-
pearing in a newspaper or other peri-
odical, in a radio or teievision broad-
cast, in a telephone directory listing,
as a statement or mark on a portrait
or on the frame or wrapping thereof,
or otherwise. Such inhibitions also
apply to any verbal representation
made by an industry member or his
employee or agent.

§ 215.2 Deception as to charactcr of husi-
ness.

In the sale, offering for sale, or dis-
tribution of industry products, it is an
unfair trade practice for any industry

§ 215.3

member to deceive purchasers or pro-
spective purchasers as to the nature,
type, extent, or volume of his business.

Among the practices to be regarded
as inhibited by this section is that of
an industry member using a corporate
or trade name:

(a) Containing the word “studio,” or
any word or term of similar import,
when the industry member does not
own and operate, or directly and abso-
lutely control, a photographic studio;
or

(b) Containing the words “art insti-
tute,” “art association,” “art gallery,”
or any word or term of similar import,
when the industry member does not
own and operate, or directly and abso-
lutely control, an establishment of the
character indicated and comprehend-
ed by the said word or words; or

(ec) Containing the word ‘“‘press’’ or
“news,” or any word or term of similar
import, when no part of, or but an in-
substantial portion of, the business of
the industry member consists of the
taking of photographs for use by a
newspaper or other news-gathering or
news-disseminating agency and when
the business of the industry member is
not associated with any newspaper or
other news-gathering or news-dissemi-
nating agency.

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

In the sale, offering for saie, or dis-
tribution of industry products, it is an
unfair trade practice for any member
of the industry to make, or cause to be
made, any statement or representation
which has the capacity and tendency
or effect of deceiving customers or
prospective customers with respect to
the size or reputation of his business,
or as to his business status or affili-
ation, or as to the training, skill, or
reputation of himself or any of his em-
ployees.

(a) Among the practices inhibited by
this section are:

(1) Representing or implying that
portrait photographs will be taken by
photographers from, or experienced in
photography in, Hollywood, Califor-
nla, when such is not the fact.

(2) Making or causing to be made
any false or misleading representation
with respect to the skill, reputation, or

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§ 215.4

training of photographers, as for ex-
ample, the use of such term as “noted
photographer of children” as descrip-
tive of the fitness or ability of a pho-
tographer to photograph children
when in fact such photographer has
not acquired a reputation for the
taking of children’s pictures.

(3) Making or causing to be made
any false or misleading representation
with respect to membershlp in trade
associations, photographic associations
or clubs, or art associations, or in any
other similar group.

§ 215.4 Misrepresentation as to equipment
and methods used.

It is an unfair trade practice for any
member of the industry to make, or
cause to be made, any false, mislead-
ing, or deceptive statement as to
equipment and methods used by the
industry member in the taking or pro-
cessing of photographs.

Nore: Examples of such statements within
the inhibitions of this section are (1) “elec-
tronic color camera,” when no such camera
is being used, and (2) “Hollywood studio
ighting,” when such lighting is not being

§ 215.5 Misrepresentation as to finishing
and coloring.

It is an unfair trade practice to
make, or cause to be made, any false,
misleading, or deceptive statements as
to the quality and type of finish of
photographic prirts being offered. Ex-
amples of the type of statements pro-
hibited within the inhibitions of this
section are:

(a) Using the terms “oil painting,”
“portrait painting,” or any other word
or term of similar import, as a designa-
tion for, or descriptive of, a tinted or
colored photograph or picture made
from a photographic base.

Nore: Nothing in paragraph (a) of this
section should be construed as inhibiting
the use of such terms as “oil painted photo-
graph” or “oil colored portrait photograph”
as descriptive of a product made from a
photographic base and colored in oll.

(b) Using the term “gold-tone,” or
any other word or term of similar

~-—import or meaning, either alone or in

combination with other words or
terms, to designate, describe, or refer
to a photographic reproduction which

Title 16—Commercial Practices

is not a product resulting from a fin-
ishing process involving the use of a
toning or developing bath employing
salts or chloride of gold.

(c) Using the word “platinum” as de-
scriptive of a photographic product
not made by what is known as the Pla-
tino-type Process involving the use of
a platinum salt in the sensitizing solu-
tion or developer.

(d) Using the word “etching,” or any
other word or term of similar import
or meaning, either alone or in combi-
nation with other words or terms, as a
designation for, or as descriptive of,
any picture, print, photograph, or
other product not produced from
etched plates.

(e) Using the word “silk,” or any
term containing the word “silk,” in
any way to describe or refer to pic-
tures which are not in fact printed on
silk; or to make any other misleading,
false, or deceptive statement as to the
material upon which the photograph
or other photographic product is
printed.

§ 215.6 Misrepresentation as to “made for
exhibit purposes.”

It is an unfair trade practice to rep-
resent or imply that any photograph
or miniature, or any other photo-
graphic product, has been included in,
or made a part of, an exhibit of an ex-
hibition of photographs when such is
not the fact, or to represent that any
such photograph or photographic
product will be exhibited or made a
part of an exhibltion when it is not
contemplated or intended that such
products will be exhibited or made a
part of an exhibition.

§ 215.7 Misrepresentation as to “contests.”

It is an unfair trade practice to
make, or cause to be made, directiy or
by implication, through advertising of
any kind, or otherwise, any false, mis-
leading, or deceptive statement as to
“contests” of any type or description.

(a) Among the practices inhibited by
this section are:

(1) Representing or implying that a
specified sum of money or monetary
amount in awards will be made to win-
ners in a contest unless the specified
sum or amount in awards is made in
cash.

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Chapter Il—Federal Trade Cammissian

(2) Failing to disclose in the advertis-
ing of any contest the conditions and
requirements which govern the selec-
tion of contest winners, including the
extent to which such selection is con-
trolled or influenced by the purchase
of advertiser’s merchandise.

(3) Representing, directly or by im-
plication, that awards in a specified
number or value will be made in any
contest unless such awards are actual-
ly conferred.

§ 215.8 Deceptive use of coupons.

It is an unfair trade practice to
make, or cause to be made, directly or
by implication, in advertising, or oth-
erwise, any false, misleading, or decep-
tive statements with regard to subject
matter carried on so-called “coupons.”
Included in the scope of this section
are statements referring to “limited”
dates, when there is, in fact, no limit;
“one per family” limitations, when, in
fact, there are no such limitations; and
failing to disclose on such coupons
that additional purchases of any type
are a prerequisite to receiving the
offer made on the coupon itself, if in
fact such a prerequisite is imposed.

§ 215.9 Misuse of the word “free.”

It is an unfair trade practice to use
the word “free,” or any other word or
term of similar import or meailing, to
designate, describe, or refer to any ar-
ticle of merchandise which is not in
fact a gift or gratuity or which is not
given without requiring the purchase
of other merchandise or the perfor-
mance of some service inuring, directly
or indirectly, to the benefit of the
donor of such so-called gift.

§ 215.10 Misuse of the term “you have
been selected,” etc.

It is an unfair trade practice to rep-
resent, directly or indirectly, that pho-
tographs sold in the regular course of
business at the usual and customary
prices therefor are, or will be, sold
oniy to a limited number of customers,
or to ‘a few lucky persons,” or to indi-
cate that the recipient of such offer
“has been selected,” or to represent in
any manner that the purchaser is re-
ceiving an advantage in price or other
consideration not ordinarily avaliable.

§ 215.13

§ 215.11 Guarantees, warranties, etc.

(a) It is an unfair trade practice to
use any guarantee respecting a photo-
graph or other industry product which
does not make reasonable disclosure of
the conditions or limitations of such
guarantee, or which contains state-
ments, representations, or assertions
which have the capacity and tendency
or effect of misleading or deceiving in
any respect, or which are of such
form, text, or character as to repre-
sent or imply that the guarantee is
broader than is in fact true.

(b) It is an unfair trade practice for
the guarantor to fail to observe scru-
pulously his obligation under the
guarantee by him used or caused to be
used.

(c) This section shail be applicable
also to warranties or any writing pur-
ported to be a guarantee or warranty.

§ 215.12 Deceptive use of odd-style frames,
ete.

It is an unfair trade practice decep-
tively to conceal from or fail to dis-
close to customers at the time photo-
graphs are ordered that the fmished
picture, when delivered, will be so
shaped and designed that it can only
be used in a speciaily designed, odd-
style frame which can only be pur-
chased from the producer of the pho-
tographs or which is not generally
available on the open market or that
segment of the market open and con-
venient to the customer.

§ 215.13 Misrepresentation as to samples,
ete.

It is an unfair trade practice to ex-
hibit to prospective customers as sam-
Ples of work any photographs or pic-
tures which are not in fact representa-
tive of pictures produced and sold by
the exhibitor of such sampies; or to
represent, directly or by implication,
that a photograph to be made and de-
livered will be equal in type, quality,
and workmanship to the samples dis-
Played to the customer, unless the pic-
ture delivered is, in fact, equal in type,
quality, and workmanship to such
samples.

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§ 215.14

§ 215.14 Deceptive pricing.

(a) It is an unfair trade practice for
any member of the industry to repre-
sent or imply that an industry product
may be purchased for a specified price
when such is not the fact; or to repre-
sent or imply that an industry product
is being offered for sale at a reduced
price or special price saving when the
claimed reduced price or saving is not
based on the bona fide usual and cus-
tomary selling price of the product in
effect immediately prior in point of
time to such representation; or other-
wise to represent the prices or terms
of sale of industry products in such
manner having the capacity and ten-
dency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers.

(ob) It is an unfair trade practice to
sell or offer for sale any industry prod-
uct at a price less than the cost there-
of to the seller as a “loss leader’ used
in inducing, and sold only in combina-
tion with, the purchase of other mer-
chandise on which the seller recoups
such loss, when this practice has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing
public.

§ 215.15 Deceptive use and imitation of
trade or corporate names, trademarks,
ete.

It is an unfair trade practice for any
member of the industry to—

(a) Imitate or cause to be imitated,
or directly or indirectly promote the
imitation of, the trade-marks, trade
names, or other exclusively owned
symbois or marks of identification of
competitors in a manner having the
capacity and tendency or effect of mis-
leading or deceiving purchasers, pro-
spectlve purchasers, or the buying
publlc; or

(b) Use any trade name, corporate
name, trade-mark, or other trade des-
ignation which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers as to the character, name,
nature, or origin of any product of the

- industry, or of any material used
therein, or which is false or misleading
in any material respect.

Title 16—Commercial Practices

§ 215.16 Use of lottery.

(a) The offering or giving of prizes,
premiums, or gifts in connection with
the sale or offering for sale of industry
products, or as an inducement thereto,
by means of a game of chance or lot-
tery scheme, is an unfair trade prac-
tice.

(b) Among the practices inhibited by
this section is the use of a “draw,”
“draw contest,” or so-called “iucky”
blank or any other lottery scheme or
game of chance to promote the sale of
industry products.

§ 215.17 Defamation of competitors or
false disparagement of their products,

It is an unfair trade practice to
defame competitors by falsely imput-
ing to them dishonorable conduct, in-
ability to perform contracts, question-
abie credit standing, or by other false
representations, or falsely to disparage
competitors’ photography in any re-
spect, or their business methods, sell-
ing prices, values, credit terms, poll-
cies, or services.

§ 215.18 Selling below cost.

(a) The practice of selling products
of the industry at a price iess 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 production or sale of
such products, is an unfair trade prac-
tice. .

(bo) As used in this section the term
“cost” means the total cost to the
seller, including the costs of acquisi-
tion, processing, preparation for mar-
keting, sale, and dellvery. All elements
recognized by good accounting prac-
tice as proper elements 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 in-
dustry determined by an industry cost
survey or otherwise.

(c) This section is not to be con-
strued as prohibiting all sales below
cost, but only such selling below the
seller’s cost as is resorted to and pur-
sued with the wrongful intent or pur-
pose referred to and where the effect

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Chapter I—Federal Trade Commissien

may be to injure, destroy, or prevent
competition, or tend to create a mo-
nopoly.

§ 215.19 Aiding or abetting use of unfair
trade practices.

It is an unfair trade practice for any
person, firm, or corporation to aid,
abet, coerce, or induce another, direct-
ly or indirectly, to use or promote the
use of any unfair trade practice speci-
fied in this part.

PART 216—MILLINERY INDUSTRY

Sec.
216.0 Definition.
Group I

216.1 Deceptive (general).

216.2 Disclosure as to foreign origin of fur
or wool felt bodies of hats.

216.3 Deceptive concealment of fact that
hat bodies, hats, or components thereof,
are not new.

216.4 Deceptive sales of sample hats.

216.5 Prohibited use of fictitious price.

216.6 False invoicing.

216.7 Prohibited forms of trade restraints
(unlawful price-fixing, ete.)

216.8 Prohibited discrimination.

Grovrp II

216.101 Disciosure of terms and conditions
of sale,

216.102 Arbitration.

216.103 Return of merchandise.

COMMITTEE ON TRADE PRACTICES
216.201 Industry committee.

AutHority: Secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Source: 18 FR 5509, Sept. 15, 1953, unless
otherwise noted.

§ 216.0 Definition.

Members of the industry for which
these trade practice rules are estab-
lished are the persons, firms, corpora-
tions, and organizations engaged in
the importation, production, or mar-
keting of millinery and components
thereof.

Group I

§ 216.1 Deceptive (general).

It is an unfair trade practice to use,
or cause or promote to the use of, any
trade promotional literature, advertis-
ing matter, mark, brand, label, trade

§ 216.2

name, design, designation, or other
type of oral or written representation,
however disseminated or published, or
to fail to disclose any material fact,
when such representation or failure to
disclose has the capacity and tendency
or effect of misleading or deceiving
purchasers or prospective purchasers
with respect to the quality, style,
origin, value, substance, grade, kind,
size, production, manufacture, or dis-
tribution of any hat body, or hat or
component thereof, or has the capac-
ity and tendency or effect of deceiving
purchasers in any other material re-
spect.

§ 216.2 Disclosure as to foreign origin of
fur or wool feit bodies of hats.

It is an unfair trade practice to seil,
offer for sale, or distribute any hat
containing a fur or wool felt body
which has been made in a foreign
country unless such hat bears a mark-
ing or stamping on an exposed surface
thereof which adequately ' and nonde-
ceptively discloses the fact that the
body of the hat was made in such for-
eign country.

Nore 1: Marking to contain the word
‘body” and specify name of foreign country.
The stamping or marking on the hat re-
quired by this section must contain the
word ‘“‘body” and specifically name the for-
eign country in which the body has been
made, as for example: “Body made in

(Country).”

NOTE 2: Commission orders to cease and
desist. Violation of the requirements of the
section may lead to the institution of com-
Plaint proceedings charging violation of sec-
tion 5 of the Federal Trade Commission Act.
In such proceedings a cease and desist order
will be predicated upon a finding from evi-
dence in the record that failure to disclose
foreign origin as required by the section
either has resulted in deception of buyers,
or has the capacity and tendency of deceiv-
ing buyers or prospective buyers.

NortE 3: Notking in this section is intended
to require disclosure as to the foreign origin

'To be deemed adequate the marking
must be of such conspicuousness as to be
clearly visible to prospective purchasers of
the hat; must be so placed and affixed as
not readily to be hidden or obliterated; and
must be of such a degree of permanency as
to remain on the hat untli consummation of
consumer purchase thereof.

(19 FR 8152, Dec. 10, 1954]

111