Cedar Chest Manufacturing Industry
16 CFR Part 217 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1959 CFR
Text (1977 edition, OCR)
Chapter I—Federal
Grovr It
§ 216.101 Disclosure of terms and can-
ditions of sale.
The industry disapproves the practice
by individual members of the industry of
issuing orders or invoices which do not
accurately and completely set forth the
conditions of sale, including the quantity
and price of goods sold, the discount, and
all other pertinent terms. The use of
such terms as “as had” in the invoice 1s
not considered to be in accord with the
provisions of this section.
§ 216.102 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 thelr differences.
If unable to do so they should, if possible,
submit these disputes to impartial
arbitration.
§ 216.103 Return of merchandise.
The practice, by members of the in-
dustry, of selling merchandise and later
permitting the purchaser to return it for
credit or refund of purchase price, with-
out just cause, creates waste and loss, in-
creases the cost of doing business to the
detriment of both the industry and the
public, and is condemned by the industry.
If merchandise is returnable for just
cause, such return should be made
promptly.
COMMITTEE ON TRADE PRACTICES
§ 216.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
{21 P. RB. 1174, Feb. 21, 1956}
PART 217—CEDAR CHEST MANU-
FACTURING INDUSTRY
Bec.
317.0 Definition of industry products,
Group I
317.1 Misrepresentation in general.
217.2 Requirements for designations “ce-
dar chest”, “cedar wardrobe”, etc.
217.3 Claims and representations of af-
fording protection from moth
larvae damage.
217.4 Guarantees, warranties, ete.
Trade Commission § 217.1
Sec.
217.8 Deceptive use of trade or corporate
names, trade-marks, etc.
217.6 Misrepresentation as to character
of business.
317.7 Misrepresenting products as con-
forming to standard.
217.8 Imitation of trade-marks, trade
names, otc.
217.9 Substitution of products.
217.10 Procurement of competitors’ confi-
dential information.
217.11 Defamation of competitors or dis-
paragement of their products.
217,12 Commercial bribery.
217.18 Coercing purchase of one product
as @ prerequisite to the purchase
of other products.
217.14 Selling below cost.
217.18 Inducing breach of contract.
217.16 Enticing away employees of com-
petitors.
217.17 Prohibited forms of trade reatratote
(unlawful price fixing, etc.).
217.18 Prohibited discrimination.
217.19 Aiding or abetting use of unfair
trade practices.
Grovur IT
217.101 Maintenance of accurate records.
217.102 Price Lists.
ComMMITTEE ON TRADE PRACTICES
217.201 Industry committee.
AvTHoRITY: The provisions of this Part 217
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 217 ap-
pear at 18 F.R. 6566, Sept. 17, 1953, unless
otherwise noted.
§ 217.0 Definition of industry products.
As used in this part the term “in-
dustry products” shall be understood
to include chests, wardrobes, and similar
containers which are composed, or are
represented as being composed, wholly
or in part, of any kind or kinds of cedar-
wood and which are designed primarily
for the storage of clothing, blankets,
linens, and similar products.
Grovp I
§ 217.1 Misrepresentation in general.
The practice of selling, advertising, de-
scribing, or otherwise representing in-
dustry products in a manner which is
false or which has the capacityand tend-
ency or effect of misleading or deceiv-
ing the purchasing or consuming public
in respect to the grade, quality, or quan-
tity of the product, its price, value, effi-
cacy, moth-killing or moth-repelling
properties, composition, nature, use,
209
§ 217.2
preparation, manufacture, or distribu-
tion, or in any other material respect,
js an unfair trade practice.
§ 217.2 Requirements for designations
“cedar chest”, “cedar wardrobe”,
ete.
(a) In the sale, offering for sale,
or distribution of an industry product,
it is an unfair trade practice to designate
any such product as a “cedar chest”,
“cedar wardrobe”, etc., unless 70 percent
or more of the body proper of the prod-
uct is composed of paneis made from red
cedar (Juniperus Virginiana) of a uni-
form thickness of not less than three-
fourths of an inch and the product is
aroma tight: Provided, however, 'That if
the exterior of such product is of wood
other than cedar, a disclosure of such
fact shall be made conspicuously and in
close conjunction with the designation.
(b) In the sale, offering for sale, or
distribution of industry products, it is an
unfair trade practice to designate any
such products as ‘‘cedar lined”, ‘‘cedar
veneered”, etc., unless such products are
so lined or veneered, as the case may be,
and the designation is closely accom-
panied by (1) an affirmative and con-
spicuous disclaimer as to affording pro-
tection from moth larvae damage and
(2) @ conspicuous disclosure as to the
presence of woods other than cedar in
the industry product.
Norxg: Nothing in this section tg to be re-
garded as warranting representations by in-
dustry members that industry products
which fulfill the requirements set forth in
paragraph (a) of this section conform to
“recommendations” of the Federal Trade
Commission.
§ 217.3 Claims and representations of
affording protection from moth
larvae damage.
(a) In the sale, offering for sale,
or distribution of industry products,
it is an unfair trade practice to make or
publish any false, misieading, or de-
ceptive statement or representation, by
way of advertisement, label, brand, or
otherwise, concerning the moth-killing
or moth-repelling qualities of such prod-
ucts or as to any protection against moth
larvae damage afforded by such products
to articles stored therein, or to make or
publish any claim or representation with
respect to the toxicity of said products
to insects which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers.
Title 16—-Commercial Practices
(b) Under the rules in this part, when
industry products do not afford com-
plete, absolute, and lasting protection
against moth larvae damage with re-
spect to products stored therein which
are made, wholly or in part, of animal
fiber (wool, fur, hair, or feathers), or
when affording such protection only
when the products stored therein have
been completely ridded of all stages of
moth development and life (by cleaning,
airing, brushing, combing, beating, or
otherwise), they shall not be represented
as “mothproof”’, as “guaranteed moth-
proof”, or as “affording protection from
moth damage”, or have applied thereto
any other term or phrase denoting or
implying complete, absolute, and/or un-
conditional protection against moth
damage to clothing and property stored
therein: Provided, however, That when
the composition and construction of any
industry product is such as to fulfill the
composition and construction require-
ments specified in § 217.2 (a), it may be
unqualifiedly described and represented
as being “‘moth resistant” or “moth re-
pellent’: And provided further, That
when any such product fulfills the com-
position and construction requirements
‘ specified in § 217.2 (a), it may also be
represented as “affording protection
against moth damage” when in close
conjunction and with reasonably ade-
quate conspicuousness with such repre-
sentation there is an adequate and
nondeceptive disclosure of the fact that
clothing and other articles which are
stored in the industry product must first
be ridded of any and all forms of moth
life.
(c) Nothing in this section, in § 217.4,
or in any of the other sections, is to be
construed as inhibiting manufacturers
of industry products who do not sell
directly to consumer-buyers from repre-
senting in advertisements of their prod-
ucts that they will make available to
each consumer-buyer of such products
a written guarantee against moth dam-
age, when:
(1) Such a guarantee is in fact made
available to each consumer-purchaser
within a reasonable time after consum-
mation of purchase; and
(2) The guarantee does not contain
any unusual conditions or limitations,
and the terms and conditions thereof
are clearly and nondeceptively stated
therein; and
210
Chapter I—Federal
(3) The obligations of the guarantor
with respect to the guarantee are scru-
pulously fulfilled by the guarantor; and
(4) Written instructions as to condi-
tioning of clothing and other property
for storage in the product (cleaning, air-
ing, brushing, combing, beating, etc.)
are attached to each industry product
in such a manner as reasonably to assure
of remaining thereon untill consumma-
tion of consumer sale and are so placed
on the product and are of such conspicu-
ousness as likely to be noticed by pro-
spective purchasers of the product; and
(5) Mention is made in the advertise-
ment and in close conjunction with the
said representation that instructions as
to cleaning or other conditioning of
clothing and other property for storage
in industry products are attached to
such products; and
(6) The construction and composition
of the products advertised are such as to
fulfill the construction and composition
requirements specified in § 217.2 (a).
(da) Nothing in this section, in § 217.4,
or any of the other sections, is to be con-
strued as inhibiting manufacturers of
industry products who do not sell di-
rectly to consumer-buyers from advere-
tising that such products will afford pro-
tection from moth damage when there
is compliance with requirements of
subparagraphs (4), (5) and (6) of para-
graph (c) of this section.
§ 217.4 Guarantees, warranties, ete.
(a) In the sale, offering for sale, or
distribution of industry products, it is
an unfair trade practice:
(1) To make or offer any guarantee
respecting an industry product unless
the nature and extent of the undertak-
ing, and any and all material conditions
and limitations applicable thereto, are
clearly and conspicuously stated in im~-
mediate conjunction, and unless the ob-
ligations of the guarantor with respect
to the guarantee are scrupulously ful-
filled; or
(2) To make or offer any guarantee
to the effect that an industry product
will afford protection from moth damage
with respect to clothing and other prod-
ucts stored therein when such protection
is dependent on the stored products
being free of all moth life before storage
and when the guarantee is not imme-
diately accompanied by an adequate and
nondeceptive disclosure of such fact.
(b) Nothing in the rules in this part
{s to be construed as inhibiting an indus-
Trade Commission § 217.8
try member from representing that an
industry product is guaranteed to afford
protection from moth damage when the
product fulfills the construction and
composition requirements specified in
§ 217.2 (a) and when the nature and
extent of the guarantee, and any and all
material conditions and limitations ap-
plicable thereto, are clearly and con-
spicuously stated in conjunction.
(c) Nothing in this section is to be
construed as limiting or otherwise af-
fecting the provisions of § 217.3 (c).
(d) The inhibitions of this section
shali also be applicable to warranties.
§ 217.5 Deceptive use of trade or cor
porate names, trade-marks, etc.
The use of any trade name, corporate
name, trade-mark, or other trade dea-
ignation which has the capacity and
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public as to the name, nature, efficacy,
or origin of any product of the industry,
or any material used therein, or which is
false or misleading in any other respect,
is an unfair trade practice.
§ 217.6 Misrepresentatiou 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 producer or manu-
facturer of industry products when such
Js not the fact, or in any other manner
to misrepresent the character, extent, or
type of his business.
§ 217.7 Misrepresenting products as con-~
forming to standard.
Representing, through advertisement
or otherwise, that any products of the
industry conform to a standard recog-
nized in or applicable to the industry
when such is not the fact, with the ca-
pacity and tendency or effect of mislead-~
ing or deceiving the purchasing or con-
suming public, is an unfair trade
practice.
§ 217.8 Imitation 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 the purchasing or consuming
public, is an unfair trade practice.
211.
§ 217.9
$217.9 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 the purchas-
ing or consuming public, is an unfair
trade practice.
§ 217.10 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
competitor 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.
$8217.11 Defamation of competitors or
disparagement of their products.
The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dis-~
paragement of competitors’ products in
any respect, or of their business methods,
selling prices, values, credit terms,
policies, or services, is an unfair trade
practice.
$217.12 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-
sentatives of customers or prospective
customers, or to agents, employees, or
representatives of competitors’ custom-
ers or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase products manufac-
tured and 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.
‘J
Title 16—-Commercial Practices
§ 217.13 Coercing purchase of one prod-
uct 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
to create a monopoly or unreasonably to
restrain trade, is an unfair trade
practice.
§ 217.14 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-
tio 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 elements recognized
by good accounting practice 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 industry determined by an indus-
try 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.
§ 217.15 Inducing breach of contract.
It is an unfair trade practice to induce
or attempt to induce the breach of ex-
isting lawful contracts between compet-
{tors and their customers or their sup-
pliers by any false or deceptive means
whatsoever. or to interfere with or ob-
struct the performance of any such con-
tractual duties or services by any such
means, with the purpose and effect of
unduly hampering, injuring, or preju-
dicing competitors in their business,
§ 217.16 Enticing away employees of
competitors.
Knowingly enticing away employees
or sales representatives of competitors
212
Chapter |—Federal Trade Commission
under any circumstances having the
capacity and tendency or effect of sub-
stantially injuring or lessening present
or potential competition is an un-
fair trade practice: Provided, That
nothing in this section shall be con-
strued as prohibiting employees from
seeking more favorable employment, or
as prohibiting employers from hiring or
offering employment to employees of
competitors in good faith and not for
the purpose of injuring, destroying, or
preventing competition.
§ 217.17 Prohibited forms of trade re-
straits (unlawful price fixing, etc.).'
It is an unfair trade practice for any
member cf the industry, either directly
or indirectly, to engage in any planned
common course of action, or to enter inte
or take part in any understanding,
agreement, combination, or conspiracy,
with one or more members of the indus-
try, 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, 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 actlon, or to become
a party to any such understanding,
agreement, combination, or conspiracy.
1 The inhibitions of this section are subject
to Public Law 542, approved July 14, 1952—
66 Stat. 682 (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-
moodity and which is in free and open com-
petition with commodities of the same gen-
eral class produced or distributed by others,
a 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 re-
sale, 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.
§ 217.18
§ 217.18 Prohibited discrimination."
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price discrim-
ination. It is an unfalr 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 re-
bate, refund, discount, credit, or other
form of price differential, where such
rebate, refund, discount, credit, or other
form of price differential, effects a dis-
crimination in price between different
purchasers of goods of like grade and
quality, where either or any of the pur-
chases involved therein are in com-
merce, and where the effect thereof may
be substantially to lessen competition or
tend to create a monopoly in any line of
commerce, or to injure, destroy, or pre-
vent competition with any person who
either grants or knowingly receives the
benefit of such discrimination, or with
customers of either of them: Provided,
mowever:
(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place un-
der 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 delivered;
Norse: 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 dis-
count, rebate, or other form, through billing
as a single order an aggregate of the amount
of two or more orders of such customer on
*As used In this section, the word “com-
merce” means “trade or commerce among
the several States and with foreign uations,
or between the District of Columbia or any
Territory of the United States and any
State, Territory, or foreign nation, or be-
tween 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’.
218
§ 217.18
which the industry member makes separate
deliveries, when the price differential al-
lowed is not based on a 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 to sald cus-
tomer, or is more than due allowance for
such net savings; nor is this proviso to be
construed as permitting an industry mem-
ber to allow a price differential to a customer,
whether in the form of a quantity price dis-
count, rebate, or other form, when, pursuant
to agreement or understanding by the indus-
try member and the customer, delivery of
the products purchased is to be delayed or
made in installments so as to involve storage
cost to the industry member, and when 4s
a result of such cost or otherwise, the price
differential allowed is not based on a net
savings in cost of manufacture, sale, and
delivery of the products to sald customer
resulting from the different method and
quantity in which the products are sold and
delivered to said customer, or is more than
due allowance for such net savings.
(3) That nothing contained in this
paragraph shall prevent persons en-
gaged in selling goods, wares, or mer-
chandise in coramerce from selecting
their own customers in bona fide trans-
actions 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
Hmited to obsolescence of seasonal goods,
distress sales under court process, or
sales 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 leu
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 in-
termediary therein where such interme-
diary 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 pald.
(ce) Prohibited advertising or promo~
tional allowances, etc. It is an unfair
trade practice for any member of the
Title 16—Commercial Practices
industry engaged in commerce to pay
or contract for the payment of advertis-
ing 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 compensa-
tion or in consideration for any services
or facilities furnished by or through
such customer 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 propor-
tionally equal terms to all other custom-
ers competing in the distribution of such
products or commodities.
(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 fur-
nishing 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 tllegal
discrimination tn 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 fore-
going 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, colieges, universities, public
libraries, churches, hospitals, and char-
itable institutions not operated for profit.
Norz. In complaint proceedings charging
discrimination in price or services or facil
ities furnished, and upon proof having been
made of such discrimination, the burden of
rebutting the prima facie case thus made by
ehowing justification shall be upon the per-
son charged; and unless justification shall
be affirmatively shown, the Commission ts
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shail prevent a
seller rebutting the prima facie case thus
made by showing that his lower price or the
furnishing of servicee or facilities to any
purchaser or purchasers was made in good
faith to meet an equally low price of a com-
214
Chapter I—Federal
petitor, or the services or facilities furnished
by a competitor. See Sec. 2-b, Clayton Act.
8217.19 Aiding or abetting use of un-
fair trade practices.
It is an unfair trade practice for any
person to aid, abet, coerce, or induce an-
other, directly or indirectly, to use or
promote the use of any unfair trade
practice specified in the rules in this
Group
8 217.101 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 costs.
§ 217.102 Price lists.
(a) The industry approves the practice
of each individual] member of the in-
dustry independently publishing and cir-
culating to the purchasing trade his own
price lists.
(b) The industry approves the prac-
tice of making the terms of sale a part
of all published price schedules.
CoMMITTERE ON TRADE PRACTICES
8 217.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 FR. 1174, Feb. 21, 1956]
PART 220—LIBRARY BINDING
INDUSTRY
Sec.
220.0 Industry definition.
Group I
220.1 Deception (general).
220.2 Guarantees and warranties.
220.3 Other deception.
220.4 Deceptive representations as to prod-
ucts conforming to a standard or
specification.
220.5 Fictitious prices, price lists, etc.
220.6 Selling below cost.
220.7 Defamation of competitors or false
disparagement of their products.
220.8 Enticing away employees of competi-
tors.
220.9 Commercial bribery.
220.10 Procurement of competitors’ confi-
dential information.
220.11 Unlawful interference with competi-
tors’ purchases or sales.
220.12 Arrangements to exclude sale of com-
petitors’ products.
220.18 Tie-in sales; coercing purchase of
one product as a prerequisite to
the purchase of other products,
90-059—77———15
Trade Commission § 290.1
Sec.
220.14 Unfair threats of infringement sults.
220.16
220.16
Inducing breach of contract.
Prohibited forms of trade restraints
(unlawful price fixing, etc.)
Prohibited discrimination.
Alding or abetting unfair trade prec
tices.
AUTHORITY: The provisions of this Part 220
issued under secs. 6, 5, 28 Stat. 731, 710; 15
U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 220
appear at 19 F.R. 6310, Aug. 20, 1954, unless
otherwise noted.
§ 220.0 Industry definition.
Members of this industry are those
persons, firms, corporations, and organ-
izations engaged in the business of re-
binding and prebinding of books, peritod-
icals, and other documents especially
for use in public and private lbraries.
GROUP TI
§ 220.1 Deception (general).
It is an unfair trade practice for any
industry member to use, or cause or
promote the use of, any advertising mat-
ter, guarantee, warranty, trade promo-
tional literature, mark, brand, label, or
other representation, however dtssemi-
nated or published, which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers, or the consuming
public with respect to the grade, quality,
conformity to a trade standard, material,
composition, construction, fabrication,
manufacture, distribution, origin, or
price or terms of sale, of library binding,
or which is false, misleading, or decep-
tive in any other material respect.
Among the various deceptive practices
inhibited by the paragraph above are the
following:
(a) Misrepresentation as to character
of business. It is an unfair trade prac-
tice for any member of the industry to
represent, directly cr indirectly, through
the use of any word or term in his cor-
porate or trade name, in his advertising
or otherwise, that he is a Mbrary binder,
or that he is the owner or operator of
a library bindery, when such is not the
fact, or in any other manner to misrep-
resent the character, extent, volume, or
type of his business.
(b) Use of the word “free”. In con-
nection with the sale, offering for sale, or
distribution of industry products, it is an
unfair trade practice to use the word
“free,” or any other word or words of
220.17
220.18