Photoengraving Industry Of The Southeastern States (Virginia, North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, And Mississippi)
16 CFR Part 218 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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 I—Federal Trade Commission
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 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 equa] 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 illegal
discrimination in 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 sectlon.
(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 char-
itable institutlons not operated for profit.
Norg. 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
showing justification shall be upon the per-
son charged; and unless justification shall
be affirmatively shown, the Commission is
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shali prevent a
§ 217.201
seller rebutting the prima facile case thus
made by showing that his lower price or the
furnishing of servicer 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 Sec. 2-b, Clayton Act.
§ 217.19 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 specifed in the rules in this
part.
Grour If
§ 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 ali published price schedules.
COMMITTEE ON TRADE PRACTICES
§ 217.201 Industry committee.
The provisions of $16.1 of this sub-
chapter shall be applicable toan industry
committee established under this part.
[21 F.R. 1174, Feb. 31, 1956]
PART 218—PHOTOENGRAVING IN-
DUSTRY OF THE SOUTHEASTERN
STATES (VIRGINIA, NORTH CARO-
LINA, SOUTH CAROLINA, GEORGIA,
FLORIDA, TENNESSEE, ALABAMA,
AND MISSISSIPPI
Sec.
218.0 Definitions: The industry and its
products defined.
Group I
218.1 Enticing away employees of competi-
tors.
218.2 Defamation of competitors or false
disparagement of their products.
218.3 Imitation or simuwiation of trade-
marks, trade names, etc.
218.4 Prohibited discrimination.
218.56 Inducing breach of contract. .
218.6 Misrepresentatlon of products (gen-
eral).
287
§ 218.0
Sec.
218.7 Coercing the purchase of one product
as a prerequisite to the purchase
of other products.
Fictitious prices.
Use of the word “free,” etc.
Substitution of products.
Commercial bribery.
Procurement of competitors’ confi-
dential information.
Misrepresentation as to character of
business.
Misbranding of products.
False invoicing.
Selling below cost.
Prohibited forms of trade restraints
(unlawful price fixing, etc.).
AvrHoRITY: The provisions of this Part 218
issued under secs. 6, 5, 88 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 218
appear at 18 F.R. 8509, Dec. 18, 1958, unless
otherwise noted.
§ 218.0 Definitions: The industry and
its products defined.
Industry membership in the ares cov-
ered by the rules consists of persons,
firms, corporations, and organizations
engaged In the business of photoengrav-
ing, including the production of art work,
halftones, line etchings, process color
plates, and plate work and illustrations
used by printers. Products of the indus-
try are used in the printing of news-
papers, books, periodicals, and other
types of publications, and in the produc-
tion of advertising, letterheads, and re-
lated matter.
218.8
218.9
218.10
218.11
218.12
218.13
218.14
218.15
218.16
218.17
Group I
§ 218.1 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 prohibiting employers
from hiring or offering employment to
employees of competitors in good faith
and not for the purpose of injuring, de-
stroying, or preventing competition.
§ 218.2 Defamation of eompetitors or
false disparagement ef their prod-
uets,
The defamation of competitors by
- falsely imputing to them dishonorable
conduct, inability to perform contracts,
Title 16-—Commercial Practices
questionable credit standing, or by other
false representations, or the false dis-
paragement of the grade, quality, or
manufacture of the products of competi-
tors, or of their business methods, selling
prices, values, credit terms, policies, serv-
ices, or conditions of employment, is an
unfair trade practice.
§ 218.3 Imitation or simulation of trade-
marks, trade names, ete.
The imitation or simulation of trade-
marks, trade names, brands, or labels of
competitors, with the capacity and
tendency or effect of misleading or de-
ceiving purchasers, prospective pur-
chasers, or the consuming public, is an
unfair trade practice.
§ 218.4 Prohibited discrixination.*
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., 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 cr
openly, directly or indirectly, any rebate,
refund, discount, credit, or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different purchas-
ers 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 substan-
tially to lessen competition or tend to
create a monopoly in any line of com-
merce, or to injure, destroy, or prevent
competition with any person who either
grants or knowingly receives the benefit
of such discrimination, or with custom-
ers of either of them: Provided, how-
ever:
(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place
1As used in § 218.4, the term “commerce”
means “trade or commerce among the several
States and with foreign nations, or between
the District of Columbia or any Territory of
the United States and any State, Territory,
or foreign nation, or between any insular
possessions or other places under the Juris-
diction of the Onited 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.”
288
Chapter !—Federal Trade Commisston
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 delivered;
(3) That nothing contained in this
paragraph shall prevent persons en-
gaged in selling goods, wares, or mer~
chandise in commerce 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
limited to obsolescence of seasonal
goods, distress sales under court process,
or sales in good falth in discontinuance
of business in the goods concerned.
(hb) Prohibited brokerage and com-
missions. 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 Heu
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 indi-
rect control, of any party to such trans-
action other than the person by whom
such compensation is so granted or paid.
(ec) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry 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 compensa-
tion or in consideration for any services
or facilities furnished by or through such
customer in connection with the proc-
essing, handling, sale, or offering for sale
of any products or commodities manu-
factured, sold, or offered for sale by such
member, unless such payment or consid-
eration is available on proportionally
§ 218.5
equal terms to all other customers com-
peting in the distribution of such prod-
ucts or commodities.
(ad) Prohibited discriminatory services
or facilities. It is an unfair trade prac-
tice for any member of the industry en-
gaged 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 illegal
discrimination in 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 forego-
ing 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, colleges, universities, publc
libraries, churches, hospitals, and chari-
table institutions not operated for profit.
Nors: 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 {is
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shall prevent 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
competitor, or the services or facilities fur-
nished by 8 competitor. See section 2-h,
Clayton Act.
§ 218.5 Inducing breach of contract.
(3) Knowingly inducing or attempting
to induce the breach of existing lawful
contracts between competitors and their
customers or their suppliers, or inter-
fering with or obstructing the perform-
ance of any such contractual duties or
services, under any circumstance having
the capacity and tendency or effect of
substantially injuring or lessening pres-
ent or potential competition, is an unfair
trade practice.
289
§ 918.6
(b) Nothing in this section is intended
to imply that it is improper for an 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.
§ 218.6 Misrepresentation of products
(general).
Making, or causing or permitting to be
made or published, any false, misleading,
or deceptive statements or representa-
tions, by way of advertisement or other-
wise, concerning the cost, grade, quality,
quantity, substance, character, nature,
origin, size, or preparation of any prod-
uct of the industry, or in any other ma-
terial respect, is an unfair trade practice.
§ 218.7 Coercing the purchase of one
product as a prerequisite to the pur-
chase 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.
§ 218.8 Fictitious prices.
It is an unfair trade practice to sell or
offer for sale industry products at prices
purported to be reduced from what are in
fact fictitious prices, or to sell or offer for
sale such products at a purported reduc~
tion in price when such purported reduc-
tion is in fact fictitious or is otherwise
misleading or deceptive.
§ 218.9 Use of the word “free,” etc.
In connection 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 similar import, in advertisements or
in other offers to the public, as descrip-
tive of an article of merchandise, or serv-
ice, which 1s not an unconditional gift,
under the following circumstances:
(a) When all the conditions, obliga-
tions, or other prerequisites to the receipt
and retention of the “free” article of
merchandise or service offered are not
clearly and conspicuously set forth at the
outset so as to leave no reasonable prob-~
Title 16—-Commercial Practices
ability that the terms of the offer will be
misunderstood; and, regardless of such
disclosure:
(b) When, with respect to any article
of merchandise required to be purchased
in order to obtain the “free” article or
service, the offerer (1) increases the or-
dinary and usual price of such article of
merchandise, or (2) reduces its quality,
or (3) reduces the quantity or size
thereof.
NoTE: The disclosure required by paragraph
(a) of this section shall appear in close
conjunction with the word “free” (or other
word or words of similar import) wherever
such word first appears in each advertisement
or offer. A disclosure in the form of a
footnote, to which reference is made by use
of an asterisk or other symbo} placed next
to the word “free,” will not be regarded as
compliance.
§ 218.10 Substitution of products.
The practice of shipping or delivering
products which do not conform to the
samples 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 deceiving or misleading purchasers,
prospective purchasers, or the consuming
public, is an unfair trade practice.
§ 218.11 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 manu-
factured or sold by such industry menr-
ber or the maker of such gift or offer,
or to influence such employers or prin-
cipals to refrain from dealing in the
products of competitors or from dealing
or contracting to deal with competitors.
§ 218.12 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
290
Chapter I—Federal
misleading statements or representa-
tions, by the impersonation of one in
authority, or by any other unfair means,
and to use the information so obtained
so as substantially to injure competition
or unreasonably restrain trade.
§ 218.13 Misrepresentation as to charac-
ter of business.
For any person, firm, or corporation
to represent or hold himself or itself out
as being a photoengraver when not en-
gaged in the manufacture of photoen-
gravings, or in any other manner to
misrepresent, the character, extent, or
type of his or its business, is an unfair
trade practice.
§ 218.14 Misbranding of products.
The false or deceptive marking or
branding of the products of the industry
with regard to the grade, quality, quan-
tity, use, size, material, content, origin,
preparation, manufacture, or distribu-
tion of such products, or in any other
material respect, is an unfair trade
practice.
§ 218.15 False invoicing.
Withholding from or inserting in in-
voices or order tickets any statements or
information by reason of which omission
or insertion a false record is made, wholly
or in part, of the transactions repre-
sented on the face of such invoices or
order tickets, with the capacity and
tendency or effect of thereby misleading
or deceiving purchasers, prospective pur-
chasers, or the consuming public, is an
unfair trade practice.
§ 218.16 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 pro-
duction 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 the 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.
Trade Commission § 218.17
(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. .
§ 218.17 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 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, 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
party to any such understanding, agree-
ment, combination, or conspiracy.
PART 219--WATERPROOF PAPER
INDUSTRY (ASPHALTIC TYPE)
Sec.
219.0 Industry definition.
Grour I
219.1 Selling below cost.
219.2 False invoicing.
219.3 Prohibited discrimination.
2 The inhibitions of this section are subject
to Public Law 542, approved July 14, 1952, 66
Stat. 682 (the McGuire Act) which provides
that witb respect to a commodity which
bears, or the label or container of which
pears, the trade-mark, 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 class
produced or distributed by others, a seller
of such a commodity may enter into a con-
tract 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 contract or agree-
ment js lawful as applied to intrastate trans-
actions under the laws of the State, Terri-
tory, or territorial jurisdiction in which the
resale is to be made or to which the com-
modity is to be transported for such resale,
and when such contract or agreement is-not
between manufacturers, or between whole.
salers, or between brokers, or between fac-
tors, or between retallers, or between persons,.
firms, or corporations in competition. with
each other.
291