Kraft Paper Industry (revoked)

16 CFR Part 22 · Trade practice rules · in the Code of Federal Regulations 1959-1959 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1959 CFR · Earliest edition: 1959 CFR

Text (1959 edition, OCR)

§ 21.15

ers through regular channels of distribu-
tion, and thereby injuring, destroying,
or preventing competition, tending to
create a monopoly, or unreasonably re-
straining trade.

(b) Nothing in this section shall be
construed as restricting or preventing
consignment shipping, or marketing “on
memorandum,” when carried out in good
faith and without illegal discrimination,
suppression of competition, or undue
interference with competitors’ use of the
usual channels of distribution.

$21.15 Seconds, irregulars, or re-
jects. (a) Industry products which are
“seconds,” “irregulars,” or “rejects,” or
which are represented as being “sec-
onds,” “irregulars,” or “rejects,” shall
pe so marked, clearly and conspicuously,
to the end that confusion, misunder-
standing, or deception of the purchasing
or consuming public may be avoided and
prevented. “Seconds” may be marked
or referred to by the manufacturer as
“seconds,” “irregulars,” or “rejects”
provided that such marking or reference
clearly indicates that the product is not
of first quality. Such disclosure of
“seconds,” “irregulars,” or “rejects”
shall also be made on invoices as well
as on the garment itself, and on the
immediate package, if any, in which it
is sold to the consumer, and on display
cards, advertisements, or other repre-
sentations under which such “seconds,”
“jrregulars,” or “rejects” are offered for
sale or advertised to the purchasing or
consuming public.

(b) It is an unfair trade practice de-
ceptively to conceal the fact that said
industry products are “seconds,” “irreg-
ulars,” or “rejects,” or to fail or refuse
to make such disclosure to the end speci-
fied in paragraph (a) of this section.

$21.16 Fictitious prices, price lists,
etc. (a) The publishing or circulating
by any member of the industry of false
or misleading price quotations, price
lists, terms or conditions of sale, or re~
ports as to production or sales, with the
capacity and tendency or effect of mis~
leading or deceiving purchasers, pro-
spective purchasers, or the consuming
public, or the advertising, sale, or offer-
ing for sale of industry products at
prices purporting to be reduced from
what are in fact fictitious prices, or at
purported reductions in prices when

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Title 16—Commercial Practices

such purported reductions are in fact
fictitious or are otherwise misleading or
deceptive, is an unfair trade practice.

(b) It is an unfair trade practice, in
connection with the sale, offering for
sale, or distribution of industry products
at prices that are in any manner repre-
sented as reduced froin or lower than
current, foriner, or regular prices, to use,
or to furnish or supply fur such use, price
tags, labels, or advertising material that
set forth a false, fictitious, or exagger-
ated current, former, or regular price, or
a false, fictitious, or exaggerated manu-
facturer’s or distributor’s suggested re-
tail selling price, or that contain what
purport to be bona fide price quotations
which are in fact higher than the prices
at which such products are regularly
and customarily sold in bona fide retall
transactions. It is likewise an unfair
trade practice to distribute, sell, or offer
for sale to the consuming public in such
manner products bearing such false,
fictitious, or exaggerated price tags or
labels.

§ 21.17 Misuse of terms “close-outs,”
“discontinued lines,” “special bargains,”
etc. Itisan unfair trade practice to offer
for sale, sell, advertise, describe, or
otherwise represent, industry products
as “Close-outs,” “Discontinued Lines,” or
“Special Bargains,” by use of such terms
or by words or representations of similar
import, when such is not true in fact; or
to so offer for sale, sell, advertise, de-
scribe, or otherwise represent industry
products where the capacity and tend-
ency or effect thereof is to lead the pur-
chasing or consuming public to believe
such products are being offered for sale
or sold at greatly reduced prices, or at
so-called “bargain” prices, when such is
not the fact.

$21.18 Aiding or abetting use of un-
fair trade practices. It isan unfair trade
practice for any person, firm, or corpo-
ration to aid, abet, coerce, or induce an-
other, directly, or indirectly, to use or
promote the use of any unfair trade
practice specified in these rules.

Part 22—Kraft Paper Industry
[Revoked]

CoprricaTIon: Part 22 was revoked, 20 F. R.
1052, Feb. 18, 1955.


Chapter !—Federal

Part 22—Frozen Food Industry

[Added]

Sec.

22.0 Definitions.

GROUP I

22.1 Prohibited discrimination.

22.2 Exclusive deals.

22.3. Prohibited sales below cost.

22.4 Push money.

22.5 Fictitious prices.

22.6 False invoicing, billing, etc.

22.7 + Coercing the purchase of one product
as a prerequisite to the purchase
of other products.

22.8 Misrepresentation in general.

22.9 Defamation of competitors or false
disparagement of their products.

22.10 Enticing away employees of competi-
tors.

22.11 Substitution of products.

22.12 Inducing breach of contract.

22.13 Use of lottery schemes, etc.

22.14 Prohibited forms of trade restraints
(unlawful price fixing, etc.).

22.15 Use of the word “free”.

22.16 Misrepresenting products as conform-
ing to standard.

22.17 Procurement of competitors’ confi-
dential information.

22.18 Aiding or abetting use of unfair trade

piactices.
GROUP II
22.101 Contractual obligations.
22.102 Proper refrigeration.
AUTHORITY: §§ 22.0 to 22.102 issued under
sec. 6, 38 Stat. 721; 15 U.S.C. 46. Interpret

or apply sec. 5, 38 Stat. 719, as amended; 15
U.S. C. 45.

Source: §§ 22.0 to 22.102 appear at 21 PF. R.
266, Jan. 13, 1956.

$22.0 Definitions. (a) Products of
this industry consist of vegetables, fruits,
juices, fish and shellfish, baked goods,
and other miscellaneous prepared foods,
which are packed, marketed, and de-
livered to the ultimate consumer in a
frozen state. Not included as products
of the industry are meats and poultry,
and frozen dairy products including ice
cream and sherbets.

(b) The term ‘“‘member of the indus-
try” means any person, firm, corporation,
or organization engaged in the produc-
tion and/or marketing of products of the
industry.

GROUP I

§ 22.1 Prohibited discrimination *-—
(a) Prohibited discriminatory prices, re-

4 As used in § 22.1, the word “commerce”
means “trade or commerce among the several
States and with foreign nations, or between
the District of Columbia or any Territory of

Trade Commission § 22.1

bates, refunds, discounts, credits, etc.,
which effect unlawful price discrimina-
tion. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, to grant or allow, secretly or
openly, directly or indirectly, any rebate,
refund, discount, credit, or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different pur-
chasers of goods of like grade and
quality, where either or any of the pur-
chases involved therein are in commerce,
and where the effect thereof inay be sub-
stantially 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 cus-
tomers of either of them: Provided,
however: ‘

(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place
under the jurisdiction of the United
States, and are not purchased by schools,
colleges, universities, public libraries,
churches, hospitals, or charitable insti-
tutions not operated for profit, as sup-
plies for their own use;

(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 dellvered;

Note: Cost justification under the above
proviso depends upon net savings in cost
based on ali facts relevant to the transac-
tions under the terms of subparagraph (2)
of this paragraph. For example, if a seller
regularly grants a discount based upon the
purchase of a specified quantity by a singie
order for a single delivery, and this discount
is justified by cost differences, it does not
follow that the same discount can be cost
justified if granted to a purchaser of the
same quantity by multiple orders or for
multiple deliveries,

the United States and any State, Territory,
or foreign nation, or between any insular
possessions or other places under the juris-
diction 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.”

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