Kraft Paper Industry

16 CFR Part 22 · Trade practice rules · in the Code of Federal Regulations 1938-1949 (3 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1949 CFR · Earliest edition: 1938 CFR

Text (1949 edition, OCR)

Chapter |—Federal Trade Commission

GROUP ITI

§ 21.101 Publication of price schedules
and terms of sale. (a) The industry ap-
proves the practice of each individual
member of the industry independently
publishing and circulating to the pur-
chasing trade its own price lists.

(b) The industry approves the prac-
tice of making the terms of sale a part
of all published price schedules.

§ 21.102 Repudiation of contracts.
Contracts, either written or oral, are
business obligations which should be per-
formed in letter and spirit. The repudia-
tion of contracts by sellers on a rising
market, or by buyers on a declining mar-
ket, is equally reprehensible, and is con-
demned by the industry.

§ 21.103 False invoicing. Withhold-
ing from or inserting in an invoice or
contract statements which make the in-
voice or contract a false record, wholly
or in part, of the transaction represented
on the face thereof, is condemned by the
industry.

§ 21.104 Dissemination of informa-
tion. The industry records its approval
of the compilation and distribution of
all proper and lawful statistics.

Part 22—Kraft Paper Industry

GROUP I
Sec.
22.1 Inducing breach of contract.
22.2 Defamation of competitors.
22.3. Disparagement of competitors’ goods.
22.4 False advertising.
22.5 Enticing employees.
22.8 Sales below cost.
22.9 Deviation from standards.
22.10 Fictitious prices.

GROUP II
22.101 Subterfuge in sales.

AUTHORITY: §§ 22.1 to 22.101 issued under
sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g).
interpret or apply sec. 5, 38 Stat. 719, as
amended; 15 U.S. C. 45.

Source: §§ 22.1 to 22.101 contained in trade
practice rules, Kraft Paper Industry, FTC,
July 13, 1931.

GROUPT

§ 22.1 Inducing breach of contract.
Maliciously inducing or attempting to in-
duce the breach of existing contracts
between competitors and their customers
by any false or deceptive means whatso-
ever, or interfering with or obstructing
the performance of any such contractual

§ 22.10

duties or services by any such means, with
the purpose and effect of unduly hamper-
ing, injuring, or embarrassing competi-
tors in their business, is an unfair trade
practice.

§ 22.2 Defamation of competitors.
The defamation of competitors by falsely
imputing to them dishonorable conduct,
inability to perform contracts, question-
able credit standing, or by other false
representations, with the tendency and
capacity to mislead or deceive purchasers
or prospective purchasers, is an unfair
trade practice.

§ 22.3 Disparagement of competitors’
goods. The false disparagement of the
grade or quality of the goods of competi-
tors with the tendency and capacity to
mislead or deceive purchasers or prospec-
tive purchasers is an unfair trade
practice.

§ 22.4 False advertising. The mak-
ing, or causing, or permitting to be made
or published, any false, untrue, or de-
ceptive statement by way of advertise-
ment, or otherwise, concerning the grade,
quality, quantity, subsistance, character,
nature, origin, size, or preparation of any
product of the industry, having the ten-
dency and capacity to mislead or deceive
purchasers or prospective purchasers, is
an unfair trade practice.

§225 Enticing employees. Mali-
ciously enticing away the employees of
competitors with the purpose and effect
of unduly hampering, injuring, or em-
barrassing competitors in their business
is an unfair trade practice.

§ 22.8 Sales below cost. The selling of
goods below cost with the intent and with
the effect of injuring a competitor and
where the effect may be to substantially
lessen competition or tend to create a
monopoly or to unreasonably restrain
trade, is an unfair trade practice.

§ 22.9 Deviation from standards. De-
viation from the established standards of
the industry by any deceptive or false
means or device with the effect of mis-
leading or deceiving purchasers or pros-
pective purchasers in an unfair trade
practice.

§ 22.10 Fictitious priccs. Offering for
sale merchandise at a price reduced from
a marked-up or fictitious price with the
tendency and capacity to mislead or de-
ceive purchasers or prospective purchas-
ers is an unfair trade practice.

Page 167


§ 22.101

GROUP II

§ 22.101 Subterfuge in sales. The
sale of kraft paper in violation of any of
the rules approved or accepted by the
Federal Trade Commission under the
subterfuge that the seller is required to
do so by a contract antedating the ap-
proval or acceptance of said rules, when
in fact no valid and enforcible contract
or agreement antedating the approval
or acceptance of the rules exists is con-
demned by the industry.

Part 23—Milk and Ice Cream
Can Industry

GROUP I
Sec.
23.1
23.2
23.4

Inducing breach of contract.

False marking or branding.

Imitation of trade-marks, trade names,
etc.

Misrepresentation in general.

Commercial bribery.

Defamation of competitors,

Consignment selling.

GROUP IT

Publication of price lMsts.
Publication of terms of sale.
Unauthorized use of designs, etc.
Falsification of records.
Repudiation of contracts.
23.106 Subterfuge in sales.
23.107 Standard form of contract.
AUTHORITY: §§ 23.1 to 23.107 issued under
sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g).
Interpret or appiy sec. 5, 38 Stat. 719, as
amended; 15 U.S. C. 45.
Source: §§ 23.1 to 23.107 contalned in trade
practice rules, Miik and Ice Cream Can In-
dustry, FTC, July 15, 1931.

GROUP I

§ 23.1 Inducing breach of contract.
Maliciously inducing or attempting to
induce the breach of existing contracts
between competitors and their custom-
ers by any false or deceptive means
whatsoever, or interfering with or ob-
structing the performance of any such
contractual duties or services by any such
means, with the purpose and effect of
unduly hampering, injuring, or embar-
rassing competitors in their businesses,
is an unfair trade practice.

§ 23.2 False marking or branding.
The false marking or branding of prod-
ucts of the industry, with the effect of
misleading or deceiving purchasers with
respect to the quantity, quality, grade
or substance of the goods purchased, is
an unfair trade practice.

23.5
23.6
23.7
23.8

23.101
23.102
23.103
23.104
23.105

Page 162

_ prospective

Title 16—Commercial Practices

§ 23.4 Imitation of trade-marks, trade
names, etc. The imitation of the trade-
marks, trade names, slogans, or other
marks of identification of competitors,
having the tendency and capacity to
mislead or deceive purchasers or prospec-
tive purchasers, is an unfair trade prac-
tice.

§ 23.5 Misrepresentation in general,
The making or causing or permitting to
be made or published any false, untrue,
or deceptive statement by way of adver-
tisement or otherwise concerning the
grade, quality, quantity, substance, char-
acter, nature, origin, size, or preparation
of any product of the industry, having
the tendency and capacity to mislead or
deceive purchasers or prospective pur-
chasers, is an unfair trade practice.

§ 23.6 Commercial bribery. Directly
or indirectiy to give or permit to be given
or offer to give money or anything of
value to agents, employees, or represent-
atives of customers or prospective cus-
tomers or to agents, employees or repre-
sentatives of competitors’ customers or
customers, without the
knowledge of their employers or prin-
cipals, as an inducement to infiuence
their employers or principals to pur-
chase or contract to purchase industry
products from the maker of such gift
or offer, or to influence such employers
or principals to refrain from dealing or
contracting to deal with competitors, is
an unfair trade practice.

§ 23.7 Defamation of competitors.
The defamation of competitors by falsely
imputing to them dishonorable conduct,
inability to perform contracts, question-
abie credit standing, or by other false
representations, or the false disparage-
ment of the grade or quality of their
goods, with the tendency and capacity
to mislead or deceive purchasers or
prospective purchasers, is an unfair
trade practice.

§ 23.8 Consignment selling. Shipping
cans on consignment with the intent and
with the effect of injuring a competitor
and where the effect may be to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably
restrain trade, is an unfair trade prac-
tice.
: GROUP II

§ 23.101 Publication of price lists.
The industry approves the practice of
each individual member of the industry
independently publishing and circulat-