Orthopedic Appliance Industry
16 CFR Part 223 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
Chapter l—Federal Trade Commissien
tomers of competitors, not made in
good faith but for the purpose or with
the effect of harassing or intimidating
such customers or prospective custom-
ers, or of unduly hampering, injuring,
or prejudicing competitors in their
business, is an unfair trade practice.
(Rule 15.)
§ 221.16 Exclusive deals.
It is an unfair trade practice for any
member of the industry to contract to
seli or sell any industry product, or fix
a price charged therefor, or discount
from, or rebate upon, such price, on
the condition, agreement, or under-
standing that the purchaser thereof
shall not use or deal in the products of
a competitor or competitors of such in-
dustry member, where the effect of
such sale or contract for sale, or of
such condition, agreement, or under-
standing, may be substantially to
lessen competition or tend to create a
monopoly in any line of commerce.
(Rule 16.)
§ 221.17 Push money.
It is an unfair trade practice for an
industry member to pay or contract to
pay anything of vaiue to a salesperson
employed by a customer of the indus-
try member as compensation for, or as
an inducement to obtain, speciai or
greater effort or service on the part of
the salesperson in promoting the
resale of products supplied by the in-
dustry member to the customer—
(a) When the agreement or under-
standing under which the payment or
payments are made or are to be made
is without the knowledge and consent
of the salesperson’s employer; or
(b) When the terms and conditions
of the agreement or understanding are
such that any benefit to the salesper-
son or customer is dependent on lot-
tory; or
(c) When any provision of the agree-
ment or understanding requires or
contempiates practices or a course of
conduct unduly and _ intentionally
hampering sales of products of com-
petitors of an industry member; or
(d) When, because of the terms and
conditions of the understanding or
agreement, inciuding its duration, or
the attendant circumstances, the
effect may be to substantially lessen
§ 221.17
competition or tend to create a mo-
nopoly; or
(e) When similar payments are not
accorded to salespersons of competing
customers on proportionally equai
terms in compliance with section 2 (d)
and (e) of the Clayton Act.
Note: Payments made by an industry
member to a salesperson of a customer
under any agreement or understanding that
all or any part of such payments is to be
transferred by the salesperson to the cus-
tomer, or is to result in a corresponding de-
crease in the salesperson’s salary, are not to
be considered within the purview of this
§ 221.17, but are to be considered as subject
to the requirements and provisions of sec-
tion 2(a) of the Clayton Act. (Rule 17.)
PART 223—ORTHOPEDIC APPLIANCE
INDUSTRY
Sec.
223.0 Definitions.
Group I
223.1 Deception (general).
223.2 Representation or promise that prod-
uct will “fit.”
223.3 Protection of public with respect to
apparent agency.
223.4 Deceptive testimonials or depictions.
223.5 Deceptive demonstrations.
223.6 Misuse of terms “custom-made,”
“custom-built,” ete.
223.7 Guaranties, warranties, etc.
223.8 Misrepresenting products as _ con-
forming to standard.
223.9 Deception as to being “new.”
223.10 Substitution of products.
223.11 False invoicing.
223.12 Misrepresentation as to installment
sales contracts, their terms, conditions,
etc.
223.13 Misrepresentation as to character of
business.
223.14 Defamation of compotitors or faise
disparagement of their products.
223.15 Procurement of competitors’ confi-
dential information by unfair means and
wrongful use thereof.
223.16 Unfair threats of infringement
sults.
223.17 Deceptive use of trade or corporate
names, trade-marks, etc.
223.18 Use of the word “free.”
223.19 Coercing purchase of one product as
& prerequisite to the purchase of other
products.
223.20 Fictitious prices.
223.21 Prohibited allowances or commis-
sions to doctors.
223.22 Inducing breach of contract.
121
§ 223.0
Sec.
223.23 Enticing away employees of com-
petitors.
223.24 Prohibited forms of trade restraints
(unlawful price fixing, etc.)
223.25 Prohiblted discrimination.
223.26 Aiding or abetting use of unfair
trade practices.
Grovr II
223.101 Disapproval of solicitation when
beneflts unlikeiy.
223.102 Cooperation with doctors.
223.103 Importance of personal fltting.
223.104 Sharing of improved techniques.
Auruorirty: Secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Source: 19 FR 7344, Nov. 13, 1954, unless
otherwise noted.
§ 223.0 Definitions.
The industry is composed of persons,
firms, corporations, and organizations
engaged in the manufacture and sale
of custom-made or altered appliances
or braces for correction or alleviation
of deformities, spasms, fractures, para-
lyses, subluxations, or of similar condi-
tions, suffered by a particuiar person,
and which are to be worn on an outer
portion of the bodies of the wearers.
(Hernia trusses, whether or not
custom-made or altered, are not to be
considered as products of the indus-
try.)
Group I
§ 223.1 Deception (general).
(a) It is an unfair trade practice to
seli, offer for sale, or distribute any in-
dustry product, or promote the sale or
distribution thereof, by any method or
under any circumstance or condition
which has the capacity and tendency
or effect of deceiving purchasers or
prospective purchasers as to the con-
struction, composition, design, modei,
origin, manufacture, value, quality,
weight, absence of noise in operation,
strength, durability, life expectancy,
appearance, fit, comfort, alignment,
utility, ease of operation, or safety to
wearer, of such product, or in any
other material respect; or to mislead
purchasers or prospective purchasers
with respect to the need for repair,
maintenance, or replacement of parts
of such product after its purchase and
use, or with respect to any service of-
fered concerning maintenance of prod-
Title 16—Commerecial Practices
uct or training of purchaser in the use
thereof.
(b) The inhibitions of this section
shall apply to every species of adver-
tisement or form of representation,
whether in newspaper, periodical, tele-
phone directory, sales catalog, sales
promotional literature, by radio or
television, or otherwise.
§ 223.2 Representation or promise that
product will “fit.”
It is an unfair trade practice for any
member of the industry to represent,
promise or guarantee that any indus-
try product will be made to fit any in-
dividuai purchaser or prospective pur-
chaser thereof, when such representa-
tion, promise, or guarantee is not
made in good falth, or the industry
member is not possessed of the requi-
site skill, knowiedge, and equipment to
assure of his ability to fulfill such rep-
resentation, promise, or guarantee.
Norte: It is the consensus of the industry
that the term “porfect flt’” should not be
used by members, as perfectlon is not at-
tainable.
§ 223.3 Protection of puhlic with respect
to apparent agency.
(a) It is an unfair trade practice for
any member of the industry to ald or
abet any person in effecting a decep-
tion of purchasers or prospective pur-
chasers as to his or her authority to
represent and make commitments in
behalf of such industry member.
(b) For an industry member to
supply any person, not his agent, with
sampies, sales literature, guarantees of
such industry member, or any indices
of agency, and accept orders secured
by such person and then refuse to fui-
fill the commitments implied to such
purchaser by the use of such samples,
sales literature, etc., is an unfair trade
practice.
§ 223.4 Deceptive testimonials or depic-
tions,
It is an unfair trade practice for a
member of the industry to use any tes-
timonial of a user of any orthopedic
appliance, or of any other person, or
to use any picture or depiction there-
of, which is false or which has the ca-
pacity and tendency or effect of mis-
122
Chopter I—Federai Trade Commission
leading or deceiving purchasers or pro-
spective purchasers.
§ 223.5 Deceptive demonstrations.
In the sale, offering for sale, or dis-
tribution of industry products, or in
promoting the sale or distribution
thereof, it is an unfair trade practice
to demonstrate any such products in a
manner or under circumstances having
the capacity and tendency or effect of
creating a false impression as to the
actual benefits from the use thereof
that reasonably may be expected to be
had by a purchaser or prospective pur-
chaser of such or similar industry
products.
§ 223.6 Misuse of terms “custom-made,”
“custom-built,” ete.
In the sale, offering for sale, or dis-
tribution of orthopedic appliances, it
is an unfair trade practice for an in-
dustry member to use the terms
“custom-made,” “custom-built,”
“made-to-order,” or any other word or
term of similar import, as descriptive
of any orthopedic appliance which has
not been made in accordance with
specifications as to size, fit, quality,
etc., supplied by or on behalf of the
consumer-purchaser prior to the man-
ufacture or assembly of the orthopedic
appliance, as distinguished from a
product which is a ready-made or
stock orthopedic appliance.
§ 223.7 Guarantees, warranties, etc.
(a) It is an unfair trade practice to
use any guarantee respecting an indus-
try product which does not make rea-
sonable disclosure of the conditions or
limitations of such guarantee, or
which contains statements, represen-
tations or assertions which have the
capacity and tendency or effect of mis-
leading or deceiving in any respect, or
which are of such form, text, or char-
acter as to represent or imply that the
guarantee is broader than is in fact
true.
(b) It is an unfair trade practice for
the guarantor to fali to observe scru-
pulously his obligation under the
guarantee by him used or caused to be
used.
(c) This section shall be applicable
also to warranties or any writing pur-
ported to be a guarantee or warranty.
§ 223.12
§ 223.8 Misrepresenting products as con-
forming to standard.
Representing, through advertise-
ment or otherwise, that any products
of the industry conform to a standard
recognized in or applicable to the in-
dustry when such is not the fact, with
the capacity and tendency or effect of
misleading or deceiving the purchas-
ing or consuming public, is an unfair
trade practice.
§ 223.9 Deception as to being “new.”
In the sale, offering for sale, or dis-
tribution of industry products, it is an
unfair trade practice to represent any
of such products as being new or
unused, or as containing all new or
unused parts, when such is not the
fact, or deceptively to conceal] the fact
that any of such products have been
used or contain a used part or parts.
§ 223.10 Substitution of products.
The practice of shipping or deliver-
ing products which do not conform to
samples submitted, to specifications
upon which the sale is consummated,
or to representations made prior to se-
curing the order, without advising the
purchasers as to said substitution and
obtaining their consent thereto at or -
before the time of shipment or deliv-
ery, and with the capacity and tenden-
cy or effect of misleading or deceiving
the purchasing or consuming public, is
an unfair trade practice.
$223.11 False invoicing.
It is an unfair trade practice to with-
hold from or insert in invoices or sales
slips any statements or information by
reason of which omission or insertion
a false record is made, wholiy or in
part, of the transactions represented
on the face of such invoices or sales
slips, with the capacity and tendency
or effect of thereby misleading or de-
ceiving the purchasing or consuming
public.
§ 223.12 Misrepresentation as to install-
ment sales contracts, tbeir terms, con-
ditions, etc.
It is an unfair trade practice to make
or publish, or cause to be made or pub-
lished, directly or indirectly, any false,
misleading, or deceptive statement or
123
§ 223.13
representation, through advertising or
otherwise, concerning installment
sales contracts used or their terms and
conditions, including down payments,
interest, carrying charges, etc., or re-
specting any other matters relative to
such contracts or their terms and con-
ditions.
§ 223.13 Misrepresentation as to character
of husiness.
It is an unfair trade practice for any
industry member, in the course of or
in connection with the distribution of
industry products, to represent, direct-
ly or indirectly, that he is a producer
or manufacturer of industry products
when such is not the fact, or in any
other manner to misrepresent the
character, extent, or type of his busi-
ness.
§ 223.14 Defamation of competitors or
false disparagement of their products.
The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform con-
tracts, questionable credit standing, or
ty other false representations, or the
false disparagement of competitors’
products in any respect, or of their
business methods, selling prices,
values, credit terms, policies, or ser-
vices, is an unfair trade practice.
§ 223.15 Procurement of competitors’ con-
fidential information by unfair means
and wrongful use thereof.
It is an unfair trade practice for any
member of the industry to obtain in-
formation concerning the business of a
competitor by bribery of an employee
or agent of such competitor, by false
or misieading statements or represen-
tations, 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.
§ 223.16 Unfair threats of infringement
suits.
The circuiation of threats of suit for
infringement of patents or trade-
marks among customers or prospective
customers of competitors, not made in
good falth but for the purpose or with
the effect of thereby harassing or in-
Titie 16—Commerciai Practices
timidating such customers or prospec-
tive customers, or of unduly hamper-
ing, injuring, or prejudicing competi-
tors in their business, is an unfair
trade practice.
§ 223.17 Deceptive use of trade or corpo-
rate names, trade-marks, etc.
The use of any trade name, corpo-
rate name, trade-mark, or other trade
designation which has the capacity
and tendency or effect of misleading
or deceiving the purchasing or con-
suming public as to the character,
name, nature, 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.
§ 223.18 Use of the word “free.”
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 ad-
vertisements or in other offers to the
public, as descriptive of an article of
merchandise, or service, which is not
an unconditional gift, under the fol-
lowing circumstances:
(a) When all the conditions, obliga-
tions, or other prerequisites to the re-
ceipt and retention of the “free” arti-
cle of merchandise or service offered
are not clearly and conspicuously set
forth at the outset so as to leave no
reasonable probability that the terms
of the offer will be misunderstood;
and, regardiess of such disclosure:
(b) When, with respect to any article
of merchandise required to be pur-
chased in order to obtain the ‘“free’’
article or service, the offerer (1) in-
creases the ordinary and usual price of
such articie of merchandise, or (2) re-
duces its quality, or (3) reduces the
quantity or size thereof.
Note: The disclosure required by para-
graph (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, te which reference is
made by use of an asterisk or other symbol
placed next to the word “free,” will not be
regarded as complianco.
124
Chapter I—Federal Trade Commission
§ 223.19 Coercing purchase of one product
as a prerequisite to the purchase of
other products.
The practice of coercing the pur-
chase of one or more products as a
prerequisite to the purchase of one or
more other products, where the effect
may be substantially to lessen compe-
tition or tend to create a monopoly or
unreasonably to restrain trade, is an
unfair trade practice.
§ 223.20 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 flctitious prices, or to
sell or offer for sale such products at a
purported reduction in price when
such:purported reductlon is in fact fic-
titious or is otherwise misleading or
deceptive.
§ 223.21 Prohihlted allowances or commis-
sions to doctors.
It is an unfair trade practice for any
industry member to pay or contract to
pay anything of value to any doctor
prescribing or recommending the use
by any of his patlents of any orthope-
dic appllance in consideration of, or
for the purpose of inducing or obtain-
ing, a referral of the patlent by the
doctor to the industry member for the
purchase of any such appllance, or a
recommendation by the doctor of the
industry member to the patient for
the purchase of any such appliance.
§ 223.22 Inducing hreach of contract.
It is an unfair trade practice to
induce or attempt to induce the
breach of existing lawful contracts be-
tween competitors and their customers
or their suppliers, or to interfere with
or obstruct the performance of any
such contractual duties or services by
any such means, with the purpose and
effect of unduly hampering, injuring,
or prejudicing competitors in their
business.
§ 223.23 Enticing away employees of com-
petitors.
Knowingly enticing away employees
or sales representatives of competitors
§ 223.25
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 pro-
hibiting employers from hiring or of-
fering employment to employees of
' competitors in good falth and not for
the purpose of injuring, destroying, or
preventing competition.
§ 223.24 Prohihited forms of trade re-
straints (unlawful price fixing, etc.).?
It is an unfair trade practice for any
member of the industry, either direct-
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 actlon, or to become a party
to any such understanding, agreement,
combination, or conspiracy.
‘The inhibitions of this section are sub-
ject to Pub. L. 542, approved July 14, 1952,
66 Stat. 632 (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
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 contract 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 con-
tract or agreement is lawful as applied to in-
trastate 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.
125
§ 223.25
§ 223.25 Prohibited discrimination. ?
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price dis-
crimination. It is an unfair trade prac-
tice for any member of the industry
engaged in commerce, in the course of
such commerce, to grant or allow, se-
cretly or openly, directly or indirectly,
any rebate, refund, discount, credit, or
other form of price differential, where
such rebate, refund, discount, credit,
or other form of price differential, ef-
fects a discrimination in price between
different purchasers 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 substantially to lessen
competition or tend to create a mo-
nopoly in any line of commerce, or to
injure, destroy, or prevent competition
with any person who either grants or
knowingly receives the benefit of such
discrimination, or with the customers
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;
(2) That nothing contained in this
paragraph shall prevent differentials
which make only due allowance for
differences in the cost of manufacture,
sale, or delivery resulting from the dif-
fering methods or quantities in which
such commodities are to such purchas-
ers sold or delivered;
Nore: This proviso shal] not be construed
as permitting an industry member to allow a
price differential to a customer, whether in
the form of a quantity price discount,
rebate, or other form, through billing as a
single order an aggregate of the amount of
two or more orders of such customer on
2As used in this section, the word “com-
merce” 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 be-
tween any insular possessions or other
places under the jurisdiciton 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 otber place under the jurisdic-
tion of the United States.”
Title 16—Commercial Practices
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, or delivery of the prod-
ucts to said customer resulting from the dif-
ferent method and quantity in which the
products are sold and delivered to said cus-
tomer, or is more than due allowance for
such net savings; nor is this proviso to be
construed as permitting an industry
member to allow a price differential to a
customer, whether in the form of a quantity
price discount, rebate, or other form, when,
pursuant to agreement or understanding by
the industry member and the customer, de-
livery of the products purchased is to be de-
layed or made in installments so as to in-
voive storage cost to the industry member,
and when as a result of such cost or other-
wise, the price differential allowed is not
based on a net savings in cost of manufac-
turc, saie, or delivery of the products to said
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 sav-
ings.
(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
transactions and not in restraint of
rade;
(4) That notlling contained in this
paragraph shall prevent price changes
from time to time where in response to
changing conditions affecting the
market for or the marketability of the
goods concerned, such as but not limit-
ed to obsolescence of seasonable goods,
distress sales under court process, or
sales in good falth in discontinuance
of business in the goods concerned.
(b) Prohibited brokerage and com-
missions. It is an unfair trade practice
for any member of the industry en-
gaged in commerce, in the course of
such commerce, to pay or grant, or to
receive or accept, anything of value as
a commission, brokerage, or other
compensation, or any allowance or dis-
count in lieu thereof, except for ser-
vices 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 intermediary is
acting in fact for or in behalf, or is
subject to the direct or indirect con-
trol, of any party to such transaction
126
Chopter |—Federal Trade Commission
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
industry engaged in commerce to pay
or contract for the payment of adver-
tising or promotional allowances or
any other thing of vaiue to or for the
benefit of a customer of such member
in the course of such commerce as
compensation or in consideration for
any services or facilities furnished by
or through such customer in connec-
tion with the processing, handling,
sale, or offering for sale of any prod-
ucts, or commodities manufactured,
sold, or offered for sale by such
member, unless such payment or con-
sideration is avallable on proportional-
ly equai terms to all other customers
competing in the distribution of such
products or commodities.
(d) Prohibited discriminatory ser-
vices or facilities. It is an unfair trade
practice for any member of the indus-
try engaged in commerce to discrimi-
nate in favor of one purchaser against
another purchaser or purchasers of a
commodity bought for resale, with or
without processing, by contracting to
furnish or furnishing, or by contribut-
ing to the furnishing of, any services
or facilities connected with the pro-
cessing, handling, sale, or offering for
sale of such commodity so purchased
upon terms not accorded to all com-
peting 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 section.
({f) Exemptions. The inhibitions of
this section shall not apply to pur-
chases of their supplies for their own
use by schoois, colieges, universities,
public libraries, churches, hospitals,
and charitable institutions not operat-
ed for profit.
Nore: 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
§ 223.102
person charged; and unless justification
shall be affirmatively shown, the Commis-
sion is authorized to issue an order termi-
nating the discrimination: Provided, howev-
er, That nothing contained in this section
shall prevent a seller rebutting the prima
facile 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 furnished by a competitor. See sec-
tlon 2-b, Clayton Act.
§ 223.26 Aiding or abetting use of unfair
trade practices.
it is an unfair trade practice for any
person to aid, abet, coerce, or induce
another, directly or indirectly, to use
or promote the use of any unfair trade
practice specified in this part.
Grovp II
§ 223.101 Disapproval of solicitation when
benefits unlikely.
The industry condemns the practice
of soliciting or promoting the sale of
any of its products to persons who, by
reason of their physical state, age, or
infirmity, cannot be expected to
obtain reasonable use and benefit
from such products. This section shall
not be regarded as condemning the
sale of an industry product to any
person furnishing a prescription from
a doctor.
§ 223.102 Cooperation with doctors.
(a) The industry fully realizes that
the interest of the orthopedically
handicapped is best promoted by the
cooperation of the doctor and industry
member concerning the type and fit-
ting of industry products.
(b) The industry pledges its mem-
bers to give every assistance to doctors
and to do everything possible to pro-
mote mutuai trust and confidence be-
tween the industry and members of
the medical profession and the general
public.
(ce) It is recommended that an indus-
try product not be sold, or any particu-
lar type recommended, without the
benefit of a prescription or consulta-
tion with the doctor except when the
patient wishes a duplicate appliance of
one which has been prescribed by a
doctor.
127
§ 223.103
(d) Any major change in adjustment,
shape, or construction should be made
only on the prescription of the doctor.
§ 223.103 Importance of personal fitting.
(a) The industry disapproves the
practice of undertaking to supply an
orthopedic appliance by mail-order
specification and without personal fit-
ting thereof.
(b) The exception to this section is
when the appliance is ordered by a
doctor who assumes full responsibility
for the accuracy of fit; or when dupli-
cating an appliance originally pre-
scribed by a doctor.
§ 223.104 Sharing of improved techniques.
Believing that the interest of the or-
thopedically handicapped is its first
concern, the industry favors making
available to all of its members and the
general public any improved technique
that may be used or developed by any
of its members in respect to the
making, fitting, aligning, or servicing
of industry products. Further, the in-
dustry desires to be an active and co-
operative factor in all progressive de-
velopments of improved techniques
that will contribute to the weifare and
comfort of the orthopedically handi-
capped.
PART 224—FiRE EXTINGUISHING
APPLIANCE IHDUSTRY
Sec.
224.0 Definitions.
Group 1
224.1 Muisrepresentation and deception in
the sale of industry products.
224.2 Disclosure of limitations and warning
of hazards.
224.3 Use of the word “free.”
224.4 False and misleading price quota-
tions, etc.
224.5 Substitution of products.
224.6 Deceptive use of trade or corporate
names, trade-marks, etc.
224.7 Misrepresentation as to character of
business.
224.8 Misrepresenting products as con-
forming to standard.
224.9 Imitation of trade-marks, trade
names, etc.
224.10 Procurement of competitors’ confi-
dential information.
224.11 Enticing away employees of com-
petitors.
Titie 16——Commerciai Practices
Sec.
224.12 Defamation of competitors or false
disparagement of their products.
224.13 Commercial bribery.
224.14 Unfair threats of infringement -
suits.
224.15 Selling below cost.
224.16 Inducing breach of contract.
224.17 Prohibited forms of trade restraints
(unlawfui price fixing, etc.).
224.18 Prohibited discrimination.
224.19 Aiding or abetting use of unfair
trade practices.
Avrnoriry: Secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Source: 19 FR 8655, Dec. 17, 1954, unless
otherwise noted.
§ 224.0 Definitions.
As used in this part, the terms “‘in-
dustry member” and “industry prod-
ucts” shall have the foliowing mean-
ings, respectively:
(a) Industry member. Any person,
firm, corporation, or organizatlon en-
gaged in the manufacture, sale, or dis-
tribution of industry products as her-
einafter defined.
(b) Industry products. All appliances
which are manufactured expressly for,
and which are represented as being ca-
pable of, extinguishing fires. Automat-
ic sprinkler systems and automotive
fire apparatuses are not considered
products of the industry.
Groovpr I
§ 224.1 Misrepresentation and deception
in the sale of industry products.
It is an unfair trade practice for any
-industry member to make or publish,
directly or indirectly, any false, mis-
leading, or deceptive statement or rep-
resentation concerning the size, grade,
quality, quantity, substance, origin, ca-
pacity, performance, durability, safety,
or preparation of any fire extinguish-
ing appliance, or any other statement
or representation concerning fire ex-
tinguishing appliances, which is false
or misleading in any material respect
or which has the capacity and tenden-
cy or effect of misleading purchasers
or prospective purchasers. Among the
practices inhibited by this section are:
(a) Representing or implying that an
industry product will extinguish ail
types of fires when such is not the
fact.
128