Tobacco Smokingpipe, And Cigar And Cigarette Holder Industry
16 CFR Part 225 · Trade practice rules · in the Code of Federal Regulations 1970-1970 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1970 CFR · Earliest edition: 1970 CFR
Text (1970 edition, OCR)
Title 16—Chapter !
(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 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 compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer 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 proportionally equal terms
to all other customers competing in the
distribution of such products or com-
modities.
(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
furnishing 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 section.
(f) Exemptions. ‘The inhibitions of
this section 18 shall not apply to pur-
chases of their supplies for their own
use by schools, colleges, universities, pub-
lic libraries, churches, hospitals, and
charitable institutions not operated for
profit.
Notre: In complaint proceedings charging
discrimination in price or services or facllt-
ties furnished, and upon proof having been
made of such discriminatlon, the burden of
rebutting the prima facie case thus made
by showing justification shall be upon the
person charged; and unless justification shall
be affirmatively shown, the Commission 1s
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing contained in this section shall pre-
vent a seller rebuttlng the prima facie case
thus made by showing that his lower price
§ 224.19
or the furnishing of services or facilities to
any purchaser or purchasers was made in
good falth to meet an equally low price of
@ competitor, or the services or facilities
furnished by a competitor. See Sec. 2-b,
Clayton Act.
§ 224.19 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 these rules.
PART 225— TOBACCO SMOKING
PIPE, AND CIGAR AND CIGARETTE
HOLDER INDUSTRY
Sec.
225.0 Definitlons.
Group I
225.1 Misrepresentation and deception in
general.
225.2 Misieading fllustrations.
225.3 Deceptive use of imitation of trade
or corporate names, trade-marks,
ete.
225.4 Deception as to origin.
225.5 Misrepresentation as to character
of business.
225.6 Misuse of terms “close-outs,” “dis-
continued lines,” “special bar-
gains,’ etc.
225.7 Fictitious prices, price lists, etc.
225.8 False {nvoicing.
225.9 Consignment distribution.
225.10 Guarantees, warranties, etc.
225.11 Use of lottery schemes.
225.12 Defamation of competitors or false
disparagement of their products.
225.13 Unfair threats of infringement
suits.
225.14 Commercial bribery.
225.15 Prohibited forms of trade restraints
(unlawful price fixing, etc.)
225.16 Prohibited discrimination.
225.17 Aiding or abetting use of unfair
trade practices.
Grove IZ
225.101 Recording of trade-marks, trade
names, etc., to avoid confusion.
225.102 Manufacturer’s name, insignia, etc.,
On aii products.
COMMITTEE ON TRADE PRACTICES
225.201 Industry committee.
AuTHORITY: The provisions of this Part, 225
issued under cecs. 6, 56, 38 Stat. 721, 719; 15
U.S.C. 46, 45.
Source: The provisions of this Part 225
appear at 20 F.R. 332, Jan. 14, 1955, unless
otherwise noted.
339
§ 225.0
§ 225.0 Definitions.
(a) As used in the rules in this part, the
term “industry product” or “industry
products” means any tobacco sinoking
pipe, or cigar or cigarette holder, of any
type or material.
(b) The term “member of the indus-
try’ means any person, firm, corporation,
or organization engaged in the importa-
tion, manufacture, processing, assembly,
distribution, or sale of such industry
products.
Group I
§ 225.1 Misrepresentation and deception
in general.
It is an unfair trade practice to use,
or cause or promote the use of, any
trade promotional literature, adver-
tising matter, guarantee, warranty,
mark, brand, labei, trade name, picture,
design or device, designation, or other
type of oral or written representation,
however disseminated or published,
which has the capacity and tendency or
effect of misleading or deceiving pur-
chasers or prospective purchasers with
respect to the type, kind, grade, quality,
size, finish, composition or components,
durability, serviceability, smoking quali-
ties, filtering effects, importation or
origin, production, manufacture, distri-
bution, or customary or regular price, of
any industry product, or which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming pubiic in any other material
respect. .
§ 225.2 Misleading illustrations.
It is an unfair trade practice, in con-
nection with the offering for sale, sale, or
distribution of any industry product, to
use, aS part of any packaging material,
label, advertisement, or other sales
promotion literature, any picture, il-
lustration, map, diagram, cr other
depiction which, either alone or in
conjunction with the words or phrases
accompanying such depiction, has the
capacity and tendency or effect of
misleading or deceiving purchasers or
prospective purchasers concerning the
type, Kind, grade, quality, size, finish,
composition or components, durability,
serviceability, smoking qualities, filter-
ing effects, importation or origin, pro-
duction, manufacture, distribution, or
customary or regular price, of any indus-
try product, or which has the capacity
and tendency or effect of misleading or
Title 16—Chapter 1
deceiving the purchasing or consuming
public in any other material respect.
§ 225.3 Deceptive use or imitation of
trade or corporate names, trade-
marks, ete.
It is an unfair trade practice for
any member of the industry:
(a) To imitate, or cause to be imitated,
or directly or indirectly promote the
imitation of, the trade-marks, trade
names, or other exclusively owned sym-
bols or marks of identification of com-
petitors in a manner having the capacity
and tendency or effect of misleading or
deceiving purchasers, prospective pur-
chasers, or the buying pubiic; or
(b) To use any trade name, corporate
name, trade-mark, or other trade desig-
nation, which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers as to the identity of the im-
porter, manufacturer, distributor, or
seller of any industry product or the
source or origin of any industry product
or of any material used therein.
§ 225.4 Deception as to origin.
(a) It is an unfair trade practice to
represent that industry products manu-
factured or produced in a foreign country
were manufactured or produced in the
United States.
(b) It is an unfair trade practice to
offer for sale, sell, or distribute indus-
try products manufactured or produced
in a foreign country without affirma-
tively and clearly disclosing thereon, or
in immediate connection therewith, by
a truthful and nondeceptive mark,
stamp, brand, or label, the country of
origin of such products.
Nore: Firms selling imported industry
products by mail order or other means
whereby the purchaser has no opportunity
of inspecting the goods before buying shall
also disclose the country of origin of said
products in all catalogs or sales promotional
literature directed to prospective purchasers
and describing the products in question.
Nore: In a formal proceeding charging
violation of the requirements of this section,
a cease and desist order will be predicated
upon a finding from evidence in the record
that the failure to disclose foreign origin as
required by this section either has resulted
in deception of buyers, or has the capacity
and tendency of deceiving buyers or prospec-
tive buyers.
(c) It is an unfair trade practice to
misrepresent the place of origin, pro-
duction, or manufacture of industry
products or their components.
340
Title 16—Chapter |
(d) (1) It is an unfair trade practice
to use the term “imported briar pipe”
or “imported briar pipes” to designate,
describe, or refer to industry products
manufactured in the United States.
(2) It is likewise an unfair trade
practice to use, in designating, describ-
ing, or referring to industry products
manufactured in the United States, any
other words, phrases, or representations
(whether by use of distinctly foreign
names or designations or other means)
in a manner that imports or implies that
the products were manufactured in a
foreign country.
§ 225.5 Misrepresentation as to charac-
ter of husiness.
It is an unfair trade practice for any
member of the industry to represent,
directly or indirectly, through the use
of any word or term in his corporate
or trade name, in his advertising, in
the stamping, labeling, or branding
of industry products, or otherwise,
that he is a producer, manufacturer,
or importer of industry products, or
that he owns or controls a factory
making such products, or has connec-
tions abroad through which imports are
secured, or maintains offices abroad,
when such is not the fact, or in any
other manner to misrepresent the char-
acter, extent, volume, or type of his
business.
§ 225.6 Misuse of terms “close-outs,”
“discontinued lines,” “special bar-
gains,” etc.
It is an 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 simi-
lar import, when such is not true in
fact; or to so offer for sale, sell, adver-
tise, describe, or otherwise represent in-
dustry products where the capacity and
tendency or effect thereof is to lead the
purchasing or consuming public to be-
lieve such products are being offered for
sale or sold at greatly reduced prices,
or at so-called “bargain prices,’ when
such ls not the fact.
§ 225.7 Fictitious prices, price lists, etc.
(a) The publishing or circulating by
any member of the industry of false
price quotations, price lists, terms or
conditions of sale, or reports as to pro-
duction or sales, when having the
§ 295.9
capacity and tendency or effect of mis-
leading or deceiving purchasers, pro-
spective purchasers, or the consuming
public, or the advertising, sale, or of-
fering 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
such purported reductions are in fact fic-
titious 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 prod-
ucts at prices that are in any manner
represented as reduced from or lower
than current, former, or regular prices,
to use, or to furnish or supply for such
use, price tags, labels, or advertising ma-
terials that set forth a false, fictitious,
or exaggerated current, former, or reg-
ular price, or a false, fictitious, or exag-
gerated manufacturer’s or distributor’s
suggested retail 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 retail transactions. It
is likewise an unfair trade practice to
distribute, sell, or offer for sale to the
consuming public in such manner prod-
ucts bearing such false, fictitious, or
exaggerated price tags or labels.
§ 225.8 False invoicing.
Withholding from or inserting in in-
voices any statements or information by
reason of which omission or insertion a
false record is made, wholly or in part,
of the transactions represented on the
face of such invoices, when having the
capacity and tendency or effect of there-
by misleading or deceiving purchasers,
prospective purchasers, or the consum-
ing public, is an unfair trade practice.
[24 F.R. 4327, May 29, 1959]
§ 225.9 Consignment distribution.
(a) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment without the express
request of the purchaser.
(b) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment or pretended con-
signment for the purpose and with the
effect of artificially clogging or closing
trade outlets and unduly restricting
competitors’ use of said trade outlets in
341
§ 225.10
getting their products to consumers
through regular channels of distribution,
thereby injuring, destroying, or prevent-
ing competition or tending to create a
monopoly or unreasonably to restrain
trade.
§ 225.10 Guarantees, warranties, etc.
(a) It is an unfair trade practice to
use, or cause to be used, any guarantee or
warranty which is false, misleading, de-
ceptive, or unfair to the purchasing or
consuming public.
(b) The following types of guarantees
are examples of those considered to be
unfair trade practices and in violation
of this section:
(1) Guarantees containing state-
ments, representations, or assertions
which have the capacity and tendency
or effect of misleading or deceiving in
any material respect; or
(2) Guarantees which are so used, or
are of such form, text, or character, as
to import, imply, or represent that the
guarantee is broader than is in fact true,
or that the guarantee covers the entire
product or certain parts or accessories
thereof which are not in fact covered, or
will afford more protection to purchasers
or users than is in fact true; or
(3) Guarantees in which any condi-
tion, qualification, or contingency applied
by the guarantor thereto is not fully and
nondeceptively stated therein, or is
stated in such manner or form as to be
deceptively minimized, obscured, or con-
cealed, wholly or in part; or
(4) Guarantees which are stated,
phrased, or set forth in such manner that
although the statements contained
therein are literally and technically true,
the whole is misleading in that pur-
chasers or users are not made sufficiently
aware of certain contingencies or condi-
tions applicable to such guarantees which
materially lessen the value or protection
thereof as guarantees to purchasers or
users; or
(5) Guarantees which purportedly ex-
tend for such an indefinite or unlimited
period of time or for such long period of
years as to have the capacity and tend-
ency or effect of thereby misleading or
deceiving purchasers or users Into the
belief that the product has or is definitely
known to have a longer period of serv-
iceability or greater durability in actual
use than is in fact true; or
(6) Purported guarantees in the form
of documents, promises, representations,
or other form which are represented or
2]
cee
Title 16—Chapter |
held out to be guarantees when such is
not the fact, or when they are service
contracts of the type which are not guar-
antees, or when they involve any decep-
tive or misleading use of the word
“Guarantee” or term of similar import;
or
(7) Guarantees issued, or directly or
indirectly caused to be used, by any
member of the industry when or under
which the guarantor fails or refuses to
observe scrupulously his obligation
thereunder or fails or refuses to make
good on claims coming reasonably with-
in the terms of the guarantee; or
(8) Guarantees which in themselves
or in the manner of their use are other-
wise false, misleading, or deceptive.
(ec) This section shall be applicable
not only to guarantees but also to war-
ranties, to purported warranties and
guarantees, and to any promise or repre-
sentation in the nature of or purporting
to be a guarantee or warranty.
§ 225.11 Use of lottery schemes.
The offering or giving of prizes, pre-
miums, or gifts in connection with the
sale or distribution of industry products,
or aS an inducement thereto, by any
method which involves a lottery or
scheme of chance, and the sale or distri-
bution of industry products by any
method or plan which involves a lottery
or scheme of chance, are unfair trade
practices,
§ 225.12 Defamation of competitors or
false disparagement of their prod-
ucts.
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 meth-
ods, selling prices, values, credit terms,
policies, or services, is an unfair trade
practice.
§ 225.13 Unfair threats of infringement
suits.
The circulation of threats of suit for
infringement of patents or trade-marks
among customers or prospective custom-
ers of competitors, not made in good
faith but for the purpose or with the ef-
fect of thereby harassing or intimidating
such customers or prospective customers,
or of unduly hampering, injuring, or
prejudicing competitors in their business,
is an unfair trade practice.
42
Title 16—Chapter |
§ 225.14 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 to per-
mit or cause to be given, money or any-
thing of value to agents, employees, or
representatives of customers or prospec-
tive customers, or to agents, employees,
or representatives of competitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or
principals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products im-
ported, manufactured, or sold by such
industry member or the maker of such
gift or offer, or to influence such employ-
ers or principals to refrain from dealing
in the products of competitors or from
dealing or contracting to deal with com-
petitors.
§ 225.15 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-
1The inhibitions of this section are sub-
ject to Public Law 542, approved July 14,
1952, 66 Stat. 632 (the McGuire Act) which
provides 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-
modity 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
acontract 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 appited 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 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 factors,
or between retailers, or between persons,
firms, or corporations in competition with
each other.
§ 225.16
sons to engage in any such planned
common course of action, or to become a
party to any such understanding, agree-
ment, combination, or conspiracy.
§ 225.16 Probibited discrimination.’
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price discrim-
ination. Itis 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 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 cither or any of the pur-
chases involved therein are in commerce,
and where the effect thereof may he
substantially to lessen competition or
tend to create a monopoly 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 customers of either of them: Pro-
vided, however:
(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
paragrapll 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 engaged
in selling goods, wares, or merchandise
in commerce from selecting their own
2 As 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 between 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.”
343
§ 225.17
customers in bona fide transactions 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 distress sales under court proc-
ess, or Sales in good faith in discontinu-
ance of business in the goods concerned.
(b) 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 lieu
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 indirect
control, of any party to such transaction
other than the person by whom such
compensation is so granted or paid.
(ce) 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 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 compensation or in
consideration for any services or facill-
ties furnished by or through such cus-
tomer 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 proportionaliy equal terms
to all other customers competing in the
distribution of such products or com-
modities.
(d) 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 com-
modity bought for resale, with or with-
out processing, by contracting to fur-
nish or furnishing, or by contributing to
the furnishing of, any services or facili-
ties connected with the processing, han-
dling, sale, or offering for sale of such
Title 16——Chapter j
commodity 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 section.
(f) Exemptions. The inhibitions of
this section shall not apply to purchases
of their supplies for their own use by
schools, colleges, universities, public li-
braries, churches, hospitals, and charita-
ble institutions not operated for profit.
Note: 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
person charged; and unless justification
shall be affirmatively shown, the Commission
is authorized to issue an order terminating
the discrimination: Provided, however, That
nothing contained in this section shall pre-
vent 8 seller rebuttlng 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
@ competitor, or the services or facilitles fur-
nished by a competitor, (See sec. 2 (b),
Clayton Act.)
§ 225.17 Aiding or abetting use of un-
fair trade practices.
It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or in-
directly, to use or promote the use of any
unfair trade practice specified in §§ 225.1
to 225.17, inclusive.
Group IT
§ 225.101 Recording of trade-marks,
trade names, etc., to avoid confusion.
To avoid confusion within the industry,
it is recommended that each member
thereof voluntarily file with some quali-
fied person or agency designated by the
industry all trade-marks, trade names,
labels, or brands used by such member
and that such information be made
equally available to all members of the
industry and to the public.
§ 225.102 Mauufacturer’s name, in-
signia, etc., on all products.
It is recommended that all industry
products be marked or stamped with the
manufacturer’s name, insignia, or trade-
mark,
344
Title 16—Chapter !
COMMITTEE ON TRADE PRACTICES
§ 225.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1956]
PART 226—FOUNTAIN PEN AND
MECHANICAL PENCIL INDUSTRY
Sec.
226.0 Definition.
Group I
226.1 Misrepresentation and misbranding.
226.2 False and deceptive selling methods.
226.8 Misrepresentation as to character of
business,
226.4 Use of the word “free.”
226.5 Guarantees, warranties, etc.
226.6 Defamation of competitors or false
disparagement of their products.
226.7 Commercial bribery.
226.8 Imitation or simulation of trade-
marks, trade names, etc.
226.9 Fictitious prices, price lists, etc.
226.10 Combination or coercion to fix
prices, suppress competition, or
restrain trade.
226.11 Prohibited discrimination.
226.12 Afding or abetting use of unfair
trade practices,
226.138 Enticing away employees of compet-
itors.
226.14 Marketing of products through lot-
tery or game of chance.
226.15 False use of the terms “Iridium
Tipped’ and “Osmiridium Tipped.”
226.16 Deception as to gold or purported
gold content.
226.17 Push money.
AvtTHorITY: The provisions of this Part 226
issued under secs. 6, 5, 38 Stat. 721, 719;
15 U.S.C. 46, 45.
Source: The provisions of this Part 226
appear at 20 F.R. 618, Jan. 28, 1955, unless
otherwise noted.
§ 226.0 Definition.
Industry products, as referred to in
§§ 226.1 to 226.17, include fountain pens,
ball point pens, dip pens, and mechanical
pencils, of all types and combinations,
as well as parts and accessories for such
pens and pencils.
Group I
§ 226.1 Misrepresentation and misbrand-
ing.
(a) It is an unfair trade practice to
use, or cause or promote the use of, any
representation of an industry product
which has the capacity and tendency or
effect of misleading or deceiving pur-
§ 296.4
chasers, prospective purchasers, or the
consuming public:
(1) With respect to the brand, grade,
origin, quality, durability, serviceability,
content, construction, size, use, value,
performance, or expected life of such
product; or
(2) With respect to the amount of
writing which any fountain pen, ball
point pen, and mechanical pencll is
capable of supplying to the user thereof
without a refill of ink or lead; or with
respect to the writing capacity of any
ink or lead refills for any such products;
or
(3) With respect to the price, value,
or terms or conditions of sale, of any
industry product; or
(4) With respect to the manufacture,
distribution, or marketing of any such
product; or
(5) With respect to the uniqueness or
originality of such product, or the rela-
tive size of the busmess of a manufac-
turer of an industry product; or
(6) In any other material respect.
(b) This section applies to any and all
advertisements, however disseminated or
published, and includes representations
or designations appearing in any label,
brand, mark, or imprint affixed to the
industry product, or on or attached to
the box or package containing such prod-
uct, or which are made through news-
papers, magazines, radio, or other media.
§ 226.2 False
methods.
To use or promote the use of any sell-
ing method which has the capacity and
tendency or effect of misleading or de~
ceiving the purchasing or consuming
public is an unfair trade practice.
and deceptive selling
§ 226.3 Misrepresentation as to charac-
ter of husiness.
It is an unfair trade practice for any
concern in the course of, or in connection
with, the distribution of industry prod-
ucts, to represent, directly or indirectly,
that it is a manufacturer of industry
products, or that it owns or controls a
factory making such products, when
such is not the fact, or in any other
manner to misrepresent the character,
extent, or type of its business.
§ 226.4 Use of the word “free.”
In connection with the sale, offering
for sale, or distribution of industry prod-
ucts, it is an unfair trade practice to use
the word “free,” or any other word or
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