Fountain Pen And Mechanical Pencil Industry
16 CFR Part 226 / 184 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1959 CFR
Decisions that mention this industry's rules (1)
Text (1977 edition, OCR)
Chapter I—Federal
(2) 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 thr 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
avallable 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,
saie, or offering for sale of such com-
modity so purchased upon terms not
accorded to all coinpeting 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.
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
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 a seller rebutting the prima facle case
§ 226.0
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 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 226—-FOUNTAIN PEN AND
MECHANICAL PENCIL INDUSTRY
Trade Commission
Sec.
226.0 Definition.
Grovr 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, eto.
226.9 Fictitious prices, price lista, etc.
226.10 Combination or coercion to fix
prices, suppress competition, or
restrain trade.
226.11 Prohibited discrimination.
226.12 Aiding or abetting use of unfair
trade practices.
226.18 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.
AvTHOoR!ITY: The provisions of this Part 226
issued under secs. 6, 5, 38 Stat. 721, 719;
15 U.S.C. 46, 45, unless otherwise noted.
Source: The provisions of this Part 226
appear at 20 F.R. 613, Jan. 28, 1955, unless
otherwise noted.
§ 226.0 Definition.
Industry products, as referred to in
$3 226.1 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.
941
§ 296.1
Grovur 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-
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 pencil 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 business 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 selling
methods.
To use or promote the use of any seli-
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.
§ 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
and deeeptive
Title 16—Commercial Practices
products, or that it owns or controls 8
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
words of similar import, in advertise-
ments or in other offers to the public, as
descriptive of an article of merchandise,
or service, which is not an unconditional
gift, under the foliowing 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
elearly and conspicuously set forth at
the outset so as to leave no reasonable
probability 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
ordinary and usual price of such article
of merchandise, or (2) reduces its qual-
ity, or (3) reduces the quantity or size
thereof. .
(Norz: 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, to which reference is
made by use of an asterisk or other symbol
placed next to the word “free,” will not be
regarded as compliance.)
§ 226.5 Guarantees, warranties, etc.
(a) It is an unfair trade practice to
use or cause to be used a guarantee
which is false, misleading, deceptive, or
unfair to the purchasing or consuming
public.
(b) Under this section guarantees of
the following type or character shall not
be used:
(1) Guarantees containing statements,
representations, or assertions which have
the capacity and tendency or effect of
misleading and deceiving in any respect:
or
(2) Guarantees which are so used or
are of such form, text, or character as
242
Chapter |—Federal
to import, imply, or represent that the
guarantee is broader than is in fact true;
or
(3) Guarantees in which any condi-
tion, qualification, or contingency ap-
plied 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
concealed, 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
purchasers or users are not made suffi-
ciently aware of certain contingencies,
or conditions applicable to such guar-
antees which materially lessen the value
or protection thereof as a guarantee to
purchasers or users; or
(5) Guarantees which purportedly ex-
tend for such indefinite or unlimited pe-
riod 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 defi-
nitely known to have greater degree of
serviceability or durability in actual use
than is in fact true; or
(6) Guarantees which have the ca-
pacity and tendency or effect of other-
wise misrepresenting the serviceability,
durability, or lasting qualities of the
product, such as, for example, a guaran-
tee extending for a certain number of
years or other long period of time when
the ability of the product to last, endure,
or remain serviceable for such period of
time has not been established by actual
experience or by competent and adequate
tests definitely showing in either case
that the product has such lasting quali-
ties under the conditions encountered or
to be encountered in the respective lo-
cality where the product is sold and used
under the guarantee; or
(7) Purported guarantees in the form
of documents, promises, representations,
or other form which are represented or
held out to be guarantees when such is
not the fact, or when they involve any
deceptive or misleading use of the word
“suarantee” or terms of similar import;
or
(8) Guarantees issued, or directly or
indirectly caused to be used, by any
member of the industry when or under
Trade Commission § 226.8
which the guarantor fails or refuses to
scrupulously observe his obligation
thereunder or fails or refuses to make
good on claims coming reasonably with.
in the terms of the guarantee; or
(9) Guarantees which in themselves
or in the manner of their use are other-
wise false, misleading, or deceptive.
(c) 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.
§ 226.6 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 dispar-
agement of the grade or quality of the
products of competitors or of the source
or origin of raw materials or component
parts used in their products, or the false
disparagement of the nature or form of
business conducted by competitors, their
credit terms, values, policies or services,
or other false disparagement, is an un-
fair trade practice.
§ 226.7 Commercial bribery.
It is an unfair trade practice for any
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 prin-
cipals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry mem-
ber or the maker of such gift or offer, or
to influence such employers or princi-
pals to refrain from dealing or contract-
ing to deal with competitors.
§ 226.8 Imitation or simulation of trade-
marks, trade names, etc.
The imitation or simulation of the
trade-marks, trade names, brands, or
labels of competitors with the capacity
and tendency or effect of misleading or
243
§ 296.9
deceiving purchasers, prospective pur-
chasers, or the consuming public, is an
unfair trade practice.
§ 226.9 Fictitious prices, price lists, ete.
(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 such pur-
ported reductions are in fact fictitious
or are otherwise misleading or decep-
tive, 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 from or lower than
current, former, or regular prices, to use,
or to furnish or supply for such use, price
tags, labels, or advertising material that
‘set forth a false, fictitious, or exaggerated
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 retail trans-
actions. 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, fic-
titious, or exaggerated price tags or
labels.
§ 226.10 Combination or coercion to fix
prices, suppress competition, or re-
strain trade.
It is an unfair trade practice for a
member of the industry, or any other
person:
(a) To use, directly or indirectly, any
form of threat, intimidation, or coercion
‘against any member of the industry or
other person to unlawfully fix, maintain,
or enhance prices, suppress competition,
or restrain trade; or
(b) To enter into or take ‘part in,
directly or indirectly, any agreement,
Title 16—Commercial Practices
understanding, combination, conspiracy,
or concerted action with one or more
members of the industry, or with one or
more other persons, to unlawfully fix,
maintain, or enhance prices, suppress.
competition, or restrain trade.
§ 226.11 Prohibited discrimination.
(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price discrim-
ination. In the marketing in commerce?
of products of the industry of like grade
and quality for use, consumption, or re-
sale within the jurisdiction of the
United States, and subject to subpara-
graph (1), (i), Gi) and (iii) of this
paragraph, it is an unfair trade practice
for any member of the industry en-
gaged therein to discriminate in price
between different purchasers where the
effect thereof may be substantially to.
lessen competition or tend to create a
monopoly in any line of commerce, or to
injure, destroy, or prevent competition
with such industry member or with any
person who knowingly receives the
benefit of such discrimination or with
their customers.
(1) The inhibitions against such dis-
crimination in price shall be applicable
irrespective of whether the discrimina-
tion in the price itself Is effected in the
form, or through the means, or rebates,.
refunds, discounts, credits, allowances, or
other form of price differential.
d) Nothing, however, contained in
this paragraph shall prevent differen-
tials 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
the products are sold or delivered to
said purchasers.
1 As-used throughout this section, the word
“commerce” means “trade or commerce
among the several States and with foreign
nations, or between the District of Colum-
bia 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 jurisdic-
tion of the United States.”
244
Chapter 1—Federal
di) Nor shall anything contained in
this paragraph prevent persons engaged
in selling products in commerce from
selecting their own customers in bona
fide transactions and not in restraint of
trade.
Gib Nor shall anything contained in
this paragraph prevent price changes
from time to time where made in re-
sponse to changing conditions affecting
either (a) the market for the products
concerned, or (b) the marketability of
the products, such as, but not limited to,
perishable goods, obsolescence of sea~
actual or imminent deterioration of
sonal goods, distress sales under court
process, or sales in good faith in discon-
tinuance of business in the products
concerned.
(b) Prohibited brokerage or commis-
sions. In the selling of industry prod-
ucts in commerce, it is an unfair trade
practice for any member of the industry
engaged therein to pay or grant, or to
receive or accept, any commission,
brokerage, or other compensation, or any
allowance or discount in lieu thereof, ex-
cept for services rendered in connection
with the sale or purchase of such prod-
ucts, either to the other party to such
transaction or to an agent, representa-
tive, or other intermediary therein,
where such intermediary 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.
(ec) Prohibited advertising or promo-
tional allowances, etc. In the selling of
industry products in commerce by any
member of the industry, and in the
course thereof, it isan unfair trade prac-
tice for such member to pay or contract
for the payment of anything of value
to or for the benefit of his customer as
coinpensation or in consideration for
certain services or facilities furnished by
or through such customer, unless such
payment or consideration is available on
proportionally equal terms to all other
customers of such member competing in
the distribution of such products.
(1) As used in this paragraph, the
certain services or facilities referred to
are such as are furnished by or through
the customer in connection with the
processing, handling, sale, or offering for
sale, of such industry member’s products.
Trade Commission § 226.13
(d) Prohibited discrimination in serv-
ices or facilities. In the sale of industry
products bought for resale, with or with-
out processing, it isan unfair trade prac-
tice for any member of the industry to
discriminate in favor of one purchaser
against another purchaser by furnishing
certain services or facilities upon terms
not accorded to all purchasers on pro-
portionateiy equal terms.
(1) Said services or facilities referred
to in this paragraph are such as are con-
nected with the processing, handling,
sale, or offering for sale, of the products
purchased, and the term “furnishing” as
used in this paragraph shall be construed
as including contracting to furnish, and
contributing to the furnishing of, the
services or facilities.
(e) Inducing or receiving an illega?
discrimination in price. It is an unfair
trade practice for any member of the in-
dustry, in the course of commerce in
which he is engaged, knowingly to induce
or receive a discrimination in price which
is prohibited by the provisions in para-
graphs (a) to (d) of this section.
({) 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, hospitais, and chari-
table institutions not operated for profit.
§ 226.12 Aiding or abetting use of un
fair trade practices.
It is an unfair trade practice for any
person to ald, abet, coerce, or induce an-
otlier, directly or indirectly, to use or
promote the use of any unfair trade
practice specified in § 226.1 to § 226.17,
inclusive,
§ 226.13 Enticing away employees of
competitors.
It. is an unfair trade practice for
any member of the industry willfully
to entice away employees of com-
petitors with the purpose and effect of
thereby unduly hampering or injuring
competitors in their business and de-
stroying or substantially lessening com-
petition.
Nore: Nothing in this section shall be con-
strued as prohibiting employees or agents
from seeking or obtaining more favorable
empioyment, or as prohibiting employers
from hiring or offering employment to em-
245
§ 226.14
ployees of competitors in good faith and not
for the purpose of injuring, destroying, or
preventing competition.
§ 226.14 Marketing of products through
lottery or game of chance.
(a) It is an unfair trade practice for
‘any member of the industry to sell or pro-
mote the sale of any industry product by
means of a game of chance, gift enter-
prise, or lottery scheme.
(b) The inhibitions of this section
‘shall be understood as extending to the
marketing of an industry product which
is specially packaged or assembled so as
to facilitate its resale or distribution by a
customer of an industry member to the
public by means of a game of chance or
lottery scheme, and to the marketing or
supplying of any lottery device by an
industry member to his customer either
separately or in conjunction with an in-
dustry product.
§ 226.15 False use of the terms “Iridium
Tipped” and “Osmiridium Tipped.”
(a) It is an unfair trade practice
to use the term “Iridium Tipped” as
descriptive of a pen point when such
point has not in fact been tipped with
iridium, such iridium being either in its
pure state or in an alloy in which iridium
is present in not less than 950 parts per
1,000 by weight.
(b) It is an unfair trade practice to
use the term “Osmiridium Tipped’ as
descriptive of a pen point when such
point has not in fact been tipped with
osmlum and iridium alloy, which alloy
is either the natural or man-made alloy
consisting of not less than 950 parts per
1,000 by weight of platinum group metals
with osmium and iridium each present in
substantial proportions and the two com-
bined forming the predominating part of
the alloy.
(c) Nothing in this section shall be
construed as prohibiting use of the word
“osmium” or “iridium” as descriptive of
metal contained in an alloy provided the
metal so named is present in the alloy
in substantial proportions and either the
respective percentage thereof is shown
or the other metals contained in such
alloy are also stated in such manner as
te involve no deception in respect to the
alloy or metal.
Title 16—Commercial Practices
§ 226.16 Deception as to gold or pur-
ported gold content.
(a) Misrepresentation and deceptive
concealment. (1) It 1s an unfair trade
practice to cause any fountain pens or
mechanical pencils to be marketed under
circumstances or condition which have
the capacity and tendency or effect,
directly or indirectly, of misleading
or deceiving the purchasing or con~
suming public in respect to the gold
or purported gold content of such
products or any parts thereof; the karat
fineness of any gold alloy therein; the
thickness, quantity, or character of the
coating or plating of gold or gold alloy
used thereon; or in any respect as to the
true metal or material content of any
parts of such products which are manu-
factured, coated, plated, dyed, or finished
in simulation of gold or gold alloy.
(2) Such inhibition in subparagraph
(1) of this paragraph shall apply to all
forms and types of misrepresentation,
misbranding, and deceptive concealment
or nondisclosure which have the capacity
and tendency or effect of misleading or
deceiving the purchasing or consuming
public in any of the respects mentioned.
(b) Use of the word “Gold” or its
abbreviation. Use of the word “Gold,”
or abbreviation of such word, as de-
scriptive of fountain pens or mechanical
pencils, or parts thereof, under circum-
stances or conditions which have the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public, is an unfair trade
Practice. Under this paragraph the
word “Gold,” or abbreviation thereof,
should not be used as descriptive of any
such product or part:
(1) Unless such part is composed
throughout of gold of 24 karat fineness;
or
(2) Unless the part is composed
throughout of gold alloy of not less than
10 Karat fineness and the karat fineness
thereof is shown in immediate conjunc-
tion with the word “Gold,” as for ex-
ample, “14K Gold;” or
(3) Unless the part is mechanically
plated with gold, or gold alloy of not
less than 10 karat fineness, and the fact
that the part is plated and the propor-
tional weight and karat fineness of the
plate are shown in a clear and nonde-
246
Chapter I—Federal Trade Commission
ceptive manner in immediate conjunc-
tion with such word “Gold” or its ab-
breviation, set forth in conformity with
the provisions of Commercial Standard
CS47-34 relative to the marking of gold
filled and rolled gold plate articles other
than watch cases, as for example, “1/20
14K Gold Filled,” “1/20 14K G. F.,” or
“1/40 14K Rolled Gold Plate,” or “1/40
14K R. G. P.;” or
(4) Unless where the part has a cover-
ing of gold or of gold alloy of not less
than 10 karat fineness which has been
applied by an electrolytic process or
method and is of a minimum thickness
throughout equivalent to seven-millionth
(0.000007) of an inch thickness of pure
gold and the fact that the part is elec-
troplated is shown in a clear and
nondeceptive manner in immediate con-
junction with the word “Gold,” or its
abbreviation, as for example “Gold Elec-
troplated.” (Nothing in this section
shall be construed as prohibiting use of
the word “Gold” in the designation “Gold
Washed” or “Gold Flashed” as descrip-
tive of the products or parts which are
electroplated with gold to a lesser thick-
ness than the above-mentioned seven-
millionth (0.000007) of an inch).
(c) Deceptive use of other terms im-
plying gold content. Itisan unfair trade
practice to use the terms “Duragold,”
“Dirigold,” “Noblegold,” “Goldine,”
“Gold-Appearing,” “Gold Effect,” “Mira-
gold,” or any term or designation of
similar import, or any phrase or rep-
resentation indicating the substance,
charm, quality, or beauty of gold or
natural gold, as descriptive of any part
or parts of a fountain pen or mechanical
pencil, when the part or parts so de-
scribed are not composed throughout of
pure gold or of an alloy of gold of at
least 10 karat fineness; or when, al-
though composed of such an alloy, the
karat fineness thereof is not clearly and ~
conspicuously shown in immediate con-
junction with the terms or representa-
tions, or when such terms or representa-
§ 226.17
employed by a customer of the industry
member, as compensation for, or aS an
inducement to obtain, special or greater
effort or service on the part of the sales-
person in promoting the resale of prod-
ucts supplied by the industry 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 salesperson
or customer is dependent on lottery or
chance; or
(c) When any provision of the agree-
ment or understanding requires or con-
templates practices or a course of con-
duct unduly and intentionally hamper-
ing sales of products of competitors of
an industry member; or
(d) When, because of the terms and
conditions of the agreement or. under-
standing, including its duration, or the
attendant circumstances, the effect may
be to substantially lessen competition
or tend to create a monopoly; or
(e) When similar payments are not
accorded to salespersons of competing
customers on proportionally equal terms
in compliance with section 2 (d) and
(e) of the Clayton Act.
Nore: 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 trans-
ferred by the salesperson to the customer, or
is to result in a corresponding decrease in
the salesperson’s salary, are not to be con-
sidered within the purview of this section,
but are to be considered as subject to the
requirements and provisions of section 2 (a)
of the Clayton Act.
PART 227—-WHOLESALE PLUMBING
AND HEATING INDUSTRY
tions are otherwise used in a manner or Sec.
form having the capacity and tendency 227.0 Definitions.
or effect of deceiving purchasers or pro- . Group I
spective purchasers. 227.1 Misrepresentation and deception in
§ 226.17 Push money. ; 227.2 Meco: tatt to ch
. . srepresentation as ar
It is an unfair trade practice for any . business. never of
industry member to pay or contract to 227.3 Deception as to nature of sales
pay anything of value to a salesperson transactions.
947
90-059——77--—_17