Consumer Law Library

Guides Against Deceptive Labeling And Advertising Of Adhesive Compositions

16 CFR Part 235 · Guides · in the Code of Federal Regulations 1968-1995 (26 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1995 CFR · Earliest edition: 1968 CFR

Text (1995 edition, OCR)

§ 234.8

than group master policies, without
clearly and conspicuously disclosing
that such benefits are provided only
through a combination of such policies.
(Guide 7]

§234.8 Deception as to introductory,
initial or special offers.

No representation shall be made in
an advertisement, directly or by impli-
cation, that a policy or combination of
policies is an introductory, initial, spe-
cial or limited offer and that appli-
cants will receive advantages not
available at a later date, unless such is
the fact. (Guide 8]

§234.9 Misrepresentation as to licens-
ing, approval or endorsement of in-
surer, policy or advertisement.

No advertisement shall represent di-
rectly or by implication—

(a) That an insurer, or any policy or
advertisement thereof, has been li-
censed, approved, endorsed or rec-
ommended by any governmental agen-
cy or department, unless such is the
fact;

(b) That an insurer, or a policy or an
advertisement thereof, has been ap-
proved, endorsed or recommended by
any individual, group of individuals,

society, association, or other organiza- -

tion, unless such is the fact. [Guide 9]

§234.10 Deception as to “group” or
“quasi-group” policies.

No advertisement shall represent, di-
rectly or indirectly, that prospective
policyholders become group or quasi-
group members and as such enjoy spe-
cial rates or underwriting privileges or-
dinarily associated with group insur-
ance as recognized in the industry, un-
less such is the fact. [Guide 10]

§234.11 Allocation of benefits under a
“Family Group” policy.

No advertisement shall refer to a.

benefit payable under a ‘Family
Group” policy when the full amount of
such benefit is not payable upon the
death or disability, etc. of only one
member of the family unless clear and
conspicuous disclosure of such fact is
made in the advertisement. (Guide 11]

26

16 CFR Ch. | (1-1-95 Edition)

$234.12 Deceptive use of trade names,
service marks, etc.

There shall not be used in an adver-
tisement any trade name, service
mark, slogan, symbol, or other device
which has the capacity and tendency to
mislead or deceive prospective pur-
chasers as to the true identity of the
insurer or its relation with public or
private institutions. [Guide 12]

$234.13 Disparagement.

No advertisement shall be used
which, directly or indirectly, falsely
disparages competitors, their policies,
services, or business methods. [Guide
13}

§234.14 Misrepresentation concerning
the insurer.

No advertisement shall be used
which, directly or by implication, has
the capacity and tendency to mislead
or deceive prospective purchasers with
respect to an insurer’s assets, cor-
porate structure, financial standing,
age, or relative position in the insur-
ance business, or in any other material
respect. [Guide 14]

PART 235—GUIDES AGAINST DE-
CEPTIVE LABELING AND ADVER-
TSING OF ADHESIVE COMPOSI-

m2
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fe)

Metal composition products.

Use of the term “solder” or ‘‘weld.”
Use of the word ‘“‘porcelain.”’

Epoxy adhesives.

Use of the word “‘rubber,” etc.
Misrepresentation (general).
Guarantees, warranties, etc.

Placing deceptive material in the
hands of others.

AUTHORITY: Secs. 5, 6, 38 Stat. 719, as
amended, 721; 15 U.S.C. 45, 46.

SOURCE: 32 FR 15538, Nov. 8, 1967, unless
otherwise noted.

$235.1 Metal composition products.

Products which do not, after applica-
tion, have the same physical and chem-
ical properties of metal, or of a par-

235.

’ ticular represented metal, shall not be

represented as metal or as having the
intrinsic characteristics of metal, or of
the particular metal indicated. Thus,
neither the term ‘metal’? nor the


Federal Trade Commission

terms “iron,’’ “steel,” ‘‘aluminum’’ or
other names of metal shall be used to
designate in brand names or otherwise
any product of the kind herein de-
scribed. While this section does not
prohibit truthful representations in ad-
vertising and labeling of the percent-
age of content of any metallic sub-
stances in such products (e.g., contains
20 percent powdered aluminum) it does
prohibit with respect thereto the use of
representations such as, but not lim-
ited to, the following:

“Plastic Steel.”
“Dries to steel.”
“Hardens into metal.”
“Steel in paste form.”
“Liquid aluminum.”
“Instant aluminum.”
‘Real metallic putty.”
“Fluid Steel.”

(Guide 1)
§235.2 Use of the term “solder” or
“weld.”

Products which, when used, do not
form a metallic seal or bond, shall not
be represented as solders or as welding
products unless it is clearly disclosed
in connection therewith that they are
nonmetallic, as for example, ‘Plastic
Solder” or “Plastic Weld.’ A “solder”
or “weld’’ product which is nonmetallic
shall not be represented as producing a
metallic seal or bond. This section does
not prohibit an accurate representa-
tion of the percentage of metallic sub-
stance contained in a product. (Guide
2)

§235.3 Use of the word “porcelain.”

(a) The word ‘‘porcelain”’ shall not be
used to designate in brand names or
otherwise any product which, after ap-
plication, does not possess all of the
chemical and physical properties of
porcelain. Under this section products
of the type herein described shall not
be represented as being, among other
things:

“Porcelain.”
“Porcelain Glaze.”’
“Liquid Porcelain.”
“Porcelain in Paste Form.”
“Plastic Porcelain.”
“Porcelain restorer.”

- “Porcelain renewer.”’

(b) This section does not prohibit
truthful representations of the actual

27

§ 235.6

percentage of porcelain contained in an
industry product as, for example,

“Contains 25% powdered porcelain.”
[Guide 3)

$235.4 Epoxy adhesives.

(a) No product shall be represented as
being an epoxy adhesive unless the
epoxy component thereof is derived
from an epoxide or oxirane which,
when applied in use, chemically reacts
with a hardener or curing agent to
form a substantially infusible and in-
soluble bond.

(b) No product containing an epoxy
shall be represented as having the
characteristics and capabilities of an
epoxy adhesive, where the epoxy com-
ponent present in the product is in an
amount not sufficient to produce the
characteristics and capabilities rep-
resented.

(c) No representation shall be made
that the epoxy component in an indus-
try product is present to produce the
characteristics and capabilities of an
epoxy adhesive where such component
is not productive of such characteris-
tics and capabilities, but is present for
a different purpose and use. [Guide 4]

§235.5 Use of the word “rubber,” etc.

(a) The word “rubber’’ or other words
denominating rubber shal] not be used
to designate, in brand names or other-
wise, any product which, after applica-
tion, does not possess the essential
characteristics of rubber. Under this
section such a product shall not be rep-
resented as, for example, ‘Rubber,”’
“Plastic Rubber,” “Liquid Rubber,’’
etc.

(b) This section does not prohibit
truthful representation of the actual
percentage of rubber contained in a
product. (Guide 5]

§235.6 Misrepresentation (general).

(a) No representation shall be made
in any manner respecting any adhesive
products to which this part is applica-
ble which is likely to mislead or de-
ceive purchasers as to their nature,
composition, characteristics, uses, ef-
fectiveness, capabilities, durability,
toughness, hardness, adhesive strength,
lasting effect, thermal or electrical
properties, resistance to water, steam,


§ 235.7

gas, or chemicals, or in any other ma-
terial respect.

(b) Among the representations pro-
hibited by this section are the follow-
ing:

(1) Representations that a product
will seal, repair or mend “anything”
when, in fact, there are certain mate-
rials which it cannot seal, repair or
mend.

(2) Representations that a product is
proof against or will withstand any
specified temperature when in fact the
product is adversely affected in any
way when subjected to such tempera-
ture for any period of time.

(3) Representations that a product
will effect permanent repairs if, in fact,
the repairs made by use of the product
will not last as long as the product so
repaired. :

(4) Representations that a product
makes any product like new if it does
not actually restore the part thereof
repaired to its original new condition.
(Guide 6]

§235.7 Guarantees, warranties, etc.
Industry members shall not represent

in advertising or otherwise that a prod- -

uct is ‘“‘guaranteed”’ without a clear
and conspicuous disclosure in close
conjunction with such representation
of:

(a) The nature and extent of the
guarantee; and

(b) Any material conditions or limi-
tations in the guarantee which are im-
posed by the guarantor; and

(c) The manner in which the guaran-
tor will perform thereunder; and

(da) The identity of the guarantor.

NOTE: The Commission’s April 26, 1960
Guides Against Deceptive Advertising of
Guarantees (25 FR 3772) furnish additional
guidance respecting guarantee representa-
tions and are to be considered as
supplementing this section. Copies are avail-
able upon request.

[Guide 7]

$235.8 Placing deceptive material in
the hands of others.

Manufacturers and distributors shall
not place in the hands of wholesalers,
jobbers, retailers, or others, pro-
motional material by or through which
they may deceive or mislead the pur-

16 CFR Ch. 1 (1-1-95 Edition)

chasing and consuming public concern-
ing any product. [Guide 8]

PART 236—GUIDE FOR AVOIDING
DECEPTIVE USE OF WORD “MILL”
IN THE TEXTILE INDUSTRY

Sec.
236.1 General rule.

236.2 The requirement of operational con-
trol.

236.3 Examples of deceptive usage of the
word ‘‘mill.”’

236.4 Exception to general rule.

AUTHORITY: Secs. 5, 6, 38 Stat. 719, as
amended, 721; 15 U.S.C. 45, 46.

SouRCcE: 32 FR 15538, Nov. 8, 1967, unless
otherwise noted.

$286.1 General rule.

Simply stated, the general rule is
that the word ‘‘mill’’ should not be
used in the corporate, business, or
trade name of any person or concern
handling textiles, or in any other man-
ner, unless the person or concern actu-
ally owns and operates or directly and
absolutely controls the manufacturing
facility in which all textile materials
which are sold under that name are
produced. ,

$286.2 The requirement of. operational
control.

(a) For a firm to qualify as a bona
fide mill it must exercise direct and ab-
solute control over the milling facility
in which its merchandise is produced.
Contracting to have milling operations
performed by others will:not qualify
one as a mill.

(b) A distributor who furnishes yarns
and other materials to a knitting mill
for manufacture into garments accord-
ing to the distributor’s specifications is
not a mill because it does not exercise
direct and absolute operational control
over the milling operations. A firm
having a written “lease”? with a mill
whereby the mill allocated five of its
looms and the workers at such looms
to manufacture ribbon for the jobber
from materials supplied by, and ac-
cording to instructions from, the job-
ber is not a mill for the same reason.
Even if a jobber takes the entire out-
put of a mill, he does not thereby be-
come a mill.