Guide For Avoiding Deceptive Use Of Word "Mill" In The Textiles Industry
16 CFR Part 236 · Guides · in the Code of Federal Regulations 1993-1993 (1 annual editions)
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Latest edition: Library of Congress, 1993 CFR · Earliest edition: 1993 CFR
Text (1993 edition, OCR)
§ 235.7 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 repre- sent in advertising or otherwise that a product is “guaranteed” without a clear and conspicuous disclosure in close conjunction with such represen- tation 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 (d) 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 supple- menting this section. Copies are available 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, promo- tional material by or through which they may deceive or mislead the pur- chasing and consuming public con- cerning 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. Source: 32 FR 15538, Nov. 8, 1967, unless otherwise noted. 16 CFR Ch. I (1-1-93 Edition) § 236.1 Genera! 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 manner, unless the person or concern actually owns and operates or directly and absolutely controls the manufac- turing facility in which all textile ma- terials which are sold under that name are produced. § 236.2 The requirement of operational control. (a) For a firm to qualify as a bona fide mill it must exercise direct and absolute control over the milling facili- ty in which its merchandise is pro- duced. Contracting to have milling op- erations performed by others will not qualify one as a mill. (b) A_ distributor who furnishes yarns and other materials to a knit- ting mill for manufacture into gar- ments according 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 materiais supplied by, and according to instruc- tions from, the jobber is not a mill for the same reason. Even if a jobber takes the entire output of a mill, he does not thereby become a mill. § 236.3 Examples of deceptive usage of the word “mill.” Illustrative situations in which use of “mill” in designating trade status has been found to be deceptive are the following: (a) A corporation which purchased unfinished silk and rayon cloth from weavers or manufacturers, caused such cloth to be dyed, printed, or proc- essed into finished dry goods by others and sold such goods to retailers, mem- bers of the cutting up trade and others; (b) A tailor who made made-to-meas- ure suits but did not produce the cloth from which the suits were made; 36 Federal Trade Commission (c) A selling agent who represented a number of suit fabric manufacturers; (d) An independent retailer who claimed to be a ‘“‘mill’s outlet.” § 236.4 Exception to general rule. (a) Under the exceptional circum- stances set forth below, the Commis- sion may permit a nonmanufacturing concern to continue to use the word “mill” in its trade name provided that it is accompanied by a qualifying phrase which clearly states that the concern is not a mill and does not own or operate a facility which manufac- tures textiles. This exception only ap- plies if: (1) The name of the concern has become a valuable business asset and its loss would result in a substantial hardship; and (2) The qualifying phrase will elimi- nate all possibility of deception. (bo) Factors to be taken into consider- ation in determining whether a trade name has become a valuable business asset the loss of which would become a hardship are as follows: (1) Extent and period of time during which the name has been used; (2) Funds and efforts expended in establishing and promoting the name; (3) The extent of the goodwill en- joyed by the company; (4) The adverse effect on the compa- ny that could reasonably be expected if use of the word ‘“‘mill’’ had to be dis- continued. PART 237—GUIDES AGAINST DEBT COLLECTION DECEPTION Sec. 237.0 Definitions of terms as used in these guides in this part. 237.1 Deception (general). 237.2 Disclosure of purpose. 237.3. Government affiliation. 237.4 ‘Organizational titles. 237.5 Trade status. 237.6 Services. AutTHority: Secs. 5, 6, 38 Stat. 719, as amended, 721; 15 U.S.C. 45, 46. Source: 32 FR 15539, Nov. 8, 1967, unless otherwise noted. 37 § 237.1 § 237.0 Definitions of terms as used in these guides in this part. (a) Industry Member shall mean any person, firm, partnership, corporation, organization, association and any other legal entity engaged in the prac- tice of collecting or attempting to col- lect any and all kinds of money debts for itself or others, or any person, firm, partnership, corporation, organi- zation, association, or any other legal entity which places in the hands of others through sale or otherwise, or distributes for itself or others, any kind of material used or to be used in connection with collecting or attempt- ing to collect such debts or seeking in- formation concerning debtors, com- monly called skip-tracing. (b) Debt shall mean money which is due or alleged to be due from one to another. (c) Debtor shall mean one who owes or is alleged to owe a money debt. (d) Creditor shall mean one to whom a money debt is due or is alleged to be due. (e) Credit Bureau—any person, firm, partnership, corporation, organization, association, or any other legal entity engaged in gathering, recording, and disseminating favorable as well as un- favorable information relative to the credit worthiness, financial responsi- bility, paying habits and character of individuals, firms, corporations, and any other legal entity being consid- ered for credit extension, so that pro- spective creditor may be able to make a sound decision in the extension of credit. (f) Collection Agency—any person, firm, partnership, corporation, organi- zation, association, and any other legal entity which collects money debts for others. § 237.1 Deception (general). An industry member shall not use any deceptive representation or decep- tive means to collect or attempt to col- lect debts or to obtain information concerning debtors. Note: The Commission has found that in the collection of debts some industry mem- bers either disguise the purpose for which information is desired or hold out an in- ducement to debtors to furnish information