Consumer Law Library

Paper Bag Industry

16 CFR Part 24 · Trade practice rules · in the Code of Federal Regulations 1938-1973 (10 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1973 CFR · Earliest edition: 1938 CFR

Text (1973 edition, OCR)

Chapter |—Federal Trade Commission

cessary qualifications to properly be termed
“gems.”

(c) It is an unfair trade practice to use
the words “reproduction,” “replica,” or
similar terms, to describe, identify, or
refer to a cultured or imitation pearl. or
to any imitation of precious or semi-pre-
cious stones.

(d) It is an unfair trade practice to
use the word “synthetic” as descriptive of
cultured or imitation pearls, or to use
the word “synthetic” with the name of
any natural stone as descriptive of any
industry product, unless such industry
product has essentially the same optical,
physical, and chemical properties as the
stone named.

APPENDIX—-LISTING AND CLASSIFICATION OF
RULES FOR CONVENIENT REFERENCE BY
INDUSTRY MEMBERS
Category 1. Rules in this part having ap-

plication to ail industry products regardless

of their composition:

Sec.

23.1 Deception (General).

23.2 Misleading Iilustrations.

23.3 Misrepresentation as to Character of
Business.

23.4 Deceptive Pricing.

23.5 Misuse of Terms ‘‘Close-Outs,” ‘“Dis-
continued Lines,” “Special Bar-
gains,’’ Etc.

236 Substitution of Products.

23.7 Use of the Word “Free.”

23.8 Guarantees, Warranties, Etc.

23.9 Misuse of Term “Certified,” Etc.

23.10 Misrepresentation as to Origin and
Disclosure of Foreign Origin.

23.11 Misuse of Terms ‘“Hand-Made,”
“Hand-Polished,” Etc.

23.12 Deceptive Use and Imitation of Trade
or Corporate Names, Trade-Marks,
Etc.

23.138 Commercial Bribery.

23.14 Consignment Distribution.

23.15 Inducing Breach of Contract.

23.16 Defamation of Competitors or False
Disparagement of Their Products.

23.17 Enticing Away Employees of Compet-
itors.

23.18 Push Money.

23.19 Prohibited Forms of Trade Restraints
(Unlawful Price Fixing, Etc.)

23.20 Prohibited Sales Below Cost.

23.21 Prohibited Discrimination.

Category 11. Rules in this part having ap-
plication to industry products composed sn
whole or in part of a precious metal cr
metals:

Sec.
23.22 Misrepresentation as to Gold Content.

23.23 Misrepresentation ag to Silver
Content.

23.24 Misuse of Words “Platinum,” “TIrid-
ium,” “Palladium,” “Ruthenium,”

“Rhodium,” and “Osmium.”

Part 24

Sec.
23.25 Additional Requirements Relating to
Quality Marks.

Category II. Rules in this part having ap-
plication to industry products containing
diamonds or imitations thereof:

Sec.

23.26
23.27
23.23
23.29

Misuse of the Word “Diamond.”

Misuse of Word ‘‘Perfect,” Etc.

Misuse of Term “Blue White.”

Misuse of the Term “Properly Cut,”
Etc.

Misuse of the Word “Brilliant”? and
“Pull Cut.”

Misuse of Term “Clean,” Etc.

Misrepresentation of Weight, “Total
Weight.”

Nott: These rules also have application to
diamonds which are sold in the toose and
unset state.

Category IV. Rules in this part having
application to industry products contain-
ing pearls, cuitured pearls, or imitations
thereof:

Sec.

23.33 Misuse of Word “Pearl.”

23.34 Misuse of Terms “Cultured Pearl,”
“Cultivated Pearl,’’ “Seed Pearl,”
“Oriental Pearl,” “Oriental,” “Na-
tura,” and “Kultred.”

23.35 Misrepresentation as to Cultured
Pearls.

23.30

23.31
23.32

Note: These rules also have application to
pearls, cultured pearls, and imitation pearls
sold in the loose (unstrung and unset) state.

Category V. Rules in this part having ap-
plication to industry products containing
rubies, sapphires, and emeralds and other
precious or semi-precious stones, and syn-
thetic and imitation stones:

Sec.

23.36 Deception as to Precious and Semi-
Precious Stones.

23.37 Misuse of Words “Ruby,” “Sapphire,”
“Emerald,” “Topaz,” ‘‘Stone,’’
“Birthstone,” Etc.

23.38 Misuse of Words ‘Real,’ Genuine,”
“Natural,” Etc.

23.39 Misuse of Words “Gem,” “Reproduc-

tion,” “Replica,” “Synthetic,” Etc.

Note: Industry products covered by the
rules in Categories II through V are also
subject to the rules in Category I.

PART 24—PAPER BAG INDUSTRY

Group I
Sec.
24.1 Inducing breach of contract.

24.2 Imitation of trade-marks, trade names,
etc.

24.3 Defamation of competitors.

24.4 Disparagement of competitors’ goods.

24.5 Misrepresentation in general.

24.7 Sales below cost.

24.9 Deviation from standards.

277


§ 24.1

Group IT
Sec.
24.101 Repudiation of contracts.
AvuTHorRITY: The provisions of this Part 24
issued under secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: The provisions of this Part 24 con-
tained in trade practice rules, Paper Bag
Industry, FITC, July 17, 1931, unless other-
wise noted.

Group I
§ 24.1 Inducing breach of contract.

Maliciously inducing or attempting to
induce the breach of existing contracts
between competitors and their customers
by any false or deceptive means what-
soever, or interfering with or obstructing
the performance of any such contractual
duties or services by any such means,
with the purpose and effect of unduly
hampering, injuring, or einbarrassing
competitors in their businesses, is an
unfair trade practice.

§ 24.2 Imitation of trade-marks, trade
names, etc.

The imitation of the trade-marks,
trade names, slogans, or other marks of
identification of competitors, having the
tendency and capacity to mislead or de-
ceive purchasers or prospective purchas-
ers, is an unfair trade practice.

§ 24.3. Defamation of competitors.

The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, with the tend-
ency and capacity to mislead or deceive
purchasers or prospective purchasers, is
an unfair trade practice.

§ 24.4 Disparagement of competitors’
goods.

The false disparagement of the weight,
substance, strength, grade, or quality of
the goods of competitors, with the tend-
ency and capacity to mislead or deceive
purchasers or prospective purchasers, is
an unfair trade practice.

§ 24.5 Misrepresentation in general.

The making or causing or permitting
to be made or published any false, un-
true, or deceptive statement by way of
advertisement or otherwise concerning
the grade, quality, quantity, substance,
character, nature, origin, size, or prep-
aration of any product of the industry
having the tendency and capacity to mis-
lead or deceive purchasers or prospec-

Title 16—Commercial Practices

tive purchasers is an unfair trade
practice.

§ 24.7 Sales below cost.

The selling of goods below cost with
the intent and with the effect of injur-
ing a competitor and where the effect
may be to substantially lessen competi-
tion or tend to create a monopoly or to
unreasonably restrain trade, is an unfair
trade practice.

§ 24.9 Deviation from standards.

Deviation from the established stand-
ards of the industry by any deceptive or
false means or device with the effect of
misleading or deceiving purchasers or
prospective purchasers is an unfair trade
practice.

Group II

§ 24.101 Repudiation of contracts.

Contracts, either writien or oral, are
business obligations which should be
performed in letter and spirit. The re-
pudiation of contracts by sellers on a
rising market, or by buyers on a de-
clining market, is equally reprehensible,
and is condemned by the industry.

PART 25—COMBINATION STORM
WINDOW AND DOOR INDUSTRY

Sec.

25.0 Definitions.

25.1 Deception (general).

25.2 Balt advertising.

25.3 Deceptive pricing.

25.4 Guarantees, warranties, etc.

25.5 Use of the word “free.”

25.6 Deceptive testimonials or depictions.

25.7 Misrepresenting products as con-
forming to standard,

25.8 Deceptive use of seals.

25.9 Misrepresentation as to character of
business.

25.10 Deceptive use of trade or corporate
names, trade-marks, etc.

25.11 Substitution of products.

25.12 Misuse of terms “custom built,’
“made-to-order,” etc.

25.13 Defamation of competitors or false
disparagement of their products.

25.14 Imitation of trade-marks, trade
names, ete.

25.15 Coercing purchase of one product as
& pre-requisite to the purchase of
other products.

25.16 Procurement of competitors’ confi-
dential information.

25.17 Unfair threats of infringement suits,

25.18 Inducing breach of contract.

25.19 Commercial bribery.

25.20 Prohibited forms of trade restraints
(unlawful price fixing, etc.)

25.21 Exclusive deals.

25.22 Prohibited discrimination.

278