Plastics Housewares Industry

16 CFR Part 30 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (11 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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

Text (1977 edition, OCR)

Chapter I—Federal Trade Commission

tomer in connection with the processing,
products or commodities manufactured,
sold, or offered for sale by such member,
uniess such payment or consideration is
available on proportionally equal terms
to all other customers competing in the
Gistribution of such products or com-
modities.

(d) Prohibited discriminatory serv-
ices or facilities. It is an unfair trade
practice for any member of the industry
engaged in commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commodity
brought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the fur-
nishing of, any services or facilities con-
nected with the processing, handling,
sale, or offering for sale of such commod-
ity so purchased upon terms not ac-
corded to all competing purchasers on
proportionally equal terms.

Nore 1: Illustrative of the type of discrim-
ination inhibited by this section is the prac-
tice by an industry member, in connection
with the sale of industry products, of servic-
ing or maintaining blueprint or diazotype
reproduction equipment used by a purchaser
of blueprint or dlazotype sensitized material
bought for resale, with or without processing,
when such services or maintenance are not
accorded to all competing purchasers on pro-
portionally equal terms. (See also the note to
§ 28.11.)

Nore 2: Nothing in paragraph (d) of this
section shall be construed as inhibiting ful-
fillment by an industry member, who is a
manufacturer of reproduction equipment, of
the obligations of expressed or implied war-
ranties attached to the equipment of his
manufacture.

(e) Inducing or receiving an illegal dis-
crimination 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 foregoing provisions
of this section.

(f) Purchase by U.S. Government—
Applicability of Robinson-Patman Anti-
discrimination Act to same. In an opin-
jon submitted to the Secretary of War
under date of December 28, 1936, the U.S.
Attorney General advised that the
Robinson-Patman Antidiscrimination
Act “is not applicable to Government
contracts for supplies.” (38 Opinions,
Attorney General 539.)

§ 30.0
PART 30—PLASTICS HOUSEWARES

INDUSTRY
Sec.
30.0 Definitions.
Group I
30.1 Misrepresentation and deception in
general.
30.2 Misrepresenting products as conform-
ing to standard.
30.3 Misuse of terms “‘close-outs,” “discon-
tinued iines,” “special bargains,” etc.
30.4 Substitution of products.
30.5 Deceptive use and imitation of trade
or corporate names, trade-marks, etc.
30.6 Deceptive invoicing.
30.7 Fictitious prices, price lists, etc.
30.8 Guarantees, warranties, etc.
30.9 Use of lottery schemes, etc.
30.10 Prohibited forms of trade restraints
(unlawful price fixing, etc.).
30.11 Prohibited sales below cost.
80.12 Prohibited discrimination.
30.13 Lifting of stocks.
30.14 Defamation of competitors or false
disparagement of their products.
30.15 Procurement of competitors’ confiden-
tial information by unfair means
and wrongful use thereof.
30.16 Enticing away employees of competi-
tors.
30.17 Commercial bribery.
80.18 Unlawful interference with competi-
tors’ purchases or sales.
80.19 Exclusive deals.
$0.20 Aiding or abetting use of unfair trade

practices.

AvrsHoriry: The provisions of this Part 30
issued under secs. 6, 5, 38 Stat. 721, 719;
15 U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 30 ap-
pear at 21 F.R. 4895, June 22, 1956, unless
otherwise noted.

§ 30.0 Definitions.

(a) As used in this part, the term
“industry products” means all plastics
housewares including, but not limited to,
articles such as the following: Bowls,
breadboxes, butter dishes, cake dishes,
canister sets, cheese slicers, clothesline
reels, clothespins, coasters, coat hangers,
cookie jars, defroster trays, egg trays,
flavor servers, forks, funnels, knives,
measuring spoons, napkin holders, neck-
tie racks, paper-towel holders, potato
mashers, refrigerator boxes, refrigerator
dishes, salt and pepper shakers, scoops,
scourers, shoe racks, sink strainers, sil-
verware trays, soap dishes, straws, tea
strainers, toiletpaper holders, towel racks
and holders, tumblers, utility trays, and

819


§ 30.1

waste baskets, which are molded of plas-
tics, but specifically excluding melamine
dinnerware or articles made from ther-
moplastic film.

(b) As used in this part, the term
“members of the industry’? means per-
sons, firms, corporations, and organiza-
tions engaged in the manufacture, de-
sign, offering for sale, sale, or distribution
of “industry products” as above defined.

Group I

§ 30.1 Misrepresentation and deceptiou
in general.

It is an unfair trade practice to use, or
cause or promote the use of, any trade
promotional literature, advertising mat-
ter, guarantee, warranty, mark, brand,
label, trade name, picture, design or
device, designation, or other type of oral
or written representation, however dis-
seminated or published, or to fail to
disclose any material fact, which has
the capacity and tendency or effect of
misleading or deceiving purchasers or
prospective purchasers with respect to
the type, kind, grade, quality, quantity,
size, weight, nature, substance, durabil-
ity, serviceability, origin, preparation,
production, manufacture, distribution,
or customary or regular price, of any
product of the industry, or which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public in any other material
respect.

§ 30.2 Misrepresenting products as con-
forming to standard.

In connection with the sale or offering
for sale of industry products, it is an
unfair trade practice to represent,
through advertising or otherwise, that
such products conform to any standards
recognized in or applicable to the in-
dustry when such is not the fact.

§ 30.3 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, regular lines of in-
dustry products as “Close-Outs,” “Dis-
continued Lines,” “Special Bargains,” or
by words or representations of similar
import, when such are not true in fact;
or to so offer for sale, seli, advertise, de-
scribe, or otherwise represent industry
products where the capacity and tend-
ency or effect thereof is to lead the pur-
chasing or consuming public to believe

Title 16—Commercial Practices

such products are being offered for sale
or sold at greatly reduced prices, or at
so-called “bargain” prices, when such is
not the fact.

§ 30.4 Substitution of products.

It is an unfair trade practice for an
industry member to make an unauthor-
ized substitution of products, where such
substitution has the capacity and tend-
ency or effect of misleading or deceiving
the purchasing or consuming public, by:

(a) Shipping or delivering industry
products which do not conform to sam-
ples submitted, to specifications upon
which the sale is consummated, or to
representations made prior to securing
the order, without advising the purchaser
of the substitution and obtaining his con-
sent thereto prior to making shipment or
delivery; or

(b) Falsely representing the reason
for making a substitution.

§ 30.5 Deceptive use and imitation of
trade or corporate names, trade-
marks, ete.

It is an unfair trade practice for any
member of the industry to use any trade
name, corporate name, trade-mark, or
other trade designation, which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spectlve purchasers as to the character,
name, nature, or origin of any product
of the industry, or of any material used
therein, or which is false or misleading
in any material respect.

§ 30.6 Deceptive invoicing.

Withholding from or inserting in in-
voices any statement or information by
reason of which omisslon or insertion a
false, inaccurate, or incomplete record is
made, which has the capacity and tend-
ency or effect of deceiving purchasers,
prospective purchasers, or the consum-
ing public in any material respect, is an
unfair trade practice.

§ 30.7 Fictitious prices, price lists, etc.

The publishing or circulating by any
member of the industry of false or mis-
leading price quotations, price lists,
terms or conditions of sale, or reports as
to production or sales, with the capacity
and tendency or effect of misleading or
deceiving purchasers, prospective pur-
chasers, or the consuming public, or the
advertising, sale, or offering for sale of
industry products at prices purporting
to be reduced from what are in fact fic-
titious prices, or at purported reductions

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Chapter I—Federal Trade Commission

in prices when such purported reductions
are in fact fictitious or are otherwise
misleading or deceptive, is an unfair
trade practice.

§ 30.8 Guarantees, warranties, etc.

(a) It is an unfair trade practice to
use, or cause to be used, any guarantee or
warranty which 1s 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 fs in fact true,
or that the guarantee covers the entire
industry product when such is not the
fact, 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 ap-
plied by the guarantor thereto 1s 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 purchas-
ers of users are not made sufficientiy
aware of certain contingencies or condi-
tions applicable to such guarantees
which materially lessen the value or pro-
tection thereof as guarantees to purchas-
ers 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
tendency or effect of thereby misleading
or deceiving purchasers or users into the
belief that the product has or 1s defi-
nitely known to have a longer period
of serviceability or greater durability in
actual use than is in fact true; or

(6) Guarantees which in themselves or
in the manner of their use are otherwise
false, misleading, or deceptive.

(c) The section shall be applicable not
only to guarantees but also to warran-

§ 30.11

ties, to purported warranties and guar-
antees, and to any promise or rep-
resentation in the nature of or purport-
ing to be a guarantee or warranty.

§ 30.9 Use of lottery schemes, ete.

It is an unfair trade practice to sell,
distribute, or promote the sale or dis-
tribution of any industry product by
means of a game of chance, gift, enter-
prise, or lottery scheme.

§ 30.10 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, In-
timidation, or coercion to induce any
member of the industry or other person
or persons to engage in any such planned
common course of action, or to become
& party to any such understanding,
agreement, combination, or conspiracy.

§ 30.11 Prohibited sales below cost.

(a) The practice of selling products of
the industry at a price less than the cost
thereof to the seller, with the purpose or
intent, and where the effect 1s, or where

1The inhibitions of this section are sub=
ject to Public Law 542, approved July 14,
1952—66 Stat. 6823 (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
general class produced or distributed by
others, a seller of such a commodity may
enter into a contract or agreement with a
puyer thereof which establishes a mintmum
or stipulated price at which such commodity
may be resold by such buyer when such con=-
tract or agreement is lawful as applied 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 commodity ts to be transported for such
resale, and when such contract or agreement
is not between manufacturers, or between
wholesalers, or between brokers, or between
factors, or between retailers, or between per-
sons, firms, or corporations in competition
with each other.

821


$ 30.12

there is a reasonable probability that the
effect will be, to substantially injure,
suppress, or stifle competition or tend
to create a monopoly, is an unfair trade
practice.

(b) This section ts not to be construed
as prohibiting all sales below cost, but
only such selling below the seller’s cost
as is resorted to and pursued with the
wrongful intent or purpose referred to
and where the effect is, or where there
is reasonable probability that the effect
will be, to substantially injure, suppress,
or stifie competition or to create a mo-
nopoly. Among the situations in which
the requisite purpose or intent would
ordinarily be lacking are cases in which
such sales were: (1) of seasonal goods
near the conclusion of the season; (2)
of obsolescent goods; (3) made under
judicial process; or (4) made in bona
fide discontinuance of business in the
goods concerned.

(c) As used in paragraphs (a) and
(b) of this section, the term “cost”
means the respective seller’s cost and
not an average cost in the industry
whether such average cost be determined
by an industry cost survey or some other
method. It consists of the total outlay or
expenditure by the seller in the acquisi-
tion, production, and distribution of the
products involved, and comprises all ele-
ments of cost such as labor, material,
depreciation, taxes (except taxes on net
income and such other taxes as are not
properly applicable to cost), and gen-
eral overhead expenses, incurred by the
seller in the acquisition, manufacture,
processing, preparation for marketing,
sale, and delivery of the products. Not
to be included are dividends or interest
on borrowed or invested capital, or non-
operated losses, such as fire losses and
losses from the sale or exchange of capi-
tal assets. Operating cost should not
be reduced by items of nonoperating in-
come, such as income from investments,
and gain on the sale of capital assets.

(d) Nothing in this section shall be
construed as relleving an industry mem-
ber from compliance with any of the re-
quirements of the Robinson-Patman
Act.

§ 30.12 Prohibited discrimination.’

(a) Prohibited discriminatory prices,
rebates, refunds, discounts, credits, etc.,

*As used in this section, the word “com-
merce” means “trade or commerce among the
several States and with foreign nations, or

Title 16—Commerclal Practices

which effect unlawful price discrtmina-
tion, It is 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 rebate,
refund, discount, credit, or other form
of price differential, where such rebate,
refund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different pur-
chasers of goods of like grade and qual-
ity, where either or any of the purchases
involved therein are in commerce, and
where the effect thereof may be sub-
stantially to lessen competition or tend
to create a monopoly in any line of
commerce, or to injure, destroy, or pre-
vent competition with any person who
either grants or knowingly receives the
benefit of such discrimination, or with
customers of either of them: Provided,
however:

(1) That the goods involved in any
such transaction are sold for use, con-
sumption, or resale within any place
under the jurisdiction of the United
States, and are not purchased by schools,
colleges, universities, public libraries,
churches, hospitals, or charitable insti-
tutions not operated for profit, as sup-
plies for their own use;

(2) That nothing contained in this
paragraph 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;

Nore: Cost justification under the above
proviso depends upon net savings in cost
based on all facts relevant to the transac-
tions under the terms of subparagraph (2)
of this paragraph. For example, if a seller
reguiarly grants a discount based upon the
purchase of a specified quantity by a single
order for @ single delivery, and this discount
is justified by cost differences, it does not
follow that the same discount can be cost
justified if granted to a purchaser of the

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.”

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Chapter I—Federal Trade Commission

same quantity by multiple orders or for
multiple deliveries.

(3) That nothing contained in this
section shall prevent persons engaged in
selling goods, wares, or merchandise in
commerce from selecting their own cus-
tomers 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 obsolescence of seasonal
goods, distress sales under court process,
or sales in good faith in discontinuance
of business in the goods concerned;

(5) That nothing contained in this
section shall prevent the meeting in good
faith of an equally low price of a com-
petitor, or the services or facilities fur-
nished by a competitor (see paragraphs
(da) and (e) of this section.

Nore: In complaint proceedings, Justi-
fication of price differentials under subpara-
graphs (2), (4), and (5) of this paragraph is
& matter of affirmative defense to be estab-
lished by the person or concern charged with
price discrimination.

(b) The following are examples of
price differential practices to be con-
sidered as subject to the prohibitlons of
paragraph (a) of this section when in-
volving goods of like grade and quality
which are sold for use, consumption, or
resale within any place under the juris-
diction of the United States, and which
are not purchased by schools, colieges,
universities, public libraries, churches,
hospitals, or charitable institutions not
operated for profit, as supplies for their
own use, and when:

(1) The commerce requirements spec-
ified in paragraph (a) of this section are
present; and

(2) The price differential has a rea-
sonable probability of substantially less-
ening competition or tending to creato
a@ monopoly in any line of commerce, or
of injuring, destroying, or preventing
competition with the industry member
or with the customer receiving the bene-
fit of the price differential, or with cus-
tomers of either of them; and

(3) The price differentiai is not justi-
fled by cost savings (see paragraph (a)
(2) of this section) ; and

(4) The price differential Is not made
in response to changing conditions af-
fecting the market for or the market-

§ 30.12

ability of the goods concerned (see
paragraph (a) (4) of this section; and

(5) The lower price was not made to
meet in good faith an equally low price
of a competitor (see paragraph (a) (5)
of this section).

Ezample No, 1. At the end of a given pe-
riod an industry member grants a discount
to a customer equivalent to a fixed percent-
age of the total of the customer’s purchases
during such period and fails to grant such
discount to other customers under like
conditions.

Example No. 2, An industry member sells
goods to one or more of his customers at
a higher price than he charges other cus-
tomers for like merchandise. If is imma-
terial whether or not such discrimination
is accomplished by misrepresentation as to
the grade and quality of the products sold.

(ec) Prohibited brokerage and commis-
sions. 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 in-
termediary therein where such interme-
diary is acting in fact for or in behalf
or is subject to the direct or indirect
control, of any party to such transac-
tion other than the person by whom
such compensation is so granted or paid.

(da) 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 adver-
tising or promotional allowances or any
other thing of vaiue to or for the benefit
of a customer of such member in the
course of such commerce as compensa-
tion or in consideration for any services
or facilities furnished by or through
such customer in connection with the
processing, handling, sale, or offering for
sale of any products or commodities man-
ufactured, sold, or offered for sale by such
member, unless such payment or consid-
eration is available on proportionally
equal terms to all other customers com-
peting in the distribution of such prod-
ucts or commodities.

(e) 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

823


§ 30.13

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 fur-
nishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity to purchaser upon terms not ac-
cording to all competing purchasers on
proportionally equal terms.

(f) Inducing or receiving an illegal
discrimination in price. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which is prohibited by the forego-
ing provisions of this section. :

Note: This paragraph is a restatement of
section 2(f) of the Clayton Act as amended.
In a complaint proceeding under this section,
in order to make out a prima facie viola-
tion, the Commission must show that the
favored buyer induced or received the lower
price knowing, or knowing facts from which
he should have known, that such price was
violative of section 2(a) of said act and not
justified under subparagraphs (2), (4), or
(8) of paragraph (a) of this section. When,
in any such proceeding, the issue is Hmited
to the question of whether the price dif-
ferential involved made only due allowance
for differences in cost of manufacture, sale,
or delivery resulting from the differing meth-
ods or quantities in which the goods were
gold and delivered, the Commission may
establish a prima facie case in a number of
ways, including:

(1) By showing that the buyer paying the
lower price knew that the methods by, and
quantities in, which the goods were sold and
delivered to him by the seller were the same
as in the case of the competing buyer or
muyers paying the higher price or prices; or

(2) By showing, when there is a difference
in the methods or quantities In which the
goods were sold and delivered by the seller
to the buyer than in the case of the compet-
ing buyer or buyers paying the higher price
or prices, that the buyer paying the lower
price or prices knew the nature and extent
of such differences and Knew or should have
known that they could not have resulted
in sufficient cost savings of the kind and
character specified as to justify the price
differential,

§ 30.13 Lifting of stocks.

It is an unfair trade practice for any
member of the industry to purchase the
stock of a distributor or dealer which has
been supplied by competitor or competi-
tors when such practice is done as an
inducement to the distributor or dealer

Title 16—-Commercial Practices

to discontinue handling competitive
products and to handle such member’s
products exclusively, and where the effect
of such act or practice may be substan-
tially to lessen competition or tend to
create a monopoly in any line of
commerce.

§ 30.14 Defamation of competitors or
false disparagement of their
products.

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 competitors’ products in any
respect, or of their business methods,
selling prices, values, credit terms, pol-
icies, or services, is an unfair trade
practice.

§ 30.15 Procurement of competitors’
confidential information by unfair
means and wrongful use thereof.

It is an unfair trade practice for any
member of the industry to obtain in-
formation concerning the business of a
competitor by bribery of an employee or
agent of such competitor, by faise or mis-
leading statements or representations,
by the impersonation of one in authority,
or by any other unfair means, and to use
the information so obtained in such
manner as to injure sald competitor in
his business or to suppress competition
or unreasonably restrain trade.

§ 30.16 Enticing away employees of
competitors.

It is an unfair trade practice for any
member of the industry willfully to en-
tice away employees or sales representa-
tives of competitors with the intent and
effect of thereby unduly hampering or
injuring competitors in their business
and destroying or substantially lessening
competition: Provided, That nothing in
this section shall be construed as pro-
hibiting employees from seeking more
favorable employment, or as prohibiting
employers from hiring or offering em-
ployment to employees of competitors in
good faith and not for the purpose of in-
juring, destroying, or preventing com-
petition.

§ 30.17 Commercial bribery.

It is an unfair trade practice for a
member of the industry, directly or in-
directiy, to give, or offer to give, or permit
or cause to be given, money or anything
of value to agents, employees, or repre-

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Chapter l—Federal Trade Commission

sentatives of customers or prospective
customers, or to agents, employees, or
representatives of competitors’ customers
or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase products manufac-
tured or sold by such industry member or
the maker of such gift or offer, or to in-
fluence such employers or principals to
refrain from dealing in the products of
competitors or from dealing or contract-
ing to deal with competitors.

§ 30.18 Unlawful interference
competitors’ purchases or sales.

It is an unfair trade practice for any
member of the industry, by means of any
monopolistic practices or through combi-
nation, conspiracy, coercion, boycott,
threats, or any other unlawful means,
directly or indirectly, to interfere with a
competitor’s right to purchase his raw
materials and supplies from whomsoever
he chooses, or to sell his product to
whomsoever he chooses.

§ 30.19 Exclusive deals.

It is an unfair trade practice for any
member of the industry to contract to sell
or sell any industry product, or fix a
price charged therefor, or discount from,
or rebate upon, such price, on the condi-
tion, agreement, or understanding that
the purchaser thereof shall not use or
deal in the products of a competitor or
competitors of such industry member,
where the effect of such sale or contract
for sale, or of such condition, agreement,
or understanding, may be substantially
to lessen competition or tend te create
& Monopoly in any line of commerce.

§ 30.20 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 indirectly, to use or promote the use of
any unfair trade practice specified in the
rules in this part.

PART 32-—MELAMINE DINNER-
WARE INDUSTRY

Sec.
82.0 Definitions.

with

Grovp I
$2.1 Misrepresentation and deception in
general.
$2.2 Misrepresentattons as to character of
business.

§ 32.1

Sec.

32.8 Misrepresenting products as conform-
ing standard.

82.4 Misuse of terms “close-oute,” “dis-
continued lines,” “special bargains,”
etc.

82.5 Substitution of products.

32.6 Deceptive use and imitation of trade
name, corporate name, trademark
etc.

82.7. Deceptive invoicing.

82.8 Fictitious prices, prico lists, ete.

82.9 Guaranties, warranties, etc.

32.10 Use of lottery schemes, ete.

82.11 Prohibited forms of trade restraints
(unlawful price fixing, ete.).

32.12 Prohibited sales below cost.

82.13 Prohibited discrimination.

32.14 Lifting of stocks.

32.15 Consignment distribution.

32.16 Defamation of competitors or false
disparagement of their products.

32.17 Procurement of competitors’ confi-
dential information by unfair
means and wrongful use thereof.

82.18 Enticing away employees of com-
petitors.

82.19 Exclusive deals.

82.20 Commercial bribery.

82.21 Unlawful interference with competi-
tors’ purchases or sales,

82.22 Aiding or abetting use of unfair

trade practices.

AvuTHoEITY: The provisions of this Part 32
issued under secs, 6, 5, 38 Stat. 721, 718; 15
U.S.C. 46, 45, unless otherwise noted.

Sources: The provistons of this Part 82 ap-

pear at 21 F.R. 4393, June 22, 1956, aniess
otherwise noted.

§ 32.0 Definitions.

(a) Members of the industry are those
persons, firms, corporations, and organi-
zations engaged in the manufacture, de-
sign, distribution, or sale of melamine
molded dinnerware.

(b) As used in the rules in this part,
the term “industry products” or “prod-
ucts of the industry” consists of dinner-
ware molded of melamine plastic
material.

Group I

§ 32.1 Misrepresentation and deception
in general.

It is an unfair trade practice to use, or
cause or promote the use of, any trade
promotional literature, advertising mat-
ter, guarantee, warranty, mark, brand,
label, trade name, picture, design or de-
vice, designation, or other type of oral or
written representation, however dissemi-
nated or published, or to fall to disclose
any material fact, which has the capac-
ity and tendency or effect of misleading
or deceiving purchasers or prospective

B25