Wall Coverings Industry
16 CFR Part 35 · Trade practice rules · in the Code of Federal Regulations 1966-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1966 CFR
Text (1977 edition, OCR)
Chapter I—Federal
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
available on proportionally equal terms
to ail other customers competing in
the distribution of such products or
commodities.
(ad) 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
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 con-
nected with the processing, handling,
sale, or offering for sale of such commod-
ity so purchased upon terms not accorded
to all competing purchasers on propor-
tionally 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.
(1) Purchases by U.S. Government;
applicability of Robinson-Patman Anti-
discrimination Act to same. In an opinion
submitted to the Secretary of War under
date of December 28, 1936, the U.S. Attor-
ney General advised that the Robinson-
Patman Antidiscrimination Act ‘4s not
applicable to Government contracts for
supplies.” (38 Opinions, Attorney General
539.)
§ 34.23 Aiding or abetting use of unfair
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 prac-
tice specified in this part.
PART 35—WALL COVERINGS
INDUSTRY
Sec.
85.0 Definitions.
35.1 Mitsrepresentation as to character of
business.
85.2 Misrepresenting products as conform-
ing to standards.
85.3 Guarantees, warranties, etc.
Trade Commission § 35.1
Sec.
35.4
85.5
Imperfects, trregulars, etc.
Deceptive use or imitation or simula-
tion of trade or corporate names,
trade-marks, etc.
Commercial bribery.
False invoicing.
Substitution of products.
Defamation of competitors or false
disparagement of their products.
Unfair threats of infringement suits.
Tie-in sales.
Deception (general).
Misuse of terms “‘jobs,’’ “close-outs,”
“discontinued lines,” “special bar-
gains,” etc.
Use of the word “free.”
Deceptive pricing.
Disclosure of foreign origin.
Prohibited forms of trade restraints
(unlawful price fixing, etc.).
Prohibited discrimination.
Aiding or abetting use of unfalr trade
practices.
AvrTHoriry: The provisions of this Part 35
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C, 46, 45, unless otherwise noted.
Source: The provisions of this Part 35 ap-
pear at 37 FR 6201, June 80, 1962, unless
otherwise noted.
§ 35.0 Definitions.
As used in these rules the terms “In-
dustry Member” and “Industry Product”
shall have the following meaning:
(a) Industry member. Any person,
firm, corporation or organization engaged
in the manufacture, fabrication, process-
ing or sale of industry products, includ-
tng screen or hand printers importers,
wholesalers, distributors, Jobbers, retail
dealers, decorating contractors, decora-
tors and paperhangers.
(b) Industry products. Wall coverings
composed in whole or in part of basic
materials such as, but not limited to,
paper, cloth, plastics, glass or combina-
tions thereof, which are by custom sup-
plied in rolls or sheets and sold to con-
sumers through retail wall covering out-
lets, and which are applied with an adhe-
sive to produce a permanent or semi-
permanent bond to the surface to which
they have been applied. Excluded as
products of the industry are ceramic and
plastic tiles and commercial heavy duty
wall coverings which are ordinarily sold
by the manufacturers and/or distributors
through building supply concerns to in-
stallers, contractors, and builders.
§ 35.1 Misrepresentation as to char.
acter of business.
It is an unfair trade practice for any
person to represent, directly or indirectly,
85.6
85.7
85.8
85.9
35.10
35.11
35.12
85.13
35.14
35.15
35.16
85.17
85.18
35.19
339
§ 35.2
through the use of any word or term
in his corporate or trade name, in his
advertising, or otherwise, that he is a
manufacturer, machine, screen or hand
printer, processor, converter, wholesaler,
jobber, dealer contractor, decorator or
importer of wall coverings or that he
owns or controls a factory making or
processing such products, or has con-
nections abroad through which imports
are secured, or maintains offices abroad,
when such is not the fact, or in any other
manner to misrepresent the character,
extent, volume, or type of his business.
(Rule 1]
§ 35.2 Misrepresenting products as con-
forming te standards.
In connection with the sale or offering
for sale of wall coverings it is an unfair
trade practice to represent, through ad-
vertising or otherwise, that such wall
coverings conform to any standards
recognized in or applicable to the indus-
try when such is not the fact. [Rule 2]
§ 35.3 Guarantees, warranties, etc.
(a) Advertising of products shall not
contain representations that a product
is “guaranteed” without clear and con-
spicuous disclosure of:
(1) The nature and extent of the
guarantee, and
(2) Any material condltions or limita-
tions in the guarantee which are imposed
by the guarantor, and
(3) The manner in which the guaran-
tor will perform thereunder, and
(4) The identity of the guarantor.
(b) Guarantees shall not be used
which under normal conditlons are im-
practical of fulfiliment or which are for
such a period of time or are otherwise of
such nature as to have the capacity and
tendency of misleading purchasers or
prospective purchasers into the belief
that the product so guaranteed has a
greater degree of serviceability, dura-
bility or performance capability in actual
use than is true in fact. [Rule 3]
§ 35.4 Imperfects, irregulars, etc.
Wall coverings which fall below quality
specifications of the manufacturer for
his first quality, and which are sold and
offered for sale under the same trade
name or designation as his first quality,
shall be marked “imperfects,” or with
some other word or term of similar
import, so as to prevent deception of
purchasers and prospective purchasers
as to the quality of such products. The
Title 16—Commercial Practices
mark or label shall be on or attached to
the product, and the immediate package,
ff any, in which it is sold or offered for
sale to consumer purchasers, and the
disclosure shall be of such degree of
permanency and conspicuousness as to
be noticeable upon casual inspection
when the wall coverings are offered for
sale to consumer purchasers. A similar
disclosure shall also be made on invoices,
and in all advertisements relating to the
wall coverings. [Rule 4]
§ 35.5 Deceptive use or imitation er
simulation ef trade or corporate
names, trade-marks, ete.
It is an unfair trade practice for any
member of the industry:
(a) To imitate or simulate the trade-
marks, trade names, brands, or labels
of competitors, with the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers; or
(b) To represent by use of any trade
name, trade-mark, or other trade desig-
nation, that any industry member is a
manufacturer, wholesaler or importer
when such is not the fact; or
(c) To use any trade name, corporate
name, trade-mark, or other trade des-
ignation, which has the capacity and
tendency or effect of misleadmg or de-
ceiving purchasers or prospective pur-
chasers, as to the name, nature, or origin
of any product of the industry, or of any
material used therein, or which ts false,
deceptive, or misleading in any other
material respect. [Rule 5]
§ 35.6 Commercial bribery.
It is an unfair trade practice for a
member of the industry, directly or in-
directly, to give, or offer to give, or per-
mit or cause to be given, money or any-
thing of value to agents, salesclerks, em-
ployees, or representatives of customers
or prospective customers of an industry
member, without the knowledge of the
employers or principals of such agents,
salesclerks, employees, or representatives,
as an inducement:
(a) To influence such employers or
principals to purchase or contract to pur-
chase wail coverings manufactured or
sold by the industry member; or
(b) To influence such employers or
principals to refrain from dealing in the
products of competitors or from dealing
or contracting to deal with competitors;
or
340
Chapter I—Federal Trade Commission
(ce) For the purpose of causing said
agents, salesclerks, employees, or repre-
sentatives to push and promote the re-
sale of the industry member’s wall cov-
erings over competing products being
offered for resale by the employers or
principals of said agents, salesclerks,
employees, or represcntatives. [Rule 6}
$35.7 False invoicing.
Withholding from or inserting in in-
voices or saies slips by an industry mem-
ber, any statement or information by
reason of which omission or insertion @
false record is made, wholly or in part,
of the transactions represented on the
face of such invoices or sales slips, used
with the capacity and tendency or effect
of thereby misleading or deceiving pur-
chasers, prospective purchasers, or the
consuming public, in any material re-
spect, is an unfair trade practice.
{Rule 7]
$35.8 Substitution of products.
It is an unfair trade practice for a
member of the industry to make unau-
thorized substitutions of wall coverings
where such substitutions have the capac-
ity and tendency or effect of misleading
or deceiving purchasers, by:
(a) Shipping or delivering wall cover-
ings which do not conform to samples
submitted, to specifications (in bids or
otherwise) upon which the sale is con-
summated, or to representations made
prior to securing the order, without ad-
vising the purchaser of the substitution
and obtaining his consent thereto prior
to making shipment or dellvery; or
(b) Falsely representing the reason
for making substitutions. [Rule 8]
§ 35.9 Defamation of competitors or
false disparagement of their prod-
ucts.
It is an unfair trade practice for any
industry member:
(a) To defame competitors by falsely
imputing to them dishonorable conduct,
inability to perform contracts, question-
able credit standing, or by other false
representation; or
(b) To falsely disparage competitors’
wall coverings as to grade, quality, or
method of manufacture and distribu-
tion, or in any other rspect; or
(c) To falsely disparage the business
methods, selling prices, values credit
terms, pelicies, services, or conditions of
employment, of competitors.
§ 35.13
Norm: Nothing in this section shall be
construed as preventing the full, fair, and
nondeceptive comparison, by demonstration
er otherwise, of competitors’ wall coverings
with those of another industry member be-
fore purchasers or prospective purchasers.
{Rule 9)
$35.10 Unfair threats of infringement
suits.
The circulation of threats of suit for
infringement of patents, trade-marks,
or copyrights among competitors or cus-
tomers or prospective customers of com-
petitors, when not made in good faith
but for the purpose or with the effect of
thereby harassing or intimidating such
customers or prospective customers, or
of unduly hampering, injuring, or prej-
udicing competitors in their business,
is an unfair trade practice. [Rule 10]
§ 35.11 Tie-in sales.
The practice of coercing the purchase
of one or more wall coverings as a pre-
requisite to the purchase of one or more
other wall coverings, where the effect
may be substantially to lessen competi-
tion or tend to create a monopoly or
unreasonably to restrain trade, is an un-
fair trade practice. [Rule 11]
§ 35.12 Deception (general).
(a) It is an unfair trade practice for
members of the industry to offer for sale
or sell wall coverings under any repre-
sentations, description, circumstance or
condition which has the capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers thereof, as to the type, kind,
grade, quality, quantity, weight, color,
substance, durability, serviceability,
terms of sale, value, production, manu-
facture, or distribution of such wall cov~
erings or which has the capacity and
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public in any other material respect.
(b) The prohibitions of this section
are applicable to all forms of advertis-
ing, whether written or oral, in periodi-
cals, on the radio or television, and to
any form of marking or labeling of tn-
dustry products or the packages or con-
tainers in which they may be shipped,
offered for sale or sold. (Rule 12]
§ 35.13 Misuse of terms “jobs,” “close-
outs,” “discontmned lines,” “special
bargains,” etc.
It is an unfair trade practice to offer
for sale, sell, advertise, describe, or
341
§ 35.14
otherwise represent, wall coverings as
“Jobs,” “Close-Outs,” ‘Discontinued
Lines,” or “Special Bargains,’ by use of
such terms, or by words or representa-
tions of similar import, when such is not
true in fact; or to so offer for sale, sell,
advertise, describe, or otherwise repre-
sent, industry products where the capac-
ity and tendency or effect thereof is to
lead the purchaser or consuming public
to believe such products are being of-
fered for sale or sold at greatly reduced
prices, or at so-called “bargain” prices,
when such ts not the fact. [Rule 13]
§ 35.14 Use of the word “free.”
In connection with the sale, offering
for sale, or distribution of wall cover-
ings, 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 following circumstances:
(a) When ali the conditions, obliga-
tions, or other prerequisites to the re-
ceipt and retention of the “free” article
of merchandise of service offered are not
clearly and conspicuously set forth at
the outset so as to leave no reasonable
probability that the terms of the offer
will be misunderstood; and, regardiess
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
quality, or (3) reduces the quantity
thereof.
Norm: 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 sppears in each advertise-
ment or offer. A disclosure in the form of
@ footnote, to which reference {s made by
use of an asterisk or other symbol placed
next to the word “free,” will not be regarded
aa compliance.
[Rule 14]
§ 35.15 Deceptive pricing.
It is an unfair trade practice for any
member of the industry to represent di-
rectiy or indirectly in advertising or
otherwise that an industry product may
be purchased for a specified price, or
at a savings, or at a reduced price, when
Title 16—-Commercial Practices
such is not the fact; or otherwise de-
ceive purchasers or prospective pur-
chasers with respect to the price of any
product offered for sale; or furnished any
means or instrumentality by which oth-
ers engaged in the sale of industry prod-
ucts may make any such representation,
Not: On December 20, 1963, the Commis-
sion adopted Guides Against Deceptive Pric-
ing which became effective on January 8,
1964 and which supersede the Guides on
this subject as adopted October 2, 1958.
Copies of the Guides will be furnished upon
request.
{Rule 15]
(29 F.R. 7669, June 16, 1964]
§ 35.16 Disclosure of foreign origin.
(a) It is an unfair trade practice:
(1) To misrepresent the country of
manufacture of industry products or
their components; or
(2) To fail to make adequate disclosure
that an industry product is of foreign
origin or manufacture when the failure
to make such disclosure has the capacity
and tendency or effect of deceiving pur-
chasers or prospective purchasers.
(b) The disclosure required by sub-
paragraph (2) of this paragraph will be
deemed adequate when naming the for-
eign country in the form of a legible
marking or stamping on the product, or
on 2 label or tag attached thereto, which
is of such degree of permanency as to
remain on or attached to the product
until consummation of consumer sale
thereof, and is of such conspicuousness
as to be likely observed by purchasers
and prospective purchasers making cas-
ual inspection of the product. [Rule 16}
§ 35.17 Prohibited forms of trade re-
Strains (unlawful price fixing,
etc. ).
It is an unfair trade practice for any
member of the industry, either directly
1The prohibitions of this section are sub-
ject to Public Law 542, approved July 14,
1962—66 Stat. 682 (the McGutre Act, Com-
monly referred to as the Fair Trade Amend-
ment) which provides that with respect to a
commodlty which bears, or the label or con-
tainer of which bears, the trade-mark, brand,
or name of the producer or distributor of
such commodity and which is in free and
open competition with commodities of the
same general class produced or distributed
by others, a seller of such a commodity may
enter into @ contract or agreement with a
buyer thereof which establishes a minimum
or stipulated price at which such commod-
ity may be resold by such buyer when such
342
Chapter l—Federal Trade Commission
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; except as permitted under the
McGuire Act, or to use any form of
threat, intimidation, or coercion to in-
duce any member of the industry or
other person or persons to engage in any
such planned common course of action,
or to become a party to any such under-
standing, agreement, combination, or
conspiracy. [Rule 17]
§ 35.18 Prohibited discrimination.
(a) Prohibited discriminatory prices,
rebates, discounts, etc. It is an unfair
trade practice for any member of the
industry engaged in commerce, tn the
course of such commerce, to grant or al-
low, secretly, or openly, directly or indi-
rectly, any rebate, refund, discount,
credit, or other form of price differential,
where such rebate, refund, discount,
credit, or other form of price differen-
tial, effects a discrimination in price be-
tween different purchasers of goods of
like grade and quality, where either or
any of the purchases involved therein
are in commerce, and where the effect
thereof may be substantially to lessen
competition or tend to create a monop-
oly in any line of commerce, or to in-
jure, destroy, or prevent 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, and charitable in-
stitutions not operated for profit, as sup-
plies for their own use;
contract or agreement is lawful as applied
to intrastate transactions under the laws of
the State, Territory, or territorial jurisdiction
in which the resale ts to be made or to which
the commodity is 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-
eons, firms, or corporations in competition
with each other.
$ 35.18
(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 different
methods or quantities In which such
commodities are to such purchasers sold
or delivered;
Note No. 1: Cost justification to be based
on net savings in cost of manufacture, sale
or delivery. Cost justification under the
above proviso depends upon net savings in
cost based on all facts relevant to the trans-
actions under the terms of subparagraph
(2) of this paragraph. For example, if a
seller regularly grants a discount based upon
the purchase of a specified quantity by a
single order for a 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 same quantity by multiple orders or for
multiple deliveries.
Nore No. 2: Credit or refund for returned
goods. In determining whether a price dif-
ferential based on cost savings under the
above proviso is warranted there shall be
taken into account any portion of the goods
involved which are returned by the customer-
purchaser to the seller for credit or re-
fund. See also Note No. 2 under paragraph
(8) of this section.
(3) That nothing contained in this
section shall prevent persons engaged in
selling goods, wares, or merchandise tn
commerce from selecting their own
customers 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
competitor.
Nore No. 1: Subsection (b) of section a
of the Clayton Act, as amended, reads as fol-
lows: “Upon proof being made at any hear-
ing on @ complaint under this section, that
there has been discrimination in price or
services or facilities furnished, the burden
of rebutting the prima facie case thus made
by showing Justification shall be upon the
person charged with a violation of this
section, and unless justification shall be af-
firmatively shown, the Commission ts au-
thorized to issue an order terminating the
discrimination: Provided, however, That
343
90-058-—77——_23
§ 35.18
nothing herein contained shall prevent a
seller rebutting the prima facie case 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 a com-
petitor, or the services or facilities fur-
nished by a competitor.”
Nore No. 3: In complaint proceedings,
justification of price differentials under sub-
paragraphs (2), (4), and (5) of this para-
graph is a matter of affirmative defense to
be established by the person or concern
charged with price discrimination.
(b) Examples of prohibited price dif-
ferential practices. The following are
examples of price differential practices
to be considered as subject to the pro-
hibitions of paragraph (a) of this sec-
tion when involving goods of like grade
and quality which are sold for use,
consumption, or resale within any place
under the jurisdiction of the United
States, and which are not purchased by
schools, colleges, universities, public H-
braries, churches, hospitals, and chari-
table 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 create
@ monopoly in any line of commerce
or of injury, 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 elther of them; and
(3) The price differential is not justi-
fied by cost savings (sec 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-
ability of the goods concerned (see para-
graph (a) (4) of this section) ; and
(5) The lower price was not made to
meet in good falth an equally low price
of a competitor (see paragraph (a) (5)
of this section).
Example No. 1. 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. It is tmma-
terlal whether the goods sold at the lower
price are classified by the industry member
as “seconds,” secondary line,” “rejects,” or
are otherwise represented by the industry
member as inferior, if the goods are in fact
of like grade and quality as the goods sold
at the higher price.
Title 16—Commercial Practices
Ezample No. 2. Terms of 2%/10 net 60
are granted by an industry member to some
customers on goods purchased by them from
the industry member, Another customer or
customers are, nevertheless, allowed to take
a 5% instead of a 2% discount when mak-
ing payment to the industry member within
the time prescribed.
Ezample No. 3. An industry member sells
goods to one or more of his customers at a
lower price than he charges other customers
therefor, basing his justification for the price
difference solely on the fact that the goods
sold at the lower price bear the private
brand name of customers.
Example No. 4. An industry member in-
voices goods to all his customers at the same
price but supplies additional quantitles of
such goods at no extra charge to one or
more, but not to all, such customers; or sup-
plies other goods or premiums to one or more,
but not to all, such customers for which he
makes no extra charge and which effects an
actual price difference in favor of certain of
his customers.
Norge: As previously indicated, the fore-
going are examples of practices to be
considered violative of the prohibitions of
paragraph (a) of this section.
(ce) 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 Heu
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 inter-
mediary 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.
(d) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce to pay
or contract for the payment of adver-
tising or promotional allowances or any
other thing of value to or for the benefit
of a customer of such member in the
course of such commerce as compen-
sation or in consideration for any sery-
ices or facilities furnished by or through
such customer 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
344
Chapter I—Federal
consideration is made known to and ts
available on proportionally equal terms
to all other customers competing in the
distribution of such products or com-
modities. :
Norm: No. 1: Industry members giving
allowances for advertising or sales promotion
must, in addition to according same to all
competing customers on proportionally equal
terms, exercise precaution and diligence in
seeing that all such allowances are used by
the customers for such purposes. Customers
receiving such allowances must not use same
for any other purpose.
When an allowance is made ostensibly for
advertising or sales promotion of products
and ts not in fact used for that purpose the
practice may constitute a price discrimina-
tion. In such case, the party giving the allow-
ance may violate paragraph (a) of this sec-
tion and the party receiving same may violate
paragraph (f) of this section.
Nore No. 2: When an industry member
gives allowances to competing customers for
advertising in a newspaper or periodical, the
fact that a lower advertising rate for equiva-
lent space 1s available to one or more, but
not all, such customers, is not to be regarded
by the industry member as warranting the
retention by such customers of any portion
of the allowance for his or their personal use
or benefit.
(e) Prohibited discriminatory services
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 bought for
resale, with or without processing, by
contracting to furnish or furnishing, or
by contributing to the furnishing of, any
services or facilities connected with the
processing, handling, sale, or offering for
sale of such commodity so purchased
upon terms not accorded to all competing
purchasers on proportionally equal terms.
Nors No. 1: Subsection (b) of section 2 of
the Clayton Act, as amended, which ts set
forth in the note concluding paragraph (a)
of this section is applicable to paragraph (e)
of this section.
Nore No. 2: Among the practices prohibited
by paragraph (e) of this section is that of
en industry member according to one or
more customers the privilege of returning for
credit or refund any or all of the goods pur-
chased by them and falling to accord the
same privilege to another or other competing
custemers on proportionally equal terms. In
this connection see also Note No. 2 under
costa Justification proviso (paragraph (a) (2)
of this section).
(f) Inducing or receiving an illegal dis-
crimination in price, advertising or pro-
motional allowances, or services or factli-
Trade Commission § 35.19
ties. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, knowingly to induce or receive a
discrimination in price, advertising or
promotional allowances, or services or
facilities, prohibited by the foregoing
provisions of this section. [Rule 18]
§ 35.19 Aiding or abetting use of unfair
trade practices.
It is an unfair trade practice for any
person, firm or corporation to aid, abet,
coerce, or induce another, directly or in-
directly, to use or promote the use of any
unfair trade practice prohibited in the
foregoing part. [Rule 19]
PART 36—POULTRY HATCHING AND
BREEDING INDUSTRY
Sec.
86.0 The industry and its products defined
Group I
86.1 Misrepresentation of products.
86.2 Deceptive concealment of material
facts.
86.8 Deceptive claims relating to National
Poultry Improvement Plan or Na-
tional Turkey Improvement Pian.
86.4 Misrepresentation concerning a
breeder’s name, trade name, strain
or combination of strains, or other
breeding combination, etc.
$6.5 Deceptive claims respecting freedom
or immunity from disease.
$6.6 Deceptive representations as to per-
formance earnings, etc.
86.7 Misrepresentation as to yields of eggs,
as to chicks from hens with pur-
ported high egg-laying records, as
to chicks from high-egg-producing
stock, etc.
86.8 Misrepresenting chicks as from high-
performance stock.
86.9 Misrepresentation as to terms “cross-
bred,” “inbred line,” “in-cross-bred,”
“hybrid,” eto.
36.10 Misuse of term “dominant white,” etc.
$6.11 Misrepresentation respecting new
breed of poultry.
86.12 Deception as to transportation or
c.0.d. charges.
86.18 Misrepresenting offer as “special,”
ete.
36.14 Deceptive testimontals.
36.15 Defamation of competitors or false
disparagement of their products.
86.16 False or misleading price quotations,
ete.
86.17 Deception by means of “bogus inde-
dependents,” “chick outlets,” atc,
86.18 Misuse of words “hatchery,” “chick-
ery,” “chick nursery,” ‘farm,”
“poultry farm,” “breeding farm,”
and related representations.
36.19 Guarantees, warranties, etc.
845