Consumer Law Library

Wall Paper Industry

16 CFR Part 35 · Trade practice rules · in the Code of Federal Regulations 1938-1960 (5 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1960 CFR · Earliest edition: 1938 CFR

Text (1960 edition, OCR)

§ 3423

(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 differmg
methods or quantities m which such
commodities are to such purchasers sold
or delivered

(3) That nothing contained 1 this
section shall prevent persons engaged 1n
selling goods, wares, or merchandise 1n
commerce from selecting their own cus-
tomers 1n bona fide transactions and not
in restraint of trade

(4) That nothing contained m this
paragraph shall prevent price changes
from time to time where made m re-
sponse to changing conditions affecting
the market for or the marketability of
the goods concerned such as but not
lumited to obsolescence of seasonal goods,
distress sales under court process or sales
in good faith m discontinuance of busi-
ness 1n the goods concerned

(5) That nothing contained in this
section shall prevent the meeting 1n good
faith of an equally low price of a com-
petitor or the services or facilities
furnished by a competitor (See para-
graphs (c) and (d) of this section )

(b) Prohibited brokerage and com-
missions It 1s an unfair trade practice
for any member of the industry engaged
in commerce, 1n 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 m 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 inter-
mediary therein where such intermedi-
ary 1s acting 1n fact for or 1n behalf, or
is subject to the direct or indirect con-
trol of any party to such transaction
other than the person by whom such
compensation 1s so granted or paid

(c) Prohibited advertising or promo-
tional allowances, ete It 1s an unfair
trade practice for any member of the
industry engaged in commerce to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of value to or for the benefit of a
customer of such member 1n the course
of such commerce as compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer in connection with the processing

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Title 16—Commercial Practices

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 1S
available on proportionally equal terms
to all other customers competing in
the distribution of such products or
commodities

(d) Prohibited discriminatory services
or facthties 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
connected with the processing handling,
sale or offermg for sale of such com-
modity so purchased upon terms not
accorded to all competing purchasers on
proportionally equal terms

(e) Inducing or recewing an illegal
discrimination in price It 1s an unfair
trade practice for any member of the
industry engaged 1n commerce in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which 1s prohibited by the fore-
going provisions of this section

(f) Purchases by U S Government
applicability of Robinson-Patman Anti-
discrimination Act to same In an
opmion submitted to the Secretary of
War under date of December 28 1936,
the U S Attorney General advised that
the Robmson-Patman Antidiscrunina-
tion Act “is not applicable to Govern-~
ment contracts for supplies” (38 Opin-
ions Attorney General 539 )

§ 3423 Aiding or abetting use of unfair
trade practices

It 1s 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 PAPER INDUSTRY

Group I
Sec
351
352
353
354

False marking or branding

Misrepresentation in general

Defamation of competitors

Imitation of trade-marks trade names
ete

Sales below cost

Enticing employees

Espionage

Deviation from standards

355
356
357
359


Chapter Il—Federal

Group II
Sec

35101 Truthful disclosure of quality of

products
85102 Cost accounting
85108 Arbitration
COMMITTEE ON TRADE PRACTICES
85 201 Industry committee

AUTHORITY §§ 351 to 35201 issued under
sec 6(g) 38 Stat 722 15 USC 46(g)
Interpret or apply sec 5 38 Stat 719 as
amended 15 USC 45

Source §§ 35 1 to 35 201 contalned in trade
practice rules Wall Paper Industry FIC
Aug 21 1931 except as otherwise noted

Group I
§ 351 False marking or branding

The false marking or branding of
products of the industry, with the effect
of misleading or deceivmg purchasers
with respect to the quantity quality
grade, or substance of the goods pur-
chased, 1S an unfair trade practice

§352 Mhisrepresentation m 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 prepa-
ration of any product of the industry
having the tendency and capacity to
mislead or deceive purchasers or pro-
spective purchasers is an unfair trade
practice

§ 353 Defamation of competitors

The defamation of competitors by
falsely umputing to them dishonorable
conduct, inability to perform contracts
questionable credit standing, or by other
false representations or the false dis-
paragement of the grade or quality of
their goods with the tendency and ca-~
pacity to mislead or deceive purchasers
or prospective purchasers, 1S an unfair
trade practice

§ 354 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-
celve, is an unfair trade practice

§355 Sales below cost

The selling of goods below cost with
the intent and with the effect of injuring
a@ competitor and where the effect may
be to substantially lessen competition or

Trade Commission § 35 201
tend to create a monopoly or to un-
reasonably restrain trade is an unfair
trade practice

§356 Enticing employees

Maliciously enticing away the em-
ployees of competitors with the purpose
and effect of unduly hampering, injur-
ing or embarrassing competitors in their
business 1s an unfair trade practice

§ 357 Espionage

Securing information from competi-
tors concerning their businesses by false
or misleading statements or representa-
tions or by false umpersonations of one
in authority and the wrongful use there-
of to unduly hinder or stifle the competi-
tion of such competitors 1s an unfair
trade practice

§359 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

Groovp II

§ 35.101 Truthful disclosure of qualty
of products

It 1s in the interest of the industry to
encourage the sale of products on the
basis of quality and intrinsic value
Salesmen should be encouraged to ex-
plain carefully the merits of their par-
ticular lines

§ 35102 Cost accounting

It is the judgment, of the industry that
each member should install a proper and
accurate method for determiming his
cost

§ 35103 Arbitratiou

The industry approves the practice of
handling disputes in a fair and reason-
able manner coupled with a spirit of
moderation and good will and every
effort should be made by the disputants
themselves to arrive at an agreement
If unable to do so they should agree, if
possible upon arbitration under some
one of the prevailing codes

COMMITTEE ON TRADE PRACTICES
§ 35201 Industry committee.

The provisions of §161 of this sub-
chapter shall be applicable to an in-
dustry committee established under this
part
[21 F.R 1174 Feb 21, 1956]

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