Consumer Law Library

Engraved Stationery And Allied Products Industry Of The New York City Trade Area

16 CFR Part 37 · Trade practice rules · in the Code of Federal Regulations 1959-1976 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1976 CFR · Earliest edition: 1959 CFR

Text (1976 edition, OCR)

§ 36.27

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 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
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 in the course
of such commerce as compensation or in
consideration for any services or facil-
ities 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 saie by such member,
unless such payment or consideration is
available on proportionally equai terms
to all other customers competing in the
distribution of such products or com-
modities.

(e) Prohibited discriminatory services
or facilities. It is an unfair trade prac-
tice 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 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 so purchased upon terms not
accorded to all competing purchasers on
proportionaily equal terms.

Nore: See subsection (b) of section 2 of
the Clayton Act, as amended, which Is set
forth tn the note concluding paragraph (a)
of this section.

(f) Inducing or receiving an illegal
discrimination in price. It is an unfair
trade practice for any person engaged
in commerce, in the course of such com-
merce, knowingly to induce or receive a
discrimination in price which is pro-
hibited by the foregoing provisions of

Title 16—Commercial Practices

paragraphs (a) to (e) of this section.
(Rule 26]

§ 36.27 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
indirectly, to use or promote the use of
any unfair trade practice specified in
this part. [Rule 27]

Group IL

§ 36.101 ; Shipping chicks to fictitious
consignees, etc.

The industry condemns the practice
of disposing of chicks by shipping them
to fictitious consignees or without an
order from, or consent of, the consignee,
necessitating the sale of such undeliver-
able shipménts at public auction by
agents of the common carrier in order
to secure payment for transportation
costs. Such practice is deemed by the
industry to be harmful to the chicks and
to facilitate the spread of disease.
(Rule A) :

PART 37—ENGRAVED STATIONERY
AND ALLIED PRODUCTS INDUSTRY
OF THE NEW YORK CITY TRADE
AREA

Group I

Sec.

87.1 Misuse of the terms “engraved,” “en-
graving,” “hand engraved,” “hand
engraving,” etc.

87.2 Misrepresentation and deception
(general) .

87.3 Misrepresentation as to character of
business.

87.4 Deceptive pricing.

87.5 Deceptive invoicing.

87.6 Deceptive use and imitation of trade
or corporate names, trade-marks
etc.

87.7 Exclusive deals.

87.8 Guarantees, warranties, etc.

37.9 Prohibited sales below cost.

37.10 Use of the word “free.”

87.11 Use of lottery schemes, etc.

37.12 Defamation of competitors or false
disparagement of their products.

37.138 Commercial bribery.

37.14 Prohibited forms of trade restrainte
(unlawful price fixing, etc.).

37.15 Prohibited discrimination.

37.16 Aiding or abetting use of unfair trade

practices.
COMMITTEE ON TRADE PRACTICES
37.201 Industry committee.

360


Chapter I—Federal

AUTHORITY: The provisions of this Part 37
issued under secs. 6, 6, 838 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

> Source: The provisions of this Part 37 ap-
pear at 22 F.R. 1923, Mar. 22, 1957, unless
otherwise noted.

Group I

§ 37.1 Misuse of the terms “engraved,”
“engraving,” “hand engraved,”
“Shand engraving,” ete.

(a) (1) In the sale, offering for sale, or
distribution of letterheads, envelopes,
business and social identification cards
and programs, wedding invitations and
announcements, engagement announce-
ments, greeting cards, bank notes, stock
certificates, and similar products, which
have letters, markings, or designs
thereon, it is an unfair trade practice to
use the word “engraved,” “engraving,”
or any word or term of similar import,
as descriptive of such products or of the
letters, markings, or designs thereon,
unless such letters, markings, or designs
are the result of the application of an
engraving process as such process is de-
fined in subparagraph (2) of this para-
graph; or to use the words “hand
engraved,” “hand engraving,” or any
word or term of similar import, as de-
scriptive of such products or of the
letters, markings, or designs thereon,
unless such letters, markings, or designs
are the result of the application of an
engraving process, as such process is
defined in subparagraph (2) of this para-
graph, in which the plates or dies used
have been incised or etched wholly by
hand.

(2) Definition of engraving process:
The engraving process to which reference
is made in this section is a process by
which letters, markings, or designs are
produced upon stationery and allied
products through the use under pressure
of a plate or die of steel, or a hard copper
alloy or other hard metal or material
suitable for the purpose, in which there
has been incised or etched mirror images
of such letters, markings, or designs
sufficient to force the portion of the
stationery or allied products to be in-
scribed into the inked incisions in the
plate or die and the ink in such incisions
to adhere thereto in relief to the general
surface thereof. Thermotyping, raised
printing, embossing, or any process in
which printer’s type is used, is not an
engraving process within the meaning of
this definition. |.

Trade Commission § 37.2
(b) In the sale, offering for sale, or
distribution of plates or dies, it is an
unfair trade practice to use or cause
to be used the word “engraved,” “en-
graving,” or any word or term of similar
import as descriptive thereof, unless such.
plates or dies are suitable for use in the
engraving process as such process is de-
fined in paragraph (a)(2) of this sec-
tion; or to use the words “hand
engraved,” “hand engraving,” or any
word or term of similar import, as de-
scriptive of any plate or die unless (1)
such plate or die is suitable for use in
an engraving process as such process is
defined in paragraph (a)(2) of this
section, and (2) the letters, markings,
or designs therein have been incised or
etched by hand. .

§ 37.2 Misrepresentation and deception
(general).

It is an unfair trade practice for any
industry member, in connection with the
offering for sale, sale, or distribution of
industry products, to use, or cause or
promote the use of, any trade promo-
tional literature, advertising matter,
inark, brand, label, trade name, picture,
design or device, designation, or other
type of oral or written representation,
however disseminated or published, or
to fail to disclose any material fact, when
such representation or failure to disclose
has the capacity and tendency or effect
of misleading or deceiving purchasers,
prospective purchasers, or the consum-
ing public with respect to the type, grade,
quality, quantity, weight, size, material,
finish, composition, construction, manu-
facture, layout, design, or sketch of
industry products, or in any other
material respect.

Norm: As used in this section, the terms
“layout,” “design,” and “sketch” have the
following meanings:

Layout, The basic plan or original concep-
tion of the respective form, indicated by
rough lines to show relative positions and
sizes of the component units of copy. —

Design. The proper and artistic balancing
and combination of lettering styles and sizes
with or without illustrations, trade-marks,
or other insignia, commensurate with har-
mony and good taste.

Sketch. The representation of its original
idea for creation, revision, or improvement of
any form of wording or line or dot on paper
or paper products, reproduced either roughly
or finished by hand-drawing with pencil, pen
or crayon, or the photostat or photograph of
same.

361

58-063-—-76——-24


§ 37.3

§ 37.3 Misrepresentation as to character
of business.

It is an unfair trade practice for any
industry member, in the course of or in
connection with the offering for sale,
sale, or distribution of industry products,
to represent, directly or indirectly,
through advertising, personal solicita-
tion, or otherwise, that he is a manu-
facturer of industry products, or that
he owns or controls a workshop mak-
ing such products, when such is not
the fact, or in any other manner to mis-
represent the character, extent, or type
of his business.

§ 37.4 Deceptive pricing.

It is an unfair trade practice for any
industry member, in the course of or in
connection with the offering for sale,
sale, or distribution of industry products:
(a) To represent, in advertising or other-
wise, that the price of any industry prod-
uct has been reduced from what it is in
fact a fictitious price; or to offer any such
industry product for sale at a purported
reduction in price when such purported
reduction is in fact fictitious; or,

(b) Directly or indirectly, to use or to
supply to dealers, or to aid or assist in
the use of, price tags, labels, or similar
devices which are false or fictitious, or
which such member has reason to believe
are intended to be used or will be used
by dealers or salesmen for the purpose
of misleading or deceiving the purchas-
ing or consuming public in regard to
price, or in any other material respect;
or

(c) To represent that the price of any
industry product is a “wholesale” price
or a “factory” price, when such is not
a fact; or to use any other price repre-
sentation which is misleading or decep-
tive.

§ 37.5 Deceptive invoicing.

Withholding from or inserting in in-
voices any statement or information by
reason of which omission 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 consuming
public in any material respect, is an un-
fair trade practice.

§ 37.6 Deceptive nse and imitation of
trade or corporate names, trade-
marks, ete.

It is an unfair trade practice for any
industry member, in connection with the

Title 16—Commercial Practices

offering for sale, sale, or distributlon
of industry products, to use any trade
name, corporate name, trade-mark,
brand, label, or other trade designation,
which has the capacity and tendency or -
effect of misleading or decelving pur-
chasers or prospective purchasers as to
the character, name, nature, or origin of
any product of the industry, or which
is false or misleading in any material
respect.

§ 37.7 Exclusive deals.

It is an unfair trade practice for any
industry member 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 condition,
agreement, or understanding that the
purchaser thereof shall not use or deal in
the products of a competitor or com-
petitors of such industry member, where
the effect of such sale or contract for
sale, or of such condition, agreement,
or understanding, may be to substan-
tially lessen competition or tend to
create a monopoly in any line of com-
merce.

§ 37.8 Guarantees, warranties, etc.

In the sale, offering for sale, or distri-
bution of industry products, it is an un-
fair trade practice for any industry
member—

(a) To represent, directly or by im-
plication, that any industry product is
guaranteed or warranted unless the na-
ture and extent of the guarantee or war-
ranty, and the manner in which the
guarantor or warrantor will perform
thereunder, are clearly and conspicu-
ously disclosed; or

(b) To use, or cause to be used, any
guarantee or warranty which does not
clearly and conspicuously disclose the
terms, conditions, and limitatlons of such
guarantee or warranty and the obliga-
tions of the guarantor or warrantor
thereunder; and

(ec) To represent or imply that an in-
dustry product is guaranteed or war-
ranted, or to use any guarantee or
warranty covering an industry product,
when the guarantor or warrantor fails
or refuses to observe his obligations
thereunder.

§ 37.9 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 is, or

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Chapter |—Federal

where 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 un-
fair trade practice.

(b) This section is 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 stifle 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 seasonable goods
near the conclusion of the season; (2)
of perishable goods in respect to which
deterioration is imminent; (3) of obso-
iescent goods; (4) made under judicial
process; or (5) made in bona fide dis-
continuance 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 ac-
quisition, production, and distribution of
the products involved, and comprises all
elements 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 general
overhead expenses, incurred by the seller
in the acqulsition, manufacture, proc-
essing, preparation for marketing, sale,
and delivery of the products. Not to be
included are dividends or interest on
borrowed or invested capital, or nonoper-
ating losses, such as fire losses and losses
from the sale or exchange of capital
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 relieving an industry mem-
ber from compliance with any of the
requirements of the Robinson-Patman
Act.

§ 37.10 Use of the word “free.”

It is an unfair trade practice for any
industry member, in connection with the
offering for sale, sale, or distribution of
industry products, to use the word “free,”

Trade Commission § 37.13
or any other word or words of similar im-
port, in advertisements or in other offers
to the public, as descriptive of an article
of merchandise, or service, which is not
an unconditional gift, under the follow-
ing circumstances:

(a) When all the conditions, obliga-
tions, or other prerequisites to the receipt
and retention of the “free” article of
merchandise or service offered are not
clearly and conspicuously set forth at the
outset so as to leave no reasonable prob-
ability that the terms of the offer wili be
misunderstood; and, regardless 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 ordi-
nary and usual price of such article of
merchandise, or (2) reduces its quality,
or (3) reduces the quantity or size
thereof.

Nore: 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 appears in each
advertisement or offer. A disclosure in the
form of a footnote, to which reference 1s
made by use of an asterisk or other symbol
placed next to the word “free,” will not be
regarded as compliance.

§ 37.11 Use of lottery schemes, etc.

It is an unfair trade practice for any
industry meinber to sell, or distribute, or
promote the sale and distribution of,
industry products by means or through
the use of games of chance or lottery
schemes.

§ 37.12 Defamation of competitor 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
representations; or

(b) To falsely disparage competitors’
products as to grade, quality, method of
manufacture, and distribution, or in any
other respect; or

(c) To falsely disparage the business
methods, selling prices, values, credit
terms, policies, services, or conditions of
employment, of competitors.

§ 37.13 Commercial bribery.

It is an unfair trade practice for any
industry member, directly or indirectly,

363


§ 37.14

to give, or offer to give, or permit or
cause to be given, money or anything of
value to agents, employees, or repre-
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, processed, or sold by such industry
member or the maker of such gift or
offer, or 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 to effect any other advantage in favor
of the industry member making such gift
or offer with respect to the sale of in-
dustry products to such employers or
principals. .

§ 37.14 Prohihited forms of trade re-
straints (unlawful price fixing,
ete.).

It is an unfair trade practice for any
industry member, either directly or in-
directly, to engage in any planned com-
mon course of action, or to enter into
or take part in any understanding, agree-
ment, combination, or conspiracy, with
one or more members of the industry,
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, intimida-
tion, or coercion to induce any member

*The inhibitions of this section are sub-
ject to Public Law 542, approved July 14,
1962, 66 Stat. 632 (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
on the producer or distributor of such com-
modity and which is in free and open com-
petition with commodities of the same gen-
eral class produced or distributed by others,
& 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 commodity may be re-
sold by such buyer when such contract 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 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
persons, firms, or corporations in compe-
tition with each other.

Title 16—Commercial Practices

of the industry or other person or per-
sons to engage in any such planned
common course of action, or to become
a@ party to any such understanding,
agreement, combination, or conspiracy.

§ 37.15 Prohibited discrimination.‘

(a) Prohibited discriminatory prices,
rebates, refunds, discounts, credits, etc.,
which effect unlawful price discrimina-
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 open-
ly, directly or indirectly, any rebate, re-
fund, discount, credit, or other form of
price differential, where such debate, re-
fund, 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
mvolved therein are in commerce, and
where the effect thereof may be substan-
tially to lessen competition or tend to.
create a monopoly in any line of com-
merce, or to injure, 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, publc libraries,.
churches, hospitals, and charitable in-
stitutions not operated for profit, as sup-
plies for their own use;

(2) That nothing contalned in this.
paragraph shall prevent differentials.
which make only due allowance for:
differences in the cost of manufacture,
sale, or delivery resulting from the dif-
fering methods of quantities in which
such commodities are to such purchasers.
sold or delivered;

‘As used in § 37.15, the term “commerce”
means “trade or commerce among the
several States and with foreign nations, or
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 Columbla, 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

Notre: Cost justification under the above
proviso depends upon net savings in cost
based on all facts relevant to the transactions
under the terms of subparagraph (2) of this
paragraph. For example, if a seller regu-
larly grants a discount based upon the pur-
chase 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.

(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,
actual or imminent deterioration of
perishable 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 para-
graphs (c) and (d) of this section.)

Nore: In complaint proceedings, justifi-
cation 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.

The following are examples of price differ-
ential practices to be considered as subject
to the prohibitions of this paragraph when
involving goods of like grade and quality
which are sold for use, consumption, or re-
sale within any place under the jurisdiction
of the United States, and which are not pur-
‘chased by schools, colleges, universities, pub-
lic Hbraries, churches, hospitals, and chari-
table institutions not operated for profit, as
‘supplies for their own use; and when—

(1) The commerce requirements specified
in this paragraph are present; and

(2) The price differential has a reasonable
probabillty of substantially lessening compe-
titlon or tending to create a monopoly in
any line of commerce, or of injuring, destroy-
ing, or preventing competition with the in-
dustry member or with the customer recelv-
ing the benefit of the price differential, or
with customers of either of them; and

Trade Commission § 37.15

(3) The price differential is not justifiea
by cost savings (see subparagraph (2) of this
Paragraph); and

(4) The price differential is not made in
response to changing conditions affecting the
market for or the marketability of the goods
concerned (see subparagraph (4) of this
paragraph); and

(5) The lower price was not made to meet
in good faith an equally low price of a com-
petitor (see subparagraph (5) of this para-
graph).

Example No. 1. At the end of a given
period 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 customers
for like merchandise. It is immaterial
whether or not such discrimination 1s ac-
complished by misrepresentation as to the
grade and quality of the products sold. .

(bo) Prohibited brokerage and com-
missions. 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 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.

(c) 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 advertising
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 compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer in connection with the process-
ing, handling, sale, or offering for sale
of any products or commodities manu-
factured, sold, or offered for sale by such
member, unless such payment or con-
sideration is available on proportionally
equal terms to all other customers com-
peting in the distribution of such prod-
ucts or commodities.

365


§ 37.16

(d) 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
connected 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 paragraphs
(a) to (a) of this section.

Nore: Paragraph (e) of this section is a
re-statement of section 2(f) of the Clayton
Act as amended. In a complaint proceeding
under thls section, in order to make out a
prima facie violation, the Commission must
show that the favored buyer induced or re-
ceived 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 sub-
paragraphs (2), (4) or (5) of paragraph (a)
of this section. When, in any such proceed-
ing, the issue is limited to the question of
whether the price differential involved made
only due allowance for differences in cost
of manufacture, sale, or delivery resulting
from the differing methods or quantities in
which the goods were sold and delivered,
the Commission may establish a prima facie
cease in a number of ways, including:

(1) By showing that the buyer paying the
lower price knew that the methods by, and
quantitles 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
buyers 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 com-
peting 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 bave re-
sulted in sufficient cost savings of the kind
and character specified as to Justify the price
differential.

Title 16—Commercial Practices

§ 37.16 Aiding or abetting use of un-
fair trade practices.

It is an unfair trade practice for any
industry member to aid, abet, coerce, or
induce another, directly or indirectly, to
use or promote the use of any unfair
trade practice specified in the foregoing
sections.

COMMITTEE ON TRADE PRACTICES
§ 37.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.

PART 39—STEEL BOBBY PIN AND
STEEL HAIR PIN MANUFACTURING

INDUSTRY
Sec.
39.0 Definitions.
Group I
89.1 Misrepresentation and deception in
general.
89.2 Imitation or simulation of trade-

marks, trade names, etc.

39.38 Inducing breach of contract.

39.4 Commercial bribery.

39.56 Defamation of competitors or false
disparagement of their products.

39.6 False Invoicing.

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

39.8 False and misleading price quotations
etc.

39.9 Prohibited sales below cost.

39.10 Misrepresenting products as conform-
Ing to standard.

39.11 Prohibited discrimination.

39.12 Substitution of products.

39.13 Exclusive deals.

39.14 Push money.

39.15 Enticing away employees of competi-
tors.

89.16 Alding or abetting use of unfair trade
practices.

AvTHorITY: The provisions of this Part 39
issued under secs 6, 6, 33 Stat. 721, 719;
15 U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 39
appear at 22 F.R. 4487, June 25, 1957, unless
otherwise noted.

'§39.0 Definitions.

(a) The industry and its products:
Products of the industry consist of steel
bobby pins and steel hair pins.

(b) Members of the Industry are per-
sons, firms, corporations, and organiza-
tions engaged in the manufacture and
sale of any such products.

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