Roll And Machine Ticket Industry

16 CFR Part 40 · Trade practice rules · in the Code of Federal Regulations 1938-1959 (4 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1959 CFR · Earliest edition: 1938 CFR

Text (1959 edition, OCR)

Chapter I—Federal

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.

§ 39.13 Exclusive deals. It is an un-
fair trade practice for any member of
the industry to contract to sell or sell
any industry product, or to 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 such condition, agreement, or
understanding, may be substantially to
lessen competition or tend to create a
monopoly in any line of commerce.

§39.14 Push money. It is an unfair
trade practice for any industry member
to pay or contract to pay anything of
value to a salesperson employed by a
customer of the industry member, as
compensation for, or aS an inducement
to obtain, special or greater effort or
service on the part of the salesperson in
promoting the resale of products sup-
plied by the industry member to the
customer:

(a) When the agreement or under-
standing under which the payment or
payments are made or are to be made is
without the knowledge and consent of
the salesperson’s employer; or

(b) When the terms and conditions of
the agreement or understanding are such
that any benefit to the salesperson or
customer is dependent on lottery or
chance; or

(ec) When any provision of the agree-
ment or understanding requires or con-
templates practices or a course of con-
duct unduly and intentionally hampering
sales of products of competitors of an
industry member; or

(d) When, because of the terms and
conditions of the agreement or under-
standing, including its duration, or the
attendant circumstances, the effect may
be substantially to lessen competition or
tend to'create a monopoly; or

(e) When similar payments are not
accorded to salespersons of competing
customers on proportionally equal terms
in compliance with sections 2 (d) and (e)
of the Clayton Act.

Trade Commission § 39.16

Note: Payments made by an industry
member to a salesperson of a customer under
any agreement or understanding that all or
any part of such payments is to be trans-
ferred by the salesperson to the customer, or
is to result in a corresponding decrease in
the salesperson’s salary, are not to be con-
sidered within the purview of this § 39.14, but
are to be considered as subject to the re-
quirements and provisions of section 2 (a)
of the Clayton Act.

§ 39.15 Enticing away employees of
competitiors. It is an unfair trade prac-
tice for any member of the industry wil-
fully to entice away employees or sales-
contact personnel of competitors with
the intent and effect of thereby unduly
hampering or injuring competitors in
their business and destroying or sub-
stantially lessening competition: Pro-
vided, That nothing in this section shall
be construed as prohibiting such persons
from seeking more favorable employ-
ment, or as prohibiting employers from
hiring or offering employment to em-
ployees of a competitor in good faith and
not for the purpose of inflicting injury
on such competitor.

§ 39.16 Aiding or abetting use of un-
fair trade practices. It is an unfair trade
practice for any person, firm, or corpo-
ration 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.

Part 40—Roll and Machine Ticket
Industry [Revoked]

CopIFICATION: Part 40 was revoked, 20 F. R.
4620, June 30, 1955.

Part 40—Environmental Testing
Equipment Manufacturing In-
dustry [Added]

Sec. :

40.0 The industry defined.

40.1 Misrepresentation and deception in
general,

40.2 Deceptive pricing.

40.3  Misrepresentation as to experience

: and production capacity.

40.4 Misrepresentation of performance of
equipment.

40.6 Defamation of competitors or false
disparagement of their equipment.

40.6 Substitution of equipment.

40.7 Misrepresenting equipment as- con-

forming to standard.
40.8 Inducing breach of contract.
40.9 Commercial bribery. :
40.10 Prohibited forms of trade restraints.

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