Embroidery Industry

16 CFR Part 49 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (14 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1938 CFR

Text (1976 edition, OCR)

§ 49.1
coerce, or induce another, directly or in-
directly, to use or promote the use of
any unfair practice specified in this part.

PART 49—-EMBROIDERY INDUSTRY

Group I
Sec.
49.1 Sales below cost.
49.2 - Commercial bribery.
49.3 Enticing employees.
49.4 Defamation of competitors.
49.5 Imitation of trade-marks, trade
names, etc.
49.6 Threats of suit.
49.7 Espionage.
49.8 Deceptive selling methods.
49.10 Inducing breach of contract.
49.11 Misrepresenting character of busi-
ness.
Group IT
49.101 Unauthorized use of designs, etc.

49.102 Arbitration.
COMMITTEE ON TRADE PRACTICES
49.201 Industry committee.

. AuTHORITY: The provisions of this Part 46
issued under secs. 6(g), 5, 38 Stat. 722, 719;
16 U.S.C. 46(g), 45, unless otherwise noted.

Source: The provisions of this Part 49
contained in trade practice rules, Embroidery
Industry, FTC, Aug. 31, 1931, unless other-
wise noted.

Group I
§ 49.1 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
tend to create a monopoly or to unrea-
sonably restrain trade is an unfair trade
practice.

§ 49.2 Commercial bribery.

Directly or indirectly to give or permit
to be given or offer to give money or any-
thing of value to agents, employees, or
representatives of customers or prospec-
tive 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 industry products
from the maker of such gift or offer, or to
influence such employers or principals
to refrain from dealing or contracting to
deal with competitors, is an unfair trade
practice.

§ 49.3 Enticing employees.

Maliciously enticing away the em-
ployees of competitors with the purpose

Title 16—-Commercial Practices

and effect of unduly hampering, injuring,
or embarrassing competitors in their
business is an unfair trade practice.

§ 49.4 Defamation of competitors.

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 dis-
paragement of the grade or quality of
their goods with the tendency and capac-
ity to mislead or deceive purchasers or
prospective purchasers is an unfair trade
practice.

§ 49.5 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-
ceive purchasers or prospective purchas-
ers, is an unfair trade practice.

§ 49.6 Threats of suit.

The circularization of threats of suit
for infringement of patent or trade-mark
or copyright among customers of com-
petitors, not made in good faith, but for
the purpose and with the effect of har-
assing and intimidating customers, in an
unfair trade practice.

§ 49.7 Espionage.

Securing information from competitors
concerning their businesses by false or
misleading statements or representations
or by false impersonations of one in au-
thority and the wrongful use thereof to
unduly hinder or stifle the competition
of such competitor, is an unfair trade
practice.

§ 49.8 Deceptive selling methods.

The sale or offering for sale of any
product of the industry by any false
means or device which has the tendency
and capacity to mislead or deceive cus-
tomers or prospective customers as to the
quantity, quality, substance, or size of
such product, is an unfair trade practice.

§ 49.10 Inducing breach of contract.

Maliciously inducing or attempting to
induce the breach of existing contracts
between competitors and their customers
by any false or deceptive means whatso-
ever, or interfering with or obstructing
the performance of any such contractual
duties or services by any such means,
with the purpose and effect of unduly
hampering, injuring, or embarrassing

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Chapter I—Federal Trade Commission

competitors in their businesses, is an un-
fair trade practice.

§ 49.11 Misrepresenting character of
business.

To represent in advertisements or
otherwise that a concern is a manufac-
turer and owner or operator of a mill
or producing company making an article
of commerce, when in fact such concern
does not own, operate, or possess such a
mill or producing company mnaufactur-
ing such article, with the effect of mis-
leading or deceiving purchasers, is an
unfair trade practice.

Group II

§ 49.101 Unauthorized use of designs,
etc.

The practice of usurping designs,
styles, or patterns originated by a com-
petitor and appropriating them for
one’s own use within 1 year after such
origination, is condemned by the indus-
try.

§ 49.102 Arbitration.

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 ef-
fort 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
§ 49.201 Industry comnnittee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1956]

PART 50—CUT AND WIRE TACK
INDUSTRY

Sec,

60.0 The industry and its products.

50.1 Misrepresentation (general).

50.2 Misrepresentation as to character of
business.

60.3 Misrepresenting products as conform-
ing to standard.

50.4 Deception as to origin.

50.5 Guarantees, warranties, etc.

50.6 Substitution of products.

50.7 Deceptive use or imitation or simu-
lation of trade or corporate names,
trade-marks, etc.

50.8 Deceptive invoicing, etc.

50.9 Defamation of competitors or false
disparagement of their products.

60.10 Inducing breach of contract.

§ 50.2

Sec.

50.11 Enticing away employees of competi-
tors.

Commercial bribery.

Procurement of competitors’ confiden-
tial information.

Coercing purchase of one product as
& prerequisite to the purchase of
other products.

Exclusive deais.

Consignment distribution.

Prohibited sales below cost.

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

Prohibited discrimination.

Aiding or abetting use of unfair trade
practices.

50.12
50.13

50.14

50.15
50.16
50.17
50.18

50.19
50.20

AvtTHoRIty: The provisions of this Part 50
issued under secs. 6, 5, 38 State. 721, 719.
15 U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 50
appear at 23 F.R. 5630, July 25, 1958, unless
otherwise noted.

§ 50.0 The industry and its products.

(a) Products of the industry as cov-
ered by the rules in this part consist of
cut tacks and wire tacks. (Thumb tacks
are not included.)

(b) Members of the industry are per-
sons, firms, corporations, and organiza-
tions engaged in the manufacture, 1m-
portation, sale, offering for sale, or dis-
tribution of such products.

§ 50.1 Misrepresentation (general).

It is an unfair trade practice for any
member of the Industry to make or
publish, or cause to be made or pub-
lished, by way of advertising, labeling, or
otherwise, any statement or representa-
tion which, directly or by implication,
has the capacity and tendency or effect
of deceiving purchasers or prospective
purchasers as to the manufacture or dis-
tribution of any industry product, or as
to the grade, quality, quantity, weight,
count per pound, composition, condition,
use, size, material, finish, holding power,
strength, origin, design, durability, per-
formance, or immunity from or resist-
ance to rust, of any such product, or
which has the capacity and tendency or
effect of deceiving purchasers or pro-
spective purchasers in any other ma-
terial respect.

§ 50.2  Misrepresentation as to character
of business.

It is an unfair trade practice for any
member of the industry, in the course of
or in connection with the offering for
sale, sale, or distribution of industry

419