Cut Arid Wire Tack Industry

16 CFR Part 50 · Trade practice rules · in the Code of Federal Regulations 1974-1974 (1 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1974 CFR · Earliest edition: 1974 CFR

Text (1974 edition, OCR)

Chapter I—Federal Trade

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 @
mill or producing company mnaufactur-
ing such article, with the effect of mis-
leading or deceiving purchasers, is an
unfair trade practice.

Group IL

§ 49.101 Unauthorized use of designs,
ete.

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 Arhitration.

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
thernselves 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 committee.

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.

50.0 The industry and its products.

50.1 Misrepresentation (general).

50.2 Misrepresentation as to character of
business.

50.3. 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.

50.10 Inducing breach of contract.

Commission § 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 deals.

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.

AutTHoRITY: 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 preducts.

(a) Products of the industry as cov-
ered by the rules m 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, im-
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, holdmg 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

50.12
50.13

50.14

50.15
50.16
50.17
50.18

50.19
50.20

403


§ 50.3

products, to misrepresent the character,
extent, volume, or type of his business.

§ 50.3 Misrepresenting products as cou-
forming to standard.

In connection with the sale or offering
for sale of industry products, it is an.un-
fair trade practice to represent, through
advertising or otherwise, that such prod-
ucts conform to any standards recog-
nized in or applicable to the industry
when such is not the fact.

§ 50.4 Deception as to origin.

(a) It is an unfair trade practice to
sell or offer for sale industry products
under any representation which has the
capacity and tendency or effect of de-
ceiving purchasers or prospective pur-
chasers as to the place of manufacture
thereof.

(b) It is an unfair trade practice to sell
or offer for sale industry products of
foreign manufacture without adequate
and nondeceptive disclosure of the fact
that such products were manufactured
in an identified foreign country, when
the failure to make such disclosure has
the capacity and tendency or effect of de-
ceiving purchasers or prospective pur-
chasers of such products. Such disclo-
sure of foreign origin, as when required
under this section, shall be in the form
of a legible marking, stamping, or label-
ing on the outside of the containers in
which the products are sold or offered
for sale, and shail be of such size, con-

spicuousness, and degree of permanency,.

as to be and remain noticeable and read-
able upon casual inspection during the
marketing of the products and until con-
summation of their sale for use,

§ 50.5 Guarantees, warranties, etc.

(a) In the sale, offering for sale, or dis-
tribution of industry products, it is an
unfair trade practice for any industry
member:

(1) To represent that any industry
product is guaranteed unless, in close
conjunction with such representation,
the identity of the guarantor, the extent
and nature of the guarantee, and any
material conditions or limitations reiat-
ing to the liability of the guarantor under
the guarantee, are adequately and non-
deceptively disclosed; or

(2) To offer or use any guarantee re-
specting an industry product under
which the guarantor fails to observe his
obligations; or

Title 16—Commercial Practices

(3) To offer or use any guarantee
which is otherwise deceptive or unfair.

(b) This section shall be applicable.
not only to guarantees but also to war-
rantles, to purported guarantees and
warrantles, and to any promise or rep-
resentation in the nature of a guarantee:
or warranty.

§50.6 Substitution of products.

It is an unfair trade practice for a
member of the industry to make an un-
authorized substitution of products,
where such substitution has the capacity:
and tendency or effect of misleading or
deceiving purchasers, by:

(a) Shipping or delivering industry
products which do not conform to
samples submitted, to specifications (in
bids or otherwise) upon which the sale
is consummated, or to representations.
made prior to securing the order, without
advising the purchaser of the substitu-
tion and obtaining his consent thereto
prior to making shipment or delivery; or

(b) Falseiy representing the reason:
for making a substitution.

§ 50.7 Deceptive use or imitation or
simulation of 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 use any trade name, corporate
name, trade-mark, or other trade desig-
nation, which has the capaclty and tend-.
ency or effect of misleading or deceiving
purchasers or prospective purchasers as
to the name, nature, or origin of any
product of the industry, or of any ma-
terial used therein, or which is false, de-
ceptive, or misleading in any other ma-
terial respect.

§ 50.8 Deceptive invoicing, etc.

It is an unfair trade practice for any
member of the industry to issue invoices,
billings, or sales slips which by reason of
misstatements therein or omissions
therefrom have the capacity and tend-
ency or effect of deceiving purchasers or
prospective purchasers in any material
respect.

404


Chapter |—Federal Trade Commission

$50.9 Defamation of competitors or
false disparagement of their prod-
ucts.

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 products of competi-
tors in any respect, or of their business
methods, selling prices, values, credit
terms, policies, or services, is an unfair
‘trade practice,

§ 50.10 Inducing breach of contract.

(a) Knowingly inducing or attempt-
ing to induce the breach of existing law-
ful contracts between competitors and
their customers or their suppliers, or in-
terfering with or obstructing the per-
formance of any such contractual duties
or services, under any circumstance hav-
ing the capacity and tendency or effect of
substantially injuring or lessening pres-
ent or potential competition, is an unfair
trade practice.

(b) Nothing in this section is intended
to imply that it is improper for an indus-
try member to solicit the business of a
customer of a competing industry mem-
ber; nor is the section to be construed as
in anywise authorizing any agreement,
understanding, or planned common
course of action by two or more industry
members not to solicit business from the
customers of either of them, or from
customers of any other industry member.

§ 50.11 Enticing away employees of
competitors.

It is an unfair trade practice willfully
to entice away employees or saies repre-
sentatives of competitors with the intent
and effect of thereby unduly hampering
or injuring competitors in their business
and destroying or substantially lessening
competition: Provided, That nothing in
this section shall be construed as prohib-
iting employees from seeking more
favorable employment, or as prohibitmg
employers from hiring or offering em-
ployment to employees of competitors in
good faith and not for the purpose of
injuring, destroying, or preventing com-
petition.

§ 50.12 Commercial bribery.

It is an unfair trade practice for a
member of the industry, directly or in-
directiy, to give, or offer to give, or per-
mit or cause to be given, money or any-

§ 50.16

thing of value to agents, employees or
representatives of customers or pro-
spective customers, or to agents, em-
ployees or representatives of competi-
tors’ customers or prospective customers,
without the knowledge of their employers
or principals, as an inducement to influ-
ence their employers or principals to
purchase or contract to purchase prod-
ucts manufactured or sold by such in-
dustry 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 deal-
ing or contracting to deal with com-
petitors.

§ 50.13 Procurement of competitors’
confidential information.

It is an unfair trade practice for any
member of the industry to obtain mfor-
mation concerning the business of a
competitor by bribery of an employee or
agent of such competitor, by false or mis-
leading statements or representations,
by the impersonation of one in authority,
or by any other unfair means, and to use
the information so obtained so as to in-
jure said competitor in his business or to
suppress competition or unreasonably
restrain trade.

§ 50.14 Coercing purchase of one prod-
uct as a prerequisite to the purchase
of other products.

The practice of coercing the purchase
of one or more products as a prerequisite
to the purchase of one or more other
products, where the effect may be sub-
stantially to lessen competition or tend to
create a monopoly or unreasonably to re-
strain trade, is an unfair trade practice.

§ 50.15 Exclusive deals.

It is an imfair 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 condi-
tion, agreement, or understanding that
the purchaser thereof shall not use or
deal in the products of a competitor or
competitors 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.

§ 50.16 Consignment distribution.

(a) It is an unfair trade practice for
any member of the industry to employ

405


§ 50.17

the practice of shipping industry prod-
ucts on consignment without the express
request of prior consent of the pur-
chasers.

(b) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment or pretended con-
signment for the purpose and with the
effect of artificially clogging or closing
trade outlets and unduly restricting
competitors’ use of said trade outlets in
getting their products to purchasers
through regular channels of distribution,
thereby injuring, destroying, or prevent-
ing competition or tending to create a
monopoly or unreasonably to restrain
trade.

(ec) Nothing in this section shall be
construed to authorize any understand-
ing or agreement, combination or con-
spiracy, or planned common course of
action, by and between industry nem-
bers, mutually to conform or restrict
their practice of shipping goods on con-
signment with the intent or effect of
lessening competition.

§ 50.17 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 where
there is a reasonable probability that the
effect will be, to substantially injure,
suppress, or stifie competition or tend to
create a monopoly, is an unfair 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) Made under judi-
cial process; or (2) mnade in bona fide
discontinuance 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 acqui-

Title 16—Commercial Practices

sition, 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 acquisition, 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 nonop-
erating losses, such as fire losses and
losses from the sale or exchange of cap-
ital 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 ag relieving an industry mem-
ber from compliance with any of the re-
quirements of the Robinson-Patman Act.

§ 50.18 Prohibited forms of trade re-
; ave (unlawful price fixing,
etc.).

It is an unfair trade practice for any
member of the industry, either directly or
indirectly, 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 other-
wise unlawfully to restrain trade; or to
use any form of threat, intimidation, or

1The inhibitions of tbis section are sub-
ject to Public Law 542, approved July 14,
1952, 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 trademark, brand, or name
of the producer or distributor of such com-
modity and which is in free and open com-
petition with commodities of the same
general class produced or distributed by
others, a seller of such a commodity may
enter into a contract or agreement with a
buyer thereof which establishes a minimum
or stipulated price at which such commodity
may be resold by such buyer when such con-
tract 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 per-
sons, firms, or corporations in competition
with each other.

406


Chapter I—Federal Trade Commission

coercion to induce 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 understanding, agreement,
combination, or conspiracy.

§ 50.19 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
openly, directly or indirectly, any rebate,
refund, discount, credit, or other form of
price differential, where such rebate,
refund, discount, credit, or other form of
price differential, effects a discrimina-
tion in price between different pur-
chasers of goods of like grade and quality,
where either or any of the purchases in-
volved therein are in commerce, and
where the effect thereof may be sub-
stantially 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, public lbraries,
churches, hospitals, and charitable in-
stitutions not operated for profit, as
supplies for their own use;

(2) That nothing contained in this
paragraph shail prevent differentiais
which make only due allowance for dif-
ferences in the cost of manufacture, sale,
or delivery resulting from the differing
methods or quantities in which such

2As used in this section, the word “com-
merce” 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 Dis-
trict of Columbia or any foreign nation, or
within the District of Columbia or any Terri-
tory or any insular possession or other place
under the jurisdiction of the United States.”

§ 50.19

commodities are to such purchasers sold
or delivered;

Nore: Cost justification under paragraph
(a) of this section depends upon net savings
in cost based on all facts relevant to the
transactions under the terms of subpara-
graph (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 singie 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 muitipie 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 lim-
ited to 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: See subsection (b) of section 2 of
the Clayton Act as amended, which is set

forth in the note following paragraph (f) of
this section. graph (£)

(b) The following are examples of
price differential practices to be con-
sidered as subject to the prohibitions of
paragraph (a) of this section when in-
volving goods of like grade and quality
which are sold for use, consumption, or
resale within any place under the juris-
diction of the United States, and which
are not purchased by schools, colleges,
universities, public libraries, churches,
hospitals, and charitable 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 differentlal has a rea-
sonable probability of substantially less-
ening competition or tending to create
a monopoly in any line of commerce, or
of injuring, destroying, or preventing
competition with the industry member or
with the customer receiving the benefit

407


$ 50.19

of the price differential, or with cus-
tomers of either of them; and

(3) The price differential is not justi-
fied by cost savings (see subparagraph
(2) of paragraph (a) 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 sub-
paragraph (4) of paragraph (a) of this
section); and

(5) The lower price was not made to
meet in good faith an equally low price
of a competitor (see subparagraph (5)
of paragraph (a) of this section).

Example No. 1. At the end of a given
period an industry member grants a dis-
count to a customer equivalent to a fixed
percentage 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 is ac-
complished by misrepresentation as to the
grade and quallty of the products sold.

Example No. 3. An industry member in-
voices goods to all his customers at the same
price but supplies additional quantities of
such goods at no extra charge to one or more,
but not to all, such customers; or supplies
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.

Example No. 4. Terms of 2/10th prox. 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 percent instead of a 2 percent discount
when making payment to the industry mem-
ber within the time prescribed.

Note: As previously indicated, the fore-
going are examples of practices to be con-
sidered violative of the prohibitions of para-
graph (a) of this section when involving
goods of Hke grade and quality and when
not subject to the other exemptions, exclu-
sions, or defenses set forth in this paragraph.

(c) 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 recelve 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

Title 16—Commercial Practices

goods, wares, or merchandise, either to
the other party to such transaction or to
an agent, representative, or other in-
termediary therein where such interme-
diary is acting in fact for or in 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 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 faclli-
ties furnished by or through such cus-
tomer in connection with the processing,
handiing, sale, or offering for sale of
any products or commodities manufac-
tured, 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.

Note 1: Industry members giving adver-
tising allowances to competing customers
must exercise precaution and diligence in
seeing that all of such allowances are used
in accordance with the terms of their offers.

Nore 2: When an industry member gives
allowances to competing customers for ad-
vertising in a newspaper or periodical, the
fact that a lower advertising rate for equiv-
alent space is 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 customer or 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 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
furnishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not ac-
corded to alli competing purchasers on
proportionally equal terms.

Note: See subsection (b) of section 2 of
the Ciayton Act as amended, which is set
forth in the note following paragraph (f)
of this section,

408


Chapter I—Federal Trade Commission

(f) Inducting 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.

Nore: Paragraph (f) of this section is a
restatement of section 2 (f) of the Clayton
Act as amended. In a complaint proceeding
under this section in order to make out @
prima facte violation, the Commission must
show that the favored huyer induced or
received 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 subpara-
graph (2), (4), or (5) of paragraph (a) of
this section. When, in any such proceedings,
the issue is limited to the question of
whether the price differential involved made
only due allowance for differences !n cost of
manufacture, sale, or delivery resulting from
the differing methods or quantities in which
the goods were sold and delivered, the Com-
mission may establish a prima facie case in
a number of ways, including:

(1) By showing that the buyer paying the
lower price knew that the methods by, and
quantities in, which the goods were sold and
delivered to him by the selier 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 quantites in which the
goods were sold and delivered by the seller
to the buyer than in the case of the compet-
ing 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 have resulted in
sufficient cost savings of the kind and
character specified as to justify the price
differential.

Nore: Section 50.19 1s based on the provi-
sions of section 2 of the Clayton Act as
amended by the Robinson-Patman Act.

Subsection (b) of section 2 of the Clayton
Act as amended, which reads as follows, is In
amplification of the note to subparagraph
(5) of paragraph (a) of this section and of
the note to paragraph (e) of this section:

“Upon proof being made, at any hearing
on a complain under this section, that there
has been discrimination in price or services
of facilities furnished, the burden of rebut-
ting the prima facie case thus made by show-
ing justification shall be upon the person
charged with a violation of this section, and
uniess justification shall be affirmatively
shown, the Commission is authorized to issue
an order terminating the discrimination:
Provided, however, That nothing herein con-
tained 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

§ 51.0

was made in good falth to meet an equally
low price of a competitor, or the services or
facilities furnished by a competitor.”

§ 50.20 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.

PART 51—FLUOROCARBONS

INDUSTRY

Sec.

51.0 Definitions.

51.1 Misrepresentation and deception in
general.

51.22 Misrepresentation as to character of
business.

51.3 Misrepresenting products as conform-
ing to standard.

514 Misuse of terms “close-outs,” “dis-
continued lines,” “special bargains,”
etc.

51.5 Substitution of products.

51.6 Deceptive use of trade or corporate
names, trade-marks, etc.

51.7 False invoicing.

51.8 Fictitious prices, price lists, etc.

51.9 Guarantees, warranties, etc.

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

51.11 Prohibited sales below cost.

51.12 Prohibited discrimination.

51.13 Lifting of stocks,

51.14 Consignment distribution.

51.18 Defamation of competitors or false
disparagement of their products.

51.16 Procurement of competitors’ confiden-
tial information by unfair means
and wrongful use thereof.

51.17 Enticing away employees of com-
petitors.

51.18 Exclusive deals.

51.19 Commercial bribery.

51.20 Unlawful interference with competi-
tors’ purchases or sales.

51.21 Aiding or abetting use of unfair trade

practices.

AUTHORITY: The provisions of this Part 51
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Sovugces: The provisions of this Part 51 ap-
pear at 26 F.R. 184, Jan. 11, 1961, unless
otherwise noted. ,

§ 51.0 Definitions.

As used in this part the terms “in-
dustry member” and “industry products”
shall have the following meaning:

(a) Industry member. Any person,
firm, corporation or organization en-
gaged in the manufacture, fabrication,

409

20-058—-74——-27