Cut Tack, Cut Nail, And Staple Industry

16 CFR Part 50 · Trade practice rules · in the Code of Federal Regulations 1938-1949 (3 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1949 CFR · Earliest edition: 1938 CFR

Text (1949 edition, OCR)

Chapter I—Federal Trade Commission

a monopoly or to unreasonably 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 anything of
value to agents, employees, or represent-
atives of customers or prospective cus-
tomers or to agents, empioyees, or repre-
sentatives 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. Mali-
ciously enticing away the employees of
competitors with the purpose and effect
of unduly hampering, injuring, or em-
barrassing 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, question-
able credit standing, or by other false
representations, or the false disparage-
ment of the grade or quality of their
goods with the tendency and capacity to
mislead or deceive purchasers or prospec-
tive purchasers is an unfair trade prac-
tice.

§49.5 Imitation of trade-marks,
trade names, etc. The imitation of the
trade-marks, trade names, slogans, or
other marks of identification of competi-
tors, having the tendency and capacity
to mislead or deceive purchasers or pros-
pective purchasers, is an unfair trade
practice.

§ 49.6 Threats of suit. The circulari-
zation of threats of suit for infringement
of patent or trade-mark or copyright
among customers of competitors, not
made in good faith, but for the purpose
and with the effect of harassing and in-
timidating customers, is an unfair trade
practice.

§ 49.7 Espionage. Securing informa-
tion from competitors concerning their
businesses by false or misleading state-
ments or representations or by false im-
personations of one in authority and the
wrongful use thereof to unduly hinder or

§ 49.102

stifle the competition of such competi-
tors, 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 ca-
pacity to misiead or deceive customers
or prospective customers as to the quan-
tity, quality, substance, or size of such
product, is an unfair trade practice.

§ 49.10 Inducing breach of contract.
Maiiciously inducing or attempting to
induce the breach of existing contracts
between competitors and their customers
by any faise 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
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 manu-.
facturer 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 manufactur-
ing such articie, with the effect of mis-
leading or deceiving purchasers, is an
unfair trade practice. :

GROUP II

§ 49.101 Unauthorized use of de-
signs, etc. The practice of usurping de-
signs, styles, or patterns originated by
a competitor 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 dis-
putes in a fair and reasonable 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 pre-
vailing codes.

Part 50—Cut Tack, Cut Nail, and
Staple Industry

GROUP I
Sec.
60.3
50.4
50.5

False marking or branding.
Deceptive selling methods.
Sales below cost.

Page 187


§ 50.3

Sec.
50.6 Misrepresentation in general.
50.7 Imitation of trade-marks, trade names,
etc.
GROUP II

50.101 False invoicing.
50.102 Arbitration.
50.108 Minimum standards of construction.
AUTHORITY: §§ 50.3 to 50.103 issued under
sec. 6 (g), 38 Stat. 722; 15 U. S. C. 46 (g).
Interpret or apply sec. 5, 38 Stat. 719, as
amended; 15 U.S. C. 45.
Source: §§ 50.3 to 50.108 contained in trade
practice rules, Cut Tack, Cut Nall, and Staple
Industry, FTC, Aug. 31, 1931.

GROUP I

§50.3 False marking or branding.
The false marking or branding of prod-
ucts of the industry, with the effect of
misleading or deceiving purchasers with
respect to the quantity, quality, grade, or
substance of the goods purchased, and
the tendency to injuriously affect the
business of competitors, is an unfair
trade practice.

§ 50.4 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 customers or prospec-
tive customers as to the quantity, qual-
ity, substance, or size of such product,
_and the tendency to injuriously affect the
business of competitors, is an unfair
trade practice.

§50.5 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 substan-
. tially lessen competition or tend to create
a monopoly or to unreasonably restrain
trade, is an unfair trade practice.

§50.6 Misrepresentation in general.
The making or causing or permitting to
be made or published any false, untrue,
or deceptive statement by way of adver-
tisement or otherwise concerning the
grade, quality, quantity, substance, char-
acter, nature, origin, size, or preparation
of any product of the industry, having
the tendency and capacity to mislead or
deceive purchasers or prospective pur-
chasers and the tendency to injuriously
affect the business of competitors, is an
unfair trade practice.

§ 50.7 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 mis-

Page 188

Title 16—Commercial Practices

lead or deceive purchasers or prospective
purchasers, and the tendency to injuri-
ously affect the business of such competi-
tors, is an unfair trade practice.

GROUP II

§ 50.101 False invoicing. The prac-
tice of withholding from or inserting in
the invoice statements which make the
invoice a false record, wholly or in part,
of the transaction represented on the
face thereof, is condemned by the
industry.

§ 50.102 Arbitration. The industry
approves the practice of handling dis-
putes in a fair and reasonable 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 pre-
vailing codes.

§ 50.103 Minimum standards of con-
struction. The industry approves the
establishment of minimum standards of
construction.

Part 52——Common or Toilet-Pin
Industry

GROUP I
Sec.
52.3
52.4

Sales below cost,
Imitatlon of trade-marks, trade names,
etc.
Mislabeling.
Deceptive selling methods.
GROUP II

52.101 Publication of price lists and terms
of sale.
52.102 False invoicing.

AvutHoritTy: §§ 52.3 to 52.102 issued under
sec. 6 (g), 38 Stat. 722; 15 U.S. C., 46 (g).
Interpret or apply sec. 5, 38 Stat. 719, as
amended; 15 U.S. C. 45.

Source: §§ 52.3 to 52.102 contained in trade
practice rules, Common or Toilet-Pin In-
dustry, FTC, Sept. 3, 1931.

GROUP I

§ 52.3 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 unreasonably restrain
trade is a unfair trade practice.

§ 52.4 Imitation of trade-marks, trade
names, etc. The imitation of the trade-
marks, trade names, slogans, or other

52.5
52.6