Fluorocarbons Industry
16 CFR Part 51 · Trade practice rules · in the Code of Federal Regulations 1966-1977 (10 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1966 CFR
Text (1977 edition, OCR)
§ 50.20
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.
Norz: Section 60.19 is 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, 1s in
amplification of the note to subparagraph
(8) of paragraph (a) of this sectlon 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
unless justification shall be affirmatively
shown, the Commission is authorized to issue
an order terminating the discrimination:
Provided, however, That nothing herein con-
tained shali prevent a seller rebutting the
prima facle case thus made by showing that
his lower price or the furnishing of services
or facilities to any purchaser or purchasers
was made in good faith to meet an equally
iow 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 ald, 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.
61.0 Definitions.
51.1 Misrepresentation and deception in
general.
51.2 Misrepresentation as to character of
business.
61.3 Misrepresenting products as conform-
ing to standard.
51.4 Misuse of terms “close-outs,” “dis-
continued lines,” “special bargains,”
etc.
61.5 Substitution of products.
61.6 Deceptive use of trade or corporate
names, trade-marks, etc.
61.7 False invoicing.
Title 16—Commercial
Practices
Sec.
51.8
51.9
51.10
Fictitious prices, price lists, etc.
Guarantees, warranties, etc.
Prohibited form of trade restraints
(unlawful price fixing, etc.).
Prohibited sales below cost.
Prohibited discrimination.
Lifting of stocks.
Consignment distribution.
Defamation of competitors or false
disparagement of their products.
Procurement of competitors’ confiden-
tial information by unfalr means
and wrongful use thereof.
Enticing away employees of com-
petitors.
Exclusive deals.
Commercial bribery.
Unlawful interference with competi-
tors’ purchases or sales.
Alding or abetting use of unfair trade
practices.
AvrHority: The provislons of this Part 51
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.c. 46, 45, unless otherwise noted.
Sources: 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 preducts”
shall have the following meaning:
(a) Industry member. Any person,
firm, corporation or organization en-
gaged in the manufacture, fabrication,
processing and sale of industry products,
as defined below, and also those engaged
in the sale and distribution of such prod-
ucts although the same are manufac-
tured, fabricated or processed by others.
(b) Industry products. Finished or
semi-finished products composed in
whole or substantial part of fiuorocarbon
resins, such as, but not limited to, gas-
kets, bearings, rods, tubes, hose, sheets,
and machinery parts, as well as, elec-
tric wire and cable or other products
coated with fluorocarbon resins.
8 51.1 Misrepresentation and deception
in general.
It is an unfair trade practice to use, or
cause or promote the use of, any trade
promotional literature, advertising mat-
ter, guarantee, warranty, mark, brand,
jabel, trade name, picture, design or de-
vice, designation, or other type of oral or
written representation however dissem-
inated or published, which directiy or
by implication, or through failure to dis-
close material information has the ca-
pacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
61.11
61.12
61.13
51.14
61.15
51.16
61.17
61.18
51.19
61.20
61.21
412
Chapter I—Federal
spective purchasers with respect to the
type, kind, grade, quality, quantity, size,
weight, nature, substance, durability,
serviceability, origin, preparation, pro-
duction, manufacture, distribution, or
customary and usual price, of any prod-
uct of the industry, or which has the ca-
pacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public in any other material
respect. [Rule 1]
§ 51.2 Misrepresentation as to character
of business.
It is an unfair trade practice for any
member of the industry to represent, di-
rectly or indirectly, through the use of
any word or term in his corporate or
trade name, in his advertising or other-
wise, that he is a manufacturer of indus-
try products, or that he is the owner or
operator of a factory manufacturing
them, when such is not the fact, or in
any other manner to misrepresent the
character, extent, volume, or type of his
business. [Rule 2]
§ 51.3 Misrepresenting products as con-
forming to standard.
In connection with the sale or offering
for sale of industry products, it is an un-
falr trade practice to represent, through
advertising or otherwise, that such
products conform to any standards rec-
ognized in or applicable to the industry
when such is not the fact. [Rule 3]
§ 51.4 Misuse of terms “close-outs,”
“discontinued lines,” “special bar-
gains,”’ etc.
It is an unfair trade practice to offer
for sale, sell, advertise, describe, or
otherwise represent regular lines of in-
dustry products as “close-outs,” “discon-
tinued lines,” “special bargains,” or by
words or representations of similar im-
port, when such are not true in fact; or
to so offer for sale, sell, advertise, de-
scribe, or otherwise represent industry
products where the capacity and tend-
ency or effect thereof is to lead the pur-
chaser or prospective purchaser to be-
lieve such products are being offered for
sale or sold at greatly reduced prices, or
at so-called “bargain” prices, when such
is not the fact. [Rule 4]
§ 51.5 Substitution of products.
It is an unfair trade practice for an
industry member to make an unau-
thorized substitution of products, where
such substitution has the capacity and
Trade Commission § 51.8
tendency or effect of misleading or de-
ceiving the purchasing or consuming
public, by:
(a) Shipping or delivering industry
products which do not conform to sam-
ples submitted, to specifications upon
which the sale is consummated, or to
representations made prior to securing
the order, without advising the purchas-
er of the substitution and obtaining his
consent thereto prior to making ship-
ment or delivery; or
(b) Falsely representing the reason
for making a substitution. (Rule 5}
§51.6 Deceptive use of trade or corpo-
rate names, trade-marks, etc.
It is an unfair trade practice for any
member of the industry to use any trade
name, corporate name, trade-mark, or
other trade designation, which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-~
spective purchasers as to the character,
name, nature, or origin of any product
of the industry, or of any material used
therein, or which is false or misleading
in any material respect. [Rule 6]
§ 51.7 False invoicing.
Withholding from or inserting in in-
voices any statements or information by
reason of which omission or insertion a
false record is made, wholly or in part,
of the transactions represented on the
face of such invoices, when having the
capacity and tendency or effect of there-
by misleading or deceiving purchasers,
prospective purchasers, or the consum-
ing public, is an unfair trade practice.
(Rule 7)
§51.8 Fictitious prices, price lists, etc.
The publishing or circulating by any
member of the industry of false price
quotations, price lists, terms or condi-
tions of sale, or reports as to production
or sales, when having the capacity and
tendency or effect of misleading or de-
ceiving purchasers, prospective pur-
chasers, or the consuming public, or the
advertising, sale, or offering for sale of
industry products at prices purporting
to be reduced from what are in fact fic-
titious prices, or at purported reductions
in prices when such purported reduo-
tions are in fact fictltious or are other-
wise misleading or deceptive, is an un-
fair trade practice. [Rule 8]
413
§ 51.9
§ 51.9 Guarantees, warranties, etc.
(a) In the sale, offering for sale, or
distribution 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 re-
lating to the Mability of the guarantor
under the guarantee, are adequately and
nondeceptively disclosed; or
(2) To offer or use any guarantee re-
specting an industry product under
which the guarantor fails to observe his
obligations; or
(3) To offer or use any guarantee
which is otherwise deceptive or unfair.
Nore: On April 26, 1960, the Commission
adopted “Guides Against Deceptive Advertis-
ing of Guarantees’ which are set forth as
an appendix to these rules.1
(b) This section shall be applicable
not only to guarantees but also to war-
ranties, to purported guarantees and
warranties, and to any promise or repre-
sentation in the nature of a guarantee
or warranty. [Rule 9]
§ 51.10 Prohibited forms of trade re-
straints (unlawful price fixing, etc.).’
It is an unfair trade practice for any
member of the industry, either directly
1Copies available at the Federal Trade
Commission,
2 The inhibitions of this section are subject
to Public Law 542, approved July 14, 1952,
66 Stat. 682 (the McGuire Act) which pro-
vides that with respect to a commodity
which bears, or the label or container of
which bears, the trade-mark, brand, or
name of the producer or distributor of such
commodity and which is in free and open
competition 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 stipwiated price at which such commodity
may be resold by such buyer when such
contract or agreement is lawful as applied
to intrastate transactions under the laws
of the State, Territory, or territorial juris-
diction in which the resale is to be made
or to which the commodity ts to be trans-
ported for such resale, and when such con-
tract or agreement is not between manufac-
turers, or between wholesalers, cr between
brokers, or between factors, or between re-
tailers, or between persons, firms, or corpora-
tions in competition with each other.
Title 16—Commercial Practices
or indirectly, to engage in any planned
common course of action, or to enter into
or take part in any understanding,
agreement, combination, or conspiracy,
with one or more members of the in-
dustry, or with any other person or per-
sons, to fix or maintain the price of any
goods or otherwise unlawfully to restrain
trade; or to use any form of threat, in-
timidation, or 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
@ party to any such understanding,
agreement, combination, or conspiracy.
[Rule 10]
§51.11 Prohibited sales below cost.
(a) The practice of selling products of
the mdustry 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, sup-
press 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 seliing below the seller’s cost
as is resorted to an 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 monop-
oly. Among the situations in which the
requisite purpose or intent would ordi-
narily be lacking arc cases in which such
sales were: (1) Of seasonal goods near
the conclusion of the season; (2) of obso-
lescent goods; (3) made under judicial
Process; or (4) 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 aver-
age cost in the industry whether such
average cost be determined by an indus-
try cost survey or some other method.
It consists of the total outlay or expendi-
ture by the seller in the acquisition, pro-
duction, 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 ap-
plicable to cost), and general overhead
414
Chapter I—Federal
expenses, incurred by the seller in the
acquisition, manufacture, processing,
preparation for marketing, sale, and de-
livery of the products. Not to be in-
cluded are dividends or interest on
borrowed or invested capital, or non-
operating losses, such as fire losses and
losses from the sale or exchange of capi-
tal 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. [Rule 11]
§ 51.12 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 purchas-
ers of goods of like grade and quality,
where either or any of the purchases
involved 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
3 As 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 possesslons 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 Ter-
ritory or any insular possession or other
aid under the jurisdiction of the United
a hid
Trade Commission § 51.12
under the jurisdiction of the United
States, and are not purchased by schools,
colleges, universities, public libraries,
churches, hospitals, and charitable insti-
tutions not operated for profit, as sup-
plies for their own use;
(2) That nothing contained in this
paragraph shall prevent differentials
which make only due allowance for
differences in the cost of manufacture,
sale, or delivery resulting from the differ-
ing methods or quantities in which such
commodities are to such purchasers sold
or delivered;
Nore: Cost justification under subpara-
gtaph (2) of this paragraph depends upon
net savings in cost based on all facts relevant
to the transactions under the terms of such
subparagraph, For example, if a seller reg-
ularly 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
necessarily 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,
distress sales under court process, or
sales in good faith in discontinuance of
business in the goods concerned;
(6) That nothing contained in this
section shall prevent the meeting in good
faith of an equally low price of a com-
petitor. .
Nors: Subsection (b) of section 2 of the
Clayton Act, as amended, reads as follows:
“Upon proof being made, at any nearing on
& complaint under this section, that there
has been discrimination in price or services
or facilities furnished, the burden of re-
butting the prima facie case thus made by
showing justification shall be upon the per-
son charged with a violation of this section,
and unless justification shall be affirmatively
shown, the Commission is authorized to
issue an order terminating the discrimina-
tion: Provided, however, That nothing
herein contained shall prevent a seller re-
butting the prima facie case thus made by
showing that his lower price or the furnish-
415
§ 51.12
ing of services or facilities to any purchaser
or purchasers was made in good faith to
meet an equally low price of a competitor,
. or the services or facilitles furnished by a
competitor.”
(b) Examples of prohibited price dif-
ferential practices. The following are
examples of price differential practices
to be considered as subject to the pro-
hibitions of paragraph (a) of this section
when involving goods of like grade and
quality which are sold for use, consump-
tion, or resale within any place under the
jurisdiction of the United States, and
which are not purchased by schoois, col-
leges, universities, public libraries,
churches, hospitals, or charitable insti-
tutions not operated for profit, as sup~
plies for their own use, and when:
(1) The commerce requirements spec-
ifled in paragraph (a) of this section are
present; and
(2) The price differential has a
reasonable probability of substantially
lessening competition or tending to
create a monopoly in any line of com-
merce, or of injuring, destroying, or pre-
venting competition with the industry
member or with the customer receiving
the benefit of the price differential, or
with customers of either of them; and
(3) The price differential is not justi-
fied by cost savings (see paragraph
(a) (2) 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 para-
graph (a) (4) of this section); and
(5) The lower price was not made to
meet in good faith an equally low price
of a competitor (see paragraph (a) (5)
of this section).
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 a dis-
count to the same percentage to other cus-
tomers on their purchases during such
period.
Example No. 2, An industry member pelle
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 ss & the
grade and quality of the products sold.
(c) Prohibited brokerage and commis-
sions. It is an unfair trade practice for
Title 16—Commercial Practices
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 3 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 inter-
mediary therein where such intermedi-
ary is acting in fact for or in behalf, or
is subject to the direct or mdirect 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 adver-
tising 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 compensa-
tion or in consideration for any services
or facilities furnished by or through such
customer in connection with the proc-
essing, handling, sale, or offering for
sale of any products or commodities
manufactured, sold, or offered for sale
by such member, uniess such payment
or consideration is available on propor-
tionally equal terms to all other cus~
tomers competing in the distribution of
such products or commodities,
Nore 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 thetr 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 equiva-
lent 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 sero~
ices or facilities. It is an unfair trade
practice 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-
416
Chapter !—Federal Trade Commission
essing, by contracting to furnish or fur-
nishing, 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
accorded to all competing purchasers on
proportionally equal terms.
Nore: See subsection (b) of section 2 of
the Clayton Act, as amended, which is set
forth in the note concluding paragraph (a)
of this section.
(f) Clarification. (1) The following is
presented for the purpose of clarifying
the requirements of paragraphs (d) and
(e) of this section with respect to the
supplying of marketing services, facilities
or allowances by industry members to
their customers, but it is not intended to
imply by such presentation that other
methods which assure of proportional
equality of treatment of competing cus-
tomers may not also be used.
(2) An industry member may stimulta-
neously offer to each of his customers
competing in the resale of his products
the same kind of promotional service,
facility or allowance of a cost value equal
to a uniform percentage of the sales (or
purchases) of the industry member's
products by each customer during a spec-
ified and identical period of time: Pro-
vided, however, That when the service,
facility or allowance offered is of a type
which under reasonable terms and condi-
tions is not usable or suitable to the facil-
ities and business of ali customers, and is
offered to any one customer, the member
offer each of those customers to whom
the service, facility or aliowance is not
usable or suitable an alternative type of
promotional service, facillty or alowance
which is of equivalent measurable cost, is
usable by the customer, and is suitable
to his facilities and business, and
promptly inform all competing customers
of the kind and amount of services, facil-
ities or allowances which he has offered
to each and the respective terms and
conditions under which such services,
facilities or allowances are to be fur-
nished by the industry member; And
provided, further, That when the offer
of any service, facility or allowance to
any customer is conditioned on such cus<
tomer supplying some reciprocal service,
facility or payment, a reciprocal service,
facility or payment be required in the
offers to all other customers and there be
§ 51.14
an equality of ratio among all customers
ag to the measurable cost of that which
{sg supplled by the industry member and
the reciprocal service, facility or payment
required of any customer. The industry
member must take every reasonable pre-
caution to see that services, facilitles or
allowances which he furnishes to custom-
erg are used in accord with the terms of
his offer; and upon fallure of the cus-
tomer to perform any obligation on his
part the industry member must cease
supplying the customer any further serv-
ice, facility or allowance.
(g) Inducing or receiving an illegal
discrimination in price. It ls an unfair
trade practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which 1s prohiblted by the fore-
going provisions of paragraphs (a) to (f)
of this section. [Rule 12]
§ 51.13 Lifting of stocks.
It is an unfalr trade practice for any
member of the industry to purchase the
stock of a distributor or dealer which
has been supplled by a competitor or
competitors when such practice is done
as an inducement to the distributor or
dealer to discontinue handling com-
petitlve products and to handle such
member’s products exclusively, and
where the effect of such act or practice
may be substantially to lessen com-
petition or tend to create a monopoly in
any line of commerce. [Rule 13]
§ 51.14 Consignment distribution.
(a) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment without the express
request or prior consent of the purchaser.
(b) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on conslgnment or pretended con-
signment for the purpose and with the
effect of artificially clogging or closing
trade outlets and restricting compet-
itors’ use of sald trade outlets in getting
their products to purchasers through
regular channels of distribution, there-
by injuring, destroying, or preventing
competition tending to create a mo-
nopoly or unreasonably to restrain trade.
(ce) Nothing in this section shall be
construed to authorize any understand-
417
§ 51.15
ing or agreement, combination or con-
spiracy, or planned common course of
action, by and between industry mem-
bers, mutually to conform or restrict
their practice of shipping goods on con-
signment with the intent or effect of less-
ening competition. [Rule 14]
§51.15 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 competitors’ products in
any respect, or of their business methods,
selling prices, values, credit terms, poli-
fee or services, is an unfair trade prac-
ce.
Nore: Nothing in this section shall be
construed as preventing the full, fair, and
nondeceptive comparison, by demonstration
or otherwise, of competitors’ products with
the products of another industry member
before purchasers or prospective purchasers.
(Rule 15]
§ 51.16 Procurement of competitors’
confidential information by unfair
means and wrongful use thereof.
It is an unfair trade practice for any
member of the industry to obtain infor-
mation concerning the business of & com-
petitor 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 sub-
stantially to injure competition or un-
reasonably restrain trade. [Rule 16]
$51.17 Enticing away employees of
competitors.
It is an unfair trade practice for any
member of the industry wilfully to entice
away employees or sales representatives
of competitors with the intent end effect
of thereby unduly hampering or injur-
ing competitors in their business end
destroying or substantially lessening
competition: Provided, That nothing in
this section shall be construed as pro-
hiblting employees from seeking more
favorable employment, or as prohibit-
ing employers from hiring or offering
employment to employees of competitors
in good faith and not for the purpose of
Title 16—Commercial Practices
injuring, destroying, or
competition. [Rule 17]
§ 51.18 Exclusive deals.
It is an unfair trade practice for any
member of the industry to lease, con-
tract to sell or sell eny industry product,
or fix a price charged therefor, or dis-
count from, or rebate upon, such price,
on the condition, agreement, or under-
standing that the lessee or purchaser
thereof shall not use or deal in the prod-
ucts of a competitor or competitors of
such industry member, where the effect
of such sale or contract for sale, or of
such condition, agreement, or under-
standing, may be substantially to lessen
completion or tend to create a monopoly
in eny line of commerce. [Rule 18]
§ 51.19 Commercial bribery.
It is an unfair trade practice for a
member of the industry, directly or in-
directly 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 prin-
cipais, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry mem-
ber or the maker of such gift or offer,
or to influence such employers or prin-
cipals to refrain from dealing in the
products of competitors or from dealing
or contracting to deal with competitors.
{Rule 19]
§ 51.20 Unlawful interference with com-
petitors’ purchases or sales.
It is an unfair trade practice for any
member of the industry, by means of any
monopolistic practices or through com-
bination, conspiracy, coercion, boycott,
threats, or any other unlawful means,
directiy or indirectly, to interfere with a
competltor’s right to purchase his ma-
terials and supplles from whomsoever he
chooses, or to sell his product to whom-
soever he chooses. [Rule 20]
$851.21 Aiding or abetting use of unfair
trade practices.
It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
preventing
418
Chapter |l—Federal
coerce, or induce another, directly or in-
directly, to use or promote the use of
any unfair trade practice specified in
this part. [Rule 21]
PART 54—WALNUT WOOD
INDUSTRY
Group I
Bec.
54.1 Misuse of word “walnut”.
Group IT
64.101 Standards of nomenclature.
AurHoritr: The provisions of this Part 54
issued under secs. 6(g), 5, 38 Stat. 722, 719;
18 US.C. 46(g), 46, unless otherwise noted.
Source: The provisions of this Part 54
contained in trade practice ruies, Walnut
Wood Industry, FTC, Sept. 12, 1931, unless
otherwise noted.
Group I
§ 54.1 Misuse of word “walnut.”
The false use of the term “walnut”,
either alone or in conjunction with other
words, as applied to wood other than the
wood of the tree of the botanical walnut
family, or the genus Juglans, with the
tendency and capacity to deceive or mis-
Jead purchasers or prospective purchas-
ers, is an unfair trade practice.
Group It
§ 54.101 Standards of nomenclature.
The present commercially used species
of “walnut” should be designated with a
qualifying adjective indicating the
species, variety or place of origin, and
the following names shall be the accepted
trade names for use in the United
States:
Juglans nigra, to be called “American
Walnut” or “Biack Walnut’.
Juglans cinerea, to be called “White Wal-
nut” or “Butternut”.
Juglans regia, to be called “Roy:
“Persian Walnut”.
From England, to be called “English
Walnut’.
From France, to be called “French
Walnut”.
to be called “Italian
From Italy,
Walnut’.
From Turkey, to be called “Turkish
Walnut’.
From Russia, to be called “Russian
Walnut”, or “Caucasian Walnut” or
“Circassian Walnut”.
” or
Trade Commission § 56.1
From Spain, to be called “Spanish
Walnut”.
Juglans sieboldiana, to be called “Jap-
anese Walnut”.
Juglans boliviana, to be called “Bolivian
Walnut”.
PART 56—PLEASURE BOAT
INDUSTRY
Sec.
56.0 The industry and its products defined.
56.1 Deception (general).
56.2 Deception as to length.
56.3 Deceptive speed claims.
56.4 Deception as to maintenance.
66.5 Deceptive use of wood names.
66.6 Deceptive pricing.
56.7 Guarantees, warranties, etc.
56.8 Exclusive deals.
56.9 Prohibited forms of trade restraints
(unlawful price fixing, etc.).
56.10 Defamation of competitors or false
disparagement of their products.
56.11 Prohibited discrimination.
AUTHORITY: The provisions of this Part 56
issued under secs. 6, 5, 38 Stat. 721, '719;
16 U.S.C. 46(g), 45, unless otherwise noted.
Source: The provisions of this Part 56 ap-
pear at 26 F.R. 7012, Aug. 4, 1961, unless
otherwise noted.
§ 56.0 The industry and its products
defined.
Members of this industry are persons,
firms, corporations, and organizations
engaged in the manufacture, sale or dis-
tribution of pleasure boats. Products of
the industry conslsts of pleasure boats of
all types (row boats, motor boats, sail
boats, etc.), the length of which does not
exceed 65 feet, and equipment therefor,
such as engines, propellers, rigging and
tanks, which are installed on such boats
when the boats are sold or offered for
sale. Such equipment, when not installed
on pleasure boats is not to be considered
@ product of the industry.
856.1 Deceptiou (general).
Boats and equipment thereof, shall
not be sold or offered for sale by an in-
dustry member under any representation
or circumstance (including fallure to
adequately disclose relevant facts) hay-
ing the capacity and tendency or effect
of misleading or deceiving purchasers or
prospective purchasers with respect to
size, weight, accommodations, load ca~
419