Golf, Baseball, AMD Athletic Goods Industries

16 CFR Part 58 · Trade practice rules · in the Code of Federal Regulations 1971-1971 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1971 CFR · Earliest edition: 1971 CFR

Text (1971 edition, OCR)

Chapter |—Federal

promotional allowances, or services or
facilities. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
merce, knowingly to induce or receive a
discrimination in price, advertising or
promotional allowances, or services or
facilities, prohibited by the foregoing
provisions of this section.

(f) Exemptions. The prohibitions of
this section shall not apply to purchases
of their supplies for their own use by
schools, colieges, universities, public
libraries, churches, hospitals, and chari-
table institutions not operated for profit.

Nore: In complaint proceedings charging
discrimination in price or services or facili-
ties furnished, and upon proof having been
made of such discrimination, the burden of
rebutting the prima facile case thus made
by showing justification shall be upon the
person charged; and uniess justification shal!
be affirmatively shown, the Commisslon is
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained 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 was made in good
faith to meet an equally low price of a com-
petitor, or the services or facilities furnished
by a competitor. See section 2(b), Clayton
Act.

[Rule 25]

§ 57.26 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 in-
directly, to use or promote the use of
any unfair trade practice specified in
this part. [Rule 26]

PART 58—GOLF, BASEBALL, AND
ATHLETIC GOODS INDUSTRIES

Group I

Sec.

58.1 Commercial bribery.

§8.2 Commercial bribery; continued,

§8.3 Misuse of prominent names,

58.4 Misrepresentation as to endorsement,
etc., of industry products.

58.5 Pull-line forcing.

§8.7 Appropriating names used by com-
petitor.

§8.8 Inducing breach of contract.

COMMITTEE ON TRADE PRACTICES
68.201 Industry committee.

Avur#Hortry: The provisions of this Part 58
issued under secs. 6(g), 5, 88 Stat. 722, 719;
15 USC. 46(g), 45, unless otherwise noted.

Trade Commission § 58.3

Source: The provisions of this Part 58
contained in trade practice rules, Golf, Base-
pall, and Athletic Goods Industries, FTC,
Oct. 29, 1931, unless otherwise noted.

Group I
§ 58.1 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’ cus-
tomers or prospective customers, with-
out the knowledge of their employers or
principals as an mducement to influence
their employers or principals to pur-
chase 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,
with the tendency to injuriously affect
the business of competitors, is an unfair
trade practice.

§ 58.2 Commercial bribery; continued.

For any person, firm, or corporation
to give anything of value to those em-
ployed in any capacity involving special
trust (such as instructor, director of
athletics, or advisor in any particular
line of sports), without the knowledge
of their employers, upon the condition
or understanding, express or implied,
that its goods be recommended or used
by such person, in preference to the ath-
letic goods or equipment of a competitor
or competitors of that person, firm, or
corporation, with the tendency to in-
juriously affect the business of competi-
tors, is an unfair trade practice: Pro-
vided, That nothing in this section shall
prevent any person, firm, or corporation
from seliing its goods to anyone upon
whatsoever terms it sees fit but without
any condition or understanding, express
or implied, as to the recommendation or
use of said athletic goods or equipment,

§ 58.3 Misuse of prominent names.

The use of the names of prominent
athletes on athietic goods or equipment
used in the particular branch of athletics
engaged in by said athletes when said
athietes did not design or do not bona
fide endorse or do not themselves bona
fide use said athietic goods or equipment,
and where from the use of said name
there is a tendency and capacity to in-
duce purchasers of said athletic goods
or equipment to purchase said athletic
goods or equipment in the belief that the

419


§ 58.4

same are bona fide used or endorsed or
were designed by said athletes, with the
tendency to injuriously affect the busi-
ness of competitors, is an unfair trade
practice.

§ 58.4 Misrepresentation as to endorse-
ment, etc., of industry products.

Falsely advertising or falsely repre-
senting that an athlete prominent in a
particular line of sports or athletics de-
signed or uses or endorses certain ath-
letic goods or equipment, with the tend-
ency and capacity to deceive purchasers
or prospective purchasers and the tend-
ency to injuriously affect the business
of competitors, is an unfair trade prac-
tice.

§ 58.5 Full-line forcing.

For any person, firm, or corporation
to lease or make a sale or contract for
sale of athletic goods or equipment,
whether patented or unpatented, for use,
consumption, or resale within the United
States, or to fix a price charged therefor,
or discount from, or rebate upon, such
price, on the condition, agreement, or
understanding that the lessee or pur-
chaser thereof shall not use or deal in
the athletic goods or equipment of a
competitor or competitors of the lessor
or seller where the effect of such lease,
sale, or contract for sale or such condi-
tion, agreement, or understanding may
be to substantially lessen competition or
tend to create a monopoly in any line
of commerce, is an unfair trade practice.
(Sec. 3, 38 Stat. 731, 15 U.S.C. 14)

§ 58.7 Appropriating names ‘used by
competitor.

It is an unfair trade practice for any
person, firm, or corporation to use on,
or in any way in connection with the
sale of any of, its athletic goods or equip-
ment the name, nickname, or initials of
any athlete or person prominent in any
line of sport, when a competitor has pre-
viously acquired of the said athlete or
person, and with his approval, the. ex-
clusive right and good will in and to said
name, nickname, or initials for use on
the same line of goods, and where the
effect of the use by the said person, firm,
or corporation of the said name, nick-
name, or initials is to deceive or tend
to deceive the purchasing public as to
the source or make of the said line of
goods, and where the tendency is to in-
juriously affect the business of com-
petitors.

Title 16—Commercial Practices

§ 58.8 Inducing breach of contract.

Maliciously inducing or attempting to
induce the breach of existing contracts
between competitors and any athletes or
persons prominent in any line of sport
relative to the use of said athletes’ or per-
sons’ name, nickname, or initials, or Ma-
liciously interfering with or obstructing
the performance of any such contractual
duties or services with the purpose and
effect of unduly injuring or hampering
such competitors in their businesses, is
an unfair trade practice.

COMMITTEE ON TRADE PRACTICES
§ 58.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
try committee established under this
part.

[21 FR. 1174, Peb. 21, 1956]

PART 60—METALLIC WATCH BAND

INDUSTRY

Sec.

60.0 The industry and its products defined.

60.1 Deception (general).

60.2 Deception as to metallic content.

60.3 Misuse of “corrosion proof,” ‘non-.
corrosive,” ‘corrosion  resistant,’”
“rust proof,” “rust resistant,” etc.

60.4 Deception as to origin or place of
manufacture.

60.6 Misrepresentation as to character of
pusiness.

60.6 Deceptive pricing.

60.7 Deception as to identity of manufac-

. turer or seller.

60.8 Misrepresenting products as conform-
ing to standard.

60.9 Guarantees, warranties, etc.

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

60.11 Defamation of competitors or fnise
disparagement of their products.

60.12 Prohibited discrimination.

Auruority: The provisions of this Part, 60
issued under secs. 6, 5, 38 Stat. 721, 719; 15.
U.S.C. 46, 45, unless otherwise noted. -

Source: The provisions of this Part 60 ap~
pear at 27. P.R. 6205, June 30, 1962, unless
otherwise noted.

§60.0 The industry and its products de-
fined. -

(a) Members of this industry are per-.
sons, firms, corporations, or organiza-~-
tions which engage in the manufacture,
sale, offering for sale or distribution of
industry products as the term .“‘industry
products” .is:defined:in the paragraph
which immediately follows.

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