Golf, Baseball, And Athletic Goods Industries
16 CFR Part 58 · Trade practice rules · in the Code of Federal Regulations 1949-1977 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1949 CFR
Text (1977 edition, OCR)
§ 57.26
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 intermediary
is acting in fact for or in behalf, or ts
subject to the direct or indirect control,
of any party to such transaction other
than the person by whom such compen-
sation is so granted or paid.
(c) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce to pay or
contract for the payment of advertising
or promotional allowances or any other
thing of vaiue to or for the benefit of a
customer of such memher in the course of
such commerce as compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer in connection with the processing,
handling, sale, or offering for sale of any
products or commodities manufactured,
sold, or offered for sale by such member,
unless such payment or consideration is
made known to and is available on pro-
portionally equal terms to all other cus-
tomers competing in the distribution of
such products or commodities.
(d) Prohibited discriminatory serv-
ices or facilities. It 1s 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-
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 all competing purchasers on
proportionally equal terms.
(e) Inducing or receiving an illegal
discrimination in price, advertising or
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.
(1) Exemptions. The prohibitions of
this section shall not apply to purchases
of their supplies for their own use by
schools, colleges, universities, pubiic
libraries, churches, hospitals, and chari-
table institutions not operated for profit.
Title 16—Commerciol Practices
Norz: In complaint proceedings charging
discitmination in price or services or factli-
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 unlese justification shall
be affirmatively shown, the Commission is
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shall prevent a
seller rebutting the prima facile 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 @ competitor. Bee ceotion 2(b), Clayton
Act.
{Rule 251
§ 57.26 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 in-
directiy, 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
Gaour I
Sec.
58.1 Commercial bribery.
58.2 Commercial bribery; continued.
58.3 Misuse of prominent names.
68.4 Misrepresentation as to endorsement,
ote., of industry products,
58.5 Pull-line forcing.
58.7 Appropriating names used by com-
petitor.
58.8 Inducing breach of contract.
COMMITTES ON TRADE PRACTICES
58.201 Industry committees.
AUTHORITY: The provistons of this Part 58
issued under secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Source: The provisions of this Part 58
contained in trade practice rules, Golf, Base-
ball, and Athletic Goods Industries, FTO,
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
430
Chapter |—Federal Trade Commission
principals as an inducement 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 unfalr trade practice: Pro-
vided, That nothing in this section shall
prevent any person, firm, or corporation
from selling 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 athletic goods or equipment
used in the particular branch of athletics
engaged in by said athletes when sald
athletes did not design or do not bona
fide endorse or do not themselves bona
fide use said athletic 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
same are bona fide used or endorsed or
were designed by sald 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 Une 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
§ 58.8
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 unfalr trade practice.
(Sec. 3, 38 Stat. 731, 15 U.S.C. 14)
§ 58.7 Appropriatmg names used by
competitor.
It is an unfalr 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 rlght and good will in and to sald
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 busimess of com-
petitors.
§ 58.8 Inducing breach of contract.
Mallclously mducing 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
persons’ name, nickname, or imitials, or
maliciously interfermg with or obstruct-
img the performance of any such con-
tractual duties or services with the pur-
pose and effect of unduly injuring or
hampering such competitors in their
businesses, is an unfair trade practice.
431
§ 58,201
COMMITTEE ON TRADE PRACTICES
§ 58.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shali be applicable to an indus-
try committee established under this
part.
[21 F.R. 1174, Feb. 21, 1956]
PART 60—METALLIC WATCH BAND
INDUSTRY
Bec.
60.0 The industry and its products defined.
60.1 Deception (general).
60.2 Deception as to metallic content.
60.33 Misuse of “corrosion proof,” “non-
corrosive,” “corrosion resistant,”
“rust proof,” “rust resistant,” eto.
60.4 Deceptive as to origin or place of
manufacture.
60.6 Misrepresentation as to character of
business,
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 false
disparagement of their products.
60.12 Prohibited discrimination.
AuruHoriry: The provisions of this Part 60
issued under secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.
Sovurcs: The provisions of this Part 60 ap-
pear at 27 F.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.
(b) The term “industry products,” as
used in the foregoing paragraph and in
the following rules, includes any kind of
metallic wrist bands which are designed
for holding wrist watches to the wrists of
human beings and which are not perma-
nently attached to the cases of such
watches. When permanently attached to
the cases of wrist watches, by soldering
or otherwise, they are not subject to
the rules for this industry, and are to be
regarded as among the products which
are subject to the rules promulgated by
the Commisston for the Watch Case In-
dustry on January 30, 1948.
Title 16—Commercial Practices
§ 60.1 Deception (general).
(a) It is an unfair trade practice for
any industry member to sell or offer for
sale any industry product under any rep-
resentation, circumstance, or condition
having the capacity and tendency or ef-
fect of decetving purchasers or prospec-
tive purchasers in any material respect.
(b) The prohibitions of this section
are applicable to all forms of advertising,
whether in periodicals, on the radio or
television, and whether written or oral,
and to any form of marking or labeling
of the products, or their containers or
display cards. [Rule 1]
§ 60.2 Deception as to metallic content.
(a) In the sale, offertng for sale, or
distribution of industry products, it is an
unfair trade practice to:
(1) Misrepresent the kind, quantity,
quality, fineness, thickness, or manner
of application, of any metal or metal
alloy contained in an industry product
or part thereof; or
(2) Fail to adequately and nondecep-
tively disclose the metallic composition
of an industry product, or part thereof,
which has an exposed surface of the
appearance of gold and is not through-
out of pure (24 Kt.) gold.”
(3) Use the words “gold,” “karat,”
“earat,” “silver,” “solid silver,” “sterling,”
“sterling silver,” “coin,” “coin silver,”
“platinum,” “fridium,” “palladium,”
“ruthenium,” “rhodium,” or “osmium,”
or any abbreviation thereof, elther alone
or in conjunction with the words
“plated,” “pla ” “filled,” “overlay,”
2 Such disclosure shall be in the form of a
legible and permanent marking on the prod-
uct which 1s so positioned, and of such con-
spicuousness, as to conform with the require-
ments relating to quallty markings which
are set forth in paragraph (g) of this section,
When the composition is wholly of a base
metal having the appearance of gold, the
marking may be either “Base Metal” or by
use of a generally understood identification
of the kind of base metal present (such as,
“anodized Aluminum’ “Brass”; etc.),. When
of a base metal having a surface plating or
coating of gold alloy, 8 marking of “Gold
Filled”, “Gold Plated”, “Gold Plate”, “Gold
Overlay”, “Rolled Gold Plated”, “Rolled Gold
Plate”, “Gold Electroplated”, “Gold Electro-
plate”, “Heavy Gold Electroplated”, or “Heavy
Gold Electroplate”, will be considered ade-
quate when the use of such term ia in full
accord with the respective requirements and
provisions relating thereto which are set
forth in paragraphs (d), (©), (f). and (g), of
this section.
432