Rebuilt, Reconditioned And Other Used Automotive Parts Industry
16 CFR Part 62 · Trade practice rules · in the Code of Federal Regulations 1966-1979 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1979 CFR · Earliest edition: 1966 CFR
Text (1979 edition, OCR)
§ 62.0 such commerce, shall pay or grant, or receive or accept, anything of value as a commission, brokerage, or other compensation or any allowance or dis- count in lieu thereof, except for serv- ices 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 intermediary therein where such intermediary 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. (c) Prohibited advertising or promo- tional allowances, etc. No member of the industry engaged in commerce shall 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 con- sideration for any services or facilities furnished by or through such custom- er in connection with the processing, handling, 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 made known to and is available on proportionally equal terms to all other customers compet- ing in the distribution of such prod- ucts or commodities. (d) Prohibited discriminatory serv- ices or facilities. No member of the in- dustry engaged in commerce shall dis- criminate in favor of one purchaser against another purchaser or purchas- ers of a commodity bought for resale, with or without processing, by con- tracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities including, but not limited to, displays, exhibits, and pro- motional material connected with the processing, handling, sale, or offering for sale of such commodity so pur- chased upon terms not made known to and accorded to all competing pur- chasers on proportionally equal terms. Nore: Subsection (b) of section 2 of the Clayton Act, as amended, which is set forth in the note concluding paragraph (a) of this Title 16—Commercial Practices section, is applicable to paragraph (d) of this section. (e) Inducing or receiving an illegal discrimination in price. No member of the industry engaged in commerce, in the course of such commerce, shall knowingly induce or receive a discrimi- nation in price, advertising or promo- tional allowances, or services or facili- ties, which is prohibited by the forego- ing provisions of this section. (Rule 12) PART 62—REBUILT, RECONDITIONED AND OTHER USED AUTOMOTIVE PARTS INDUSTRY Sec. 62.0 Definitions. 62.1 Deception as to previous use of prod- ucts. 62.2 Deception as to identity of rebuilder, remanufacturer, reconditioner or re- liner. 62.3 Misrepresentation as to condition of products and misuse of the terms “re- built,” “factory rebuilt,” ‘“remanufac- tured,’ etc. AutTuonrirty: Secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: 27 FR 6210, June 30, 1962, unless otherwise noted. § 62.0 Definitions. (a) Industry member. Any person, firm, corporation or organization en- gaged in the sale or distribution of any industry product as defined below. (b) Industry products. Industry products are automotive parts and automotive assemblies which have been used or which contain used parts, whether such parts or assemblies have been rebuilt, remanufactured, recondi- tioned, relined, or otherwise. The terms “automotive parts” and “auto- motive assemblies” as herein used mean any part or assembly designed for an automobile, truck, motorcycle, tractor or similar self-propelled vehi- cle. Industry products include, but are not limited to, armatures, generators, starters, carburetors, clutches, distrib- utors, connecting rods, crankshafts, cylinder blocks, engine assemblies, fuel pumps, brakes, master and wheel brake cylinders, power brakes, shock absorbers, starter drives, solenoids, automatic transmissions, regulators, 348 Chapter |—Federal Trade Commission spark plugs, springs, windshield wiper motors and water pumps. Automobile tires are not products of the industry. §62.1 Deception as to previous use of products. (a) It is an unfair trade practice to represent, directly or by implication, that any industry product is new or unused, or that any part of an indus- try product is new or unused when such is not the fact, or to misrepresent the extent of previous use thereof. (b) It is an unfair trade practice for an industry member to offer for sale or sell any industry product unless a clear and conspicuous disclosure that such product has been used or con- tains used parts is made in all the in- dustry member’s advertising, sales pro- motional literature and invoices con- cerning the product, on the container in which the product is packed and if the product has been rebuilt, remanu- factured, reconditioned or has the ap- pearance of being new, on the product with sufficient permanency to remain thereon after installation for a reason- able period of time under ordinary conditions of use, and in such manner that said disclosure cannot be easily removed or obliterated. (1) Form of disclosure. The disclo- sure that an industry product has been used or contains used parts as re- quired by this section may be made by use of a word such as, but not limited to, “Used,” “Secondhand,” ‘“Re- paired,” ‘““Remanufactured,” ‘““Recondi- tioned,” “Rebuilt,” or ‘Relined,’ whichever is applicable to the product involved. On invoices to the trade only the disclosure required by this section may be made by use of any number, mark, or other symbol which is clearly understood by all purchasers receiving such invoices as meaning that the products, or parts thereof, identified on the invoices have been used. (2) Conspicuousness of disclosure. The disclosure required by this section shall be of such size or color contrast and so placed as to be readily notice- able to purchasers or prospective pur- chasers reading advertising, sales pro- motional literature, or invoices con- taining same, or reading any represen- tation as to content on the container § 62.2 in which an industry product is packed, or inspecting an industry product before installation, or with a minimum of disassembly after installa- tion. (c) It is an unfair trade practice to place any means or instrumentality in the hands of others whereby they may mislead purchasers or prospective pur- chasers as to the previous use of indus- try products or parts thereof. [Rule 1] §62.2 Deception as to identity of rebuild- er, remanufacturer, reconditioner or reliner. (a) It is an unfair trade practice to misrepresent the identity of the re- builder, remanufacturer, reconditioner or reliner of an industry product. (b) In connection with the sale or of- fering for sale of an industry product if the identity of the original manufac- turer of the product, or the identity of the manufacturer for which the prod- uct was originally made, is revealed - and the product was rebuilt, remanu- factured, reconditioned or relined by other than the manufacturer so iden- tified, it is an unfair trade practice to fail to disclose such fact wherever either of said manufacturers is identi- fied in advertising and sales promo- tional] literature concerning the prod- uct, on the container in which the product is packed, and on the product, in close conjunction with, and of the same permanency and conspicuous- ness as, the disclosure of previous use of the product required by this sec- tion. Examples of disclosures consid- ered to be in compliance with the re- quirements of this section are as fol- lows: (1) Disclosure of the identity of the rebuilder as, for example: Rebuilt by John Doe Co. (2) Disclosure that the product was rebuilt by an independent rebuilder as, for example: 349 § 62.3 Rebuilt by an Independent Rebuilder (3) Disclosure that the product was rebuilt by other than the manufactur- er so identified as, for example: Rebuilt by other than XYZ Motors (4) Disclosure that the product was rebuilt for the identified manufactur- er, if such is the case, as for example: Rebuilt for XYZ Motors (Rule 2] § 62.3 Misrepresentation as to condition of products and misuse of the terms “re- built,” “factory rebuilt,” “remanufac- tured,” etc. (a) It is an unfair trade practice to use, or cause or promote the use of, any statement or representation in ad- vertising, on containers, on industry products, or elsewhere, which has the capacity and tendency or effect of mis- leading or deceiving purchasers or prospective purchasers as to the condi- tion of an industry product, or the extent that an industry product has been repaired or reconstructed. (b) It is an unfair trade practice to use the words “Rebuilt,” “Remanufac- tured,” or words of similar import, as descriptive of an industry product which, since it was last subjected to any use, has not been dismantled and reconstructed as necessary, all of its internal and external parts cleaned and made free from rust and corro- sion, all impaired, defective or sub- stantially worn parts restored to a sound condition or replaced with new, rebuilt ‘ or unimpaired used parts, all missing parts replaced with new, re- built ' or unimpaired used parts, and such rewinding or machining and other operations performed as are nec- essary to put the industry product in sound working condition. ‘In accord with the provisions of this paragraph (b). Title 16—Commercial Practices (c) It is an unfair trade practice to represent an industry product as ‘“‘Fac- tory Rebuilt” unless the product was rebuilt as described in paragraph (b) of this section at a factory generally engaged in the rebuilding of such products. (See also § 62.2) [Rule 3] PART 118—MIRROR INDUSTRY Sec. 118.0 Definitions. 118.1 Deception (general). 118.2 Misrepresentation of kind or type of industry products. 118.3 Disclosure of foreign origin. 118.4 Disclosure of fact that products are “rejects,” ‘“‘secornds,” etc. 118.5 Misrepresenting products as con- forming to standard. 118.6 Deceptive pricing. 118.7 Deceptive use or imitation or simula- tion of trade or corporate names, trade- marks, etc. 118.8 False invoicing. 118.9 Guarantees, warranties, etc. 118.10 Substitution of products. 118.11 Commercial bribery. 118.12 Procurement of competitors’ confi- dential information by unfair means and wrongful use thereof. 118.13 Unfair threats of infringement suits. 118.14 Inducing breach of contract. 118.15 Prohibited forms of trade restraints (unlawful price fixing, etc.). 118.16 Prohibited discrimination. 118.17 Aiding or abetting use of unfair trade practices. Avutuortiry: Secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. Source: 27 FR 6213, June 30, 1962, unless otherwise noted. § 118.0 Definitions. As used in these rules the terms ‘“In- dustry Member’ and “Industry Prod- ucts” shall have the following mean- ing: (a) Industry member: Any person, firm, corporation or organization (in- cluding manufacturers, wholesalers, jobbers, importers, retailers, etc.) en- gaged in the manufacture, sale, offer- ing for sale, or distribution of industry products as defined below. (b) Industry products. All kinds and types of mirrors both utilitarian and decorative. (c) For the purposes of these rules the following definitions shall apply: 350