Braided Rug Industry
16 CFR Part 71 · Trade practice rules · in the Code of Federal Regulations 1966-1977 (11 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
§ 67.25
§ 67.25 Use of the word “free.”
In connection with the sale, offering
for sale, or distribution of industry prod-
ucts, industry members shall not use the
word “free,” or any other word or words
of similar import, in advertisements or
in other offers to the public, as descriptive
of an article of merchandise, or service,
which is not an unconditional gift, under
the following circumstances:
(a) When all the conditions, obliga-
tions, or other prerequisites to the receipt
and retention of the “free” articie of
merchandise or service offered are not
clearly and conspicuously set forth at the
outset so as to leave no reasonable proba-
bility that the terms of the offer will be
misunderstood; and,
(b) When, with respect to any article
of merchandise required to be purchased
tn order to obtain the “free” article or
service, the offerer (1) Increases the or-
dinary and usual price of such article of
merchandise, or (2) reduces its quality,
or (3) reduces the quantity or size
thereof.
Norge: The disclosure required by para-
graph (a) of this section shall appear in close
conjunction with the word “free” (or other
word or words of similar import) wherever
such word frst appears in each advertisement
or offer. A disclosure in the form of a foot-~
note, to which reference is made by use of
an asterisk or other symbol placed next to the
word “free,” will not ordinarily be regarded
a3 compliance.
{Rule 25]
§ 67.26 Deceptive pricing.
Members of the industry shall not
represent directly or indirectly in adver-
tising or otherwise that an industry
product may be purchased for a specified
price, or at a saving, or at a reduced
price, when such is not the fact; or other-
wise deceive purchasers or prospective
purchasers with respect to the price of
any product offered for sale; or furnish
any means or instrumentality by which
others engaged in the sale of industry
products may make any such
representation.
Nore: The Commission promulgated
Guides Against Deceptive Pricing effective
January 8, 1964, superseding the Guides
adopted October 2, 1958. The 1964 Guides are
eppended to these rules for additional guid-
fae with respect to price savings represen-
ons.
{Rule 26]
Title 16—Commercial Practices
§ 67.27 Misbranding, misrepresentation,
and deceptive selling methods.
Members of this industry, in the course
of the marketing or distribution of in-
dustry products, shall not:
(a) Use, or cause or promote the use
of, any trade promotional lterature,
advertising matter, mark, brand, label,
designation, depiction, or other type of
oral or written representation, however
disseminated or published, which directly
or by implication, or through failure to
disclose material information, has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers with respect to—
(1) the type, grade, quality, quantity,
use, size, weight, nature, condition, dura-
bility, performance, serviceability, origin,
manufacture, distribution, or price of
any industry product; or,
(2) the identity of a performing artist
as to either part or all of a recording,
the recorded content of any recording,
the name or commonly known title of a
recording or a selection or tract of a
recording, or the fact that a recording
has been previously issued under a dif-
ferent title, or in any other material
respect;
and shall not
(b) Offer for sale, sell, distribute, or
promote the sale or distribution of, prod-
ucts of the industry under any other
conditions or selling practices which
have the capacity and tendency or effect
of misleading or deceiving the purchas-
ing or consuming public in any material
respect. [Rule 27]
PART 71—BRAIDED RUG INDUSTRY
Bec.
71.0
W2
71.2
113
WN4
11.6
116
Definitions.
Deception (general).
Misrepresentation as to the origin of
industry products.
Misrepresentation as to the size of
industry products.
Misrepresentation as to character of
business.
Deceptive pricing.
Misrepresenting industry products as
“Hand Braided” or “Hand Made.”
AvrHoERITY: The provistons of this Part 71
issued under secs. 6, 5, 88 Stat. 721, 719;
15 UB.C. 46, 45, uniess otherwise noted.
Source: The provistons of this Part 71
appear at 29 F.R. 7927, June 23, 1964, unless
otherwise noted.
464
Chapter |—Federal
§ 71.0 Definitions.
(a) Industry member. Any person,
firm, corporation, or organization en-
gaged in the manufacture, sale, or dis-
tribution of industry products as here-
inafter defined.
(b) Industry products. Braided Rugs,
Tubular Braided Rugs and Tubular
Wrap-A-Round Rugs, made in the fol-
lowing manner, irrespective of com-
position:
(1) Braided rugs, formed by sewing
together flat braids or plaits into desired
shapes;
(2) Tubular braided rugs, formed by
braiding yarn around a core to form a
sheath, or tube, for the core and there-
after sewing the same into desired
shapes;
(3) Tubular wrap-a-round rugs,
formed by wrapping yarn or thread
around a core of filler material in a
spiral fashion without interlocking and
thereafter sewing such wrapped cores
into desired shapes.
§ 71.1 Deception (geueral).
(a) It is an unfair trade practice for
members of the industry to offer for
sale or sell industry products under
any representations, description, circum-
stance, or condition which has the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers thereof, as to the
type, size, kind, grade, quality, weight,
durability, serviceability, terms of sale,
value, production, method of manu-
facture, fabrication or distribution of
such industry products or which has the
capacity and tendency or effect of mis-
leading or deceiving the purchasing or
consuming public in any other material
respect.
(bo) The prohibitions of this section
are applicable to all forms of advertis-
ing, whether written or oral, in periodi-
cals, on the radio or television, and to
any form of marking or labeling of in-
dustry products or the packages in
which they may be shipped, offered for
sale or sold.
(c) Under this section it is an unfair
trade practice to represent any industry
product as a “braided rug” unless made
in the manner described in § 71.0(b) (1).
(a) Rugs made in conformity with
§ 71.0(b) (2) may be designated as “‘tubu-~
lar braided rugs,” and rugs of the con-
Trade Commission § 71.4
struction described in § 71.0(b) (3) may
be designated as “tubular wrap-a-round
rugs”, but not as woven or braided.
{Rule 1]
§ 71.2 Misrepresentation as to the origin
of industry products.
It is an unfair trade practice to repre-
sent, directly or by implication, that a
product manufactured in a foreign coun-
try was made in the United States.
Under this section, distinctively Amert-
can names may not be used to identify
products imported from a foreign coun-
try unless in close conjunction with any
such name clear and conspicuous dis-
closure is made of the country of origin
of the product.
Nore: The marking of imported articles to
show thelr country of origin ts a responsi-
bility of the Bureau of Customs, Department
of the Treasury, under the provisions of
statutes administered by it. Action may be
taken by the Commission under the Federal
Trade Commission Act in the case of decep-
tive nondisclosure of foreign origin in
matters within its jurisdiction, when such
action is necessary in the public interest.
{Rule 2]
§ 71.3 Misrepresentation as to the size of
industry products.
It is an unfair trade practice in refer-
ring to the size of an industry product to
use any size representation which does
not accurately reflect the actual size of
the product.
Norte: Nothing in this section shall be con.
strued as preventing an industry member
from stating the “approximate size” of a
group of rugs offered for sale, provided that
no rug in the group varies in size from the
stated approximate size by more than 1%
percent in any dimension (length or width).
(Rule 3]
§ 71.4 Misrepresentation as to character
of business.
It is an unfair trade practice for any
industry member, in the course of or in
connection with the sale of industry
products, to represent directly or in-
directly, that he is a manufacturer of
industry products, unless he owns and
operates or directly controls a factory
wherein such products are made, or to
represent that he is a wholesaler of in-
dustry products when such is not the
fact, or in any other manner to misrepre-
sent the character, extent, or type of his
business. [Rule 4]
465
§ 71.5
§ 71.5 Deceptive pricing.
It is an unfair trade practice for any
member of the industry to represent di-
rectly or indirectly in advertising or
otherwise that an industry product may
be purchased for a specified price, or at
a saving, or at a reduced price, when such
is not the fact; or otherwise deceive pur-
chasers or prospective purchasers with
respect to the price of any product of-
fered for sale; or furnish any means or
instrumentality by which others engaged
in the sale of industry products may
make any such representation.
Norm: On December 20, 1963 the Commis-
sion adopted Guides Against Deceptive Pric-
ing which became effective on January 8,
1964 and which supersede the Guides on this
subject as adopted October 2, 1958. Copies
of the Guides will be furnished upon request.
CRule 5]
§ 71.6 Misrepresenting industry prod-
ucts as “Hand Braided” or “Hand
Made.”
(a) It is an unfair trade practice to
represent an industry product as “hand
braided’ unless such product is composed
of strands which were in fact braided by
hand.
(b) It is also an unfalr trade practice
to represent an industry product as
“hand made” uniess it is made entirely
by hand. [Rule 6]
PART 74——-FRESH FRUIT AND
5 VEGETABLE INDUSTRY
ec.
74.0 The industry and its products defined.
74.1 Prohibited price discrimination.
14.2 Prohibited brokerage.
AvuTuHorrry: The provisions of this Part 74
issued under sec. 2, 49 Stat. 1526; sec. 6, 38
Stat 721; 15 U.S.C. 13, 46, unless otherwise
noted.
Source: The provisions of this Part 74 ap-
pear at 30 F.R. 6831, Apr. 15, 1965, unless
otherwise noted.
§ 74.0 The industry and its products de-
fined.
(a) Members of the industry are per-
sons, firms, corporations and organiza-
tions engaged in selling, marketing or
distributing in commerce any of the
products or goods of the industry as de-
fined in paragraph (b) of this section.
(b) Products or goods of this industry
consist of ali varieties of fresh fruits and
vegetables grown in the United States
or imported from other countries.
Title 16—Commercial Practices
§ 74.1 Prohibited price discrimination.
(a) It is unlawful for any member of
the industry engaged in commerce, in
the course of such commerce, to grant or
allow, secretly or openly, directly or in-
directly, any rebate, refund, discount,
credit, or other form of price differen-
tial, where such rebate, refund, discount,
credit, or other form of price differen-
tial, effects a discriminatlon in price
between different purchasers of goods of
like grade and quality, where either or
any of the purchases involved thereln
are in commerce, and where the effect
thereof may be substantially to lessen
competition or tend to create a monopoly
in any line of commerce, or to injure,
destroy, or prevent competition with any
person who either grants or knowingly
receives the benefit of such discrimina-
tion, 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
under the jurisdiction of the United
States, and are not purchased by schools,
colleges, universities, public libraries,
churches, hospitals, and charitable in-
stitutions not operated for profit, as
supplies for their own use:
Note: Purchases by U.S. Government: In
an opinion submitted to the Secretary of
War under date of December 26, 1936, the
US. Attorney General advised that the
Robinson-Patman Antidiscrimination Act “is
not applicable to Government contracts for
supplies.” (88 Opinions, Attorney General
539.)
(2) That nothing contained in this
paragraph (a) shall prevent differentials
which make only due allowance for dif-
ferences in the cost of production, sale,
or delivery resulting from the differing
methods or quantities in which industry
products are sold or delivered to differ-
ent purchasers:
Nore: Cost justification under the above
proviso depends upon net savings in cost
based on all facts relevant to the transactlons
under the terms of proviso (a) (2). For ex-
ample, if a seller reguiarly grants a discount
based upon the purchase of a specified quan-
tity by a single order for a singie delivery,
and this discount ts justified by cost differ-
ences, it does not follow that the same dis-
count can be cost justified if granted to
& 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
466