Knitted Outerwear Industry

16 CFR Part 72 · Trade practice rules · in the Code of Federal Regulations 1949-1976 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1976 CFR · Earliest edition: 1949 CFR

Text (1976 edition, OCR)

§ 71.5

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]

§ 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.

Note: On December 20, 1968 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 wiil be furnished upon request.

fRule 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 aiso an unfair trade practice
to represent an industry product as
“hand made” unless it is made entirely
by hand. [Rule 6]

PART 72—KNITTED OUTERWEAR
INDUSTRY

Group I
Sec.
72.1
12.2
12.4
72.5

False marking or branding.
Misrepresentation in general.
Sales below cost.
Consignment selling.

Grove IL

Unauthorized use of designs, etc.

Publication of price Nsts in terms
of sale.

Individual price policy.

Arbitration.

Conformance with approved prac-
tices.

COMMITTEE ON TRADE PRACTICES
72.201 Industry committee.

72.101
72.102

72.108
72.104
72.105

Title 16—Commercial Practices

AurHoriTy: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U‘S.C. 46(g), 45, unless otherwise noted.

Source: Trade practice rules, Knitted
Outerwear Industry, FTC, Jan. 28, 1932, un-
less otherwise noted. ~

Group I
§ 72.1 False marking or branding.

The false marking or branding of
products of the industry, with the effect
of misleading or deceiving purchasers in
respect to the quantity, quality, grade or
substance of the goods purchased, is an
unfair trade practice.

§ 72.2 Misrepresentation in general.

The making or causing or permitting
to be made or published any false, un-
true, or deceptive statement, by way of
advertisement or otherwise, concerning
the grade, quality, quantity, substance,
character, nature, origin, size, or prepa-
ration of any product of the industry,
and having the tendency and capacity
to mislead or deceive purchasers or pro-
spective purchasers, is an unfair trade
practice.

§ 72.4 Sales below eost.

The selling of goods below cost with
the intent and with the effect of injuring
a competitor and where the effect may
be to substantially lessen competition or
tend to create a monopoly or to unrea-
sonably restrain trade is an unfair trade
practice.

§ 72.5 Consignment selling.

The shipping of goods on consign-
ment, without bona fide orders, with the
intent and with the effect of injuring a
competitor and where the effect may be
to substantially lessen competition or
tend to create a monopoly or to unrea-
sonably restrain trade, is an unfair trade
practice.

Group II

§ 72.101 Unauthorized use of designs,
etc.

The practice of usurping designs,
styles, or patterns originated by a com-
petitor and appropriating them for one’s
own use within 1 year after such origi-
nation, is condemned by the industry.

§ 72.102 Publication of price lists and
terms of sale.

The Knitted Outerwear Industry ap-
proves the policy of each individual con-
cern stating to the purchasing trade, in-

486


Chapter I—Federal Trade Commission

dependently, its individual terms of sale
in connection with all price quotations
made by it and in connection with all its
orders and acceptances.

§ 72.103 Individual price policy.

The Knitted outerwear manufacturers
hereby affirm their policy of reserving
absolute freedom in individually estab-
lishing their own prices on their indi-
vidual products and in changing the
same at will.

§ 72.104 Arbitration.

The industry approves the practices of
handling disputes m a fair and reason-
able manner, coupled with a spirit of
moderation and good will, and every
effort should be made by the disputants
themselves to arrive at an agreement.
If unable to do so they should agree, if
possible, upon arbitration under some
one of the prevailing codes.

§ 72.105 Conformance with approved
practices. .

It is the opinion of the industry that
knitted outerwear manufacturers should
use their best efforts to observe these
rules of approved practices.

COMMITTEE ON TRADE PRACTICES

§ 72.201 Industry committee.

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

[21 F.R. 1174, Feb. 21, 1956]

PART 74—-FRESH FRUIT AND
VEGETABLE INDUSTRY
Sec.

74.0 The industry and its products defined.
74.1 Prohibited price discrimination.
74.2 Prohibited brokerage.

AvutTHoriry: The provisions of this Part 74
issued under sec. 2, 49 Stat. 1526; sec. 6, 33
Stat. 721; 15 U.S.C. 13, 46, unless otherwise
noted.

Source: The provisions of this Part 74 ap-
pear at 30 F.R, 5331, 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.

§ 74.1

(b) Products or goods of this industry
consist of all varieties of fresh fruits and
vegetables grown in the United States
or imported from other countries.

§ 74.1 Prohibited price discrimination,

(a) It ls 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 discrimination in price
between different purchasers 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 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,
colieges, universities, public libraries,
churches, hospitais, and charitable in-
stitutions not operated for profit, as
supplies for their own use:

Nore: Purchases by US. 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
Pt Gaal (38 Opinions, Attorney General

)

(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 transactions
under the terms of proviso (a) (2). For ex-
ample, if a seller regularly grants a discount
based upon the purchase of a specified quan-
tity by a singie order for a single delivery,
and this discount is justified by cost differ-
ences, it does not follow that the same dis-
count can be cost justified 1f granted to

487