Household Furniture And Furnishings Industry
16 CFR Part 75 · Trade practice rules · in the Code of Federal Regulations 1938-1960 (3 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1960 CFR · Earliest edition: 1938 CFR
Text (1960 edition, OCR)
Chapter I—Federal Trade Commission a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or to unrea- sonably restram trade 1s an unfair trade practice § 725 Consignment sellmg The shipping of goods on consign- ment without bena 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 1s an unfair trade practice Group II § 72101 Unauthornzed use of designs, etc The practice of usurping designs styles or patterns originated by a com- petitor and appropriating them for ones own use withm 1 year after such origi- nation 1s condemned by the industry § 72102 Publicatiou of price hsts and terms of sale The Knitted Outerwear Industry ap- proves the policy of each individual con- cern stating to the purchasing trade, n- dependently, 1ts individual terms of sale in connection with all price quotations made by 1t and 1n connection with all its orders and acceptances § 72103 Individual price policy The knitted outerwear manufacturers hereby affirm their policy of reserving absolute freedom in mdividually estab- lishing their own prices on their ind1- vidual products and in changing the same at will § 72104 Arbitration The industry approves the practices of handling disputes in 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 § 72105 Conformance with approved practices It 1s the opinion of the industry that knitted outerwear manufacturers should use their best efforts to observe these rules of approved practices § 754 COMMITTEE ON TRADE PRACTICES § 72 201 Industry committee The provisions of §161 of this sub- chapter shall be applicable to an indus- try committee established under this part (21F.R 1174 Feb 21 1956] PART 75—HOUSEHOLD FURNITURE AND FURNISHINGS INDUSTRY Group I Sec 751 Sales below cost 154 Misrepresentation in general 15 5 Misuse of term close-outs 756 Fictitious prices 7158 Commercial bribery 75 9 Inducing breach of contract 7510 Consignment selling Group II 75101 Unauthorized use of designs etc 75102 False invoicing 75103 Repudiation of contracts 75104 Loss leaders 75105 Credit policy 76106 Cost accounting 75107 Competitive prison-made goods COMMITTEE ON TRADE PRACTICES 75201 Industry committee AUTHORITY §§ 751 to 75201 issued under sec 6(g) 38 Stat 722 15 USC 46(g) Interpret or apply sec 5 38 Stat 719 as amended 15USC 45 Source §§ 751 to 75 201 contained in trade practice ruies Household Furniture and Furnishings Industry FTC May 10 1932 except as otherwise noted Group I § 751 Sales helow cost. 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 1s an unfair trade practice § 754 Mhisrepresentation in general The making or causing or permitting to be made or published any false un- true or deceptive statement by way of advertiseinent or otherwise concerning the grade quality quantity, substance, character nature origin size or prepa- ration of any product of the mdustry, having the tendency and capacity to mis- lead or deceive purchasers or prospective purchasers 18 an unfair trade practice Page 227 § 755 §755 Misuse of term “close outs ” Selling of regular lines of furniture as close-outs” for the purpose of inducing purchasers to believe they are receiving bargains when such 1s not the fact and with the effect of inJuring competitors is an unfair trade practice § 756 Fictitious prices Offering for sale merchandise at a price reduced from a marked-up or fictitious price with the tendency and capacity to mislead or deceive purchasers or pro- spective purchasers 1s an unfair trade practice § 758 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 orto agents employees or representatives of competitors’ custom- ers or prospective customers without the knowledge of their employers or princi- pals as an inducement to influence their employers or principals to purchase 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 is an unfair trade practice § 759 Inducing breach of contract Maliciously inducing or attempting to induce the breach of existing contracts between competitors and their customers by any false or deceptive means whatso- ever, or interfering with or obstructing the performance of any such contractual duties or services by any such means with the purpose and effect of unduly hampering injuring or embarrassing competitors in their busmess 1s an un- fair trade practice §75 10 Consignment selling The shipment of goods on consignment with the intent and with the effect of in- Juring a competitor and where the effect may be to substantialiy lessen competi- tion or tend to create a monopoly or to unreasonably restrain trade is an unfair trade practice Grovp II § 75 101 Unautborized use of designs, ete. The practice of usurping designs, styles or patterns originated by a com- Page 228 Title 16—Commercial Practices petitor and appropriating them for ones own use within 1 year after such orig- ination, 1s condemned by the industry § 75 102 False 1uvoicing Withholding from or inserting in an invoice or contract statements which make the invoice or contract a false rec- ord wholly or in part, of the transaction represented on the face thereof, 1s con- demned by the industry § 75.103 Repudiation of contracts Contracts either written or oral are business obhgations which should be per- formed in letter and spirit The repudi- ation of contracts by sellers on a rising market or by buyers on a declining mar- ket 1s equally reprehensible and is condemned by the mndustry § 75104 ‘Loss leaders ” The practice of giving away products of the industry or other things of value, or granting special inducements on open- ing days, special sale days, or other occa- sions, and then overcharging customers on other articles to recoup losses 1s con- demned by the industry §75 105 Creda policy The furniture industry condemns ex- tending credit to dealers engaging in unfair methods of competition and rec- ommends cooperation in preventing so far as they lawfully may costly and de- moralizing settlements or bankruptcies § 75106 Cost accountng It is the judgment of the industry that each member should install a proper and accurate method for determining his cost §75 107 Competitve prison-made goods The furniture industry disapproves of the sale of prison-made furniture In com- petition with the products of free labor unless purchasers are fully informed of the fact COMMITTEE ON TRADE PRACTICES § 75201 Industry committee The provisions of §161 of this sub- chapter shall be applicable to an mdus- try committee established under this part [21 FR 1174 Feb 21 1956] Chapter |—Federal Trade Commission PART 76—SCRAP IRON AND STEEL INDUSTRY Group I Substitution Defamation of competitors Inducing breach of contract Commercial bribery Group II False billing Credit for overweight Repudiation of contracts False invoicing Arbitration Cost accounting Sec 761 762 763 764 76 101 76 102 76 103 76 104 76 105 76 106 COMMITTEE ON TRADE PRACTICES 76 201 AUTHORITY §§ 761 to 76201 issued under sec 6(g) 38 Stat 722 15 USC 46(g) Interpret or apply sec 5 38 Stat 719 as amended 15USC 45 Source §§ 761 to 76 201 contained in trade practice rules Scrap Iron and Steel Industry FIC May 20 1932 except as otherwise noted Group I § 761 Substitunon The practice of delivering inferior products against contracts to supply scrap iron and steel according to certain specifications by so arranging the ship- ments 1n the cars that the inferior prod- ucts will not be readily discovered on surface inspection, without the consent of the consumer and/or purchasers to such substitutions and with the effect of recelving or misleading consuiners and/or purchasers 1s an unfair trade practice Industry committee § 762 Defamation of competitors The defamation of competitors by falsely umputing to them dishonorable conduct inability to perform contracts questionable credit standing or by other false representations or the false dis- paragement of the grade or quality of their goods with the tendency and capac- ity to mislead or deceive purchasers or prospective purchasers is an unfair trade practice § 763 Inducing breach of contract Maliciously inducing or attempting to induce the breach of existing contracts between competitors and their customers by any false or deceptive means whatso- ever or interfering with or obstructing the performance of any such contractual duties or services by any such Means with the purpose and effect of unduly §$ 76 105 hampering injuring or embarrassing competitors in their businesses is an un- fair trade practice § 764 Commercial bmbery 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 custoiners or prospec- tive customers or to agents, einployees or representatives of competitors’ customers or prospective customers without the knowledge of their employers or princi- pals as an inducement to influence their employers or principals to purchase or contract to purchase industry products from the maker of such gift or offer or to influence such einployers or principals to refrain from dealing or contracting to deal with competitors 1s an unfair trade practice Group IT § 76101 False billing The presentation or use of fictitious bills of lading or other evidence of billing for the purpose of securing advances of money or other valuable consideration, 1s condemned by the industry § 76102 Credit for overweight Failure of dealers or brokers to give credit for overweight, where credit for overweights has been passed by the con- sumer is hereby condemned § 76103 Repudiation of contracts Contracts, either written or oral are business obligations which should be performed in letter and spirit The re- pudiation of contracts by sellers on a rising market or by buyers on a deciin- ing market 1s equaily reprehensible, and is condemned by the industry § 76104 False invoicing Withholding from or inserting in the invoice statements which make the 1n- voice a false record, wholly or in part of the transaction represented on the face thereof 1s condemned by the industry § 76105 Arhitration The industry approves the practice of handling disputes 1n a fair and reason- able manner coupled with a spirit of moderation and good will, and every ef- fort should be made by the disputants themselves to arrive atan agreement If unable to do so they should agree if possible, upon arbitration under some one of the prevailing codes Page 229