Consumer Law Library

Ice Cream Industry, District Of Columbia And Vicinity

16 CFR Part 89 · Trade practice rules · in the Code of Federal Regulations 1938-1973 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1973 CFR · Earliest edition: 1938 CFR

Text (1973 edition, OCR)

Chapter I—Federal

only to disclose the fact of his find, but
actually converts the said saw frames,
blades, meat-chopper plates, and knives
to his own use. This practice is strongly
condemned by the industry.

§ 88.103 Arbitration.

The industry approves the practice of
handling business disputes between
members of the industry and their cus-
tomers in a fair and reasonable manner,
coupled with a spirit of moderation and
good will, and every effort should be
made by the disputants themselves to
compose their differences. If unable to
do so they should, if possible, submit
these disputes to arbitration.

§ 88.104 Maintenance of accurate cost
accounting system.

It is the judgment of the industry that
each member should install an accurate
and proper method of determining his
cost.

§ 88.105 Dissemination of credit in-
formation.

The industry records its approval of
distributing to its members information
covering delinquent and slow accounts
insofar as this may be lawfully done.

COMMITTEE ON TRADE PRACTICES
§ 88.201 Industry committee.

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

[21 FR. 1174, Feb. 21, 1956]

PART 89-—-ICE CREAM INDUSTRY,
DISTRICT OF COLUMBIA AND
VICINITY

Group I
Sec.
89.2 Products not conforming to legal re-
quirements.
89.3 False marking or labeling.
89.4 Defamation of competitors.
89.5 Enticing employees.
89.6 Sales below cost.
89.7 Substitution.
89.8 Misrepresentation in general,
89.9 Commerical bribery.
89.11 Espionage.
89.12 Coercing purchases.
Group II
89.101 Basis of competition.
89.102 Gratuities to purchasers.
89.103 Publication of price lists and terms
of sale.
89.104 Cost accounting.

Trade Commission § 89.6
Sec.

89.105 Dummy companies and corporations,
89.106 Arbitration.

CoMMITTEE ON TRADE PRACTICES
89.201 Industry committee.

AvtTHoriITY: The provisions of this Part 89
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 89
contained in trade practice rules, Ice Cream
Industry, District of Columbia, and Vicinity,
FTC, Mar, 20, 1933, unless otherwise noted.

Group I
§ 89.2 Products not conforming to legal
requirements.

The sale or offering for sale of any
product as ice cream which does not con-
form to the requirements of the act of
Congress approved Februry 27, 1925 (43
Stat. 1004), is an unfair trade practice.

§ 89.3. False marking or labeling.

The false marking or labeling of ice-
cream products or the aiding or abetting
in the false marking or labeling of ice-
cream products, or the misrepresentation
of the character or manufacture of ice-
cream products, or the sale or offering
for sale of ice cream products in any
manner calculated to mislead or deceive
purchasers with respect to the kind,
character, quantity, quality, grade, or
origin of the products is an unfair trade
practice.

§ 89.4. Defamation of competitors.

The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the false dispar-~
agement of the grade or quality of their
goods, with the tendency and capacity to
mislead or deceive purchasers or pro~-
spective purchasers, is an unfair trade
practice.

§ 89.5 Enticing employees.

Willfully enticing away the employees
of competitors with the purpose and
effect of unduly hampering, injuring, or
embarrassing competitors in their busi-
esses, is an unfair trade practice.

§ 89.6 Sales below cost.

The selling of gocds 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~

491


§ 89.7

sonably restrain trade, is an unfair trade
practice.

§ 89.7 Substitution.

The practice of shipping or delivering
products which do not conform to the
samples submitted or representations
made prior to securing the orders, with-
out the consent of the purchasers to such
substitutions, and with the effect of de-
ceiving or misleading purchasers, is an
unfair trade practice.

§ 89.8 Misrepresentation in general.

The making or causing or permitting to
be made or pubiished any false, untrue,
or deceptive statement by way of adver-
tisement or otherwise concerning the
grade, quality, quantity, substance, char-
acter, nature, origin, size, or preparation
of any product of the industry having
the tendency and capacity to mislead or
deceive purchasers, or prospective pur-
chasers is an unfair trade practice.

§ 89.9 Commercial bribery.

Commerciai bribery is immoral, against
the pubiic interest, and is an unfair
method of competition.

§ 89.11 Espionage.

Securing information from competi-
tors concerning their businesses by false
or misleading statements or representa-
tions or by false impersonations of one in
authority and the wrongful use thereof
to unduly hinder cr stifle the competition
of such competition is an unfair trade
practice.

§ 89.12 Coercing purchases.

The practice of coercing the purchase
of several or a group of products as a
condition to the purchase of one or more
products under the exclusive control of
the seller, where the effect may be to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonabiy re-~
strain trade, is an unfair trade practice.

Group II
§ 89.101 Basis of competition.

For a manufacturer to sell ice cream on
any other basis than that of competition
in price, quality, and service is con-
demned by the industry.

§ 89.102 Gratuities to purchasers.

The giving of gratuities to purchasers
solely for the purpose of securing their
patronage promotes illegitimate sales-

Title 16—Commercial Practices

manship, frequently leads to bribery, and
is condemned by the industry.

§ 89.103 Publication of price lists and

terms of sale.

(a) The industry approves the prac-
tice of each individual member of the in-
dustry independentiy publishing and
circuiating to the purchasing trade its
own price lists.

(b) The industry approves the prac-~-
ice of making the terms of sale a part
of ali published price schedules.

§ 89.104 Cost acconnting.

It is the judgment of the industry that
each member should install a proper and
accurate method for determinmg his
cost.

§ 89.105 Dummy eompanies and cor-
porations.

For any number of small units to
organize a dummy corporation with-
out capitai stock or without taking other
necessary steps to form a real corpora-
tion, and with no other purpose than to
deceive manufacturers or producers of
ice cream as to their ability to purchase
in large quantities, and by shopping
around among different manufacturers
securing a profitiess price from the man-
ufacturer or manufacturers, and there-
after distributing the products so pur-
chased among the various smali units m-
volved, is injurious to the industry and
to the public, disrupting the cordial and
longtime business relations of the man-
ufacturers with their customers, and
having withai a tendency to cheapen the
quality of ice cream and other milk prod-
ucts and is condemned by the industry.

§ 89.106 Arbitration.

The mdustry approves the practice of
handling disputes in 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 at an agreement. If
unable to do so they should agree, if pos-
sibie, upon arbitration under some one of
the prevailing codes.

COMMITTEE ON TRADE PRACTICES
§ 89.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shali be applicable to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1956]

492