Woodworking Machinery Industry
16 CFR Part 92 · Trade practice rules · in the Code of Federal Regulations 1938-1977 (15 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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: 1938 CFR
Text (1977 edition, OCR)
Chapter I—Federal
ited trial period as 1s necessary to ac-
quaint new customers with a product or
present customers with a new type of
product. However, the industry con-
demns the practice of hampering a com-
petitor in his relations with a customer
by furnishing equipment to such cus-
tomer free of charge for a period of time
in excess of that reasonably required for
a fair trial thereof under the subterfuge
of granting a trial period.
Nore: § 88.101 is also subject to the limita-
tion that the furnishing of any equipment
shall not be accompished in such manner
as to offect a discrimination contrary to
§ 88.17.
§ 88.102 Use of competitor’s equip-
ment.
In the competition attendant upon
the exchanging, lending, selling, and
supplying of saw frames, blades, meat-
chopper plates, and knives, the said
articles are frequently lost and come
into the hands of a competitor or
competitors of the owner who fails not
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 shouid, 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-
Trade Commission § 92.0
try committee established under this
part.
[21 F.R. 1174, Feb. 21, 1956]
PART 92—WOODWORKING
MACHINERY INDUSTRY
Sec.
92.0 The industry and its products defined.
Group I
92.1 Misrepresentation (general).
92.2 Misrepresentation as to character of
business.
92.3 Misrepresenting products as conform-
ing to standard.
924 Guarantees, warranties, etc.
92.6 Deception as to rebuilt or second-hand
products.
92.6 Substitution of products.
92.7 Deceptive use or imitation or simula-=
tion of trade or corporate names,
trade-marks, etc.
92.8 Deceptive invoicing, etc.
92.9 Defamation of competitors or false
disparagement of their products.
92.190 Inducing breach of contract.
92.11 Enticing away employees of competi-
tors,
93.12 Commerciat bribery.
92.18 Procurement of competitors’ confi-
dential information.
92.14 Tie-in sales—coercing purchase of
one product as @ prerequisite to the
purchase of cther products.
92.16 Unfair threats of infringement sults.
92.16 Consignment distribution.
92.17 Prohibited forms of trade restraints
(unlawful price fixing, etc.).
92.18 Prohibited exclusive deals.
92.19 Prohibited sales below cost.
92.20 Prohibited discrimination.
92.21 Aiding or abetting use of unfair trade
practices.
AutHoriry: Secs. 6, 5, 38 Stat. 721, 719; 15
U.8.C. 46, 45, unless otherwise noted.
Sougce: 25 FR 5335, June 24, 1960; 25 FR
6184, June 30, 1960, unless otherwise noted.
§ 92.0 ‘The industry and its products de-
(a) Products of the industry consist
of all types of new, rebuilt, or used
power-driven machinery which are de-
designed for use in the commercial fabri-
cation of logs and wood into finished or
semi-finished products, and which are of
such size, weight, or type as not to be
easily and conveniently transported by
hand; and parts and accessories for such
products.
(b) Members of the industry are per-
sons, firms, corporations, and organiza-
tions engaged in the manufacture, sale,
offering for sale, lease, or distribution of
such products.
475
§ 92.1
Group I
§ 92.1 Misrepresentation (general).
It is an unfair trade practice to make
or publish, or cause to be made or pub-
lished, by way of advertising, labeling or
otherwise, any statement or representa-
tion which, directly or by implication,
has the capacity and tendency or effect
of decelving purchasers or prospective
purchasers as to the grade, quality, quan-
tity, welght, working range, efficiency,
use, size, material, finish, origin, charac-
ter, nature, design, condition, perform-
ance, durability, manufacture, distribu-
tion, availability, or delivery dates, of
any industry product, or part or acces-
sory therefor, or which has the capacity
and tendency or effect of deceiving pur-
chasers or prospective purchasers in any
other material respect. [Rule 1]
§ 92.2 Misrepresentation as to character
of business.
It is an unfair trade practice for any
member of the industry to represent, di-
rectly or by implication, in his advertis-
ing or otherwise, that he is a producer or
manufacturer of products of the indus-
try, or that he owns or controls a factory
making such products, when such is not
the fact, or in any other manner to mis-
represent the character, extent, or type
of his business. [Rule 2]
§ 92.3 Misrepresenting products as con-
forming to standard.
In the sale, offering for sale, lease, or
distribution of industry products, it is
an unfair trade practice to represent.
through advertising or otherwise, that
such products conform to any standards
recognized in or applicable to the indus-
try when such !s not the fact. [Rule 3]
§ 92.4 Guarantees, warranties, etc.
(a) In the sale, offering for sale, lease,
or distribution of industry products, it is
an unfair trade practice for any industry
member:
(1) To represent that any industry
product is guaranteed unless, promi-
nently and in close conjunction with such
representation, the identity of the guar-
antor, the extent and nature of the guar-
antee, and any material conditions or
limitations relating to the liability of the
guarantor under the guarantee, are ade-
quately and nondeceptively disclosed; er
(2) To offer or use any guarantee re-
specting an industry product under
which the guarantor fails to observe his
obligations; or
Title 16—Commercial Practices
(3) To offer or use any guarantee
which is otherwise deceptive or unfair.
(b) This section shall be applicable
not only to guarantees but also to war-
ranties, to purported guarantees and
warranties, and to any promise or repre-
sentation in the nature of a guarantee
or warranty.
Nore: On April 26, 1960, the Commission
adopted “Guides Against Deceptive Adver-
tising of Guarantees,” which are set forth as
an appendix to these rules.’
[Rule 43
§ 92.5 Deception as to rebuilt or second-
hand products.
(a) It is an unfair trade practice for
any member of the industry to sell, offer
for sale, advertise, or otherwise represent,
any industry product as being new when
such is not the fact.
(b) In the marketing of industry prod-
ucts which are second-hand or rebuilt,
or which contain second-hand or rebuilt
parts, it is an unfair trade practice to
fail to make full and nondeceptive dis-
closure, by a conspicuous tag or label
firmly attached to the products, and in
ail advertising and promotional litera-
ture relating thereto, of the fact:
(1) That such products are second-
hand, rebuilt, or contain rebuilt or sec-
ond-hand parts, as the case may be;
(2) That the rebuilding was done by
other than the original manufacturer.
when such is the case: when the failure
to make such disclosure has the capacity
and tendency or effect of misleading pur-
chasers or prospective purchasers of
such products. [Rule 5]
-§ 92.6 Substitution of products.
It is an unfair trade practice for a
member of the industry to make an un-
authorized substitution of products,
where such substitution has the capacity
and tendency or effect of misleading or
deceiving purchasers, by:
(a) Shipping or delivering industry
products which do not conform to sam-
ples submitted, to specifications (in bids
or otherwise) upon which the sale or
lease is consummated. or to representa-
tions made prior to securing the order,
without advising the purchaser or lessee
of the substitution and obtaining his
consent thereto prior to making ship-
ment or delivery; or
1Copies available at the Federal Trade
Commission.
476
Chapter |[—Federal Trade Commission
(b) Falsely representing the reason for
making a substitution.
Nore: Nothing in this section shall be con-
strued as preventing the application of such
tolerances as are agreed upon between buyer
and seller.
{Rule 6]
§ 92.7 Deceptive use or imitation or
simulation of trade or corporate
names, trade-marks, etc.
It is an unfair trade practice for any
member of the industry:
(a) To imitate or simulate the trade-
marks, trade names, brands, or labels of
competitors, with the capacity and tend-
ency or effect of misleading or decelving
purchasers or prospective purchasers; or
(b) To use any trade name, corporate
name, trade-mark, or other trade desig-
nation, which has the capacity and tend-
ency or effect of misleading or deceiving
purchasers or prospective purchasers as
to the name, nature, or origin of any
product of the industry, or of any ma-
terial used therein, or which 1s false, de-
ceptive, or misleading in any other ma-
terialrespect. (Rule 7]
§ 92.8 Deceptive invoicing, etc.
It is an unfair trade practice for any
member of the industry to issue invoices,
billings, or sales slips which by reason of
misstatements therein or omissions
therefrom have the capacity and tend-
ency or effect of decelving purchasers or
prospective purchasers in any material
respect. [Rule 8]
§ 92.9 Defamation of competitors or
false disparagement of their prod-
ucts.
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 dis-
paragement of the products of competi-
tors in any respect, or of their business
methods, selling prices, values, credit
terms, policies, or services, is an unfair
trade practice. [Rule 9]
§ 92.10 Inducing breach of contract.
(a) Knowingly inducing or attempting
to induce ‘the breach of existing lawful
contracts between competitors and their
customers or their suppliers, or inter-
fering with or obstructing the perform-
ance of any such contractual duties or
services, under any circumstance having
the capacity and tendency or effect of
§ 92.13
substantially injuring or lessening pres-
ent or potential competition, is an un-
fair trade practice.
(b) Nothing in this section is intended
to imply that it is improper for any in-
dustry member to solicit the business of
a customer of a competing industry
member; nor is the section to be con-
strued as in anywise authorizing any
agreement, understanding, or planned
common course of action by two or more
industry members not to solicit business
from the customers of either of them, or
from customers of any other industry
member. [Rule 10]
§ 92.11 Enticing away employees of
competitors,
It is an unfair trade practice willfully
to entice away employees or sales repre-
sentatives of competitors with the intent
and effect of thereby unduly hampering
or injuring competitors in their business
and destroying or substantially lessen-
ing competition: Provided, That nothing
in this section shali be construed as pro-
hibiting employees from seeking more
favorable employment, or as prohibiting
employers from hiring or offering em-
ployment to employees of competitors in
good faith and not for the purpose of
injuring, destroying, or preventing com-
petition. (Rule 11]
§ 92.12 Comunercial bribery.
It is an unfair trade practice for a
member of the industry, directly or in-
directly, to give, or offer to give, to per-
mit or cause to be given, money or any-
thing of vaiue to agents, employees, or
representatives of customers or prospec-
tive customers, or to agents, employees,
or representatives of competitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or
principals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry member
or the maker of such gifts or offer, or to
influence such employers or principals to
refrain from dealing in the products of
competitors or from dealing or contract-
ing to deal with competitors. [Rule 12]
§ 92.13 Procurement of competitors’
confidential information.
It is an unfair trade practice for any
member of the industry to obtain in-
formation concerning the business of a
competitor by bribery of an employee or
agent of such competitor, by false or
477
§ 99.14
misleading statements or representa~
tions, by the impersonation of one in
authority, or by any other unfair means,
and to use the information so obtained
so as to injure said competitor m his
business or to suppress competition or
unreasonably restrain trade. [Rule 13]
§ 92.14 Tie-in sales——coercing purchase
of one product as a prerequisite to
the purchase of other products.
The practice of coercing the purchase
of one or more products as a prerequisite
to the purchase of one or more other
products, where the effect may be sub-
stantially to lessen competition or tend
to create a, monopoly or unreasonably to
restrain trade, is an unfair trade prac-
tice. [Rule 14]
§ 92.15, Unfair threats of infringement
sults.
The circulation of threats of suit for
infringement of patents or trade-marks
among customers or prospective custom-
ers of competitors, not made in good
faith but for the purpose or with the
effect of thereby harassing or intimidat-
ing such customers or _ prospective
customers, or of unduly hampering, in-
jJuring, or prejudicing competitors in
their business, is an unfair trade prac-
tice. [Rule 15]
§ 92.16 Consignment distribution.
(a) It is an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment without the ex-
press request or prior consent of the
purchasers.
(b) It ts an unfair trade practice for
any member of the industry to employ
the practice of shipping industry prod-
ucts on consignment or pretended con-
signment for the purpose and with the
effect of artificially clogging or closing
trade outlets and unduly restricting
competitors’ use of said trade outlets in
getting their products to purchasers
through regular channels of distribution,
thereby injuring, destroying, or prevent-
ing competition or tending to create a
monopoly or unreasonably to restrain
trade.
(c) Nothing in this section shall be
construed to authorize any understand-
ing or agreement, combination or con-
spiracy, or planned common course of
action, by and between industry mem-
bers, mutually to conform or restrict
their practice of shipping goods on con-
Title 16—Commercial Practices
signment with the intent or effect of
lessening competition. [Rule 16]
§ 92.17 Prohibited forms of trade re-
straints (unlawful price fixing, ete.).*
It is an unfair trade practice for any
member of the industry, either directly
or indirectly, to engage in any planned
common course of action, or to enter
into or take part in any understanding,
agreement, combination, or conspiracy,
with one or more members of the in-
dustry, or with any other person or per-
sons, to fix or maintain the price of any
goods or otherwise unlawfully to re-
strain trade; or to use any form of
threat, intimidation, or coercion to in-
duce any member of the industry or
other person or persons to engage in
any such planned common course of ac-
tion, or to become a party to any such
understanding, agreement, combination,
or conspiracy. (Rule 17]
§ 92.18 Prohibited exclusive deals.
It is an unfair trade practice for any
member of the industry to lease, or con-
tract to sell or sell any industry prod-
uct, or to fix a price charged therefor, or
discount from, or rebate upon, such price,
on the condition, agreement, or under-
standing that the lessee or purchaser
thereof shall not use or deal in the prod-
ucts of a competitor or competitors of
such industry member, where the effect
of such lease, sale or contract for sale,
or such condition, agreement, or under-
standing, may be substantially to lessen
§The inhibitions of this section are sub-
ject to Publle Law 542, approved July 14,
1952, 66 Stat. 632 (the McGuire Act) which
provides that with respect to a commodity
which bears, or the label or container of
which bears, the trade-mark, brand, or name
of the producer or distributor of such com-~-
modity and which is in free and open com-
petition with commodities of the same gen-
eral class produced or distributed by others,
a seller of such a commodity may enter into
a contract or agreement with a buyer thereof
which establishes a minimum or stlpulated
price at which such commodity may be re-
sola by such buyer when such contract or
agreement is lawful as applied to intrastate
transactions under the laws of the State,
Territory, or territorial Jurisdiction in which
the resale is to be made or to which the
commodlty is to be transported for such re-
sale, and when such contract or agreement is
not between manufacturers, or between
wholesalers, or between brokers, or between
factors, or between retallers, or between per~
sons, firms, or corporations in competition
with each other.
478
Chapter I—Federal Trade Commission
competition or tend to create a monop-
oly in any line of commerce. [Rule 18]
§ 92.19 Prohibited sales below cost.
(a) The practice of selling products
of the industry at a price less than the
cost thereof to the seller, with the pur-
pose or intent, and where the effect is,
or where there is a reasonable proba-
bility that the effect will be, to substan-
tially injure, suppress, or stifle compe-
tition or tend to create a monopoly, 1s
an unfair trade practice.
(b) This section is not to be construed
as prohibiting all sales below cost, but
only such selling below the seller’s cost
as is resorted to and pursued with the
wrongful intent or purpose referred to
and where the effect is, or where there is
reasonable probability that the effect
will be, to substantially injure, suppress,
or stifle competition or to create a mo-
nopoly. Among the situations in which
the requisite purpose or intent would
ordinarily be lacking are cases in which
such sales were: (1) Made under judicial
process; or (2) made in bona fide discon-
tinuance of business in the goods
concerned.
(c) As used in paragraphs (a) and
(b) of this section, the term “cost”
means the respective seller’s cost and not
an average cost in the industry whether
such average cost be determined by an
industry cost survey or some other meth-
od. It consists of the total outlay or
expenditure by the seller in the acquisi-
tion, production, and distribution of the
products involved, and comprises all
elements of cost such as Jabor, material,
depreciation, taxes (except taxes on net
income and such other taxes as are not
properly applicable to cost), and general
overhead expenses, incurred by the seller
in the acquisition, manufacture, process-
ing, preparation for marketing, sale,
and delivery of the products. Not to be
included are dividends or interest on
borrowed or invested capital, or non-
operating losses, such as fire losses and
losses from the sale or exchange of cap-
ital assets. Operating cost should not be
reduced by items of nonoperating in-
come, such as income from investment,
and gain on the sale of capital assets.
(ad) Nothing in this section shall be
construed as relieving an industry mem-
ber from compliance with any of the
requirements of the Robinson-Patman
Act. [Rule 19]
§ 92.20
§ 92.20 Prohibited discrimination?
(a) Prohibited discriminatory prices,
rebates, refunds, discounts, credits, etc.,
which effect unlawful price discrimina-
tion. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, to grant or allow, secretly or
openly, directiy or indirectly, any rebate,
refund, discount, credit, or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential, 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
discrimination, 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;
(2) That nothing contained in this
Paragraph shall prevent differentials
which make only due allowance for dif-
ferences in the cost of manufacture, sale,
or delivery resulting from the differing
methods or quantities In which such
commodities are to such purchasers sold
or delivered;
Nore: Cost justification to be based on net
Savings in cost of manufacture, sale or de-
very. Cost justification under subparagraph
(2) of this paragraph depends upon net sav-
ings in cost based on all facts relevant to the
transactions under the terms of such sub-
*As used in this section, the word “com-
merce” means “trade or commerce among the
several States and with foreign nations, or
between the District of Columbia or any Ter-
ritory of the United States and any State,
Territory, or foreign nation, or between any
insular possessions or other places under the
jurisdiction of the United States, or between
any such possession or piace and any State
or Territory of the United States or the
District of Columbia or any foreign nation,
or within the District of Columbia or any
Territory or any insular possession or other
place under the jurisdiction of the United
States.” .
479
§ 92.20
paragraph. For example, if a seller regu-
larly grants a discount based upon the pur-
chase of a specified quantity by a single order
for a single delivery, and this discount is
justified by cost differences, it does not fol-
low that the same discount can be cost justi-
fied if granted to a purchaser of the same
quantity by multiple orders or for multiple
deliveries.
(3) That nothing contained in this sec-
tion shall prevent persons engaged in
selling goods, wares, or merchandise in
commerce from selecting their own cus-
tomers in bona fide transactions and not
in restraint of trade;
(4) That nothing contained in thts
paragraph shall prevent price changes
from time to time where made in re-
sponse to changing conditions affecting
the market for or the marketability of
the goods concerned, such as but not
Hmited to, distress sales under court
process, or sales in good faith in discon-
tinuance of business in the goods con-
cerned;
(5) That nothing contained in this
section shall prevent the meeting in good
faith of an equally low price of a
competitor.
Nore: Subsection (b) of Section 2 of the
Clayton Act, as amended, reads as follows:
“Upon proof being made, at any hearing
on 8 complaint under this section, that there
has been discrimination in price or services
or facilities furnished, the burden of re-
butting the prima facie case thus made by
showing justification shall be upon the per-
eon charged with a violation of this section,
and unless justification shall be affirmatively
shown, the Commission is authorized to issue
an order te ting the discrimination:
Provided, however, That nothing herein con-
tained shall prevent a saller rebutting the
prima facie case thus made by showing that
his lower price or the furnishing of services
or facilities to any purchaser or pur. hasers
was made in good faith to meet an equally
low price of a competitor, or the services or
facilities furnished by « competitor.”
(b) Examples of prohibited price dif-
ferential practices. The following are
examples of price differential practices
to be considered as subject to the pro-
hibitions of paragraph (a) of this sec-
tion when involving goods of lke grade
and quality which are sold for use, con-
sumption, or resale within any place un-
der the jurisdiction of the United States,
and which are not purchased by schools,
colleges, universittes, public libraries,
churches, hospitals, and charitable
institutions not operated for profit, as
supplies for their own use, and when:
Title 16——Commercial Practices
(1) The commerce requirements spec-
ifled in paragraph (a) of this section are
present; and
(2) The price differential has a rea-
sonable probability of substantially less-
ening competition or tending to create
a@ monopoly in any line of commerce, or
of injurying, destroying, or preventing
competition with the industry member
or with the customer receiving the ben-
efit of the price differential or with
customers of either of them; and
(3) The price differential is not justi-
fled by cost savings (see paragraph (a)
(2) of this section) ; and
(4) The price differential is not made
in response to changing conditions af-
fecting the market for or the market-
ability of the goods concerned (see para-
graph (a) (4) of this section) ; and
(5) The lower price was not made to
meet In good faith an equally low price
of a competitor (see paragraph (a) (5)
of this section).
Example No. 1. The granting of a dis-
count on a purchase made by a customer
which is not granted on purchases made by
all other customers, or which is not granted
in the same amount on the purchases of all
other customers.
Ezample No. 2. At the end of a given
perlod an industry member grants a discount
to a customer equivalent to a fixed per-
centage of the total of such customer’s pur-
chases during the period and fails to grant
a discount of the same percentage to all
other customers on their purchases during
such period.
Example No. 3. An industry member sells
goods to one or more of his customers at a
higher price than he charges other cus-
tomers for like merchandise. It is imma-
terial whether or not such discrimination ts
attended by misrepresentation as to the grade
and quality of the products sold.
Example No. 4. Terms of 2/10th prox. are
granted by an industry member to some
customers on goods purchased by them from
tho industry member. Another customer or
customers are, nevertheless, allowed to take
en additional discount when making pay~
ment to the industry member within the
time prescribed.
Note: As previously indicated, the fore-
going are examples of practices to be con-
sidered violative of the prohibitions of para=
graph (a) of this section when involving
goods of like grade and quality and when
not subject to the other exemptions, exclu-
sions, or defenses set forth in this paragraph,
(c) Prohibited brokerage and commis.
sions. It is an unfair trade practice for
any member of the industry engaged in
commerce, in the course of such com-
merce, to pay or grant, or to receive or
480
Chapter |—Federal Trade Commission
accept, anything of value as a commis-
sion, brokerage, or other compensation,
or any allowance or discount in lieu
thereof, except for services 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 inter-
mediary is acting in fact for or in behalf,
or is subject to the direct or indirect
control, of any party to such transaction
other than the person by whom such
compensation is so granted or pald.
(d) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the
industry engaged in commerce to 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 consideration for any services or fa-
cilities furnished by or through such
customer in connection with the proe-
essing, handling, sale, or offering for
sale of any products or commodities
manufactured, sold, or offered for sale
by such member, unless such payment or
consideration is available on propor-
tionally equai terms to all other cus-
tomers competing in the distribution of
such products or commodities.
(e) Prohidited discriminatory services
or facilities. It is an unfair trade prae-
tice for any member of the industry en-
gaged tn commerce to discriminate in
favor of one purchaser against another
purchaser or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or fur-
nishing, or by contributing to the
furnishing of, any services or facilities
connected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not ac-
corded to all competing purchasers on
proportionally equal terms. .
Nore: See subsection (b) of section 2 of
the Clayton Act, as amended, which is set
forth in the note concluding Paragraph (a)
of this section.
(f) Inducing or receiving an illegal dis-
crimination in price. It ts an unfair
trade practice for any person engaged
in commerce, in the course of such com-
merce, knowingly to tnduce or recetvye
@ discrimination in price which ts pro-
hibited by the foregoing provision of
§ 101.1
paragraphs (a) to (e) of this section.
[Rule 20]
§ 92.21 Aiding or abetting use of unfair
trade practices.
It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or
indirectly, to use or promote the use of
any unfair trade practice specified in
this part. [Rule 21]
PART 101—-UNIFORM INDUSTRY
Group I
Sec.
101.1 Misrepresentation of industry prod-
‘ucts.
101.2 Misbranding.
101.3 Misrepresentation as to character of
business.
101.4 Misrepresenting unforms as “cus-
tom made,” “made to order,” etc.
101.5 Deceptive numbering.
101.6 Deception as to used garments.
101.7 Deceptive use of competitor’s plates,
cuts, or illustrations.
101.8 Imitation of trade-marks, trade
names, etc.
101.9 Substitution of products.
101.10 Fictitious prices.
101.11 Defamation of competitors or dis-
paragement of their products.
101.12 Enticing away employees of com-
petitors.
101.13 Commercial bribery.
101.14 Procurement of competitors’ confi-
dential information by unfair
means and wrongful use thereof,
101.15 Inducing breach of contract.
101.16 Selling below cost.
101.17 Unfair bidding methods.
101.18 Discrimination.
101.19 Aid or abetting use of unfair trade
practices.
Group II
101.101 Repudiation of contracts.
101.102 Fictitious bids.
101.103 Identical information to all bidders.
101.104 Arbitration.
AvutTHoritY: Secs. 6(g), 5, 38 Stat. 722, 719;
15 US.C. 46(g), 45, unless otherwise noted.
Sourcr: 5 FR 1812, May 18, 1940, unless
otherwise noted.
Group I
§ 101.1 Misrepresentation of industry
products.
It is an unfair trade practice to make
or publish, or cause to be made or pub-
shed, directly or indirectly, any false,
misleading, or deceptive statement or
representation, by way of advertisement
or otherwise, concerning the grade, qual-
ity, quantity, use, size, material, con-
481