the tendency and capacity or effect of thereby misleading or deceiving the purchasing or consuming public, is an unfair trade practice.

§ 140.5 Misrepresentation of pigment.

The marking, branding, advertising or representing of any industry product as "Chalk Putty," "Chalk Whiting Putty" or "True Chalk Whiting Putty," or by words, signs, abbreviations or other representations of similar import or meaning, as descriptive of putty the pigment of which is not composed wholly of pure chalk whiting, is an unfair trade practice. § 140.6 Misrepresentation of white lead. It is an unfair trade practice, directly or by implication, to advertise, describe, mark, brand, label or otherwise represent any putty (a) as containing white lead when such is not the fact; or (b) as containing more white lead than is in fact present in the product; or (c) as being white lead putty when the same in fact contains no white lead or when the putty does not contain white lead in sufficient proportion to impart to the product substantial and effectual white lead characteristics or properties; or (d) to advertise, describe, mark, brand, label or represent putty in any other manner which has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public as to the presence of lead or as to the kind, character or percentage thereof contained in the products.1

1 In respect to putty marketed through dealer-channels of trade to the consuming public, represented or sold as containing lead or as being white lead putty, disclosure shall be made on the label or container of the kind or type of lead, whether carbonate or sulphate, and the total percentage of lead contained in the product, to the end that misrepresentation or deceptive concealment as to the lead content of the product may be avoided and prevented. And the failure or refusal to make such disclosure with the capacity and tendency or effect of thereby misleading or deceiving the purchasing or consuming public is an unfair trade practice.

tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. § 140.8 Defamation of competitors or disparagement of their products.

The defamation of competitors by falsely imputing to them dishonorable conducts, inability to perform contracts, questionable credit standing, or by other false representations, or the false disparagement of the grade, quality or manufacture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, or conditions of employment, is an unfair trade practice.

§ 140.9 Commercial bribery.

Directly or indirectly to give, or permit to be given, or offer to give, money or anything of value to agents, employees or representatives of customers or prospective customers, or to agents, employees or representatives of competitors' customers 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 any 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.

§ 140.10 False invoicing.

Withholding from or inserting in invoices, bills of lading, delivery receipts or other documents of title any statements or information by reason of which omission or insertion a false record is made, wholly or in part, of the transactions represented on the face of such invoices, bills of lading, delivery receipts or other documents of title, with the effect of thereby misleading or deceiving the purchasing or consuming public, is an unfair trade practice.

§ 140.11 Use of short-weight containers.

The selling or offering for sale of putty in so-called short-weight containers or packed in odd-size or oddshaped containers or packages simulating in size or shape standard size or shaped containers or packages which are known to the public as standard containers of definite capacity, with the tendency and capacity or effect of misleading or deceiving the purchasing or consuming public as to the contents of

such containers or packages or the amount of putty contained therein, is an unfair trade practice.

§ 140.12 False guarantee.

The making of any guarantee as to the durability or service of any industry product which is untrue or which is impracticable or impossible to fulfill because of contingencies such as, but not limited to, workmanship or maintenance over which the manufacturer or guarantor has no control, or which otherwise has a tendency, capacity or effect of deceiving or misleading the purchasing or consuming public, is an unfair trade practice.

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, 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, consumption, or resale within any place under the jurisdiction of the United States;

(2) That nothing contained in this section shall prevent differentials which make only due allowance for differences 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;

(3) That nothing contained in this section shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own cus

2 Paragraph (a) of § 140.13 shall not be construed as embracing practices prohibited by paragraphs (b), (c) and (d) of this section.

tomers in bona fide transactions and not in restraint of trade;

(4) That nothing contained in this section shall prevent price changes from time to time where made in response to changing conditions affecting either (i) the market for the goods concerned, or (ii) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.

(b) Prohibited brokerage and commissions. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, 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 intermediary 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 paid.

(c) Prohibited advertising or promotional 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 facilities furnished by or through said customer in connection with the processing, 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 proportionally equal terms to all other customers competing in the distribution of such products or commodities.

(d) Prohibited discriminatory services or facilities. It is an unfair trade practice for any member of the industry engaged in commerce to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or by

furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms.

(e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the foregoing provisions of this section.

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528; 15 U.S.C. 13, 13a, 13b, 21a)

§ 142.1 Misbranding, misrepresentation, and deceptive selling methods.

It is an unfair trade practice for any member of the industry, in the course of the marketing or distribution of products of the industry, (a) to use, or promote the use of, any marks, brands, labels, depictions, layouts, advertisements, prices, trade promotional descriptions, or representations of any kind, which, directly or by implication, are false, misleading, or deceptive to the purchasing or consuming public; or (b) to offer for sale, sell, or distribute, or promote the sale or distribution of, products of the industry under any other conditions or selling practices which have the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public in any material respect.

§ 142.2

"All- -wave,"

99

"world-wave," "world-wide wave," "standard broadcast," etc.

In the application of the rules in this part, and for the purpose of avoiding confusion, misunderstanding, and deception:

(a) Except as provided in paragraph (b) of this section, the terms "all-wave," "world-wave," "world-wide wave," or words, phrases, or representations denoting world-wide reception, shall not be used as descriptive of a radio receiving set advertised, offered for sale, sold, or distributed in the American market when such set is not constructed to receive and capable of receiving, with reasonable or adequate consistency, the entire respective spectrum of radio frequencies in recognized use in the art, namely, all long-wave broadcasts and transmissions, all medium-wave and short-wave broadcasts and transmissions, and all other waves transmitted or broadcast, including both foreign and domestic; excepting, however, that such set so described or represented need not include within its capacity of reception such point-to-point transmissions as are confidential and illegal for general reception and divulgence to members of the public, or such unchanging signals as emanate from radio beacons or radio lighthouses, when such set is not otherwise falsely or deceptively described or represented, directly or indirectly, as being constructed to receive, or as being capable of receiving, such point-to-point or beacon or lighthouse transmissions.

(b) Nothing contained in this section shall prohibit the use of the term "limited all-wave," "limited world-wave," "limited world-wide wave," or terms or words of similar import, as descriptive of a radio receiving set advertised, offered for sale, sold, or distributed in the American market, when such set is constructed for and capable of consistently receiving at least a continuous spectrum of frequencies from 540 kilocycles to 18,000 kilocycles, provided such terms or words are immediately accompanied by words, phrases, or terms set forth conspicuously and clearly, unequivocally and truthfully stating the exact wave bands or frequencies which such set is capable of consistently receiving; for example:

Limited All-Wave-From 540 to 18,000 kilocycles.

Limited All-Wave From 530 to 21,000 kilocycles.

Limited World-Wave-From 540 to 18,000 kilocycles.

Limited World-Wide Wave From 540 to 18,000 kilocycles.

Limited All-Wave-From 140 to 410 kilocycles, and from 540 to 18,000 kilocycles.

Limited World-Wave-From 540 to 18,000 kilocycles, and from 19,000 to 23,500 kilocycles.

Limited World-Wide Wave-From 150 to 400 kilocycles, and from 540 to 35,000 kilocycles.

(c) Nothing contained in this section shall prohibit the use, as descriptive of a radio receiving set, of the term "allwave" as an integral part of a clause, sentence, or statement which truthfully and unequivocally sets forth the bands or radio frequencies such set does not cover, and wherein the words "all-wave" are not given greater prominence or conspicuousness than the other parts of such clause, sentence, or statement, provided such set is constructed for, and capable of receiving with reasonable or adequate consistency, all the waves or bands of frequencies from 540 to 18,000 kilocycles and such other bands or frequencies as are represented to be within its receptive capacity. The following are illustrative of such permissible phrases here provided for:

All waves except for frequencies above 21,000 kilocycles and below 540 kilocycles. All waves except Asiatic stations.

All waves except foreign and domestic frequencies above 18,000 kilocycles and below 540 kilocycles.

(d) The terms "standard-broadcast receiver," "frequency-modulation receiver" and "television receiver," as descriptive of an amplitude-modulation or a frequency-modulation radio or a television receiving set, shall not be used in such manner as to lead the public to believe that such set is constructed for, and capable of receiving with reasonable or adequate consistency, a greater number of radio or television frequency signals or channels than is in fact true of such set.

§ 142.3 Specific types of advertisements or representations among those prohibited.

It is an unfair trade practice for any member of the industry to use, or cause to be used, any of the following-described types of advertisements or representations:

(a) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will receive distant stations or any or all foreign broadcasts or transmissions easily or satisfactorily or as easily or satisfactorily as local or domestic reception, when such is not the fact.

(b) Advertisements or representations stating, purporting, or implying that any radio or television receiving set so advertised or represented, or the reception thereof, is not subject to interference or to being interfered with or interrupted by fading, noise, electrical interference, atmospheric conditions, static, or any other phenomena or conditions, when such is not the fact.

(c) Advertisements or representations with respect to the receiving capacity or performance of any radio or television receiving set which make deceptively exaggerated or misleading claims, or claims which are not justified and supported by the fact or performance of such radio or television receiving set.

(d) Advertisements or representations which directly or by implication lead purchasers to believe that the radio or television receiving set so advertised or represented is capable of greater or more consistent or satisfactory performance or reception than is in fact true.

(e) Advertisements or representations stating, purporting, or implying that a radio receiving set so advertised or represented will give world-wide continuous reception or other continuous reception, when such is not the fact; or that the radio receiving set will give such reception or other reception with loud-speaker volume, when such is not the fact; or that the radio receiving set will give world-wide reception or other reception regularly or dependably, when such is not the fact.

(f) Advertisements or representations of any radio receiving set stating, purporting, or implying that each station or any station, whether nearby or foreign or domestic, can be brought in, or brought in with sharp, clear, or distinct reception, or with ease, simplicity, or regularity, by any amplitude-modulation radio receiving set so advertised or represented, when such is not the fact.

(g) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will bring in or receive broadcasts from Europe, Africa, South America, Australia, or Asia, or from any

other designated locality, or that it will bring in such broadcasts, or any of them, consistently or satisfactorily, when such is not the fact.

(h) Advertisements or representations stating, purporting, or implying that any radio or television receiving set so advertised or represented sifts out noise or is free from noise, or brings in far distant stations sharp or clear, or brings in signals to weak signal areas sharp or clear, or brings in signals to fringe areas sharp or clear, when such is not the fact.

(i) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will bring in or receive satisfactorily or consistently foreign stations, police calls, aviation calls, radio transmissions from or to ships at sea, amateur stations, or other types of radio transmissions, when such is not the fact, or when only a small part of any such class of radio frequencies transmitted broadcast is so receivable and such fact, or the fact that others of the same class are not so receivable, is deceptively concealed.

or

(j) Advertisements or representations stating, purporting, or implying that a radio or television receiving set so advertised or represented contains a certain number of tubes or their equivalents or is of a certain tube capacity or equivalent tube capacity when one or more of such tubes or their equivalents in the set are dummies or fakes or contribute no useful function toward enhancing the normal and intended operation of the amplitude-modulation or frequencymodulation radio or television receiving set.

NOTE: In order to avoid and prevent misleading tendencies or results, so-called "ballast tubes," dial or other lamps used for illumination, so-called "plug-in resistors," and other like accessories or devices not providing the recognized and customary functions of tubes used to enhance the operation of a radio or a television receiving set, are not to be included as tubes or their equivalents in advertisements or representations of a radio or a television receiving set which describe or refer to the set as having a certain number of tubes or their equivalents or as being of a specified tube capacity or equivalent tube capacity. Rectifier tubes, used to supply power to the set, shall not be included in the computation of tube count of such set.

(k) Advertisements or representations stating, purporting, or implying that