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. (d) 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 such 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. NOTE 1. Industry members giving advertising allowances to competing customers must exercise precaution and diligence in seeing that all of such allowances are used in accordance with the terms of their offers. NOTE 2. When an industry member gives allowances to competing customers for advertising in a newspaper or periodical, the fact that a lower advertising rate for equivalent space is available to one or more, but not all, such customers, is not to be regarded by the industry member as warranting the retention by such customer or customers of any portion of the allowance for his or their personal use or benefit. serv (e) Prohibited discriminatory ices 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 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 competing purchasers on proportionally equal terms. NOTE: 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) Clarification. (1) The following is presented for the purpose of clarifying the requirements of paragraphs (d) and (e) of this section with respect to the supplying of marketing services, facilities or allowances by industry members to their customers, but it is not intended to imply by such presentation that other methods which assure of proportional equality of treatment of competing customers may not also be used. (2) An industry member may simultaneously offer to each of his customers competing in the resale of his products the same kind of promotional service, facility or allowance of a cost value equal to a uniform percentage of the sales (or purchases) of the industry member's products by each customer during a specified and identical period of time: Provided, however, That when the service, facility or allowance offered is of a type which under reasonable terms and conditions is not usable or suitable to the facilities and business of all customers, and is offered to any one customer, the member offer each of those customers to whom the service, facility or allowance is not usable or suitable an alternative type of promotional service, facility or allowance which is of equivalent measurable cost, is usable by the customer, and is suitable to his facilities and business, and promptly inform all competing customers of the kind and amount of services, facilities or allowances which he has offered to each and the respective terms and conditions under which such services, facilities or allowances are to be furnished by the industry member; And provided, further, That when the offer of any service, facility or allowance to any customer is conditioned on such customer supplying some reciprocal service, facility or payment, a reciprocal service, facility or payment be required in the offers to all other customers and there be an equality of ratio among all customers as to the measurable cost of that which is supplied by the industry member and the reciprocal service, facility or payment required of any customer. The industry member must take every reasonable precaution to see that services, facilities or allowances which he furnishes to customers are used in accord with the terms of his offer; and upon failure of the customer to perform any obligation on his part the industry member must cease supplying the customer any further service, facility or allowance. (g) 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 paragraphs (a) to (f) of this section. [Rule 12] § 51.13 Lifting of stocks. It is an unfair trade practice for any member of the industry to purchase the stock of a distributor or dealer which has been supplied by a competitor or competitors when such practice is done as an inducement to the distributor or dealer to discontinue handling competitive products and to handle such member's products exclusively, and where the effect of such act or practice may be substantially to lessen competition or tend to create a monopolv in any line of commerce. [Rule 131 § 51.14 Consignment distribution. (a) It is an unfair trade practice for any member of the industry to employ the practice of shipping industry products on consignment without the express request or prior consent of the purchaser. (b) It is an unfair trade practice for any member of the industry to employ the practice of shipping industry products on consignment or pretended consignment for the purpose and with the effect of artificially clogging or closing trade outlets and restricting competitors' use of said trade outlets in getting their products to purchasers through regular channels of distribution, thereby injuring, destroying, or preventing competition tending to create a monopoly or unreasonably to restrain trade. (c) Nothing in this section shall be construed to authorize any understanding or agreement, combination or conspiracy, or planned common course of action, by and between industry members, mutually to conform or restrict their practice of shipping goods on consignment with the intent or effect of lessening competition. [Rule 141 § 51.15 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 disparagement of competitors' products in any respect, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. NOTE: Nothing in this section shall be construed as preventing the full, fair, and nondeceptive comparison, by demonstration or otherwise, of competitors' products with the products of another industry member before purchasers or prospective purchasers. [Rule 15] § 51.16 Procurement of competitors' confidential information by unfair means and wrongful use thereof. It is an unfair trade practice for any member of the industry to obtain information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements or representations, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained so as substantially to injure competition or unreasonably restrain trade. [Rule 16] § 51.17 Enticing away employees of competitors. It is an unfair trade practice for any member of the industry wilfully to entice away employees or sales representatives of competitors with the intent and effect of thereby unduly hampering or injuring competitors in their business and destroying or substantially lessening competition: Provided, That nothing in this section shall be construed as prohibiting employees from seeking more favorable employment, or as prohibiting employers from hiring or offering employment to employees of competitors in good faith and not for the purpose of injuring, destroying, or preventing competition. [Rule 17] § 51.18 Exclusive deals. It is an unfair trade practice for any member of the industry to lease, contract to sell or sell any industry product, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the products of a competitor or competitors of such industry member, where the effect of such sale or contract for sale, or of such condition, agreement, or understanding, may be substantially to lessen competition or tend to create a monopoly in any line of commerce. [Rule 18] § 51.19 Commercial bribery. It is an unfair trade practice for a member of the industry, directly or in directly to give, or offer to give, or permit or cause to be given, 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 products manufactured or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or contracting to deal with competitors. [Rule 19] § 51.20 Unlawful interference with competitors' purchases or sales. It is an unfair trade practice for any member of the industry, by means of any monopolistic practices or through combination, conspiracy, coercion, boycott, threats, or any other unlawful means, directly or indirectly, to interfere with a competitor's right to purchase his materials and supplies from whomsoever he chooses, or to sell his product to whomsoever he chooses. [Rule 201 GROUP I § 52.3 Sales below 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 unreasonably restrain trade is an unfair trade practice. § 52.4 Imitation of trade-marks, trade names, etc. The imitation of the trade-marks, trade names, slogans, or other marks of identification of competitors, having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice. § 52.5 Mislabeling. To label boxes or papers of iron or steel pins with the words "bank", "dressmakers", "silk", "satin", "voile", "chiffon", or similar words, when such deceives the public into the belief that such pins are rustproof or suitable for the fabrics above mentioned, is an unfair trade practice. § 52.6 Deceptive selling methods. The sale or offering for sale of any product of the industry by any false means or device which has the tendency and capacity to mislead or deceive customers or prospective customers as to the quantity, quality, substance, or size of such product is an unfair trade practice. § 52.101 GROUP II Publication of price lists and terms of sale. (a) The industry approves the practice of each individual member of the industry independently publishing and circulating to the purchasing trade its own price lists. (b) The industry hereby records its approval of the practice of making the terms of sale a part of all published price schedules. § 52.102 False invoicing. Withholding from, or inserting in the invoice, statements which make the invoice a false record, wholly or in part, of the transaction represented on the face thereof, is condemned by the industry. § 53.1 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 whatsoever, 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 businesses, is an unfair trade practice. § 53.2 Misrepresentation in general. The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any product of the industry having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, and the tendency to injuriously affect the business of competitors, is an unfair trade practice. § 53.5 Sales below 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 unreasonably restrain trade, is an unfair trade practice. It is the judgment of the industry that each member should install a proper and accurate method for determining his cost. § 53.102 Standard form of contract. It is the judgment of this conference that the industry should adopt in cooperation with buyers a standard form of contract which will thoroughly protect the rights of both buyers and sellers. § 53.103 Production statistics. The industry approves a system of reports from its members whereby, without revealing any of the details of the business of individual members, there may be compiled accurate statements of the amounts of marble actually used each year. § 53.104 Dissemination of credit in formation. The industry records its approval of the distribution among members of the industry of information covering delinquent and slow credit accounts insofar as it may be lawfully done. COMMITTEE ON TRADE PRACTICES § 53.201 Industry committee. The provisions of § 16.1 of this subchapter shall be applicable to an industry committee established under this part. [21 FR. 1174, Feb. 21, 1956] § 54.101 GROUP II Standards of nomenclature. The present commercially used species of "walnut" should be designated with a qualifying adjective indicating the species, variety or place of origin, and the following names shall be the accepted trade names for use in the United States: Juglans nigra, to be called "American Juglans regia, to be called "Royal" or "Persian Walnut". From England, to be called "English Walnut". From France, to be called "French Walnut". From Italy, to be called "Italian Walnut". From Turkey, to be called "Turkish Walnut". From Russian, to be called "Russian Walnut", or "Caucasian Walnut" or "Circassian Walnut". From Spain, to be called "Spanish Walnut". Juglans sieboldiana, to be called "Japanese Walnut". Juglans boliviana, to be called "Bolivian Walnut". Sec. 55.1 55.2 55.3 55.5 55.7 55.101 55.102 55.103 GROUP I Sales below cost. Inducing breach of contract. Misrepresentation in general. Defamation of competitors. Commercial bribery. GROUP II Publication of price lists. Publication of terms of sale. 55.104 Production and marketing statistics. AUTHORITY: The provisions of this Part 55 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46 (g), 45. SOURCE: The provisions of this Part 55 contained in trade practice rules, China Recess Accessories Industry, FTC, Oct. 2, 1931, unless otherwise noted. GROUP I § 55.1 Sales below cost. The selling of china accessories 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 unreasonably restrain trade, is an unfair trade practice. § 55.2 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 whatsoever, 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 businesses, is an unfair trade practice. § 55.3 Misrepresentation in general. The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement, or otherwise, concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any industry product having the tendency and capacity to deceive purchasers or prospective purchasers, and having the tendency to injuriously affect the business of competitors, is an unfair trade practice. § 55.5 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable |