(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15 U. S. C. 13, 13a, 13b, 18c, 21a)

§ 88.18 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 the regulations of this part.

The industry expresses its approval of the trade custom of granting such limited trial period as is necessary to acquaint new customers with a product or present customers with a new type of product. However, the industry condemns the practice of hampering a competitor in his relations with a customer by furnishing equipment to such customer 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.

NOTE: 68.101 is also subject to the limitation that the furnishing of any equipment shall not be accomplished in such manner as to effect 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, meatchopper 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 customers 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.

form to the requirements of the act of Congress approved February 27, 1925 (43 Stat. 1004), is an unfair trade practice. § 89.3 False marking or labeling.

The false marking or labeling of icecream products or the aiding or abetting in the false marking or labeling of icecream products, or the misrepresentation of the character or manufacture of icecream 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 disparagement of the grade or quality of their goods, with the tendency and capacity to mislead or deceive purchasers or prospective 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 businesses, is an unfair trade practice. § 89.6 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.

§ 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 substantially lessen competition or tend to create a monopoly or to unreasonably restrain 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 condemned by the industry.

§ 89.102 Gratuities to purchasers.

The giving of gratuities to purchasers solely for the purpose of securing their patronage promotes illegitimate salesmanship, 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 practice of each individual member of the industry independently publishing and circulating to the purchasing trade its own price lists.

(b) The industry approves the practice of making the terms of sale a part of all published price schedules. § 89.104 Cost accounting.

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

§ 89.105 Dummy companies and corporations.

For any number of small units to organize a dummy corporation without capital stock or without taking other necessary steps to form a real corporation, 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 profitless price from the manufacturer or manufacturers, and thereafter distributing the products so purchased among the various small units involved, is injurious to the industry and to the public, disrupting the cordial and longtime business relations of the manufacturers with their customers, and having withal a tendency to cheapen the quality of ice cream and other milk products and is condemned by the industry. § 89.106

Arbitration.

GROUP I

§ 90.2 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. § 90.3 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, or prospective purchasers, is an unfair trade practice.

§ 90.4 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 disparagement of the grade or quality of their goods, with the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 90.5 Sales below cost.

The sale or consignment of goods below cost for the purpose and with the effect of injuring a competitor 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.

§ 90.6 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 a unfair trade practice.

§ 90.8 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 prospective purchasers is an unfair trade practice.

Sec. 92.0

92.1

92.2

92.3

92.4

92.5

92.6

92.7

92.8 92.9

PART 92-WOODWORKING
MACHINERY INDUSTRY

The industry and its products defined.
GROUP I

Misrepresentation (general).
Misrepresentation as to character of
business.

Misrepresenting products as conforming to standard.

Guarantees, warranties, etc.

Deception as to rebuilt or second-hand products.

Substitution of products.

Deceptive use or imitation or simulation of trade or corporate names, trade-marks, etc.

Deceptive invoicing, etc.

Defamation of competitors or false disparagement of their products. 92.10 Inducing breach of contract. 92.11 Enticing away employees of competitors.

92.12 Commercial bribery.

92.13 Procurement of competitors' confi

dential information.

92.14 Tie-in sales-coercing purchase of one product as a prerequisite to the purchase of other products. 92.15 Unfair threats of infringement suits. 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.

AUTHORITY: The provisions of this Part 92 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45.

SOURCE: The provisions of this Part 92 appears at 25 F.R. 5835, June 24, 1960; 25 F.R. 6134, June 30, 1960, unless otherwise noted. § 92.0 The industry and its products defined.

(a) Products of the industry consist of all types of new, rebuilt, or used power-driven machinery which are designed for use in the commercial fabrication 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 persons, firms, corporations, and organizations engaged in the manufacture, sale, offering for sale, lease, or distribution of such products.

§ 92.1

GROUP I

Misrepresentation (general).

It is an unfair trade practice to make or publish, or cause to be made or published, by way of advertising, labeling or otherwise, any statement or representation which, directly or by implication, has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the grade, quality, quantity, weight, working range, eficiency, use, size, material, finish, origin, character, nature, design, condition, performance, durability, manufacture, distribution, availability, or delivery dates, of any industry product, or part or accessory therefor, or which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers in any other material respect. [Rule 1]

It is an unfair trade practice for any member of the industry to represent, directly or by implication, in his advertising or otherwise, that he is a producer or manufacturer of products of the industry, or that he owns or controls a factory making such products, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business. [Rule 2]

§ 92.3 Misrepresenting products as conforming 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 industry when such is 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, prominently and in close conjunction with such representation, the identity of the guarantor, the extent and nature of the guarantee, and any material conditions or limitations relating to the liability of the guarantor under the guarantee, are adequately and nondeceptively disclosed; or

(2) To offer or use any guarantee respecting an industry product under which the guarantor fails to observe his obligations; or

(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 warranties, to purported guarantees and warranties, and to any promise or representation in the nature of a guarantee or warranty.

NOTE: On April 26, 1960, the Commission adopted "Guides Against Deceptive Advertising of Guarantees," which are set forth as an appendix to these rules.1

[Rule 4]

§ 92.5 Deception as to rebuilt or secondhand 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 products 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 disclosure, by a conspicuous tag or label firmly attached to the products, and in all advertising and promotional literature relating thereto, of the fact:

(1) That such products are secondhand, rebuilt, or contain rebuilt or second-hand parts, as the case may be; and

(2) That the rebuilding was done by other than the original manufacturer,

1 Copies available at the Federal Trade Commission.

when such is the case; when the failure to make such disclosure has the capacity and tendency or effect of misleading purchasers 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 unauthorized 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 samples submitted, to specifications (in bids or otherwise) upon which the sale or lease is consummated, or to representations made prior to securing the order, without advising the purchaser or lessee of the substitution and obtaining his consent thereto prior to making shipment or delivery; or

(b) Falsely representing the reason for making a substitution.

NOTE: Nothing in this section shall be construed 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 trademarks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers; or

(b) To use any trade name, corporate name, trade-mark, or other trade designation, which has the capacity and tendency 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 material used therein, or which is false, deceptive, or misleading in any other material respect. [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 tendency or effect of deceiving purchasers or prospective purchasers in any material respect. [Rule 8]