The Code of Federal Regulations of the United States of America

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, to influence such employers or principals to refrain from dealing in the products of competitors, or from dealing or contracting to deal with competitors.

§ 122.2 Inducing breach of contract.

Willfully inducing or attempting to induce the breach of existing contract or contracts between competitors and their customers or their suppliers by any false or deceptive means whatsoever, or willfully 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 prejudicing competitors in their businesses, is an unfair trade practice.

§ 122.3 Defamation of competitors.

The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, or questionable credit standing, or by other false representations, or the false disparagement of the grade, quality, composition, material, construction, durability, or process of manufacture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, or conditions of employment, with the tendency, capacity or effect of misleading or deceiving any purchasers or prospective purchasers of burial vaults, is an unfair trade practice.

§ 122.4 Enticing employees.

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

§ 122.5 Imitation of trade-marks, trade names, brands, etc.

The imitation of the trade-marks, trade names, brands, labels or other marks of identification of competitors, with the tendency, capacity or effect of misleading or deceiving any purchasers or prospec

tive purchasers of burial vaults, is an unfair trade practice.

§ 122.6 Substitution.

The practice of shipping or delivering products which do not conform to representations made prior to or at the time of securing an order, or the substitution of products inferior in quality to the kind ordered, without the consent of the purchaser to such substitution and with the effect of misleading or deceiving any purchasers or prospective purchasers of burial vaults, is an unfair trade practice. § 122.7 Espionage.

Securing information from competitors concerning their businesses by false or misleading statements or representatives or by false impersonation of one in authority, and the wrongful use thereof to unduly hinder or stifle the competition of such competitors, is an unfair trade practice.

§ 122.8 False marking or branding.

The false or deceptive marking, branding or labeling of concrete burial vaults for the purpose or with the tendency, capacity or effect of misleading or deceiving purchasers or prospective purchasers concerning the grade, quality, composition, material, construction, durability, or process of manufacture of such vaults, or in any other material respect, or the marking, branding or labeling of such vaults by representatives, statements, assertions or claims concerning the capacity, property or ability of such vaults to remain airtight, waterproof or sweatproof when such representations, statements, assertions or claims are not true in fact, or are misleading, or are not known to be true, is an unfair trade practice.

§ 122.9

Misrepresentation in general.

Making, or causing to be made or published, directly or indirectly, any false, untrue or deceptive statement, representation, guarantee, warranty, testimonial or endorsement, by way of advertising (through newspapers, magazines, booklets or other advertising media) or by radio, oral representation or otherwise, in connection with the sale or distribution of concrete burial vaults and concerning the grade, quality, composition, material, construction, durability or processes of manufacture of such vaults, or in any other material respect, or the

making of any representations, statements, assertions or claims, directly or indirectly, concerning the capacity, property or ability of such vaults to remain airtight, waterproof or sweatproof when such representations, statements, assertions or claims are not true in fact, or are misleading, or are not known to be true, with the tendency, capacity or effect of misleading or deceiving any purchasers or prospective purchasers of burial vaults, is an unfair trade practice.

§ 122.10 False invoicing.

Withholding from or inserting in invoices 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, with the purpose or effect of thereby misleading or deceiving any purchasers or prospective purchasers of burial vaults, is an unfair trade practice.

§ 122.11 Sales below cost.

The practice of selling industry products below the seller's cost, with the intent and with the effect of injuring a competitor and where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade, is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section.

§ 122.12 Consignment selling.

It is an unfair trade practice for any member of the industry to use the practice of shipping goods on consignment or pretended consignment for the purpose and with the effect of artificially clogging trade outlets and unduly restricting competitors' use of said trade outlets in getting their goods to consumers through regular channels of distribution, or with such purpose to entirely close said trade outlets to such competitors so as to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade: Provided, however, That nothing herein shall be construed or used as restricting or preventing consignment shipping or marketing of commodities in good faith and without artificial interference with competitors' use of the usual channels of distribution in such manner as thereby to suppress competition or restrain trade.

(a) Prohibited discriminatory differentials, rebates, refunds, discounts, credits and other allowances. 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 price differentials, rebates, refunds, discounts, credits or other allowances which effectuate 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 persons 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;

539

(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 customers 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 brokerages 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 com-. mission, brokerage, or other compensa

tion, 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 promotion 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.

(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 purchased 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) Illegal price discrimination. It is an unfair trade practice for any member of the industry or other person engaged in commerce in the course of such commerce to discriminate in price in any other respect contrary to section 2 of the Clayton Act as amended by the act of Congress approved June 19, 1936, or knowingly to induce or receive a discrimination in price which is prohibited by such section as amended.

(Sec. 2, 38 Stat. 780, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528; 15 U.S.C. 18, 13a, 18b, 21a)

124.2

124.3

GROUP I

Misbranding.

Misrepresentation or concealment as as to foreign handles or blocks. Deceptive advertisements or descriptions.

124.4 Misrepresentation as to bristles. 124.5 Misrepresentation as to kind of wood in handle or back.

AUTHORITY: The provisions of this Part 124 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46(g), 45.

SOURCE: The provisions of this Part 124 contained in trade practice rules, Toilet Brush Manufacturing Industry, FTC, Dec. 81, 1937, unless otherwise noted.

grade, quality, quantity, use, size, material, content, origin, preparation, manufacture or distribution of such products, or in any other material respect, is an unfair trade practice.

§ 124.2 Misrepresentation or concealment as to foreign handles or blocks. (a) The passing off, selling or offering for sale of tooth brushes, hair brushes, or other toilet brushes made from imported handles or blocks on which the identification mark of the country of origin has been omitted or has been obliterated or concealed in the fabrication of the finished article, which brushes have been marked, stamped or branded in such manner as to mislead or deceive purchasers, prospective purchasers or the consuming public into the erroneous belief that said brushes have been manufactured wholly within the United States, or that said brushes have been manufactured wholly from materials produced in the United States, is an unfair trade practice.

(b) In the case of tooth brushes, hair brushes, or other toilet brushes manufactured in the United States with handles or blocks made in and imported from a foreign country, nothing in this part shall prohibit branding or marking the handles or blocks of such brushes, or the cartons thereof, with the words or letters "Brush Made in U. S. A." or words, letters or phrases of like import, provided such mark or brand contain or be immediately accompanied by words, letters or phrases which are of at least equal prominence and conspicuousness and which truthfully and unequivocally disclose the fact that such handles or blocks have been manufactured or produced in, or imported from, the foreign country wherein such handles or blocks have been manufactured or produced, such as, for example: "Handle from England", "Block from England", "Handle from France", "Block from France". "Handle from Japan", "Block from Japan", or branding or ınarking with words of like import.

§ 124.3 Deceptive advertisements or descriptions.

tribution of any product of the industry, or in any other material respect, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.

§ 124.4 Misrepresentation as to bristles.

The false marking, branding or labeling of tooth brushes, hair brushes, or other toilet brushes with the words "bristle" or "pure bristle" when such brushes are made in whole or in part of horse hair, fiber or other adulterant and such fact is not disclosed, or the making of any false representations with respect to the terms "bristle" or "pure bristle", through advertising or otherwise, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.

§ 124.5 Misrepresentation as to kind of wood in handle or back.

The false marking, branding, labeling, or advertising of the handles or backs of tooth brushes, hair brushes, or other toilet brushes as containing or being composed of ebony, satinwood, or other costly wood or woods, when the handles or backs of such brushes are made from an imitation of the above wood or woods and such fact is not disclosed, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.

AUTHORITY: The provisions of this Part 125 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 125 contained in trade practice rules, Popular Priced Dress Manufacturing Industry, FTC, Dec. 31, 1937, unless otherwise noted.

GROUP I

§ 125.1 Inducing breach of contract.

§ 125.2 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, quality or manufacture of the products of competitors, or of their business methods, selling, prices, values, credit terms, policies or services, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, in an unfair trade practice.

§ 125.3 Misrepresentation in general.

Making, or causing to be made or published, directly or indirectly, any false, untrue or deceptive statement or representation, by way of advertisement or otherwise, concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any product of the industry, or in any other material respect, with the tendency, capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.

§ 125.4 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.

(a) Prohibited discriminatory rebates, refunds, discounts, credits and other price differentials. 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 price differential, where such rebate, refund, discount, credit or other price differential effects a discrimination in price between different purchasers of goods of like grade and quality and 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;

(b) Prohibited brokerage and commissions. It is an unfair trade practice for any member of the industry engaged in

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