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GROUP I § 145.1 Deception as to used, rebuilt, or second-hand products.

(a) In the sale, offering for sale, or distribution of umbrellas, it is an unfair trade practice for any industry member to represent, directly or indirectly, that any umbrella is new when such is not the fact; or for any industry member to sell, offer for sale, or distribute umbrellas under circumstances or conditions having the capacity and the tendency or effect of causing purchasers or prospective purchasers to be led to believe that the umbrellas are wholly new when such is not the fact.

(b) Umbrellas which have the appearance of being new, but which contain rebuilt, used, or second-hand parts, shall have affixed to them durable tags or labels on which disclosure is made of the fact that a specified part thereof has been subjected to previous use, and such tags or labels shall be of size and conspicuousness as to reasonably assure of notice to purchasers and prospective purchasers of such umbrellas. Similar requirements shall be considered as applicable to the marketing of used, rebuilt, or second-hand parts or accessories of umbrellas.

§ 145.2

Misrepresentation as to character of business.

It is an unfair trade practice for any industry member, by trade or corporate name or otherwise, to represent, directly or indirectly, that he is an umbrella manufacturer, or that he owns or controls a factory engaged in the manufacture of umbrellas, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business.

§ 145.3 Substitution of products.

The practice of shipping or delivering umbrellas, parts thereof, or accessories therefor, which do not conform to samples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without the consent of the purchasers to such substitutions, and with the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice.

§ 145.4 Identification and disclosure of fiber or material content of covers. (a) In the sale, offering for sale, or distribution of umbrellas, it is an unfair trade practice to misrepresent or deceptively conceal the identity of the fiber or material content of any umbrella cover.

(b) Identification and disclosure of fiber and other material content of umbrella covers shall be made in accordance with the applicable requirements of the Group I fiber identification rules approved and promulgated by the Commission, such as the Group I rayon rules in Part 123 of this chapter,' promulgated October 26, 1937, relating to products containing rayon in whole or in part, and the Group I silk rules in Part 135 of this chapter, promulgated November 4, 1938, relating to products containing or purporting to contain silk in whole or in part, and such other provisions of laws and regulations on the subject whenever applicable to the products of this industry. (Copies of the rayon industry and silk industry trade practice rules referred to will be furnished by the Commission upon request.)

§ 145.5 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 capacity and tendency or effect of thereby misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice.

§ 145.6 Misuse of the word "free," etc.

Use of the word "free," or any word or term of similar import, in advertising or otherwise, to designate or describe any umbrella, part, accessory, or service which is not in truth and in fact a gift or gratuity, or is not given to the recipient thereof without requiring the purchase of other merchandise or requiring the performance of some service inuring directly or indirectly to the benefit of the industry member using such word, is an unfair trade practice.

§ 145.7 Fictitious or deceptive pricing.

(a) It is an unfair trade practice for any member of the industry to repre

1 Part 123 was superseded by Part 204 of this chapter.

sent, in advertising or otherwise, that the price of any umbrella, part, or accessory has been reduced from what is in fact a fictitious price, or that such price is a reduced or a special price when it is in fact the regular selling price of such umbrella, part, or accessory, or that the regular price thereof is higher when such is not the fact, or otherwise to falsely or deceptively represent the past or current price of any umbrella, part, or accessory.

(b) It is an unfair trade practice for any member of the industry, directly or indirectly, to use or to supply to dealers, or to aid or assist in the use of, price tags, labels, or similar devices which are false or fictitious, or which such member has reason to belleve are intended to be used or will be used by dealers or salesmen for the purpose of misleading or deceiving the purchasing or consuming public in regard to price, value, or in any other material respect.

§ 145.8 Guarantees, warranties, etc.

It is an unfair trade practice to use or cause to be used any guarantee or warranty which is false, misleading, deceptive, or unfair to the purchasing or consuming public, whether in respect to the kind, quality, composition, serviceability, value, durability, or method of manufacture, of any umbrella, part, or accessory, or as to the time or character of the guarantee or warranty, or in any other respect, or whether deceptive or misleading by reason of being incompletely or confusingly stated, impracticable of fulfillment, or through failure of the guarantor or warrantor scrupulously to fulfill the terms of his guarantee or warranty.

§ 145.9 Deception (general).

It is an unfair trade practice to make or publish, or cause to be made or published, directly or indirectly, any false, misleading, or deceptive statement or representation, by way of advertisement, depiction, label, mark, brand, or otherwise, concerning the grade, quality, weight, character, durability, fastness of color, finish, size, material, fiber or other content, origin, construction, treatment, preparation, manufacture, or distribution of any umbrella, part, or accessory, or in any other material respect.

§ 145.10 Selling below cost.

The practice of selling umbrellas, parts or accessories at a price less than the cost

thereof to the seller, with the purpose or intent, and where the effect may be, to injure, suppress, or stifle competition or tend to create a monopoly in the production or sale of such products, is an unfair trade practice. As used in this section, the term "cost" means the total cost to the seller of any such transactions of sale, including the costs of acquisition. processing, preparation for marketing. sale, and delivery of such products. § 145.11 Combination or coercion to fix prices, suppress competition, or restrain trade.

It is an unfair trade practice for a member of the industry:

(a) To use, directly or indirectly, any form of threat, intimidation, or coercion against any member of the industry or other person to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade; or

(b) To enter into or take part in, directly or indirectly, any agreement, understanding, combination, conspiracy, or concerted action with one or more members of the industry, or with one or more other persons, to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade.

§ 145.12 Inducing breach of contract.

Inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers 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 prejudicing competitors in their business, is an unfair trade practice. § 145.13 Defamation of competitors or disparagement of their products.

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 the source or origin of raw materials or component parts used in their products, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice.

§ 145.14 Commercial bribery.

It is an unfair trade practice for a member of the industry, directly or indirectly, 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 umbrellas, parts, or accessories, 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 umbrellas, parts, or accessories of competitors or from dealing or contracting to deal with competitors.

§ 145.15 Enticing away employees of competitors.

Wilfully enticing away the employees of competitors with the purpose and effect of unduly hampering, injuring, or prejudicing competitors in their businesses and destroying or substantially lessening competition is an unfair trade practice.

NOTE: Nothing in this section shall be construed as prohibiting employees or agents from seeking more favorable employment. § 145.16 Consignment distribution.

It is an unfair trade practice for any member of the industry to employ the practice of shipping umbrellas, parts, or accessories on consignment or pretended consignment 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 consumers through regular channels of distribution, thereby injuring, destroying, or preventing competition, or tending to create a monopoly or to unreasonably restrain trade. Nothing in this section shall be construed as restricting or preventing consignment shipping or marketing of umbrellas, parts, or accessories in good faith where suppression of competition, restraint of trade, or undue interference with competitors' use of the usual channels of distribution, is not effected.

§ 145.17

Discriminatory returns.

It is an unfair trade practice for any member of the industry, engaged in commerce,' to discriminate in favor of one customer-purchaser against another customer-purchaser of umbrellas, parts, or accessories, bought from such member of the industry for resale, by contracting to furnish, or furnishing in connection therewith, upon terms not accorded to all competing customerpurchasers on proportionally equal terms, the service or facility whereby such favored purchaser is accorded the privilege of returning umbrellas, parts, or accessories so purchased and receiving therefor credit or refund of purchase price: Provided, however, That nothing in §§ 145.1 to 145.19 shall prohibit or be used to prevent the return of umbrellas, parts, or accessories by purchaser, for credit or refund of purchase price, when and because such umbrellas, parts, or accessories have not been properly labeled by the seller as to fiber content, or have been otherwise falsely or deceptively labeled or represented or when and because such umbrellas, parts, or accessories are defective in material, workmanship, or in any other respect are contrary to warranty or purchase contract. (See also § 145.102, Group II.)

§ 145.18 Prohibited discrimination.'

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. In the marketing in commerce of umbrellas, parts, or accessories of like grade and quality for use, consumption, or resale within the jurisdiction of the United States, and subject to subparagraphs (1), (2), and (3) of this paragraph, it is an unfair trade practice for any member of the industry engaged therein to discriminate in price between different purchasers where the effect

1 As used in this part, the word "commerce" means "trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory 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 place 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."

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 such industry member or with any person who knowingly receives the benefit of such discrimination or with their customers. The inhibitions against such discrimination in price shall be applicable irrespective of whether the discrimination in the price itself is effected in the form, or through the means, of rebates, refunds, discounts, credits, allowances, or other form of price differential.

(1) However, nothing contained in this paragraph 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 umbrellas, parts, or accessories are sold or delivered to said purchasers.

(2) Nor shall anything contained in this paragraph prevent persons engaged in selling such umbrellas, parts, or accessories in commerce from selecting their own customers in bona fide transactions and not in restraint of trade.

(3) Nor shall anything contained in this paragraph prevent price changes from time to time where made in response to changing conditions affecting either the market for the umbrellas, parts, or accessories concerned, or the marketability of the umbrellas, parts, or accessories, 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 products concerned.

(b) Prohibited brokerage or commissions. In the selling of umbrellas, parts, or accessories in commerce, it is an unfair trade practice for any member of the industry engaged therein to pay or grant, or to receive or accept, any 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 such umbrellas, parts, or accessories, either to the other party to such transaction or to an agent, representative, or other intermediary therein, where such agent, representative, or other 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. In the selling of umbrellas, parts, or accessories in commerce by any member of the industry, and in the course thereof, it is an unfair trade practice for such member to pay or contract for the payment of any advertising or promotional allowances or any other thing of value to or for the benefit of his customer as compensation or in consideration for certain services or facilities furnished by or through such customer, unless such payment or consideration is available on proportionally equal terms to all other customers of such member competing in the distribution of such umbrellas, parts, or accessories.

(1) As used in paragraph (c) of this section, the certain services or facilities referred to are such as are furnished by or through the customer in connection with the processing, handling, sale, or offering for sale, of such industry member's umbrellas, parts, or accessories.

(d) Prohibited discrimination in services or facilities. In the sale of umbrellas, parts, or accessories bought for resale, with or without processing, 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 by furnishing certain services or facilities upon terms not accorded to all competing purchasers on proportionally equal terms.

(1) Said services or facilities referred to in this paragraph are such as are connected with the processing, handling, sale, or offering for sale, of the umbrellas, parts, or accessories, purchased, and the term "furnishing" as used in this paragraph shall be construed as including contracting to furnish, and contributing to the furnishing of, the services or facilities.

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

(f) Exemptions. The inhibitions of this section shall not apply to purchases of their supplies for their own use by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit.

§ 145.19 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 §§ 145.1 to 145.18.

§ 145.101

GROUP II

Repudiation of contracts.

Lawful contracts are business obligations which should be performed in letter and in spirit. The repudiation of contracts by sellers on a rising market, or by buyers on a declining market, is condemned by the industry.

§ 145.102 Return of merchandise.

The practice, by members of the industry, of selling merchandise and later permitting the purchaser to return it for credit or refund of purchase price, without just cause, creates waste and loss, increases the cost of doing business to the detriment of both the industry and the public, and is condemned by the industry, subject, however, to the requirements and limitations set forth in the provisions of § 145.17, and subject also to the general limitation that members of the industry shall not engage in any combination or conspiracy in restraint of trade or use of any other illegal methods in the regulation, control, or prevention of the return of merchandise.

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For the purpose of this part and in its application the following definitions respecting canned tuna and canned tuna products shall apply:

(a) Fancy tuna. (1) The term "fancy tuna" as herein used shall be deemed to be the descriptive term for choice cuts of cooked tuna, from fish weighing not more than sixty (60) pounds round weight, packed in cans with large pieces of solid meat and with one or two small pieces of solid meat added, if necessary, to bring the contents up to required net weight, but not including any flakes (nor any grated or shredded tuna) added at the time of packing.

(2) The term "fancy white meat tuna" as used in this section shall be deemed to be the descriptive term for like choice cuts of albacore (Germo alalunga) packed in the same manner.

(3) The expression "choice cuts" means large choice pieces of cooked tuns composed of tender solid meat of selected light color and fine texture, and free from dark meat, bones, skin, extraneous tissue, debris, and any substance or condition impairing quality.

(b) Standard tuna. (1) The term "standard tuna" as used in this section shall be deemed to be the descriptive term for wholesome cooked tuna meat, not restricted as to size of fish, which when packed contains at least 75 percent

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