The use of the word "free' where not properly or fairly qualified when the article is in fact not free, with the tendency or capacity to mislead or deceive purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

§ 129.13 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 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.

§ 129.14 Lottery schemes.

The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by any scheme which involves lottery, misrepresentation, or fraud, is an unfair trade practice.

ments 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 purpose or effect of thereby misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

§ 129.17 Sales below cost.

The practice of selling goods below the seller's 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 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.

§ 129.18 Unlawful combinations in restraint of trade.

It is an unfair trade practice for any person, firm, partnership, corporation, or association to enter into or take part in, directly or indirectly, any agreement, understanding, combination, or conspiracy with one or more persons, firms, partnerships, corporations, or associations to fix, maintain, or enhance prices, or to suppress competition in respect of any product or products of the industry or other products, or to fix, maintain, or enhance prices or suppress competition by any other unlawful

means.

§ 129.19 Aiding or abetting use of unfair trade practices.

For any member of the industry knowingly to aid or abet another member, or any other person, firm, or corporation, in the use of unfair trade practices, is an unfair trade practice.

§ 129.102 Repudiation of contracts.

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.

§ 129.103 Unwarranted 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 good reason, 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.

§ 129.104

Differentiating

between

wholesale and retail transactions. Where products of the industry are sold at wholesale and retail in the same establishment, the failure on the part of such member correctly to differentiate between or identify the two types of transactions, where the result may be to create confusion and deception as to the character of the transaction in the minds of purchasers or prospective purchasers, is condemned by the industry. § 129.105 Coercive sales.

The use of buying power to force uneconomic or unjust terms of sale upon sellers, and the use of selling power to force uneconomic or unjust terms of sale upon buyers, are condemned by the industry.

§ 129.106 Adherence to safety require

ments.

In the judgment of the industry the practice of filling or using, for the distribution of liquid carbon dioxide, cylinders or containers which do not meet the requirements of Interstate Commerce Commission Specifications 3 or 3-A, and the practice of using converters or liquefiers which do not conform to the safety regulations of the locality in which they are used, may be dangerous to life and property and such practices are therefore condemned by the industry. In localities in which no official applicable safety regulations are in effect it is recommended as a proper practice to follow in the interest of safety that converters or liquefiers used be such as have been manufactured or constructed to meet the requirements of

the Unfired Pressure Vessel Code of the American Society of Mechanical Engineers (A. S. M. E.) in effect at the time of such manufacture or construction, or which have otherwise been manufactured or constructed in accordance with adequate safety requirements. The use of converters or liquefiers is not prohibited or condemned by this rule but safety precautions are deemed necessary and desirable in the interest of the public and for the welfare of the industry and are therefore recommended.

§ 129.107 Dissemination of credit information, etc.

The industry records its approval of the distribution among members of the industry of information covering delinquent and slow return of cylinder accounts as well as delinquent and slow credit accounts in so far as such may be lawfully done.

§ 131.2

Misrepresentation as to shrinkage properties.

The practice of selling, offering for sale, advertising, describing, branding, marking, or labeling woven cotton yard goods in a manner which is calculated to mislead or deceive or has the tendency and capacity or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public with respect to the preshrunk character of such goods, the residual shrinkage remaining therein, or with respect to the extent of the shrinkage to which such goods have been subjected, or respecting any other shrinkage properties, quality, or character of such goods, is an unfair trade practice.

§ 131.3

Misuse of descriptive terms.

In the sale or distribution of woven cotton yard goods, it is an unfair trade practice: (a) to use, or cause to be used, directly or indirectly, the terms "Full Shrunk," "Preshrunk," "Shrunk," "Shrinkproof," "Will not Shrink," "Mill Shrunk," "Double Shrunk," "NonShrinkable," or word, term, mark, label, or representation of like effect or similar import, as descriptive of such goods when the same are not in fact shrinkproof or non-shrinkable, or have not in fact been fully-shrunk or preshrunk to the extent that no residual shrinkage is left remaining in such goods, or (b) otherwise to use, or cause to be used, any such word, term, mark, label, or representation so as to mislead or deceive purchasers, prospective purchasers, or the consuming public into the belief that such goods have been shrunk to a greater degree than is in fact true or that the residual shrinkage of such goods is less than is in fact true.

§ 131.4 Permissible terms.

Nothing in this part shall prohibit the use of the terms "Full Shrunk," "Preshrunk," "Shrunk," "Shrinkproof," "Non-Shrinkable," or word, term, mark, label, or representation of like effect or similar import, as descriptive of woven cotton yard goods which have undergone the application of a shrinking process and thereby have been shrunk or preshrunk to the extent that no residual shrinkage is left remaining in such goods, And provided, That subsequent to the application of such shrinking process the goods have not been subjected to stretching or to any condition or process

which has restored shrinking properties or residual shrinkage to such goods. § 131.5 Use of terms "Preshrunk" or “Shrunk” with qualifications.

(a) In the case of woven cotton yard goods which have undergone the application of a shrinking process and have been shrunk to a substantial extent but as to which there remains a certain amount of residual shrinkage, nothing in these rules shall prohibit the use of the term "Preshrunk," "Shrunk," or term or word of like effect or similar import, as an integral part of or in immediate conjunction with a truthful phrase, statement, or assertion clearly and unequivocally stating the fact that such goods have been preshrunk or shrunk to a substantial extent and also setting forth in percentage or percentages the amount of residual shrinkage remaining in both the warp and the filling, or in the warp or the filling whichever has the greater residual shrinkage. To avoid confusion, deception, or misunderstanding, the standard shrinkage test provided for in paragraph (e) of this section should be used in determining percentages to be specified in such designations. The following are typical examples of designations provided for in this section:

(4) These goods have been shrunk (or preshrunk) to the extent that residual shrinkage will not exceed % when tested in accordance with the recognized and approved standards or tests.

(b) The residual shrinkage percentage designations provided for in this section for woven cotton yard goods should be stamped on or otherwise firmly affixed to the material in conspicuous size and legibility of type or style, and should also appear similarly on all invoices, labels, marks, or advertisements which carry reference to the shrinkage of the goods.

(c) The use of residual shrinkage percentage designations not in conformity with results obtainable under the test specified in paragraph (e) of this section, with the capacity and tendency or effect

of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

(d) The use or specification of an unreliable or inadequate test in any such designations, or the refusal to specify a test which is proper and applicable, when done for the purpose or with the capacity and tendency or effect or directly or indirectly misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

(e) The following test is deemed to be an accepted and recognized test for determining shrinkage properties or residual shrinkage of woven cotton yard goods in the application of these rules and is recommended for use as a standard shrinkage test for this purpose:

"Commercial Standard CS59-36"

§ 131.6 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 this part.

PART 132-MACARONI AND NOODLE PRODUCTS INDUSTRY

Sec. 132.0

132.1

132.2

132.3

132.4

132.5

132.6

132.7

132.8

132.9

Definitions.

Concurrent jurisdiction of Food and
Drug Administration over labeling.
Deception (General).

Misrepresentation of protein, caloric
and starch content of products.
Misuse of words "macaroni," "spa-
ghetti," "vermicelli," "egg-maca-
roni" and "noodles," or "egg
noodles," etc.

Misrepresentation of semolina, du-
rum or farina products.
Misrepresentation as to the egg con-
tent of product.
Deception as to ingredients of prod-
ucts.

Defamation of competitors or false disparagment of their products. Prohibited sales below cost. 132.10 Imitation of trade-marks,

names, etc.

132.11 Fictitious prices, etc.

132.12 Deceptive invoicing, etc.

132.13 Prohibited discrimination.

132.14 Commercial bribery. 132.15 Exclusive deals.

trade

§ 132.1

Concurrent jurisdiction of Food and Drug Administration over labeling.

(a) Definitions and standards for macaroni and noodles products promulgated under the Federal Food, Drug and Cosmetic Act by the Food and Drug Administration will, when relevant, be taken into consideration in the administration of trade practice rules for the industry.

(b) The Commission has jurisdiction over the advertising of industry products, and both it and the Food and Drug Administration have jurisdiction over the labeling of such products. In order to avoid unnecessary overlapping and possible conflict of effort, the two agencies have adopted a working arrangement under which the Commission regulates the advertising of such products and the Food and Drug Administration regulates the labeling thereof, with recognition that there may be unusual situations in which the Commission will exercise its concurrent jurisdiction over the labeling of such products.

(c) Nothing in this part is to be construed as relieving anyone of the necessity of complying with the provisions of the Federal Food, Drug and Cosmetic Act with respect to the labeling of industry products, and with the definitions and standards for such products as established by the Food and Drug Administration.

§ 132.2 Deception (general).

It is an unfair trade practice for any industry member to use or cause to be used any advertisement1 of industry products which contains any statement, representation, illustration, or depiction which directly, or by implication or through failure to disclose material information, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers with respect to the grade, quality, quantity, substance, character, nature, origin, size, material, content, coloring, digestibility, nutritional properties, therapeutic value, effect on body weight, preparation, or manufacture of any industry products, or which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers in any other material respect. § 132.3 Misrepresentation of protein, caloric and starch content of prod

ucts.

It is an unfair trade practice for a member of the industry to make any representation in any advertisement1 which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to:

(a) The protein, caloric or starch content of any industry product, or

(b) The protein, caloric or starch content of any industry product, or portion thereof when prepared for consumption in accordance with the member's directions or recommendations, or (c) The protein, caloric or starch content of any industry product compared to other industry products or to specific foods or to food generally.

NOTE: Among practices to be considered as subject to the inhibitions of this section, are representations in any advertisement1 that an industry product is a high protein food, or is a food of low starch or caloric content.

1 The word "advertisement" as here used includes any written or verbal statement, notice, presentation, illustration, or depiction, other than labeling, which is directly or indirectly designed to effect the sale of any industry product, or to create an interest in the purchase of any such product, whether same appears in a newspaper, magazine, or other periodical, in a catalog, letter, or sales promotional literature, in a radio or television broadcast, or in any other media.

§ 132.4 Misuse of words "macaroni,' "spaghetti," "vermicelli,” "egg

macaroni" and "noodles," or "egg noodles," etc.

1

It is an unfair trade practice for an industry member to represent in an advertisement any product as being macaroni, spaghetti, vermicelli, eggmacaroni, noodles or egg noodles when such is not the fact, or to misrepresent the identity of any industry product. § 132.5 Misrepresentation of semolina, durum, or farina products.

It is an unfair trade practice for an industry member to represent in any advertisement' an industry product as being a semolina, durum or farina product when such is not true in fact.

NOTE: Nothing in this section is to be construed as inhibiting a representation that an industry product is:

(a) A semolina product when the wheat content thereof is solely of semolina, or

(b) A durum product or a durum wheat product when the wheat content thereof is solely of durum wheat, or

(c) A farina product when the wheat content thereof is solely of farina.

§ 132.6 Misrepresentation as to the egg content of product.

It is an unfair trade practice for an industry member to misrepresent in any advertisement1 the egg content of any industry product.

NOTE: It is the consensus of the industry that any representation as to the egg content of an industry product should be on a moisture free basis.