such containers or packages or the amount of putty contained therein, is an unfair trade practice.

§ 140.12 False guarantee.

The making of any guarantee as to the durability or service of any industry product which is untrue or which is impracticable or impossible to fulfill because of contingencies such as, but not limited to, workmanship or maintenance over which the manufacturer or guarantor has no control, or which otherwise has a tendency, capacity or effect of deceiving or misleading the purchasing or consuming public, is an unfair trade practice.

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. 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 form of price differential, where such rebate, refund, discount, credit, or other form of price differential effects 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 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;

(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 cus

2 Paragraph (a) of § 140.13 shall not be construed as embracing practices prohibited by paragraphs (b), (c) and (d) of this section.

tomers 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 brokerage 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 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 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 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 said 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 purchaser 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) 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 this section.

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

§ 142.1 Misbranding, misrepresentation, and deceptive selling methods.

It is an unfair trade practice for any member of the industry, in the course of the marketing or distribution of products of the industry, (a) to use, or promote the use of, any marks, brands, labels, depictions, layouts, advertisements, prices, trade promotional descriptions, or representations of any kind, which, directly or by implication, are false, misleading, or deceptive to the purchasing or consuming public; or (b) to offer for sale, sell, or distribute, or promote the sale or distribution of, products of the industry under any other conditions or selling practices which have the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public in any material respect.

§ 142.2

"All-wave," "world-wave," "world-wide wave," "standard broadcast," etc.

In the application of the rules in this part, and for the purpose of avoiding confusion, misunderstanding, and deception:

(a) Except as provided in paragraph (b) of this section, the terms "all-wave," "world-wave," "world-wide wave," or words, phrases, or representations denoting world-wide reception, shall not be used as descriptive of a radio receiving set advertised, offered for sale, sold, or distributed in the American market when such set is not constructed to receive and capable of receiving, with reasonable or adequate consistency, the entire respective spectrum of radio frequencies in recognized use in the art, namely, all long-wave broadcasts and transmissions, all medium-wave and short-wave broadcasts and transmissions, and all other waves transmitted or broadcast, including both foreign and domestic; excepting, however, that such set so described or represented need not include within its capacity of reception such point-to-point transmissions as are confidential and illegal for general reception and divulgence to members of the public, or such unchanging signals as emanate from radio beacons or radio lighthouses, when such set is not otherwise falsely or deceptively described or represented, directly or indirectly, as being constructed to receive, or as being capable of receiving, such point-to-point or beacon or lighthouse transmissions.

(b) Nothing contained in this section shall prohibit the use of the term “limited all-wave," "limited world-wave," "limited world-wide wave," or terms or words of similar import, as descriptive of a radio receiving set advertised, offered for sale, sold, or distributed in the American market, when such set is constructed for and capable of consistently receiving at least a continuous spectrum of frequencies from 540 kilocycles to 18,000 kilocycles, provided such terms or words are immediately accompanied by words, phrases, or terms set forth conspicuously and clearly, unequivocally and truthfully stating the exact wave bands or frequencies which such set is capable of consistently receiving; for example:

Limited All-Wave-From 540 to 18,000 kilocycles.

Limited All-Wave-From 530 to 21,000 kilocycles.

Limited World-Wave-From 540 to 18,000 kilocycles.

Limited World-Wide Wave From 540 to 18,000 kilocycles.

Limited All-Wave-From 140 to 410 kilocycles, and from 540 to 18,000 kilocycles.

Limited World-Wave-From 540 to 18,000 kilocycles, and from 19,000 to 23,500 kilocycles.

Limited World-Wide Wave-From 150 to 400 kilocycles, and from 540 to 35,000 kilocycles.

(c) Nothing contained in this section shall prohibit the use, as descriptive of a radio receiving set, of the term "allwave" as an integral part of a clause, sentence, or statement which truthfully and unequivocally sets forth the bands or radio frequencies such set does not cover, and wherein the words "all-wave" are not given greater prominence or conspicuousness than the other parts of such clause, sentence, or statement, provided such set is constructed for, and capable of receiving with reasonable or adequate consistency, all the waves or bands of frequencies from 540 to 18,000 kilocycles and such other bands or frequencies as are represented to be within its receptive capacity. The following are illustrative of such permissible phrases here provided for:

All waves except for frequencies above 21,000 kilocycles and below 540 kilocycles. All waves except Asiatic stations.

All waves except foreign and domestic frequencies above 18,000 kilocycles and below 540 kilocycles.

(d) The terms "standard-broadcast receiver," "frequency-modulation receiver" and "television receiver," as descriptive of an amplitude-modulation or a frequency-modulation radio or a television receiving set, shall not be used in such manner as to lead the public to believe that such set is constructed for, and capable of receiving with reasonable or adequate consistency, a greater number of radio or television frequency signals or channels than is in fact true of such set.

§ 142.3 Specific types of advertisements or representations among those prohibited.

It is an unfair trade practice for any member of the industry to use, or cause to be used, any of the following-described types of advertisements or representations:

(a) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will receive distant stations or any or all foreign broadcasts or transmissions easily or satisfactorily or as easily or satisfactorily as local or domestic reception, when such is not the fact. (b) Advertisements or representations stating, purporting, or implying that any radio or television receiving set so advertised or represented, or the reception thereof, is not subject to interference or to being interfered with or interrupted by fading, noise, electrical interference, atmospheric conditions, static, or any other phenomena or conditions, when such is not the fact.

(c) Advertisements or representations with respect to the receiving capacity or performance of any radio or television receiving set which make deceptively exaggerated or misleading claims, or claims which are not justified and supported by the fact or performance of such radio or television receiving set.

(d) Advertisements or representations which directly or by implication lead purchasers to believe that the radio or television receiving set so advertised or represented is capable of greater or more consistent or satisfactory performance or reception than is in fact true.

(e) Advertisements or representations stating, purporting, or implying that a radio receiving set so advertised or represented will give world-wide continuous reception or other continuous reception, when such is not the fact; or that the radio receiving set will give such reception or other reception with loud-speaker volume, when such is not the fact; or that the radio receiving set will give world-wide reception or other reception regularly or dependably, when such is not the fact.

(f) Advertisements or representations of any radio receiving set stating, purporting, or implying that each station or any station, whether nearby or foreign or domestic, can be brought in, or brought in with sharp, clear, or distinct reception, or with ease, simplicity, or regularity, by any amplitude-modulation radio receiving set so advertised or represented, when such is not the fact.

(g) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will bring in or receive broadcasts from Europe, Africa, South America, Australia, or Asia, or from any

other designated locality, or that it will bring in such broadcasts, or any of them, consistently or satisfactorily, when such is not the fact.

(h) Advertisements or representations stating, purporting, or implying that any radio or television receiving set so advertised or represented sifts out noise or is free from noise, or brings in far distant stations sharp or clear, or brings in signals to weak signal areas sharp or clear, or brings in signals to fringe areas sharp or clear, when such is not the fact.

(i) Advertisements or representations stating, purporting, or implying that any radio receiving set so advertised or represented will bring in or receive satisfactorily or consistently foreign stations, police calls, aviation calls, radio transmissions from or to ships at sea, amateur stations, or other types of radio transmissions, when such is not the fact, or when only a small part of any such class of radio frequencies transmitted or broadcast is so receivable and such fact, or the fact that others of the same class are not so receivable, is deceptively concealed.

(j) Advertisements or representations stating, purporting, or implying that a radio or television receiving set so advertised or represented contains a certain number of tubes or their equivalents or is of a certain tube capacity or equivalent tube capacity when one or more of such tubes or their equivalents in the set are dummies or fakes or contribute no useful function toward enhancing the normal and intended operation of the amplitude-modulation or frequencymodulation radio or television receiving set.

NOTE: In order to avoid and prevent misleading tendencies or results, so-called “ballast tubes," dial or other lamps used for illumination, so-called "plug-in resistors," and other like accessories or devices not providing the recognized and customary functions of tubes used to enhance the operation of a radio or a television receiving set, are not to be included as tubes or their equivalents in advertisements or representations of a radio or a television receiving set which describe or refer to the set as having a certain number of tubes or their equivalents or as being of a specified tube capacity or equivalent tube capacity. Rectifier tubes, used to supply power to the set, shall not be included in the computation of tube count of such set.

(k) Advertisements or representations stating, purporting, or implying that

radio or television receiving sets so advertised or represented are of a current model, as specified by the manufacturer, when such is not the fact; or advertisements or representations which, directly or indirectly, have the capacity and tendency or effect of leading the purchasing public to believe that the set is of the current year's model or has not been supplanted, superseded, or succeeded by a newer or later model, when such is not true in fact; or advertisements or representations which are otherwise deceptive or misleading respecting the model of the set.

NOTE: The term "current," in reference to a model means that the said model appears in the prevailing literature published by the advertiser.

(1) Advertisements or representations concerning a radio or a television receiving set which, by reference to the name of the manufacturer, or one or more component parts of the set, or to a patent license pursuant to which the set was manufactured, or otherwise, have the capacity and tendency or effect of misleading purchasers or the consuming public into the belief that such set is manufactured or sponsored by said component part manufacturer or patent licensor, when such is not the fact.

(m) Advertisements or representations stating, purporting, or implying that a television receiving set is a color television receiving set unless such receiving set is capable, as so constituted, of reproducing color television signals in color as transmitted from a television station transmitting in color; or advertisements or representations which, directly or indirectly, have the capacity and tendency or effect of leading the purchasing public to believe that the television receiving set is capable of reproducing color television transmission signals in color as transmitted from a color television transmitting station, when such is not the fact.

(n) Advertisements or representations stating, purporting, or implying that a device for color television is capable of producing television pictures in color as broadcast, when such is not the fact.

§ 142.4 Sponsorship.

It is an unfair trade practice to use, or cause to be used, advertisements or representations relating to any radio or television sets, parts or accessories there

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for, or to other products of the industry, which have the capacity and tendency or effect of misleading purchasers or the consuming public into the belief that such radio or television receiving sets, parts, accessories, or products are sponsored by, or are otherwise asociated with, any person, concern, or organization, when such is not the fact.

§ 142.5 Alteration of identifying names or marks.

It is an unfair trade practice for any industry member to remove or deface the name, trade name, or trademark of any manufacturer appearing on any industry products when such removal or defacement has the capacity and tendency or effect of deceiving purchasers or prospective purchasers of the product in any material respect.

(a) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice to misrepresent in any material respect the composition of the cabinet, or any part of the cabinet, of any such product.

(b) Among practices inhibited by this section are the following:

(1) Representing that a cabinet, or part thereof, is "mahogany," "solid mahogany,” or “in mahogany," unless such cabinet or part is of solid mahogany wood.

(2) Representing that any cabinet, or part thereof, is "mahogany veneer" or "mahogany veneered" unless such cabinet or part consists of a base of wood or plies of wood on the exterior surface of which there has been glued or bonded a ply or veneer of mahogany wood; Provided, however, That the terms may also be used as descriptive of cabinets, or parts thereof, which consist of other than a base wood or plies of wood on the

1 Section 142.6 applies to affirmative representations relating to the composition of cabinets and parts thereof. However, in the absence of any affirmative representation, the failure to disclose the true composition of a cabinet, or part thereof, which has the appearance of being of a different composition, may result in deception of purchasers and prospective purchasers and be violative of laws administered by the Commission. It is to be understood that the authority of the Commission is not limited to the affirmative representation practices inhibited by this section.