§ 13.2170 Securing orders by deception. Subpart-Securing Signatures Wrongfully

§ 13.2175 Securing signatures wrongfully.

Subpart-Selling Below Cost

§ 13.2180 Selling below cost. Subpart-Selling and Quoting on Systematic, Price Matching Basis

§ 13.2190 Basing points and delivered price systems.

§ 13.2193 Zone, freight equalization, and other delivered price systems. Subpart-Shipping, for Payment Demand, Goods in Excess of or Without Order

§ 13.2195 Shipping, for payment demand, goods in excess of or without order.

13.2195-40 "Padded" order goods.

Subpart-Simulating Another or
Product Thereof

Sections Affected, 1949-1963, and from January 1, 1964 to the present, see the List of Sections Affected at the end of this volume. Commencing with the list for 1959, the Federal Trade Commission docket numbers are included. The notation "o" following a docket number indicates an opinion; "c.o." indicates a consent order.

Complete listings of all firms and individuals named in cease and desist orders are carried in the Annual Indexes to the Federal Register. For public information services of the Federal Trade Commission, see § 1.132 of this title.

PART 14-ADMINISTRATIVE INTERPRETATIONS

Sec.

14.2

14.4

Devices for lottery selling.

§ 13.2480 In merchandising. Subpart-Using Patents, Rights or Privileges Unlawfully

§ 13.2485 Using patents, rights, or privileges unlawfully.

§ 13.2490 Diverting trade in, or exploiting sale of, unpatented products.

§ 13.2495 Fixing prices through licensing agreements exceeding legitimate patent monopoly.

§ 13.2500 Fixing resale price of unpatented part, in patent combination sys

tem.

§ 13.2505 Pooling and controlling patents and patent rights restrictively.

§ 13.2510 Refraining, concertedly, from challenge of one another's.

§ 13.2515 Securing, improperly, noncontesting agreements, etc.

AUTHORITY: The provisions of this Part 13 issued under sec. 6(g), 5, 38 Stat. 722, 719, sec. 2 (a), (c), (d), (e), 49 Stat. 1526, 1527: 15 U.S.C. 46, 45, 13 (a), (c), (d), (e).

SOURCE: The provisions of this Part 13 appear at 24 F.R. 10287, Dec. 19, 1959, unless otherwise noted.

NOTE: In the revision of Title 16 as of January 1, 1960, the listing of individual actions under each section of Part 13 is discontinued. For Federal Register citations to cease and desist orders issued under the various sections of this part from January 1, 1949 through December 31, 1963, see List of

Rule ----Push Money.

Use of word "tile” in designation of non-ceramic products.

It is not the policy of the Commission to consider false and misleading the use of the word "tile" in the designation of non-ceramic products provided that either the true composition of said products or the fact that they are not ceramic products is plainly disclosed. (Sec. 6. 38 Stat. 721; 15 U.S.C. 46) 7357, Nov. 12, 1950]

§ 14.4 Identification of weighted silk fiber.

[15 F.R.

metallically

(a) The following requirements for disclosure of metallic weighting are based on, and interpretive of, section 5(a) of the Federal Trade Commisison Act, as amended, and are to be construed as supplementing the fiber identification requirements of the Textile Fiber Products Identification Act and the rules and regulations issued thereunder.

(b) In the case of yarn and fabric containing metallically weighted silk fiber, the fiber identification required by the Textile Fiber Products Identification Act (72 Stat. 1717; 15 U.S.C. 70), and the rules and regulations issued thereunder, shall be immediately accompanied by a clear and non-deceptive disclosure of the fact that the silk fiber present is weighted, with specification of the percentage of the total weight of the silk fiber content in its finished state which the weighting represents: Provided, however, That specification of the percentage

shall be subject to a tolerance not exceeding 3 percent when the deviation is not intentional and reasonable effort has been made to determine and accurately state the precise percentage; and, Provided further, That in lieu of a statement of the precise percentage, a maximum percentage may be stated when the precise percentage does not exceed such maximum.

(c) The disclosure of such weighting, in accordance with the above requirements, shall be on the same label on which appears the fiber identification required by the Textile Fiber Products Identification Act and the rules and regulations issued thereunder, and shall appear in immediate conjunction with any representation in advertisements, sales promotional literature, or invoices, which relate to fiber content. The following are examples of disclosure of metallic weighting which will be considered as meeting the requirements of this Administrative Interpretation:

When the fiber content is wholly silk, and the weighting constitutes 50 percent of the weight of the fiber content in its finished state:

"Fiber content 100 percent silk, weighted 50 percent"; or

"Fiber content all silk, weighted 50 percent."

When the fiber content is of a mixture of 50 percent silk and 50 percent rayon, and the weighting constitutes not more than 25 percent of the silk fiber in its finished state:

without the knowledge and consent of the sales person's employer; or

(b) When the terms and conditions of the agreement or understanding are such that any benefit to the sales person or customer is dependent on lottery; or

(c) When any provision of the agreement or understanding requires or contemplates practices or a course of conduct unduly and intentionally hampering sales of products of competitors of an industry member; or

or

(d) When, because of the terms and conditions of the understanding agreement, including its duration, or the attendant circumstances, the effect may be to substantially lessen competition or tend to create a monopoly; or

(e) When similar payments are not accorded to sales persons of competing customers on proportionally equal terms in compliance with section 2 (d) and (e) of the Clayton Act.

NOTE: Payments made by an industry member to a sales person of a customer under any agreement or understanding that all or any part of such payments is to be transferred by the sales person to the customer, or is to result in a corresponding decrease in the sales person's salary, are not to be considered within the purview of this Rule but are to be considered as subject to the requirements and provisions of section 2(a) of the Clayton Act.

1111)

"Fiber content 50 percent silk (weighted not to exceed 25 percent), and 50 percent rayon."

15.1

Use of the word "chamois."

15.2

15.3

(Sec. 5, 38 Stat. 719, as amended; 15 U.S.C. 45) [25 F.R. 2835, Apr. 5, 1960]

15.4

Publication of product standards by a trade association as an industry goal.

Manufacturer's setting of a minimum. resale price for dealers.

Three-way promotional program set. up by outdoor advertiser and financed by participating grocery chains and their suppliers.

Resumption of advertising by a manufacturer in a trade buying guide formerly but no longer owned by a wholesaler customer.

Foreign origin disclosure.

Labeling of containers for imported knives.

15.8

15.9

15.10 15.11

Cooperative advertising allowances.

Labeling of truss plates manufactured from imported steel.

15.20 Necessity to disclose foreign origin of strain release device if servomotor is labeled as "Made in U.S." 15.21 "Free" offer of merchandise. 15.22 Impropriety of description "Made in U.S.A." for kit with substantial amount of foreign components. 15.23 Establishment of buying corporation by broker.

15.24 Food store promotional plan. 15.25 Impropriety of description "14 K" for item not entirely gold.

15.26 Paying advertising allowances based upon certain percentage of purchases from the supplier.

15.27 Affirmative misrepresentation of domestic origin.

15.28 Selection of customers by a single trader.

15.48

15.49

15.50

15.51

15.52

15.53

Merchandising by means of a chance or gaming device. Common sales agency.

Leather terms may not be used for nonleather gloves even if true composition is disclosed-manner and place of disclosing foreign origin. Legality of licensee and sub-licensee selling to competing jobbers.

Cooperative advertising plan with no ceiling on suppliers' payments. Furnishing and servicing projection equipment in grocery outlets. Discount stamp advertising plan. Food manufacturer, retailer promotion program.

Self-locating shopping guide promotional program.

15.54 Promotional display.

15.55

assistance; Newsstand

Dissemination of uniform warranty plans by trade association to its members.

15.56 Legality of plan to display signs at newsstands calling attention to advertisements in magazines.

15.57 Sales promotion plan disapprovedLottery.

15.58 15.59

Foreign origin-Toy balloons. Disapproval of private group advertising review board.

15.60 Advertising of diamonds as "clear, pure, color".

15.61 Improper use of terms such as "gold filled" or "rolled gold plate". 15.62 Suppliers and grocery chain exhibition, in-store promotion.

15.63 Disclosure of terms and conditions in guarantee advertising.

15.64 Pledge of adherence to FTC trade practice rules as a condition to membership in trade association. 15.65 Broadcast of suppliers' commercials in retail stores conditionally approved. 15.66 Magazine publisher's promotional allowance program approved. 15.67 Functional discount to "premium" book jobbers.

15.68 Clearance given for use of pseudonym for doctor's real name on radio programs.

15.35 Promotional plan in selected areas. 15.36 Functional discounts, meeting compe

15.69 15.70

Foreign origin; razor blade dispensers. Bargain offers based upon purchase of other merchandise.

Products composed of ground leather may not be described as "leather" without proper qualifications. Franchise agreement.

Rejection of description "golden" for nongold thimble.

15.74 Conditional approval given 3-party promotional plan.

15.75 Publisher's display allowance plan given conditional approval. 15.76 Foreign origin disclosure of individual items repackaged in combination sets.