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(5) That cracks or other structural failure resulting from settlement, ground movement, or other cause, may result in water or moisture leakage regardless of the efficacy of the industry product integrated or applied to the structure.

(6) That the character of results to be obtained through use of the product is dependent upon its proper application or integration.

In addition to such disclosures clear, explicit, and detailed directions as to the manner in which the product is to be integrated with or applied to the masonry unit or structure should be fully disclosed and made available to all purchasers, either by setting forth such directions on the product containers or by pamphlets or other means sufficient to acquaint purchasers therewith.

(b) The concealment or nondisclosure of any of the above information, with the capacity and tendency or effect of thereby misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice.

(c) Nothing in this section shall be construed as requiring disclosure of such information on product containers, or on labels attached thereto, in the case of bulk shipments to building contractors or professional applicators not for resale but for integration or application by them or under their supervision, when it is shown that such information, including written directions as to proper manner of application, has otherwise been furnished to such contractors or applicators, and the word "waterproofing," "dampproofing," or any other term or representation concerning the results to be achieved by use of the product does not appear on the container or labels, and no deception of contractors, purchasers, users, or of members of the public, is involved directly or indirectly. [Rule 7]

§ 169.8 Misrepresentation as to character of business. It is an unfair trade practice for any concern, in the course of or in connection with the distribution of industry products, to represent, directly or indirectly, that it is a manufacturer of industry products, or that it owns or controls a factory making such products, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of its business. [Rule 81

§ 169.9 Deceptive use of trade or corporate names, or trade-marks, etc. The use of any trade name, corporate name,

trade-mark, or other trade designation which has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public as to the character, name, nature, efficacy, or origin of any product of the industry, or any material used therein, or which is false or misleading in any other respect, is an unfair trade practice. (See also § 169.2 (c)) [Rule 9]

§ 169.10 Misrepresenting products as conforming to standard. Representing, through advertisement or otherwise, that any products of the industry conform to a standard recognized in or applicable to the industry when such is not the fact, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. [Rule 101

§ 169.11 Imitation of trade-marks, trade names, etc. The imitation or simulation of trade-marks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. [Rule 111

§ 169.12 Guarantees, warranties, etc. (a) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any member of the industry to issue or use any guarantee or purported guarantee which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers in any material respect.

(b) Under the foregoing provisions of this section, the word "guarantee," "guaranty," or "guaranteed" shall not be used unless in conjunction therewith there is set forth a statement of an undertaking which in fact constitutes a guarantee and in which the name of the guarantor is clearly set forth or indicated; nor shall guarantees of the following type or character be used:

(1) Guarantees containing statements, promises, representations, or assertions which have the capacity and tendency or effect of misleading and deceiving as to quality, efficacy, results from use, or duration of benefits; or

(2) Guarantees which are of such form, text, or character as to import, imply, or represent that the guarantee is broader than is in fact true, or will afford more protection to purchasers or users than is in fact true; or

(3) Guarantees in which any condition, qualification, or contingency applied by the guarantor thereto is not fully and nondeceptively stated therein, or is stated in such manner or form as to be deceptively minimized, obscured, or concealed, wholly or in part; or

(4) Guarantees which are stated, phrased, or set forth in such manner that although the statements contained therein are literally and technically true, the whole is misleading in that purchasers or users are not made sufficiently aware of certain contingencies or conditions which are applicable to such guarantees, and materially lessen the value thereof as a guarantee to purchasers or users; or

(5) Guarantees which purportedly extend for such indefinite or unlimited period of time or for such long period of years as to have the capacity and tendency or effect of thereby misleading or deceiving purchasers or users into the belief that the product has or is definitely known to have greater utility, efficacy, or durability in actual use than is in fact true; or

(6) Purported guarantees in the form of documents, promises, representations, or other form which are represented or held out to be guarantees when they are not such in fact, or when they involve any deceptive or misleading use of the word "Guarantee" or term of similar import; or

(7) Guarantees issued, or directly or indirectly caused to be used, by any member of the industry when or under which the guarantor fails, or refuses to scrupulously observe his obligations thereunder or fails or refuses to make good on claims coming reasonably within the terms of the guarantee.

(c) This section shall be applicable not only to guarantees but also to warranties, to purported warranties and guarantees, and to any promise or representation in the nature of a guarantee or warranty. [Rule 12]

169.13 Procurement of competitors' confidential information by unfair means and wrongful use thereof. It is an unfair trade practice for any member of the industry to obtain information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements or representations, by the impersonation of one in

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authority, or by any other unfair means, and to use the information so obtained in such manner as to injure said competitor in his business or to suppress competition or unreasonably restrain trade. [Rule 13]

§ 169.14 Unfair threats of infringement suits. The circulation of threats of suit for infringement of patents or trademarks among customers or prospective customers of competitors, not made in good faith but for the purpose or with the effect of thereby harassing or intimidating such customers or prospective customers, or unduly hampering, injuring, or prejudicing competitors in their business, is an unfair trade practice. [Rule 14]

§ 169.15 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 competitors' products in any respect, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. [Rule 15]

§ 169.16 Substitution of products. The practice of shipping or delivering products 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 substitution, or with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice. [Rule 16]

§ 169.17 Inducing breach of contract. It is an unfair trade practice to induce or attempt to induce the breach of existing lawful contracts between competitors and their customers, or their suppliers, by any false or deceptive means whatsoever, or to interfere with or obstruct 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. [Rule 17]

§ 169.18 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

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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, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing on contracting to deal with competitors. [Rule 18]

§ 169.19 Discrimination-(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,1 in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, discount, credit, purported allowance for alleged imperfect workmanship or defective material, or other form of price differential, where such rebate, refund, discount, credit, purported allowance for alleged imperfect workmanship or defective material, 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,1 and where the effect thereof may be to substantially 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, con

1 As here used, 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." (With respect to the Philippine Islands, the foregoing is subject to such statutory limitations as relate thereto.)

sumption, or resale within any place under the jurisdiction of the United States;

(2) That nothing herein contained 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 herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce 1 from selecting their own customers in bona fide transactions and not in restraint of trade;

(4) That nothing herein contained 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,1 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 1 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 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 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 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,1 in the

'As here used, 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." (With respect to the Philippine Islands, the foregoing is subject to such statutory limitations as relate thereto.)

course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the foregoing provisions of this section.

(f) Purchases by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit. The foregoing provisions of this section relate to practices within the purview of the Robinson-Patman Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations expressed in the amendment to such Robinson-Patman Antidiscrimination Act, which amendment was approved May 26, 1938, and reads as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That nothing in the Act approved June 19, 1936 (Public, Numbered 692, Seventy-fourth Congress, second session), known as the RobinsonPatman Antidiscrimination Act, shall 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. (52 Stat. .446; 15 U.S.C., 13c)

[Rule 19]

§ 169.20 Aiding or abetting use of unfair trade practices. It is an unfair trade practice for any person to aid, abet, coerce, or induce another, directly or indirectly to use or promote the use of any unfair trade practice specified in the regulations in this part. [Rule 201

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