§ 191.1

GROUP I

Deception as to product being a "venetian blind."

It is an unfair trade practice to represent any product as being a venetian blind unless such product consists of numerous thin slats and other parts which are so assembled as to afford control of the admission of light and air through any size window, door, or aperture for which the product is designed by permitting of the raising, lowering, and holding of the slats at different positions, and the simultaneous opening, closing, tilting, and setting thereof at any angle, by easy manual operation, the slats remaining parallel to each other, and their ends in alignment throughout any such operation. § 191.2

Misuse of terms "custom built," "made to order,” etc.

In the sale, offering for sale, or distribution of venetian blinds, it is an unfair trade practice for an industry member to use the terms "custom built," "made to order," or any other words or terms of similar import, as descriptive of any

venetian blind which has not been made in accordance with specifications as to size, color, quality, etc., supplied by the consumer-purchaser prior to the manufacture or assembly of the venetian blind, as distinguished from a product which is a ready-made or stock venetian blind. § 191.3 Misrepresenting products as conforming to standard.

Representing, through advertising or otherwise, that any venetian blind or other industry products conform to a standard recognized in or applicable to the industry when such is not the fact is an unfair trade practice.

§ 191.4 Misrepresentation as to being a manufacturer, wholesaler, jobber, distributor, or retailer, and concerning prices in relation thereto.

(a) It is an unfair trade practice for any industry member, by trade or corporate name or otherwise, to represent or to hold himself out as being the manufacturer, wholesaler, jobber, distributor, or retailer of any venetian blind or other industry product advertised, offered for sale, sold, or distributed, when such is not the fact.

(b) It is an unfair trade practice to use any other deceptive or misleading device, method, or representation respecting the character, nature, or status of the business of any person, concern, or organization engaged in selling or promoting the sale of any venetian blind or other industry product.

(c) It is an unfair trade practice for any member of the industry to represent his prices as being wholesale or manufacturers' prices when such is not true in fact, or to otherwise misrepresent his prices. (See also § 191.10.) § 191.5

Deception as to used or rebuilt products.

(a) It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise, or otherwise represent any venetian blind or other product of the industry as being new or unused when such is not the fact.

(b) In the marketing of venetian blinds which have been used or rebuilt (or contain used or rebuilt parts) and which have the appearance of being new, it is an unfair trade practice to fail to make full and nondeceptive disclosure of the fact that such products, or specified parts contained therein, as the case may be, have been subjected to previous use or have been rebuilt.

§ 191.6 Passing off substandard or defective products as and for regular or first quality merchandise.

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It is an unfair trade practice to advertise, offer for sale, sell, or cause to be sold venetian blinds or other industry products which are "seconds"1 or defective as and for first quality. When venetian blinds or other industry products which are "seconds,' or have latent defects, are placed on the market, they shall be labeled or marked as such, clearly and conspicuously, and in a manner sufficiently permanent as to carry to the purchasing or consuming public and prevent misunderstanding and deception of purchasers.

§ 191.7 Guarantees, warranties, etc.

(a) It is an unfair trade practice to use or cause to be used any guarantee which is false, misleading, deceptive, or unfair to the purchasing or consuming public, whether in respect to the kind, quality, composition, serviceability, value. method of manufacture of the product, or in any other respect; or whether deceptive or misleading as to time or character of the guarantee or by reason of its being incompletely or confusingly stated; and it is also an unfair trade practice for an industry member_guarantor to fail to scrupulously fulfill the terms of his guarantee.

(b) The inhibitions of this section against deceptive or misleading use of guarantees shall also be applicable to warranties and to purported warranties or purported guarantees.

(c) Among the practices inhibited by the foregoing provisions of this section is that of using 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 contingen

1A "second" venetian blind is any blind which has repainted slats, or defects in the ladders, cord, or hardware, or defects in any of the other component parts used in the manufacture of such blinds: Provided, That venetian blinds having defects in the ladders, cord, hardware, or other component parts, of a nature seriously affecting use or durability, should be sold as defective merchandise and not as "seconds;" and that use of the term "seconds" should be confined to such blinds as have only defects in appearance or which are of such a nature as not to seriously affect the utility and serviceability of the blind.

cies or conditions applicable to such guarantees which materially lessen the value or protection thereof as a guarantee to purchasers or users.

§ 191.8 Misuse of the word "free."

The use of the word "free," or words of similar import, in advertising or otherwise, to designate or describe any product 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.

§ 191.9 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.

§ 191.10 Deceptive pricing.

It is an unfair trade practice for any member of the industry to advertise or otherwise represent prices for industry products which are false or which have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. Among the practices inhibited by this section are:

(a) Representing or implying, in advertising or otherwise, that a stated price is for a complete venetian blind, when in fact the product so priced is deficient as to parts necessary and usual to the proper functioning and appearance of a venetian blind (such as hardware, tilt, cord stops, equalizer, facia, brackets, etc.).

(b) Representing or implying, in advertising or otherwise, that the price of any venetian blind also includes certain services, such as measuring, installing, etc., when such is not the fact.

(c) Representing, in advertising or otherwise, that the selling price of any venetian blind or other industry product has been reduced from what is in fact a fictitious price, or that such price is a reduced or special price when it is in fact the regular selling price of such venetian blind or other industry product,

or that the regular selling price thereof is higher when such is not the fact.

(d) Representing or implying, in advertising or otherwise, that prices applicable only to certain sizes of venetian blinds apply to other or all sizes of blinds. The inhibitions of this paragraph shall apply when prices of venetian blinds published or advertised on a square foot or other size basis do not apply to all sizes of the blinds advertised and conjunctive and conspicuous disclosure of such fact is not made.

§ 191.11 Other forms of deception.

(a) 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, freedom from defects or imperfections, utility, durability, value, thickness, material, color, colorfastness, size, fit,' ease of cleaning, washability, automatism, removability, uniqueness, originality, manufacture, or distribution of any venetian blind or other industry product, or concerning the immunity or resistance of any such product to warpage, fire, rust, or sag; or concerning the identity of the manufacturer of any venetian blind or other industry product; or to make any representation concerning an industry product which is false or misleading in any other material respect.

(b) The inhibitions of this section shall be construed as extending to deceptive concealment as to the kind or kinds of materials used in venetian blinds or parts thereof.

(c) In the interest of avoiding unfair competitive practices and confusion, misunderstanding, or deception of purchasers or prospective purchasers, advertisements describing venetian blinds as having removable slats should nondeceptively reveal the manner or method by which the slats may be removed and

'No representation should be made by an industry member to the effect that a venetian blind will fit any window, door, aperture, or space unless the dimensions of the blind so represented are such that the blind will upon installation provide shading and control of all light to which the window, door, aperture, or space may be exposed, and this without undue excess of coverage of the window, door, aperture, or space and without hindrance to the raising and lowering, a other functional operations, of the blind.

replaced when removal or replacement is not simple and easy of accomplishment or involves the use of a tool or mechanical device or the exercise of special skill. Use of advertisements or sales promotions which are deceptive or misleading to the public by reason of the concealment or nondisclosure of the manner or method of removing and replacing the slats, or which are otherwise deceptive or false, is an unfair trade practice.

§ 191.12 Selling below cost.

The practice of selling venetian blinds or other industry products 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.

§ 191.13

Substitution of products.

The practice of shipping or delivering venetian blinds or other industry 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 purchaser to such substitutions, and with the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 191.14 Consignment distribution.

It is an unfair trade practice for any member of the industry to use the practice of shipping industry products 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: Provided, however, That nothing in this section shall be construed as restricting or preventing consignment shipping or marketing of venetian blinds or other industry products 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.

§ 191.15 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, 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 or contracting to deal with competitors. § 191.16 Imitation of trade-marks, trade names, etc.

The practice of imitating, or causing to be imitated, the trade-marks, trade names, or other exclusively owned symbols, marks of identification, designs, or patterns of competitors, which have not been dedicated to the public either directly or by operation of law, and where such imitation has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice.

§ 191.17 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 or quality of the products of competitors or of the source or origin of raw materials or parts used in their products, or the false disparagement of the nature or form of business conducted by competitors, their credit terms, values, policies, or services, or other false disparagement, is an unfair trade practice.

§ 191.18 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 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.

191.19 Enticing away employees of competitors.

Willfully enticing away the employees of competitors with the purpose and effect of thereby unduly injuring or hampering competitors in their business 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 or obtaining more favorable employment.

§ 191.20 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 harassing or intimidating such customers or prospective customers, or of unduly hampering, injuring, or prejudicing competitors in their business, is an unfair trade practice. § 191.21 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. § 191.22

Unlawful coercion and combination in restraint of 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.

§ 191.23 Tie-in sales; coercing purchase of one product as a prerequisite to purchase of other products.

The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice. § 191.24

Discrimination."

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. In the marketing in commerce of industry products of like grade and quality for use, consumption, or resale within the jurisdiction of the United States, and subject to paragraph (b) of this section, it is an unfair trade practice for any member of the industry engaged therein to discriminate in price between different purchasers 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 such industry member or with any person who knowingly receives the benefit of such discrimination or with their customers.

(b) Applicability. 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.

'As used in this section, 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."