spective purchasers, or the consuming public concerning the length or measure of any such product.

(b) In order to avoid and prevent deception in the sale of industry products, the linear measure of each industry product should be indicated clearly and nondeceptively on the package or other container of the product, or on a label, stamp, or tag securely affixed thereto: Provided, however, That with respect to industry products of the same length put up for the industrial or manufacturing trade and not for individual retail sale to consumer-purchasers, disclosure of the linear measure of such industry products may be made on the box or other container in which such industry products are packaged for shipment to the industrial user, or on a label, stamp, or tag securely affixed thereto: And provided further, That the linear measure so indicated shall be the true length of the metal or plastic fastener elements and the stops and separating units, if any, when the slide fastener is closed, subject, however, to unavoidable variations in manufacture not to exceed applicable length of tolerances provided for in Federal Specification V-F-106, dated February 1, 1949.

§ 193.19

Misrepresentation in general.

It is an unfair trade practice for any member of the industry to use, or cause or promote the use of, any advertising matter, guarantee, warranty, trade promotional literature, mark, brand, label, or other representation, however disseminated or published, which has the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public with respect to the grade, quality, length, weight, size, use, colorfastness, material, composition, construction, fabrication, manufacture, distribution, origin, or price or terms of sale, of any industry product or any component part thereof, or with respect to the character, extent, or type of the business of any industry member, or which has the capacity and tendency or effect of misleading or deceiving purchasers or the consuming public in any other material respect.

COMMITTEE ON TRADE PRACTICES

§ 193.201 Industry committee.

The provisions of § 16.1 of this subchapter shall be applicable to an indus

§ 194.0

Definition; industry product.

As used in this part, the term “industry product" shall mean any and all kinds of commercially manufactured or processed cocoa or chocolate, or cocoa or chocolate products, which are packaged, designed, or marketed for the use of consumers either without further processing or with only such processing as is usually performed in the home. Such products shall be those included in the Definitions and Standards of Identity for Cacao Products as promulgated by the Food and Drug Administration (21 CFR Part 14), such as baking chocolate, bitter chocolate, cooking chocolate, breakfast cocoa, high fat cocoa, medium fat cocoa, low fat cocoa, cocoa, sweet chocolate, milk chocolate, sweet milk chocolate, skim milk choco

late, sweet skim milk chocolate, buttermilk chocolate, mixed dairy-product chocolate; also, cocoa or chocolate-flavored syrups and all kinds of solid or molded chocolate products. Not included, however, in this definition are the various kinds of chocolate coatings and other chocolate and cocoa products sold in bulk to other manufacturers for further processing.1

§ 194.1

GROUP I

Deception (general).

The practice of selling, advertising, describing, or otherwise representing an industry product in any manner or under any circumstances having the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public with respect to the grade, quantity, price, Ovalue, composition, ingredients, nutritional value, character, nature, size, use, preparation, manufacture, or distribution of such product, or in any other material respect, is an unfair trade practice.

NOTE: Among the inhibitions of this section is the false advertisement of any industry product as the term "false advertisement" is defined in section 15 of the Federal Trade Commission Act, as amended. $194.2 Misuse of the word "free."

Use of the word "free," or any word or term 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.

clusively owned marks of identification of competitors, with the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

§ 194.4 False invoicing.

(a) It is an unfair trade practice to withhold from or insert 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 in the face of such invoices, with the capacity and tendency or effect of thereby misleading or deceiving purchasers, prospective purchasers, or the consuming public.

(b) It is an unfair trade practice to falsify, remove, or fail to furnish any purchase slip, ticket, card, invoice, or other record, with the capacity and tendency or effect of thereby misleading or deceiving purchasers, prospective purchasers, or the consuming public. § 194.5 False and misleading price quotations, etc.

The publishing or circulating by any member of the industry of price quotations, price lists, or terms or conditions of sale which are false or have the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

§ 194.6 Tie-in sales; coercing purchase of one product as a prerequisite to the 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.

§ 194.7 Consignment distribution.

It is an unfair trade practice for any member of the industry to employ 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

Noth

to unreasonably restrain trade. ing in this section shall be construed as restricting or preventing consignment shipping or marketing of 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.

§ 194.8 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.

§ 194.9 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 products of competitors in any material respect, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice.

§ 194.10

Unlawful coercion or combinations 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.

§ 194.11 Prohibited 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, 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 paragraph 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 paragraph shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade;

(4) That nothing contained in this paragraph shall prevent price changes from time to time where made in response to changing conditions affecting

'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."

the market for or the marketability of the goods concerned, 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 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 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 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 competing 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.

(f) Exemptions. The inhibitions of this section shall not 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. § 194.12 Exclusive deals.

It is an unfair trade practice for any member of the industry to contract to seil or sell any product, or to fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the purchaser thereof shall not use or deal in the products of a competitor or competitors of such industry member, where the effect of such sale or contract for sale, or of such condition, agreement, or understanding, may be to substantially lessen competition or tend to create a monopoly in any line of commerce. § 194.13 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. § 194.14 Enticing away employees of competitors.

It is an unfair trade practice for any member of the industry wilfully to entice away employees of competitors with the intent and effect of thereby unduly hampering or injuring competitors in their business and destroying or substantially lessening competition: Provided, That nothing in this section shall be construed as prohibiting employees or agents from seeking or obtaining more favorable employment.

§ 194.15 Marketing of products through lottery or game of chance.

(a) It is an unfair trade practice for any member of the industry to sell or

promote the sale of any industry product by means of a game of chance, gift enterprise, or lottery scheme.

(b) The inhibitions of this section shall be understood as also extending to the marketing of an industry product which is specially packaged or arranged so as to facilitate its resale or distribution by a customer of an industry member to the public by means of a game of chance or lottery scheme, and to the marketing or supplying of any lottery device by an industry member to his customer either separately or in conjunction with an industry product.

195.101

Aiding or abetting use of unfair trade practices.

Push money.

GROUP II

Products to be manufactured, repaired, renovated, and sold under sanitary conditions.

COMMITTEE ON TRADE PRACTICES

195.201 Industry committee.

AUTHORITY: The provisions of this Part 195 issued under secs. 6, 5, 38 Stat. 721, 719; 15 2 U.S.C. 46, 45, unless otherwise noted.

SOURCE: The provisions of this Part 195 appear at 15 F.R. 7705, Nov. 14, 1950, unless 3 otherwise noted.

§ 195.0

Definition; bedding products.

As used in this part the term "bedding products" shall embrace mattresses of all kinds (including baby crib mattresses), bed pads, bedsprings, box springs, metal beds, metal cots, studio couches, sofa beds. and similar sleeping equipment.

§ 195.1

GROUP I

Deception as to used materials and parts.

(a) It is an unfair trade practice to manufacture for sale, sell, offer for sale, advertise, or otherwise represent, directly or indirectly, any bedding product as being new when such product is not in fact new and is not composed wholly of unused materials and parts.

(b) In the marketing of bedding products containing, in whole or in part, second-hand materials or parts, it is an unfair trade practice to fail or refuse to make full and nondeceptive disclosure,