AUTHORITY: The provisions of this Part 154 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45, unless otherwise noted. SOURCE: The provisions of this Part 154 appear at 27 F.R. 6217, June 30, 1962, unless otherwise noted. § 154.0 Definitions. Industry member. Any person, firm, corporation or organization engaged in the manufacture, sale or distribution of any industry products as defined below. Industry products. Industry products consist of all kinds and type of trunks, suitcases, traveling bags, sample cases, Instrument cases, brief cases, ring binders, billfolds, wallets, key cases, coin purses, card cases, french purses, dressing cases, stud boxes, tie cases, jewel boxes, travel kits, gadget bags, camera bags, and similar articles, of any composition. Ladies' handbags are not included. § 154.1 Deception (general). It is an unfair trade practice to sell, offer for sale, or distribute industry products by any method, or under any circumstance or condition which has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public with respect to the kind, grade, quality, quantity, material content, thickness, finish, serviceability, durability, price, origin, size, weight, ease of cleaning, construction, manufacture, processing, or distribution of any product of the industry or part thereof, or in any other material respect. [Rule 11 § 154.2 Deception as to composition. (a) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice to misrepresent the composition of any industry product or part thereof, or to fail to disclose, in the manner hereinafter set forth (see paragraph (b) (9) of this section), material facts concerning the composition of an industry product when the failure to do so has the capacity and tendency or effect of deceiving purchasers or prospective purchasers. (b) The foregoing provisions of this section are to be construed as, but not limited to: (1) Split leather. Requiring disclosure of the fact that an industry product, or part thereof, is made of split leather if the split leather is visible or if any representation is made as to the composition thereof. For example, a disclosure such as, Split Cowhide NOTE: For purposes of this part leather from portions of hides or skins which have been split into two or more thicknesses, other than the grain or hair side, shall be considered split leather. (2) Imitation or simulated leather. Requiring that when an industry product or part thereof is made of nonleather material which has the appearance of leather, disclosure1 be made either of the fact that the material is not leather, or of the general nature of the material as will clearly show that it is not leather, as, for example: Vinyl Backed With Other Material If the different backing material used is visible and is split leather, non-leather material which has the appearance of leather, or leather processed so as to simulate a different kind of leather, disclosure as is required by subparagraphs (1), (2) or (3) of this paragraph, whichever is applicable, must also be made. (5) Fictitious animal designations. Prohibiting any representation or implication that an industry product is made in whole or in part from the skin or hide of an animal which in fact is nonexistent. (6) Misuse of trade names, etc. Prohibiting the use of any trade name, coined name, trade-mark, or other word or term, or any depiction or device, which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers into believing that an industry product is made in whole or in part from the skin or hide of an animal or that material in an industry product is leather, top grain leather, split leather, plastic, fiber-glass, nylon or other material, when such is not the case. This prohibition shall include, among other practices, the use of a stamping, tag, label, card, or other device in the shape of a tanned hide or skin or in the shape of a silhouette of an animal in connection with any industry product having the appearance of leather but which is not made wholly or in substantial part from the skin or hide of an animal. (7) Misrepresentation that product is wholly of a particular composition. Prohibiting any representation or implication that an industry product is made wholly of a particular composition when such is not the case. A representation as to the composition of a particular part of a product must clearly indicate the part to which the representation is properly applicable. (1) Where a product is made principally of top grain leather or of split leather with the exception of certain non-leather parts thereof which have the appearance of leather, the product may be described as made of top grain leather or split leather, as the case may be, except for such designated nonleather parts when accompanied by disclosure' either of the fact that the designated parts are not leather or of the general nature of such parts as will clearly show that they are not leather. For example: A brief case made of top grain cowhide except for frame covering, gussets and partitions which are made of plastic but have the appearance of leather may be described as leather when accompanied by disclosure1 that such parts are made of split leather. For example: A brief case made of top grain cowhide except for frame covering, gussets and partitions which are made of split cowhide may be described as Top Grain Cowhide With Split Cowhide Frame Covering, (8) Ground, pulverized or shredded leather. Prohibiting any representation directly or by implication that a material in an industry product is leather, if such material contains ground, pulverized or shredded leather and thus is not wholly the hide of an animal. This provision shall not be construed as preventing an accurate representation as the to ground, pulverized or shredded leather content of the material. However, if the material has the appearance of being leather it must be accompanied by disclosure as is required by subparagraph (2) of this paragraph. For example: A brief case made of a composition material consisting of shredded leather fibers held together with a rubber adhesive and coated with vinyl may be described as Composition Material Containing Shredded (9) Form of required disclosures under this Section. All disclosures required by provisions of this section shall appear in the form of a stamping on the product, or on a tag, label, or card attached thereto, and be affixed with such degree of permanence as to remain on or attached to the product until it is received by the consumer purchaser. All disclosures so required on industry products shall also appear in all advertising of such products irrespective of the media used whenever statements, representations or depictions appear in such advertising which in the absence of such disclosures serve to create a false impression that the products, or parts thereof, are of a certain kind of composition. The disclosures affixed to products and made in advertising must be of such conspicuousness and clarity as to be noted by purchasers and prospective purchasers casually inspecting the products or casually reading, or listening to, such advertising. A disclosure required in connection with any representation must 1 See subparagraph (9) of this paragraph. be in close conjunction therewith. [Rule 2] § 154.3 Deceptive practices as to aniline finish, graining, embossing and processing. In the sale, offering for sale or distribution of industry products, it is an unfair trade practice to represent, directly or by implication: (a) That any such product is colored, finished, or dyed with aniline dye when such is not true in fact; or (b) That any such product or any part thereof is dyed, embossed, grained, processed, finished or stitched in a certain manner when such is not true in fact. [Rule 3] § 154.4 Deception as to hardware, frame or box. In the sale, offering for sale or distribution of industry products, it is an unfair trade practice to represent, directly or by implication: (a) That the hardware or any item thereof contained in an industry product is brass, solid brass, or some other designated material when such is not true in fact or when such hardware is only plated or coated with the material designated and the remaining metal therein is of a different kind; or (b) That the box or frame of an industry product is made in whole or in part of a certain kind of material when such is not true in fact. [Rule 4] § 154.5 Misuse of the terms "waterproof," "dustproof," "warpproof," "scuffproof" and "scratchproof." It is an unfair trade practice to: (a) Use the term "Waterproof" as descriptive of an industry product or the material of which an industry product is made unless such product or material, whichever is so designated is impermeable to water and moisture. (b) Use the term "Dustproof" as descriptive of an industry product unless such product is so constructed that when it is closed dust cannot enter the product. (c) Use the term "Warpproof" as descriptive of an industry product or part thereof unless the product or part so designated is such that it cannot warp. (d) Use the term: "Scuffproof" or "Scratchproof" as descriptive of an industry product unless the outside surface of the product is immune to scratches or scuff marks. [Rule 5] § 154.6 False invoicing. Withholding from or inserting in invoices or sales slips 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 or sales slips, with the capacity and tendency or effect of thereby misleading or deceiving purchasers, prospective purchasers, or the consuming public in any material respect, is an unfair trade practice. [Rule 6] § 154.7 Substitution of products. It is an unfair trade practice for a member of the industry to make unauthorized substitutions of products, where such substitutions have the capacity and tendency or effect of misleading or deceiving purchasers, by: (a) Shipping or delivering industry products which do not conform to samples submitted, to specifications (in bids or otherwise) upon which the sale is consummated, or to representations made prior to securing the order, without advising the purchaser of the substitution and obtaining his consent thereto prior to making shipment or delivery; or (b) Falsely representing the reason for making substitutions. [Rule 7] § 154.8 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 sold or offered for sale by such industry member, 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. [Rule 8]. § 154.9 Defamation of competitors or false 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 quality, grade, origin, use, construction, design, manufacture, or distribution of the products of competitors, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. [Rule 91 § 154.10 Procurement of competitors' confidential information. 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 the impersonation of one in authority, or by any other unfair means, and to use the information so obtained so as substantially to injure a competitor or unreasonably restrain trade. [Rule 10] § 154.11 suits. Unfair threats of infringement The circulation of threats of suit for infringement of patents or trade-marks among competitors, or customers or prospective customers of competitors, not made in good faith but for the purpose and with the effect of harassing or intimidating such competitors, or customers or prospective customers, or of hampering, injuring, or prejudicing competitors in their business, is an unfair trade practice. [Rule 11] § 154.12 Deceptive use and imitation of trade or corporate names, trademarks, etc. It is an unfair trade practice for any member of the industry to use any trade name, corporate name, trade-mark, or other trade designation, which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers as to the character, name, nature, manufacture or origin of any product of the industry, or of any material used therein, or which is false or misleading in any material respect. (See also § 154.16.) [Rule 12] § 154.13 Guarantees, warranties, etc. (a) It is an unfair trade practice to represent in advertising or otherwise that a product is "guaranteed" without clear and conspicuous disclosure in conjunction therewith of: (1) the nature and extent of the guarantee, and (2) any material conditions or limitation in the guarantee which are imposed by the guarantor, and (3) the manner in which the guarantor will perform thereunder, and (4) the identity of the guarantor. Representations that a product is "guaranteed for life" or has a "lifetime guarantee" in addition to meeting the above requirements, shall contain a conjunctive and conspicuous disclosure of the meaning of "life" or "lifetime" as used (whether that of the purchaser, the product or otherwise). (b) Guarantees shall not be used which under normal conditions are impractical of fulfillment or which are for such a period of time or are otherwise of such nature as to have the capacity and tendency of misleading purchasers or prospective purchasers into the belief that the product so guaranteed has a greater degree of serviceability, durability or performance capability in actual use than is true in fact. (c) This section has application not only to "guarantees" but also to "warranties," to purported "guarantees" and "warranties," and to any promise or representation in the nature of a "guarantee" or "warranty." [Rule 13] § 154.14 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 substantially to lessen competition or tend to create a monopoly or unreasonably to restrain trade, is an unfair trade practice. [Rule 14] § 154.15 Inducing breach of contract. (a) Knowingly inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or between competitors and their suppliers, or interfering with or obstructing the performance of any such contractual duties or services, under any circumstance having the capacity and tendency or effect of substantially injuring or lessening competition, is an unfair trade practice. (b) Nothing in this section is intended to imply that it is improper to solicit the business of a customer of a competing industry member; nor is the section to be construed as in anywise authorizing any agreement, understanding, or planned common course of action by two or more industry members not to solicit business from, or to sell to, the customers of either of them, or customers of any other industry member. [Rule 15] § 154.16 Misrepresentation as to character of business. It is an unfair trade practice for any industry member, in the course of or in connection with the sale of industry products, to represent, directly or indirectly, that he is a manufacturer of industry products, unless he owns and operates or directly controls a factory wherein such products are made, or to represent that he is a wholesaler of industry products when such is not a fact, or in any other manner to misrepresent the character, extent, or type of his business. [Rule 16] § 154.17 Deception in distribution of special lots. In the case of lots or quantities of industry products advertised or offered for sale at so-called special or bargain sales or reduced price sales or otherwise, it is an unfair trade practice to use advertisements or representatives thereof which represent, import or imply that such merchandise consists entirely or in substantial or greater part of products or articles of well-known manufacturers or of well-known or reputable brands or of products or articles of certain high quality, grade, or price, when no such products or articles are contained in said lot or quantity of merchandise or when only a relatively small quantity or number thereof is contained in such merchandise, or when such advertisements or representations otherwise have the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public. [Rule 171 § 154.18 Use of the word "free." In connection with the sale, offering for sale, or distribution of industry products, it is an unfair trade practice to use the word "free," or any other word or words of similar import, in advertisements or in other offers to the public, as descriptive of an article of merchandise, or service, which is not an unconditional gift, under the following circumstances: (a) When all the conditions, obligations, or other prerequisites to the receipt and retention of the "free" article of merchandise or service offered are not clearly and conspicuously set forth at |