Sec.

14.7 Rule

Push Money. 14.9 Requirements concerning clear and conspicuous disclosures in foreign language advertising and sales materials. 14.11 Assigning model years to motor vehicles.

14.12 Use of secret coding in marketing research.

14.15 In regard to comparative advertising. 14.16 Interpretation of Truth-in-Lending

Orders consistent with the Truth-inLending Simplification and Reform Act and Revised Regulation Z.

14.17 Franchise rule enforcement protocol.

§ 14.2 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) [15 FR 7357, Nov. 12, 1950]

(a) The following requirements for disclosure of metallic weighting are based on, and interpretive of, section 5(a) of the Federal Trade Commission 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:

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

(Sec. 5, 38 Stat. 719, as amended; 15 U.S.C. 45)

[25 FR 2835, Apr. 5, 1960]

is 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

(d) When, because of the terms and conditions of the understanding or 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 the Rule, but are to be considered as subject to the requirements and provisions of section 2(a) of the Clayton Act.

(Secs. 5, 6; 38 Stat. 719, as amended, 721; 15 U.S.C. 45, 46)

[27 FR 4331, May 5, 1962]

§ 14.9 Requirements concerning clear and conspicuous disclosures in foreign language advertising and sales materials. The Federal Trade Commission has noted that, with increasing intensity, advertisers are making special efforts to reach foreign language-speaking consumers. As part of this special effort, advertisements, brochures and sales documents are being printed in foreign languages. In recent years the Commission has issued various ceaseand-desist orders as well as rules, guides and other statements, which require affirmative disclosures in connection with certain kinds of representations and business activities. Generally, these disclosures are required to be "clear and conspicuous." Because

questions have arisen as to the meaning and application of the phrase "clear and conspicuous" with respect to foreign language advertisements and sales materials, the Commission deems it appropriate to set forth the following enforcement policy statement:

(a) Where cease-and-desist orders as well as rules, guides and other statements require "clear and conspicuous" disclosure of certain information, that disclosure must be in the same language as that principally used in the advertisements and sales materials in

volved.

(b) Any respondent who fails to comply with this requirement may be the subject of a civil penalty proceeding for violating the terms of a Commission cease-and-desist order.

(Sec. 5, 38 Stat. 719, as amended; 15 U.S.C. 45)

[38 FR 21494, Aug. 9, 1973]

§ 14.11 Assigning model years to motor vehicles.

(a) The Federal Trade Commission has been concerned about misleading practices some manufacturers have used to identify the model years of heavy duty trucks and other vehicles whose features change little from year to year.

(b) Two practices have been of particular concern:

(1) Some manufacturers have changed the identification papers of unsold vehicles at the end of one model year to show that the vehicles are of the next model year;

(2) Some manufacturers have let their branches or dealers base the model year on the date of sale to retail purchasers.

(c) These practices may mislead buyers as to the date of manufacture. They may also hinder market forces that normally lead to price cuts at the end of model years.

GUIDELINES

(d) To prevent deception and help manufacturers avoid violating the Federal Trade Commission Act, the Commission has issued the following guidelines for motor vehicle manufacturers and dealers. They apply to all