disclosed and named on the label in the order of their predominance by weight. Advertising, representing, branding or labeling of any preserve, jam or jelly as containing two or more fruits when each such fruit is not present in substantial and characterising amounts, with the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice within the meaning of this section.

(g) The word sugar as used in this section means sucrose or dextrose, or a combination thereof.

§ 114.2 Disclosure in respect to imi

tations.

The practice of advertising, labeling, branding, selling or offering for sale an imitation preserve, jam, jelly, or apple butter, without clearly and prominently disclosing therein that the product is such imitation, with the tendency and capacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice. For purposes of this section:

(a) Products which contain a smaller proportion of fruit than specified in the applicable requirements set forth in § 114.1 (a), (b), (c), (d) and (e), or which otherwise fail to conform with the applicable minimum requirements set forth in such paragraphs, respectively, and which simulate or imitate preserves, jams, jellies or apple butter as described in such paragraphs, and which are used or sold for the same purpose, except fruit pie filling, fruit sauce, fruit butter other than apple butter, mint, wine and calvesfoot jellies, described, represented, labeled and sold as such, and preserved citrus fruit products, is understood to be imitation preserve, imitation jam, imitation jelly or imitation apple butter, respectively; and to avoid deception and confusion of the purchasing public they should be described, represented, labeled and sold as such respective imitation products.

§ 114.3 False invoicing.

Withholding from or inserting in the invoice statements which make the invoice a false record, wholly or in part, of the transaction represented on the face thereof, with the purpose or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice.

116.101

116.102 116.103

Deceptive "Help Wanted" advertising. Blind advertising.

Deceptive language in general.

Misuse of word "guarantee."

Simulation of legal documents. Photographic misrepresentations. Misuse of national emblems, pictures of United States Capitol, and similar devices, connoting Government endorsement.

Misuse of words, "not for profit."
Unqualified students.

GROUP II

"Money-back" agreements.

Selection of sales representatives. Dissemination of adequate information to prospective students.

116.104 Precautions in avoidance of deceptive statements by sales representatives.

COMMITTEE ON TRADE PRACTICES

116.201 Industry committee.

AUTHORITY: The provisions of this Part 116 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46 (g), 45.

SOURCE: The provisions of this Part 116 contained in trade practice rules, Private Home Study Schools, FTC, Nov. 2, 1936, unless otherwise noted.

GROUP I

§ 116.1 False advertising, etc.

The making, or causing or permitting to be made or published, any false, un

true, or deceptive statement or representation, by way of advertising or otherwise, concerning home study schools, their activities in attempting to enroll students, or concerning the character, nature, quality, value, or scope of any course of instruction or educational service offered, or in any other material respect, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.2 False representations as to earn

ings.

The making of false, untrue, or deceptive statements or representations regarding actual or probable earnings or opportunities in any vocation, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.3 Misrepresentation as to opportunities.

The making of false, untrue, or deceptive statements or representations regarding the opportunities in any vocation or field of activity as a result of the completion of any given course of instruction or educational service, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.4 False representations as to stu

dent employment or school's connection with United States Government. The making of false, untrue, or deceptive statements or representations as to services to be rendered in connection with the securing or attempting to secure employment for students, or as to the influence or connection of any school or schools with any branch, department, or establishment of the United States Government, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.5

False promises as to employment or increased earnings.

The making of false, untrue, or deceptive promises or representations regarding a job or a raise in pay upon completing a certain course of instruction or portion thereof, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.6 Limited time offers.

Representing an offer to be limited as to time or otherwise when such is not the fact, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.7 Misrepresenting offers as "special."

Representing an offer as "special" when it is in fact a "regular" offer with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.8 Fictitious prices.

Offering courses of instruction at prices purported to be reduced from what are in fact marked-up or fictitious prices, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.9 Money-back agreements.

It is an unfair trade practice for any member of the industry to use, directly or indirectly, and so-called "money-back" guarantee, refund agreement or other similar guarantee, agreement or contract between school and student, which (a) is conditioned upon the student taking or passing, or having the opportunity to take or pass, a future Government or civil service examination or test, or any other form of future examination or test given by any organization not affiliated with the school; or (b) is conditioned upon the student being placed upon a Government or other eligible list; or (c) is conditioned upon the student securing or having the opportunity to secure employment within the field of training pursued; or (d) is conditioned upon any other contingency; and which has the capacity, tendency or effect of misleading or deceiving students or prospective students because of the text of such guarantee, agreement or contract, or because of the representations regarding the same, or because of the circumstances or other conditions of its use, or which otherwise involves deception, misrepresentation, bad faith, or the deceptive concealment of pertinent facts.

§ 116.10 Misleading scholarship offers.

Making offers of scholarships or partial scholarships in such manner as to mislead or deceive students or prospec

tive students into the belief that such offers are bona fide, when they are in fact not bona fide, is an unfair trade practice. § 116.11 Misuse of word "free.”

Representing any commodity or service as "free" when in fact such commodity or service is regularly included as part of the course of instruction or service, with the tendency or capacity to mislead or deceive students, prospective students, the public, is an unfair trade practice. § 116.12 Defamation of competitors.

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 character, nature, quality, value or scope of their courses of instruction or educational services, or in any other material respect, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.13 Deceptively advertising character and scope of institution.

The use of any name, title, or other designation, by way of advertising or otherwise, having the tendency or capacity to mislead or deceive students, prospective students, or the public as to the character of the institution, its courses of instruction, or its influence in obtaining employment for students, is an unfair trade practice.

116.14 Deception in issuance of diplomas, degrees, etc.

For any member of the industry to issue any certificate or diploma, or to confer any degree, which misrepresents the course of study or instruction covered or completed, or the accomplishments or standing of the student receiving such certificate, diploma, or degree, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.15 Falsely representing courses of study.

Falsely representing the character or scope of any course of instruction or service offered, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.16 Misrepresentation as to faculty, advisory board, instruction materials,

etc.

The making of false, untrue, or deceptive statements or representations, through advertising or otherwise, that a certain individual or individuals are bona fide members of the faculty of a school or are members of its advisory board or authors of its instruction material, or the making of misleading statements or representations as to the value of any former connection with the United States Government as an aid to securing employment, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.17 Misrepresentation as to per

sonal instruction.

The false representation, through advertising or otherwise, that students are given personal instruction by the head of the institution or a department head thereof, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.18 Deceptive "Help Wanted" advertising.

The use of "Help Wanted" or other employment columns in newspapers or other publications to get in touch with prospective students in such manner as to mislead or deceive such prospective students into the belief that a job is offered is an unfair trade practice.

§ 116.19 Blind advertising.

The use of "blind" advertisement or sales literature to attract prospective students when such advertisements or literature fail to set forth that courses of instruction or other educational services are being offered, in such manner as to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

The use of a photograph, cut, engraving or illustration in catalogs, sales literature, or otherwise, in such manner as to convey a false impression as to the size, importance, or location of the offices occupied by a private home study school, or as to such school's equipment, with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice. § 116.24 Misuse of national emblems, pictures of United States Capitol, and similar devices, connoting Government endorsement.

The use of pictures or illustrations of Uncle Sam, the National Capitol, or any pictures, illustrations, or devices of similar character, or the use of the name or title of any present or former Government official, activity, branch, department, or establishment of the Government, in such manner as to mislead or deceive students, prospective students, or the public into the erroneous belief that the institution or its instructors have official relationship or connection with the United States Government, or into the erroneous belief that the training or services offered has the approval or endorsement of the United States Government or any branch thereof, is an unfair trade practice. § 116.25

Misuse of words "not for

profit."

Falsely representing, directly or indirectly, through advertising or otherwise, that a school is operated "not for profit", with the tendency or capacity to mislead or deceive students, prospective students, or the public, is an unfair trade practice.

§ 116.26 Unqualified students.

Willfully inducing the enrollment or retention of a student for any course of instruction or training for a job or position for which the student is manifestly

It is the judgment of the industry that the sales representatives of all schools be selected primarily on a basis of ability and integrity and that each representative be given an adequate preliminary training and be bonded by an approved bonding company or by adequate personal sureties conditioned upon the faithful performance of his financial duties before being authorized to secure student enrollment.

§ 116.103 Dissemination of adequate information to prospective students.

It is the judgment of the industry that all schools should, at or prior to the time of enrollment for any course of study or service, provide each student enrolled therein with literature, by means of catalog, correspondence or other writing, clearly setting forth the nature, scope, number and character of lesson assignments and the terms upon which such course of study or service is sold.

§ 116.104 Precautions in avoidance of deceptive statements by sales representatives.

It is the judgment of the industry that the members thereof should exercise careful supervision over their sales representatives so as to guard against any misrepresentations by such representatives regarding advantages or opportunities or other matters pertinent to enrolling students or prospective students, whether or not the same be set forth in the contract between school and student.

COMMITTEE ON TRADE PRACTICES

§ 116.201 Industry committee.

The provisions of § 16.1 of this subchapter shall be applicable to an industry committee established under this part. [21 F.R. 1174, Feb. 21, 1956]

PART 117-SCHOOL SUPPLY AND EQUIPMENT INDUSTRY

Sec.

117.0 Definitions; the industry and its products.

117.1

117.2

117.3

117.4

117.5

117.6

117.7

117.8

117.9 117.10

GROUP I

Misrepresentation and misbranding in general.

Misrepresentation as to character of business.

Misrepresenting products as conforming to standard or specifica. tion.

Deceptive pricing.

Guarantees, warranties, etc.
Substitution of products.

Deceptive use of trade or corporate
names, trade-marks, etc.
Passing off through imitation or sim-
ulation of trade-marks, trade
names, etc.

Deceptive invoicing.

Defamation of competitors or interfering with or disparaging their products.

117.11 Inducing breach of contract. 117.12 Enticing away employees of competitors.

117.13 Commercial bribery.

117.14 Procurement of competitors' confidential information.

117.15 Tie-in sales; coercing purchase of one product as a prerequisite to the purchase of other products. Unfair threats of infringement suits. Prohibited sales below cost. 117.18 Exclusive deals.

117.16 117.17

ucts include, but are not limited to, pencils, paper, crayons, chalk, chalkboards, book covers, desks, chairs, addressing and duplicating machines, flags and banners, maps, laboratory and vocational equipment and supplies, building maintenance and sanitary equipment and supplies, and outdoor and indoor playground equipment. Text books are not included.

(b) Members of the industry are persons, firms, corporations, and organizations engaged in the manufacture, sale, or distribution of such equipment and supplies.

It is an unfair trade practice to make or publish, or cause to be made or published, by way of advertising, labeling or otherwise, any statement or representation which, directly or by implication, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers concerning the grade, quality, quantity, weight, use, size, material, ingredients, finish, character, origin, nature, design, condition, performance, durability, resistance to water or weather, manufacture, distribution, availability, or delivery dates, of any industry products, or in any other material respect.

§ 117.2 Misrepresentation as to character of business.

It is an unfair trade practice for any member of the industry to represent, directly or by implication, in his advertising or otherwise, that he is a producer or manufacturer of products of the industry, or that he 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 his business.

§ 117.3 Misrepresenting products as conforming to standard or specification.

In the sale, offering for sale, or distribution of any industry products, it is an unfair trade practice:

(a) To falsely represent or imply that any industry product conforms to the requirements of any standard or specification, whether established or recognized by a department or unit of a city or state government, or of the Federal Government, by trade practice, or otherwise;

or