Sec.

14.2

14.4

14.7

PART 14-ADMINISTRATIVE

§ 14.2

INTERPRETATIONS

Use of word "tile" in designation of non-ceramic products.

Identification of metically weighted silk fiber.

Rule -----Push Money.

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 F.R. 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 Commisison 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:

(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 this 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 F.R. 4331, May 5, 1962]

PART 15-ADMINISTRATIVE OPINIONS AND RULINGS

Sec.

15.1

§ 14.7 Rule -----Push Money.

It is an unfair trade practice for any industry member to pay or contract to pay anything of value to a sales person employed by a customer of the industry member, as compensation for, or as an inducement to obtain, special or greater effort or service on the part of the sales person in promoting the resale of products supplied by the industry member to the customer:

(a) When the agreement or understanding under which the payment or payments are made or are to be made 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

15.5

15.6

15.7

15.8 15.9

Use of the word "chamois."

Toy catalog advertising payments. Three-party promotional assistance plans.

Publication of product standards by a trade association as an industry goal.

Manufacturer's setting of a minimum resale price for dealers.

Three-way promotional program set up by outdoor advertiser and financed by participating grocery chains and their suppliers.

Resumption of advertising by a manufacturer in a trade buying guide formerly but no longer owned by a wholesaler customer.

Foreign origin disclosure.

Labeling of containers for imported

knives.

(d) When, because of the terms and conditions of the understanding agreement, including its duration, or the attendant circumstances, the effect may be to substantially lessen competition or tend to create a monopoly; or

tion.

Use of descriptions "velvet" and "suede" for a flocked fabric.

Exclusive franchise arrangements. Advertising promotions addressed to new mothers.

15.20 Necessity to disclose foreign origin of strain release device if servomotor is labeled as "Made in U.S."