of the article or textual material, when such is not the fact; or

(2) That the article or material is new, when such is not true in fact; or

(3) That the article or material has been revised, when no substantial revision has been made; or

(4) That the article or material or any substantial part thereof has not previously been published or used in any former editions, or otherwise, when such is not true in fact; or

(b) To mislead or deceive in any other respect.

§ 150.5 Deceptive use of copyright renewal date.

It is an unfair trade practice to set forth the date of any copyright renewal in such manner, whether by omission of other copyright dates or otherwise, as to have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the belief that such renewal date is the date of original copyright or publication, or of otherwise misleading or deceiving purchasers or prospective purchasers with respect thereto.

NOTE: When other applicable copyright dates are properly set out and no deception, direct or indirect, is involved in the omission of a copyright date prior to 1909, such copyright date prior to 1909 need not be shown under this section.

§ 150.6 Misrepresentation as to editor, contributing editor, etc.

It is an unfair trade practice to represent, by means of any listing, advertisement, or in any other manner, that any person is a contributor to, or contributing or other editor of, a book, when such is not true in fact, or to make any false, misleading, or deceptive representation with respect to any person who is, or is represented as being, a contributor to, or contributing or other editor of, a book. § 150.7 Deceptive testimonials.

(a) It is an unfair trade practice for any member of the industry to use any testimonial or purported testimonial, or representation with respect thereto, which is false, misleading, or deceptive; or to cause any testimonial or part thereof to be used in such manner as to have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the belief:

(1) That the testimonial was given without solicitation or payment therefor, when such is not the fact; or

(2) That the testimonial was given by a school, library, or other institution, when in fact such testimonial was given by an individual connected therewith but acting in a personal capacity and not officially on behalf of such school, library, or other institution; or

(3) That the testimonial is a bona fide and genuine testimonial given by a person whose name is used in connection therewith, when the testimonial was not given by such person, or when the testimonial was not given with respect to the particular book or books to which it purports to relate, or when the testimonial is otherwise inapplicable or misleading or deceptive.

(b) In order to avoid deception in the use of bona fide and genuine testimonials, the complete testimonial should be given wherever practicable, and words, phrases, sentences, or other parts of such testimonial, shall not be separated from their context, or rearranged or otherwise used in such manner as to have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers in any respect. § 150.8

Disclosure of nature and scope of services offered.

To the end that purchasers and prospective purchasers may not be misled or deceived with respect to any research, revision, extension, continuation, yearbook, or other type of service offered by a member of the industry, full and nondeceptive disclosure of the nature and scope of the particular service offered should be made in all contracts and order forms, sales literature, advertising, and other representations having reference to such service; and it is an unfair trade practice to conceal such information or to fail or refuse to make said disclosure thereof, such concealment or nondisclosure having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers.

It is an unfair trade practice for any member of the industry to represent, in advertising or otherwise, that the price of any book or service has been reduced from what is in fact a fictitious price, or that such price is a reduced or special price when such price is in fact the regular selling price of such book or service, or that the regular price thereof is higher when such is not the fact, or to otherwise falsely or deceptively represent the past, current, or future price of any book or service.

It is an unfair trade practice for a member of the industry:

(a) To use, or to cause or permit to be used, any representation which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the belief:

(1) That such member is an association or organization of educators, teachers, engineers, or scientists, or of persons having other professional or technical training or other qualifications, when such is not true in fact; or

(2) That the business of such member is other than a private business enterprise operated for profit, when such is not the fact; or

(3) That such member is a book publisher, when such is not the fact; or

(b) To misrepresent in any manner the character, extent, or type of the business of such member.

§ 150.12 Misrepresentation as to connection with educational institution. It is an unfair trade practice for any member of the industry to represent, through advertising or otherwise, that it or its sales representatives are connected in any manner with any school, college, university, or other educational institution, or with any board or committee thereof, or with any other organization, or that any book or service sold or offered by it is required, endorsed, or approved by any such institution, board, commit

tee, or organization, when such is not the fact.

§ 150.13

Misrepresentation as to 80cieties, clubs, or organizations.

It is an unfair trade practice for any member of the industry, in selling or promoting the sale of books or services, to offer membership in fictitious societies, clubs, or other organizations; or to make any representations or claims which imply the existence of any such fictitious society, club, or organization; or to misrepresent the value, facilities, services, functions, character, or standing of any existing society, club, or organization; or otherwise to make any misleading or deceptive representations or claims as to any society, club, or organization which is in existence, or is intended or expected to be organized, or is fictitious.

§ 150.14 Misrepresentation as to earnings of sales representatives.

It is an unfair trade practice for any member of the industry to make or publish, or cause to be made or published, directly or indirectly, any false, misleading, or deceptive statement or representation, by way of advertisement or otherwise, concerning the salary, commission, income, earnings, or other remuneration which agents, canvassers, solicitors, or other sales representatives receive or may receive.

§ 150.15 Securing sales representatives by unfair means.

In connection with, or in the promotion of, the sale or distribution of books, the conditions under which specified amounts, in the form of salaries, commissions, or other form of payment, will be paid to agents, canvassers, solicitors, or other representatives, should be clearly and nondeceptively stated in all advertisements for sales, representatives in which payment of specific or minimum amounts is guaranteed or offered, to the end that misunderstanding and deception may be avoided and prevented; and it is an unfair trade practice to secure or attempt to secure the services of any person as agent, canvasser, solicitor, or other sales representative by means of misleading or deceptive representations with respect to amounts guaranteed or offered such representatives, or by any other unfair means.

§ 150.16 Promoting or permitting use of deceptive sales literature, etc. The members of the industry shall use due diligence to prevent the use, by their

salesmen, agents, representatives, distributors, dealers, or other sellers, of any representations or other acts or practices which, directly or indirectly, may tend to mislead or deceive purchasers or prospective purchasers. Sales literature, advertisements, contracts, and other documents or representations, written or oral, supplied by members of the industry to them or to purchasers or prospective purchasers, shall be truthful and clearly nondeceptive, free from misleading or false implications or other matter which may tend to deceive or mislead. And it is an unfair trade practice for any member of the industry, directly or indirectly, to cause to be used, or to aid, encourage, or abet a salesman, agent, representative, or distributor, dealer, or other person in the use of, any sales literature, advertisements, contracts, documents, or written or oral representations, or selling methods, which are calculated to mislead or deceive, or which have the capacity and tendency or effect of misleading or deceiving, purchasers or prospective purchasers in respect of any book or service offered by such member or in any other material respect.

$ 150.17 Inducing breach of contract.

Inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers, or between a competitor and his agent or other representative, 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 businesses, is an unfair trade practice.

§ 150.18 Enticing away employees of competitors.

Willfully enticing away the employees of competitors with the purpose and effect of unduly hampering, injuring, or prejudicing competitors in their businesses is an unfair trade practice. § 150.19 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 grade, quality, material, contents, use, value, preparation, or manufacture of books sold or offered for

sale by competitors, or of their selling methods, prices, credit terms, policies, services or values, is an unfair trade practice.

§ 150.20 Imitation of trade-marks or trade names.

The imitation or simulation of the trade-marks or trade names of competitors, with the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice.

§ 150.21 Bribery and subsidization.

(a) Commercial bribery. It is an unfair trade practice for any 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 employees or agents of customers or prospective customers, without the knowledge of their employers or principals, as an inducement to influence or cause their employers or principals to purchase or contract to purchase books or services of such industry member, or to refrain from purchasing books or services from competitors of such member.

(b) Subsidizing school officials to influence purchase of books by pupils or parents. Subsidizing school principals, teachers, or school officials, or making payments or gifts to them, directly or indirectly, to induce or cause them to recommend, influence, or promote the purchase of books of a member of the industry by pupils or the parents or guardians of pupils, is an unfair trade practice.

§ 150.22 Aiding or abetting use of unfair trade practices.

It is an unfair trade practice for any person, firm, or corporation to use or to aid, abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in this part, or of any other unfair method of competition or unfair or deceptive act or practice.

As used in this part the terms "industry member" and "industry products" shall have the following meaning:

(a) Industry member. Any person, firm, corporation, or organization (including manufacturers, wholesalers, jobbers, importers, retailers, etc.) engaged in the sale, offering for sale, or distribution, in commerce, of industry products as defined below.

(b) Industry products. Hosiery for men, women and children, including all types and kinds of hose, stockings, socks, anklets, and other related products of the Hosiery Industry.

GROUP I

§ 152.1 Scope of rules; imports and exports.

(a) Applicability. Except where otherwise required by law, the rules in this part shall apply to all hosiery produced in the United States or offered for sale, sold or distributed in the American market.

(b) Imports. Imported hosiery is subject to the rules in this part (and the marking requirements herein specified) the same as domestic hosiery, irrespective of whether the hosiery was originally manufactured in the United States and exported and thereafter imported; or whether it was manufactured in a for

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eign country and imported from such foreign country or another country into the United States; or whether the hosiery, foreign or domestic, was introduced into the American market in any other way.

(c) Exports. Hosiery produced in the United States for export to a foreign country need not be marked in accordance with the requirements of the rules in this part, except:

(1) Where such hosiery, although intended for export, or actually exported, is subsequently offered for sale or sold for use, consumption or resale within the United States or place subject to its jurisdiction; or

(2) Where such hosiery manufactured in the United States for export, or sold for export, is marked, sold or exported in such manner or under such conditions as to involve fraud or deception, or an unfair method of competition against an American competitor engaged in export trade, or a matter otherwise contrary to the public policy of the United States; or

(3) Where required by the Wool Products Labeling Act or by other provisions of law. [Rule 1]

§ 152.2 Deception (general).

It is an unfair trade practice to sell, offer for sale, or distribute industry products by any method, or under any representation, description, circumstance or condition which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the grade, character, construction, origin, denier, size, style, fashion, gauge, twist of yarn, quality, quantity, value, price, serviceability, resistance to snagging or the development of runs, holes or breaks in the fabric, strength, stretch, length, color, finish, manufacture, or distribution of any product of the industry or component part of such product, or in any other material respect. [Rule 2] § 152.3 "Lisle."

(a) It is an unfair trade practice to use the term "lisle" or word, term, or representation of similar import, as descriptive of hosiery or any part thereof, under any condition having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. For purposes of this section the term "lisle" as descriptive of hosiery, or part thereof, is considered as representing that such hosiery is made of yarn

NOTE: The minimum twist of intermediate counts not given should be in proportion to those given in the table. The average results of tests for number of turns of twist in a yarn shall be reported to the nearest whole number.

Yarns having more than 4 plies shall have not less than the number of turns given for the 4-ply yarn, minus 1 turn for each additional ply above 4; that is, for each additional ply above 4, 1 turn per inch may be deducted from the minimum number of turns given for the 4-ply yarn.

(b) The term "long staple cotton fiber" as used in this section is understood to mean cotton fiber which is not less than 1%" in length of staple: Provided, however, That nothing in this section shall be construed as prohibiting the use of cotton fiber which is not less than 116" in length of staple for the counts of 35 and less above referred to. [Rule 31

§ 152.4 "Irregulars," or "seconds”.

(a) It is an unfair trade practice to fail to disclose on industry products and in all advertising and promotional material relating thereto that such products are "irregulars" or "seconds," when such is the case.

(b) It is an unfair trade practice to cause any industry products to be falsely or deceptively marked, advertised, described or otherwise represented, either as not being or as being "irregulars" or "seconds," when such is not the fact.

(c) For the purpose of this section "irregulars" shall be considered as including all hosiery which is not of first quality but which contains only minor imperfections limited to irregularities in dimen

sions, size, color or knit, and without the presence of any obvious mends, runs, tears or breaks in the fabric or any substantial damage to the yarn or fabric itself. "Seconds" shall be considered as including all hosiery which is not of first quality, does not qualify as "irregulars" and which contains runs, obvious mends, irregularities, substantial imperfections, or defects in material, construction or finish.

(d) The marking of hosiery under this section shall be made in a conspicuous and non-deceptive manner with sufficient permanency or indelibility to carry through the channels of trade to the ultimate consumer in a clearly legible condition. The words "irregulars' or "seconds" as the case may be shall be set out distinctly by transfer or other marking on the fabric of each stocking, sock or other unit, whether sold in pairs, threes or otherwise. In addition, if the hosiery is packaged in any manner so as to conceal the disclosures required by this section then such disclosures shall also be made on such packaging in a conspicuous and non-decepitve manner. The required disclosures in advertising and other promotional material that industry products are "irregulars" or "seconds," must also be made in a conspicuous and non-deceptive manner. [Rule 4]

§ 152.5

Removal, obliteration, or alteration of marks.

It is an unfair trade practice for any manufacturer, converter, processor, dyer, finisher, distributor, dealer, importer or vendor, or person acting for or in collusion with any concern or vendor, (a) to remove, obliterate, deface, change, alter, conceal, or make illegible any information required by the rules in this part to be disclosed on industry products, without replacing the same before sale, resale or distribution for sale with a proper mark meeting the requirements of the rules in this part; or (b) to sell, resell, or distribute any industry product without its being marked and described in accordance with the requirements of the rules in this part.

NOTE: Hosiery which has been redyed shall be re-marked in accordance with the requirements of the rules in this part. Hosiery found to contain a false or deceptive mark, or a mark contrary to the requirements of the rules in this part, shall be re-marked in accordance with the rules in this part. [Rule 5]