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Meats, etc.,

of corporation, for any violation of such section, punishment shall be by a fine of not more than $10,000 or by imprisonment for not more than one year, or by both such fine and imprisonment: Provided, That for the duly inspected, purposes of this section meats and meat food products duly inspected, marked, and labeled in accordance with rules and regulations issued under the Meat Inspection Act approved March 4, 1907, as amended, shall be conclusively presumed not injurious to health at the time the same leave official "establishments."

etc., under Meat Inspection Act.

Publisher, broadcaster, etc., may escape responsibility by revealing to Commission identity of

publication.

[116] (b) No publisher, radio-broadcast licensee, or agency or medium for the dissemination of advertising, except the manufacturer, packer, distributor, or seller of the commodity to which the false advertisement reperson causing lates, shall be liable under this section by reason of the dissemination by him of any false advertisement, unless he has refused on the request of the Commission, to furnish the Commission the name and post-office of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United States, who caused him to disseminate such advertisement. No advertising agency shall be liable under this section by reason of the causing by it of the dissemination of any false advertisement, unless it has refused, on the request of the Commission, to furnish the Commission the name and post-office address of the manufacturer, packer, distributor, or seller, residing in the United States, who caused it to cause the dissemination of such advertisement.

"False advertisement."

Sec. 15. "FALSE

ADVERTISEMENT," "FOOD," "DRUGS," "DEVICES," "COSMETIC," DEFINED. (52 Stat. 116; 15 U. S. C. A., sec. 55.)

SEC. 15. For the purposes of sections 12, 13, and 14(a) The term "false advertisement" means an advertisement, other than labeling, which is misleading in a material respect; and in determining whether any advertisement is misleading, there shall be taken into account (among other things) not only representations made or suggested by statement, word, design, device, sound, or any combination thereof, but also the extent

to which the advertisement fails to reveal facts material in the light of such representations or material with respect to consequences which may result from the use of the commodity to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual. No advertisement of a drug shall be deemed to be false if it is disseminated only to members of the medical profession, contains no false representation of a material profession. fact, and includes, or is accompanied in each instance by truthful disclosure of, the formula showing quantitatively each ingredient of such drug.

Dissemination to medical

(b) The term "food" means (1) articles used for food "Food." or drink for man or other animals, (2) chewing gum, and (3) articles used for components of any such article.

(c) The term "drug" means (1) articles recognized in "Drug." the official United States Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) articles (other than food) intended to affect the structure or any function of the body of man or other animals; and (4) articles intended for use as a component of any article specified in clause (1), (2), or (3); but does not include devices or their components, parts, or accessories.

(d) The term "device" (except when used in subsec- "Device." tion (a) of this section) means instruments, apparatus, and contrivances, including their parts and accessories, intended (1) for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; or (2) to affect the structure or any function of the body of man or other animals.

(e) The term "cosmetic" means (1) articles to be "Cosmetic." rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof intended for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) articles intended for use as a component of any such articles; except that such term shall not include soap.

Commission to
certify facts
to Attorney
General.

Separability clause.

"Federal Trade Commission

Act."

Sec. 16. "FALSE ADVERTISEMENT" OF "FOOD,"
ETC., AND DISOBEDIENCE OF FINAL
AND EFFECTIVE CEASE AND DESIST
ORDER; COMMISSION TO CERTIFY;
ATTORNEY GENERAL ENFORCE PRO-
VISIONS. (52 Stat. 116; 15 U. S. C. A., sec.
56.)

SEC. 16. Whenever the Federal Trade Commission has
reason to believe that any person, partnership, or corpora-
tion is liable to a penalty under section 14 or under sub-
section (1) of section 5, it shall certify the facts to the
Attorney General, whose duty it shall be to [117] cause
appropriate proceedings to be brought for the enforce-
ment of the provisions of such section or subsection.
Sec. 17. SEPARABILITY PROVISION. (52 Stat.
117; 15 U. S. C. A., sec. 57.)

SEC. 17. If any provision of this Act, or the application thereof to any person, partnership, corporation, or circumstances, is held invalid, the remainder of the Act and the application of such provision to any other person, partnership, corporation, or circumstance shall not be affected thereby.

Sec. 18. TITLE. (52 Stat. 117; 15 U. S. C. A., sec. 58.)
SEC. 18. This Act may be cited as the "Federal Trade
Commission Act."

Original act approved September 26, 1914.
Amended act approved March 21, 1938.

[Approved Oct. 15, 1914]

[PUBLIC NO. 212-63D CONGRESS 1]

[H. R. 15657]

AN ACT To supplement existing laws against unlawful restraints and monopolies, and for other purposes

Sec. 1. DEFINITIONS. (38 Stat. 730; 15 U. S. C. A., sec. 12.)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That "antitrust laws," as used herein, includes the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies", approved July second, eighteen hundred and ninety: sections seventy-three to seventy-seven, inclusive, of an Act entitled, "An Act to reduce taxation, to provide revenue for "Antitrust the Government, and for other purposes", of August twenty-seventh, eighteen hundred and ninety-four; an Act entitled "An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled 'An Act to reduce taxation, to provide revenue for the Government, and for other purposes", approved February twelfth, nineteen hundred and thirteen; and also this Act.

laws."

"Commerce," as used herein, means trade or commerce "Commerce.” among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States: Provided, That nothing in this Act contained shall apply to the Philippine Islands.

'Published, as amended, from time to time, including amendments made by Robinson-Patman Anti-Discrimination Act, approved June 19, 1936. (See, infra, p. 61.)

"Person" or "persons."

Unlawful

where effect may be to substantially

tion or tend

to create a monopoly.

The word "person" or "persons" wherever used in this Act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country. Sec. 2. DISCRIMINATING IN PRICE, SERVICE, OR FACILITIES.2 (49 Stat. 1526; 15 U. S. C. A., sec.. 13, as amended.)

SEC. 2. (a) That it shall be unlawful for any person engaged in commerce, in the course of such commerce, lessen competi- either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: Provided, That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered: Provided, however, That the Federal Trade Commission may, after due investigation and hearing to all interested parties, fix and establish quantity limits, and revise the same as it finds necessary, as to particular commodities or classes of commodities, where it finds that available purchasers of monopoly, in greater quantities are so few as to render differentials on account thereof unjustly discriminatory or promotive of monopoly in any line of commerce; and the foregoing

But permissible if making only due allowance for differences in cost of manufacture, sale, or delivery, and

Federal Trade Commission may fix quantity limits as specified, where such differentials are unjustly discriminatory or promotive

and

This section of the Clayton Act contains the provisions of the RobinsonPatman Anti-Discrimination Act, approved June 19, 1936, amending Section 2 of the original Clayton Act, approved Oct. 15, 1914. For certain exemptions from the provisions of the later act re cooperatives and purchases for their own use by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit, see said later act as published, infra, at p. 63.

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