dustry, and the linen industry,' except that, due to the provisions of section 14 of the Wool Products Labeling Act of 1939, labeling identification of any wool, reprocessed wool, or reused wool' contained in any such fabrics is not to be considered as required. In the case of upholstery and drapery fabrics which contain a kind of fiber or fibers required to be identified by label under said trade practice rules, and which also contain fibers of wool, reprocessed wool, or reused wool, the label identification of the fiber content thereof shall be made in a manner which does not have the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the proportion of the identified fiber or fibers contained in such products. Examples of proper fiber identification by label in the case of an upholstery or drapery fabric composed of 60 percent rayon fibers and 40 percent wool' fibers are as follows: "CONTAINS RAYON" or "60% RAYON” or "RAYON AND WOOL" or "60% RAYON AND 40% WOOL" NOTE A: When an upholstery or drapery fabric containing wool, reprocessed wool, or reused wool is sold, offered for sale, or dis 1A copy of the above-mentioned trade practice rules may be obtained by any industry member making request therefor to the Commission. 'As here used, the meanings of the terms "wool," "reprocessed wool," and "reused wool," are to be understood as according with those set forth for such terms in subsections (b), (c) and (d) of section 2 of the Wool Products Labeling Act of 1939, said subsections (b), (c), and (d) reading as follows: (b) The term "wool" means the fiber from the fleece of the sheep or lamb or hair of the Angora or Cashmere goat (and may include the so-called specialty fibers from the hair of the camel, alpaca, llama, and vicuna) which has never been reclaimed from any woven or felted wool product. (c) The term "reprocessed wool" means the resulting fiber when wool has been woven or felted into a wool product which, without ever having been utilized in any way by the ultimate consumer, subsequently has been made into a fibrous state. (d) The term "reused wool" means the resulting fiber when wool or reprocessed wool has been spun, woven, knitted, or felted into a wool product which, after having tributed by an industry member with knowledge of facts indicating its probable use in a product or products other than upholsteries or draperies, such fabric shall be labeled as to its fiber content in accordance with the requirements of the Wool Products Labeling Act of 1939. NOTE B: Nothing in this section is intended to limit or restrict the requirements of § 205.6 relating to disclosure of the fact that an upholstery or drapery fabric is composed of used material, whether such used material be used wool fiber or other used material. § 205.6 Disclosure of presence of used fiber or material. It is an unfair trade practice to fail or to refuse to make full and nondeceptive disclosure of the fact that any upholstery or drapery fabric offered for sale or sold or distributed is composed of used fiber or material, in whole or in part, where such failure or refusal to disclose has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. § 205.7 Substitution of products. The practice of shipping or delivering products which do not conform to samples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without the consent of the purchasers to such substitutions and with the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 205.8 Inducing breach of contract. Knowingly inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers, or interfering with or obstructing the performance of any such contractual duties or services, under any circumstance having the capacity and tendency or effect of substantially injuring or lessening present or potential competition, is an unfair trade practice. Nothing in this section is intended to imply that it is improper for any industry member to solicit the business of a customer of a competing industry member; nor is the rule to be construed as in anywise authorizing any agreement, understanding, or common been used in any way by the ultimate consumer, subsequently has been made into a fibrous state. course of action by two or more industry members to not solicit business from the customers of either of them, or from customers of any other industry member. § 205.9 Commercial bribery. It is an unfair trade practice for a 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 agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers or prospective customers, without the knowledge of their employers or principals, as an inducement to influence their employers or principals to purchase or contract to purchase products manufactured or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or contracting to deal with competitors. § 205.10 Imitation of trade-marks, etc. The practice of imitating, or causing to be imitated, or directly or indirectly promoting or aiding the imitation of, the trade-marks, trade names, other exclusively owned symbols or marks of identification of competitors, or the exclusively owned designs or patterns of competitors which have not been directly, or by operation of law, dedicated to the public, where such imitation has the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice. § 205.11 Defamation of competitors or false disparagement of their prod It is an unfair trade practice for any member of the industry to represent, directly or indirectly, through use of the word "mill" or "mills," or the word "manufacturer," or any other word, term, or representation of similar import or meaning, in his corporate or trade name, or otherwise, that he is a manufacturer of upholstery and drapery fabrics, or that he is the owner or operator of a mill, factory, or producing company manufacturing upholstery and drapery fabrics, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business. § 205.15 Prohibited discrimination.' (a) Prohibited discriminatory prices, or discounts, rebates, refunds, credits, etc., which effect unlawful price discrimination. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any discount, rebate, refund, credit, freight or other transportation cost or any percentage thereof, or other form of price differential, where such discount, rebate, refund, credit, freight or other trans As used throughout § 205.15, the word "commerce" means "trade or 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." portation cost or any percentage thereof, or other form of price differential, effects a discrimination in price between different purchasers of goods of like grade and quality, where either or any of the purchases involved therein are in commerce, and where the effect thereof 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, however: (1) That the goods involved in any such transaction are sold for use, consumption, or resale within any place under the jurisdiction of the United States; (2) That nothing contained in this paragraph 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; (3) That nothing contained in this paragraph shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade; (4) That nothing contained in this paragraph shall prevent price changes from time to time where made in response to changing conditions affecting the market for or the marketability of the goods concerned, such as but not limited to actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned. (b) Prohibited brokerage and commissions. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of goods, wares, or merchandise, either to the other party to such transaction or to an agent, representative, or other intermediary therein, where such intermediary is acting in fact for or in behalf, or is subject to the direct or indirect control, of any party to such transaction other than the person by whom such compensation is so granted or paid. (c) Prohibited advertising or promotional allowances, etc. It is an unfair trade practice for any member of the industry engaged in commerce to pay or contract for the payment of advertising or promotional allowances or any other thing of value to or for the benefit of a customer of such member in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such member, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities. (d) Prohibited discriminatory services or facilities. It is an unfair trade practice for any member of the industry engaged in commerce to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all competing purchasers on proportionally equal terms. (e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the foregoing provisions of this section. (f) Prohibited discriminatory return and exchange privileges. It is an unfair trade practice for any member of the industry to grant or contract to grant privileges of merchandise return, refund, exchange, or other special privileges, upon terms which, under the provisions of this section, effect any unlawful discrimination in price, services or facilities in favor of one purchaser against another purchaser or purchasers. (g) Exemptions. The inhibitions of this section shall not apply to purchases of their supplies for their own use by schools, colleges, universities, public li See footnote on p. 248. braries, churches, hospitals, and charitable institutions not operated for profit. NOTE: In complaint proceedings charging discrimination in price or services or facilities furnished, and upon proof having been made of such discrimination, the burden of rebutting the prima facie case thus made by showing justification shall be upon the person charged; and unless justification shall be affirmatively shown, the Commission is authorized to issue an order terminating the discrimination: Provided, however, That nothing contained in this section shall prevent a seller rebutting the prima facie case thus made by showing that his lower price or the furnishing of services or facilities to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor (see section 2 (b) Clayton Act). § 205.16 Aiding or abetting use of unfair trade practices. It is an unfair trade practice for any person, firm, or corporation to aid, abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in §§ 205.1 to 205.16. § 205.101 GROUP II Repudiation of contracts. Lawful contracts are business obligations which should be performed in letter and in spirit. The repudiation of contracts by sellers on a rising market or by buyers on a declining market is condemned by the industry. § 205.102 Use of written sales contracts. (a) In order to avoid ambiguity and misunderstanding between buyers and sellers, all purchases and sales of products of the industry exceeding one piece, regardless of the total value thereof, should be made by written contract, signed by the buyer and seller. Such written contract should set forth the actual terms and conditions of the sale involved. (b) Wherever practicable, the delivery of all merchandise of any quantity should be made against a written receipt signed by the purchaser, or a qualified agent or employee of the purchaser. (c) The provisions in this section shall not be construed as sanctioning or approving any agreement among competitors or any planned common course of action among competitors to agree upon or to fix, specify, or determine the prices, discounts, terms, or conditions of sale to (a) The industry disapproves the giving of samples without charge in greater quantity than is actually necessary to acquaint purchasers or prospective purchasers with the grade or quality of the product offered for sale. However, the furnishing of any samples shall not be carried out in a manner involving discrimination prohibited by the provisions of § 205.15. (b) The industry interpretation of "actually necessary" quantities as above is: "A reference sample of each item not exceeding one 27" x 27" square or one full repeat of pattern, with one color line not to exceed 6" x 9"." § 206.1 Misrepresentation (general). The practice of selling, offering for sale, advertising, describing, or otherwise representing gladiolus bulbs or gladiolus bulblets in a manner or under any circumstances having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers with respect to their size, grade, origin, kind, age, condition, vigor, flowering ability, period of growth required before flowering, price, or value, or in any other material respect, is an unfair trade practice. § 206.2 Deception as to size. (a) In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for an industry member to misrepresent or deceptively conceal the size of any gladiolus bulb, or to use the term "jumbo," "large," "medium," or "small," or "No. 1," "No. 2," "No. 3," "No. 4," "No. 5," "No. 6," or "No. 7," or any other term indicative of size, as descriptive of industry products under any circumstance or condition having the capacity and tendency or effect of deceiving purchasers or prospective purchasers. (b) Under this section the term "jumbo" shall be confined to bulbs which are 2 inches or more in diameter; the term "large" shall be confined to bulbs which are 14 inches or more in diameter; the term "medium" shall be confined to bulbs which are 34 inch or more in diameter; and the term "small" shall be confined to bulbs which are less than 3⁄4 inch in diameter. (c) In listings and offers for sale confined to wholesale buyers or jobbers, the size of bulbs may be indicated by number in accordance with the following classification: No. 1-over 11⁄2" in diameter. No. 5-34 "to 1⁄2' " in diameter. § 206.3 " in diameter. Deception as to blooming or flowering. In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any industry member (a) To misrepresent, directly or indirectly, the ability of any of such products to bloom or flower; or (b) To misrepresent, directly or indirectly, the number of plantings and duration of growth necessary to effect satisfactory blooming and flowering. When industry products are of such immaturity as not reasonably to be expected to bloom and flower satisfactorily the first season of their planting, such fact shall be clearly and conspicuously disclosed in all advertisements and sales promotional literature relating to such products: Provided, however, That such disclosure need not be made when the size of the product is specified in accordance with the requirements of § 206.2 and sales of the products are confined to nurseries and commercial growers for their use as planting stock. (See also § 206.4 (c)). § 206.4 Deceptive guarantees. (a) It is an unfair trade practice for an industry member to represent that any product is "guaranteed" unless the nature and extent of the undertaking is conjunctively disclosed and without deceptively minimizing the terms and conditions relating to the obligation of the guarantor. (b) It is also an unfair trade practice for any industry member to use, or cause to be used, any guarantee in which the obligations of the guarantor are impracticable of fulfillment or in respect to which the guarantor fails or refuses scrupulously to observe his obligations thereunder. (c) When, because of their immaturity, bulbs or bulblets cannot reason |