In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any industry member to use the word "bulb” as a designation for or as descriptive of a "bulblet."

NOTE: A gladiolus bulb has a definite basal root scar denoting a separate root system during its growth. A gladiolus bulblet has no basal root scar, had no root system of its own, and usually requires a growth of one season to produce a bulb.

§ 206.6 Misrepresenting products as conforming to standard.

Representing, through advertisement or otherwise, that gladiolus bulbs or bulblets conform to a standard recognized in or applicable to the industry when such is not the fact, is an unfair trade practice.

§ 206.7 Deceptive use of trade or corporate names, trade-marks, etc.

It is an unfair trade practice for a member of the industry to use any trade or corporate name, trade-mark, or other designation under any circumstance having the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the general public as to the identity, character of business, business relationships, or business connections of such industry member, or with respect to the origin, quality, or flowering ability of any product sold or offered for sale by such industry member.

represent the past or current price of any industry product.

§ 206.9 Selling below cost.

The practice of selling industry products at a price less than the cost thereof to the seller, with the purpose or intent, and where the effect may be, to injure, suppress, or stifle competition or tend to create a monopoly in the production or sale of such products, is an unfair trade practice. As used in this section, the term "cost" means the total cost to the seller, including the costs of acquisition, processing, preparation for marketing, sale, and delivery.

This section is not to be construed as prohibiting all sales below cost, but only such selling below the seller's cost as is resorted to and pursued as a monopolistic practice with the wrongful intent referred to and coupled with the effect of unreasonably restraining trade, tending to create a monopoly, or substantially lessening competition.

All elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section. The costs referred to in the section are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise.

§ 206.10 Use of lottery schemes.

The offering or giving of prizes, premiums, or gifts in connection with the sale of industry products, or as an inducement thereto, by any scheme which involves lottery or game of chance, is an unfair trade practice.

§ 206.11 Substitution of products.

The practice of shipping or delivering products which do not conform to samples submitted, or to representations made prior to securing the order, without the consent of the purchasers to such substitutions and with the tendency, capacity, or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

§ 206.12 Misrepresentation as to character of business.

It is an unfair trade practice for an industry member to represent, directly or indirectly, that he is a grower, or that he conducts a nursery business, or that he owns or controls a nursery or growing fields, when such is not the fact, or

in any other manner to misrepresent the character, extent, or type of his business. § 206.13

Defamation of competitors or false disparagement of their prod

ucts.

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 products of competitors in any respect, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. § 206.14

Tie-in sales; coercing purchase of one product as a prerequisite to the purchase of other products. The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably to restrain trade, is an unfair trade practice.

1 As used in this section, 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."

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 rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, discount, credit, 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 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 in

termediary 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) Exemptions. The inhibitions of this section shall not apply to purchases of their supplies for their own use by schools, colleges, universities, public libraries, 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 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.)

§ 206.17 Aiding or abetting use of unfair trade practices.

It is an unfair trade practice for any person 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.

GROUP II

§ 206.101 Trade standards of quality. The industry records its approval of the following standards of good quality: Bulbs or bulblets shall be of one variety except when sold as a mixture; shall be clean, sound, well cured, and free from decay; shall be free from insects or noticeable damage caused by insects; and shall be free from apparent disease, cuts, or mechanical damage: Provided, however, That in order to allow for variations incident to grading and handling not more than 5 percent by count of the bulbs or bulblets in any lot may be below the requirements of this standard, and that any lot containing more than 2 percent "rogues" shall be classed as a mixture.

The industry offers the following definitions of common trade terms:

"Clean" means that the lot of bulbs or bulblets are reasonably free from leaves, loose husks, roots, dirt, or other foreign matter.

"Sound" means that the bulbs or bulblets have not been damaged by freezing, over-heating, or curing.

"Well-cured" means that the bulbs or bulblets are sufficiently cured at the time of shipment to assure of no appreciable loss of weight or shrinkage in size during a reasonable length of time after grading or shipment.

"Damage" means any injury which would affect the growing quality of the bulb or bulblet or appreciably detract from its appearance.

"Rogue" means any bulb or bulblet in a lot that is of a variety different from the variety purchased.

Any lot of bulbs or bulblets not meeting the requirements of this section shall be classed as sub-standard quality.

The industry recommends that in the interest of avoiding confusion and deception of purchasers, gladiolus bulblets be sold and offered for sale separately from gladiolus bulbs, except when a definite number of each is stated.

§ 206.105 Disclosure of size of bulbs.

It is the consensus of the industry that the size of gladiolus bulbs should be specified in all advertisements and sales promotional literature relating to such products, that such size should be the measurement of the diameter of the bulb, and that such measurement should be stated in inches (e. g., 14 inches, 34 inch, etc.), it being the view of the industry that failure to disclose size, a disclosure of the circumference measurement rather than the diameter, or the stating of the measurement in centimeters rather than in inches, is not in the interest of fair competition in the industry and is not in the interest of the buying public: Provided, That nothing in this section is intended to disapprove the practice of indicating the size of the diameter of gladiolus bulbs by number only in listings and offerings for sale confined to wholesale buyers and jobbers in accordance with the classification set forth in § 206.2 (c).

Commercial bribery.

Enticing away employees of competitors.

Defamation of competitors or false disparagement of their products. Procurement of competitor's confdential information by unfair means and wrongful use thereof. Imitation or simulation of trademarks, trade names, etc.

Inducing breach of contract.
Unfair threats of infringement suits.
Prohibited discrimination.

207.15

207.16 207.17

207.18

207.19

Unlawful interference with com

As used in this part the term "narrow fabrics" shall mean any nonelastic woven fabric of twelve inches or less in width having a selvage edge on either side, except ribbon and seam binding.

§ 207.1

GROUP I

Deception (general).

It is an unfair trade practice for any industry member to use, or cause or promote the use of, any advertising matter, guarantee, warranty, trade promotional literature, mark, brand, label, or other representation, however disseminated or published, which has the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public with

respect to the grade, quality, length, weight, size, use, colorfastness, material, composition, construction, fabrication, manufacture, distribution, origin, or price or terms of sale, of narrow fabrics, or which is false, misleading, or deceptive in any other material respect.

§ 207.2 Misrepresentation as to character of business.

In the sale, offering for sale, or distribution of narrow fabrics, it is an unfair trade practice for any industry member to represent that he is a manufacturer of narrow fabrics unless he owns and operates, or directly and absolutely controls, a loom or looms, factory or mill, wherein is made any and all narrow fabrics sold or offered for sale by such member as the manufacturer thereof, or in any other manner to misrepresent the character, extent, or type of his business.

§ 207.3

Disclosure as to foreign origin of imported narrow fabrics. With respect to any narrow fabrics which have been imported from a foreign country into the United States in the greige or other unfinished state, or in a finished or semi-finished state, it is an unfair trade practice:

(a) To offer for sale, sell, or distribute any such narrow fabrics under marks, stamps, brands, labels, or representations which have the capacity and tendency or effect of misleading or deceiving purchasers, prospective purchasers, or the consuming public into the belief (1) that such narrow fabrics were woven or fabricated in the United States, when such is not the fact; or (2) that they were dyed, finished, redyed, or refinished elsewhere than in the United States, when such is not true; or

(b) To offer for sale, sell, or distribute any such narrow fabrics without the same being marked, stamped, branded, or labeled so as to indicate clearly and nondeceptively (1) the country of origin of the narrow fabrics, or (2) that such narrow fabrics were woven or fabricated in said country and were dyed or finished, or redyed or refinished, in the United States, as the case may be, where the failure, refusal, or omission to so mark, stamp, brand, or label such narrow fabrics has the capacity and tendency or effect of thereby promoting, abetting, or effectuating the marketing of such products under conditions which are misleading or deceptive to pur

The practice of selling narrow fabrics at a price less than the cost thereof to the seller, with the purpose or intent, and where the effect may be, to injure, suppress, or stifle competition, or tend to create a monopoly in the production or sale of such products, is an unfair trade practice. As used in this section the term "cost" means the total cost to the seller, including the costs of acquisition, processing, preparation for marketing, sale, and delivery.

This section is not to be construed as prohibiting all sales below cost, but only such selling below the seller's cost as is resorted to and pursued as a monopolistic practice with the wrongful intent referred to and where the effect may be unreasonably to restrain trade, tend to create a monoply, or substantially lessen competition.

All elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section. The costs referred to in the section are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise.

§ 207.5 False or deceptive selling methods.

To use or promote the use of any selling method or credit term which has the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public is an unfair trade practice.

§ 207.6 Tie-in sales; coercing purchase of one product as a prerequisite to the purchase of other products. The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be substantially to lessen competition or tend