gaged 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, including storage, 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 herein contained 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.

§ 211.14 False invoicing.

(a) Withholding from or inserting in invoices or sales slips any statements or information by reason of which omission or insertion a false record is made, wholly or in part, of the transactions represented on the face of such invoices or sales slips, with the effect of thereby misleading or deceiving purchasers, prospective purchasers, or the consuming public, is an unfair trade practice.

(b) The practice of delivering products in a number less than called for on the delivery record or invoice (so-called "short count"), with the capacity and tendency or effect of thereby misleading

or deceiving the purchasing or consuming public, is an unfair trade practice. § 211.15 Selling below cost.

(a) The practice of selling products of the industry 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.

(b) 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.

(c) 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.

§ 211.16 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 §§ 211.1 to 211.16, inclusive.

It is an unfair trade practice for any member of the industry to issue, or cause to be issued, a warehouse receipt which, to the knowledge of the industry member, or under such circumstances as are reasonably calculated to impute knowledge to the industry member, is false, misleading, or deceptive in any material respect.

Among the practices inhibited by this section are:

(a) Issuing warehouse receipts without having actual control of the products for which the receipt is issued.

(b) Issuing negotiable warehouse receipts for goods of which the issuer is part or sole owner without full and nondeceptive disclosure of that fact. § 212.2 Delivering goods when negotiable warehouse receipt is outstanding and uncanceled.

It is an unfair trade practice for any member of the industry to deliver part or all of any lot of stored products for which a negotiable warehouse receipt (the negotiation of which would transfer the right to the possession of such products) has been issued and is outstanding and uncanceled, without obtaining the possession of such receipt, or taking up and canceling the same, or placing plainly upon it a statement of what products have been delivered, at or before the time of the delivery of such products, except where delivery thereof is made pursuant to an order of a court of competent jurisdiction or in compliance with a sale made to satisfy a lien thereon, or in accordance with state or local regulations or ordinances, with the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. § 212.3 Deception (general).

It is an unfair trade practice to make or publish, or cause to be made or pub

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, rent, or contract to purchase or rent, public refrigerated space or facilities or services incidental thereto from such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from purchasing or renting public refrigerated space or facilities or services incidental thereto from competitors or from dealing or contracting to deal with competitors. § 212.5 Selling below cost.

(a) The practice of selling or furnishing public refrigerated space or facilities, or services incidental thereto, at a price less than the cost thereof to the seller or furnisher, with the purpose or intent, and where the effect may be, to injure, suppress, or stifle competition or tend to create a monopoly in this industry, is an unfair trade practice. As used in this section, the term "cost" means the total cost to the seller or furnisher of any such transactions of sale or rental.

(b) 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 monopoly, or substantially lessen competition.

(c) All elements recognized by good accounting practice as proper elements of such cost shall be included in deter

mining 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.

§ 212.6 Inducing breach of contract.

(a) 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.

(b) 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 this section to be construed as in anywise authorizing any agreement, understanding, or planned common course of action by two or more industry members not to solicit business from the customers of either of them, or from customers of any other industry member.

§ 212.7 Defamation of competitors or false disparagement of their busi

ness.

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

§ 212.8 Procurement of competitors' confidential information by unfair means and wrongful use thereof.

It is an unfair trade practice for any member of the industry to obtain information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements or representations, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained in such manner as to injure said competitor in his business or to suppress competition or unreasonably restrain trade.

§ 212.9 Prohibited forms of trade restraints (unlawful price fixing, etc.).

It is an unfair trade practice for any member of the industry, either directly or indirectly:

(a) To enter into or take part in any understanding, agreement, combination, or conspiracy, or any planned common course of action, with one or more members of the industry, or with any other person or persons, unlawfully to fix, maintain, or enhance the price of any goods, or otherwise unlawfully to restrain trade; or

(b) To use any form of threat, intimidation, or coercion to induce any member of the industry, or other person or persons, to become a party to any such understanding, agreement, combination, or conspiracy, or any such planned common course of action.

COMMITTEE ON TRADE PRACTICES § 212.201 Industry committee.

The provisions of § 16.1 of this subchapter shall be applicable to an industry committee established under this part. [21 F.R. 1174, Feb. 21, 1956]

PART 213-INDUSTRIAL BAG AND COVER INDUSTRY

Sec. 213.0

213.1

218.2

213.3

213.4

213.5

213.6

Definitions.

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 this part.

GROUP II

§ 212.101 Publishing of rates and charges.

The industry approves the practice of each individual member independently establishing and openly stating and publishing his rates and charges with applicable terms and conditions.

§ 212.102

Excessive extension of credit and unsound collateral or unsecured loans.

Reasonable extension of credit and the making of secured loans at prevailing interest rates to storers and customers is normal warehouse business. However, extending excessive credit, and making or offering to make collateral or unsecured loans not in conformity with current sound banking principles, are condemned by the industry.

§ 212.103 Dissemination of credit information.

The industry records its approval of distributing to its members information covering delinquent and slow accounts in so far as this may lawfully be done.

213.10 213.11

GROUP I

Misrepresentation and misbranding of industry products.

Misrepresentation as to character of business.

Misrepresenting products as conforming to standard.

Prohibited discrimination.
Substitution of products.

False and misleading price quotations, etc.

Deceptive use of trade or corporate

names, trade-marks, etc.

Inducing breach of contract.

Defamation of competitors or false

disparagement of their products. Commercial bribery.

Procurement of competitors' conn

dential information.

specifications of the purchaser for specifled flexible form-fitting packaging requirements. Not included are (1) paper shipping sacks of standard sizes and types which are used as containers for loose small grain or small unit materials, such as cement, flour, poultry feed, and salt, or (2) ordinary paper bags used by retail stores in the marketing of their products to consumer-purchasers, or (3) rigid or folding cardboard boxes.

(b) Industry products consist principally of, but are not limited to, the following standard paper and paperboard items:

Mattress and pad bags. All paper bags used for packaging bedding, upholstered pads, or similar sleeping equipment.

Can bags. All bags used for packaging empty metal, paper, or fibre cans; usually constructed with kraft paper sides and paperboard bottoms.

Upholstered furniture bags. All paper bags used for shipping or protecting upholstered furniture.

Hand-made and semi-hand-made bags and covers. Custom-made paper bags for industrial product packaging. Includes case goods bags for packaging or protection of furniture other than upholstered, including home appliances and office furniture and equipment.

Casket covers. Paper covers normally used as dust protectors for shipment or storage of caskets.

Tubing. Flexible paper tubes sold in cut lengths or in a continuous roll, maximum width of 12 inches and minimum length of 24 inches (for protection of wooden hoe handles, etc.).

Freight-car liners and freight-car ceiling liners. Used to line the ceiling, sides, and floor of freight cars for protection of raw materials and manufactured products while in transit.

Prefabricated water-resistant paper case liners. The water-resisting agent used may be any one of the following, but is not limited to: (1) Asphalt laminated, (2) wax or resin laminated, (3) waxed, or (4) coated.

GROUP I

§ 213.1 Misrepresentation and misbranding of industry products.

It is an unfair trade practice to make or publish, or cause to be made or published, by way of advertising, label, or otherwise, any statement or representation which directly, or by reason of concealment of material fact, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers concerning the grade, quality, quantity, use, size or size symbol, mate

rial, finish, strength, thickness, composition, origin, preparation, manufacture, or distribution of any product of the industry, or in any other material respect.

§ 213.2

Misrepresentation as to character of business.

It is an unfair trade practice for any industry member, in the course of or in connection with the distribution of industry products, to represent, directly or indirectly, that he is a manufacturer of industry products, or that he owns or controls a factory making such products, when such is not the fact, or in any other manner to misrepresent the character, extent, or type of his business.

§ 213.3 Misrepresenting products as conforming to standard. Representing through advertising, personal solicitation, or otherwise, that any product of the industry conforms to a standard recognized in or applicable to the industry when such is not the fact is an unfair trade practice.

§ 213.4 Prohibited discrimination.'

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, 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 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 mo

1 As used in § 213.4, the term "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.