firm, partnership, corporation, or association: (a) To use, directly or indirectly, any form of threat, intimidation, or coercion against any member of the industry to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade; or (b) To enter into or take part in, directly or indirectly, any agreement, understanding, combination, conspiracy, or concert of action with one or more members of the industry, or with one or more persons, firms, partnerships, corporations, or associations, to unlawfully fix, maintain, or enhance prices, suppress competition, or restrain trade. (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 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 section 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 section 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 section shall prevent price changes from time to time where made in response to changing conditions affecting either (i) the market for the goods concerned, or (ii) the marketability of the goods, 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 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) Purchases by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit. The foregoing provisions of this section relate to practices within the purview of the Robinson-Patman Antidiscrimination Act, which Act and the application thereunder of this section are subject to the limitations expressed in the amendment to such Robinson-Patman Antidiscrimination Act which amendment was approved May 26, 1938, and reads as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That nothing in the Act approved June 19, 1936 (Public, Numbered 692, Seventy-fourth Congress, second session), known as the RobinsonPatman Antidiscrimination Act, shall 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. (Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528, ch. 283, 52 Stat. 446; 15 U.S.C. 13, 13a, 13b, 13c, 21a) § 157.10 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 the sections in this part. Sec. 158.6 158.7 158.8 158.9 158.10 158.11 158.12 Deception as to rebuilt, used, con- Misrepresentation as to installment Deception in respect of keyboard or number of keys. Defamation of competitors or dis paragement of their products. Inducing breach of contract. 158.13 "Push money," "gratuities," etc. Misuse of word "free," etc. 158.14 In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry products, it is an unfair trade practice to use or cause to be used any trade promotional literature, advertising matter, guarantee, warranty, mark. brand, label, designation or representation, however disseminated or published, which directly, or by implication or otherwise, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers in respect to the grade, quality, quantity, substance, character, make, type, price, nature, size, tone, origin, use, endorsement, appearance, performance, construction, specifications, finish, material content, or preparation of such product, or in any other material respect. § 158.2 Deceptive testimonials. In the course of or in connection with selling distributing, or promoting the sale or distribution of any industry product, it is an unfair trade practice to use or cause to be used any testimonials, written or oral, which are false, misleading, or deceptive as to the merits or qualities of such industry product, or which are false, misleading, or deceptive in any other material respect. NOTE: Under this section, the following types of testimonials are among those which should not be used, namely: (a) Testimonials previously given in respect of a product of a manufacturer or distributor but which are deceptive by reason of being so old as no longer to be applicable to the products or instruments currently produced by such manufacturer or sold by such distributor. (b) Testimonials which deceptively purport to be in support of the merits of the instruments or products endorsed but which were in fact given because of advertising benefits and other considerations and not because of the merits of such instruments or products or the testifier's good-faith belief in the merits thereof. (c) Testimonials which deceptively purport or imply that the testifier regularly or principally uses the instrument or make of instrument endorsed, when in fact the testifier does not use the instrument, or uses it only to a minor or insubstantial extent and not regularly or principally. (d) Testimonials which deceptively represent, purport, or imply, directly or indirectly, that the endorsement therein is or has been given by the testifier as his unbiased, unsubsidized, or bona fide endorsement of the instrument, when in fact such testimonial was procured by or given solely because of a financial or other consideration or subsidy received by or for the benefit of such testifier. (e) Testimonials which in any respect are untrue, or which contain inferences or implications not fully justified by the facts, or which are in any other way deceptive or misleading by reason of undisclosed facts or circumstances or for any other reason. § 158.3 Misrepresentation as to the designing, use, or endorsement of musical instruments. In the course of or in connection with selling, distributing or promoting the sale or distribution of any industry product, it is an unfair trade practice to represent, directly or indirectly, through advertising or otherwise, that a musician, composer, orchestra leader, or other person or organization, designed, uses or endorses a particular musical instrument or instruments or other products of the industry, when such is not the fact. § 158.4 Misrepresentation as to price reductions. It is an unfair trade practice for any member of the industry to represent, in advertising or otherwise, that the price of any industry product has been reduced from what is in fact a fictitious price, or that such price is a reduced or a special price when it is in fact the regular selling price of such product, or that the regular price thereof is higher when such is not the fact, or otherwise to falsely or deceptively represent the past or current price of any industry product. § 158.5 Use of "bait" advertising. (a) In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry product, it is an unfair trade practice to publish or use advertising, or other representations written or oral, which have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the belief that a larger supply of such products is available to purchasers at the advertised or stated price or prices than is in fact so available, or that industry products so offered for sale or sold under such representations or conditions are of high grade or quality when such is not true in fact. (b) It is also an unfair trade practice to advertise, represent or describe the prices at which any musical instruments or accessories are offered for sale as being the "balance due" or unpaid portion on a previous sale under a conditional or time-payment contract, when such is not true in fact, or when such advertisement, representation or offer is otherwise false, misleading or deceptive. § 158.6 Deception as to rebuilt, used, converted, reconstructed, restyled, repossessed, or second-hand prod ucts. (a) It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise or otherwise represent any musical instrument or accessory (1) as being new when it is in fact rebuilt, used, repossessed, or second-hand; or (2) as being of new design or new style when it has been converted, reconstructed, or restyled from a used instrument or accessory and such fact is deceptively concealed. (b) It is an unfair trade practice for any member of the industry to advertise or otherwise represent, directly or indirectly, that he owns or has in his possession for sale new, rebuilt, used, repossessed, or second-hand musical instruments or accessories of a particular type, make, or description, when such is not true in fact. (c) In the sale or distribution of musical instruments or accessories which are rebuilt, used, repossessed, or secondhand, it is an unfair trade practice to fail or refuse to make full and nondeceptive disclosure of the fact that such instruments or accessories are not new, but are rebuilt, used, repossessed, or secondhand, as the case may be, such failure or refusal to disclose having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. § 158.7 Misrepresentation as to being manufacturer, importer, wholesaler, jobber, distributor, or retailer, and prices in relation thereto. (a) It is an unfair trade practice for any person, partnership, corporation or organization, by trade or corporate name or otherwise, to represent or to hold himself or itself out as being the manufacturer, importer, wholesaler, jobber, distributor, or retailer of any industry product advertised, offered for sale, sold or distributed, when such is not the fact. (b) It is an unfair trade practice to use any other deceptive or misleading device, method or representation respecting the character, nature or status of the business of any person, concern or organization engaged in selling or promoting the sale of any industry product. (c) It is an unfair trade practice for any member of the industry, whether selling as manufacturer, importer, wholesaler, jobber, distributor, or retailer, to misrepresent his prices as being either wholesale or retail prices when such is not true in fact, or to otherwise misrepresent his prices. § 158.8 Deception as to origin. In respect to musical instruments or accessories made wholly or partially in a foreign country, or from parts manufactured in a foreign country and assembled into the finished product in the United States, it is an unfair trade practice: (a) To offer for sale, sell, or distribute any such musical instruments or accessories under marks, stamps, brands, labels, or representations which have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the erroneous belief that such products were produced wholly within the United States; or sories without the same being conspicuously marked, stamped, branded, or labeled so as to indicate clearly and nondeceptively the country of origin of such products, the failure, refusal, or omission to so mark, stamp, brand, or label such products having 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 purchasers or prospective purchasers. (c) Nothing in this section shall be construed as relieving any member of the industry or other party of the necessity of complying with the requirements of the customs laws or regulations, or other applicable provisions of law or regulations, relating to the marking of imported articles. § 158.9 Misrepresentation as to installment sales contracts, their terms or conditions, etc. It is an unfair trade practice to make or publish or cause to be made or published, directly or indirectly, any false, misleading, or deceptive statements or representations, through advertising or otherwise, concerning installment sales contracts used or their terms or conditions, including down payments, interest, carrying charges, etc., or respecting any other matter relative to such contracts or their terms or conditions. § 158.10 Deception in respect of key. board or number of keys. (a) It is an unfair trade practice to cause any piano having less than the standard or 88-note keyboard to be represented or passed off, directly or indirectly, as and for a piano having such standard or 88-note keyboard. (b) It is an unfair trade practice to cause any other musical instrument having less than the full or standard keyboard or number of keys to be represented or passed off, directly or indirectly, as and for a musical instrument having such full or standard keyboard or number of keys. price, nature, size, tone, origin, appearance, performance, construction, specifcations, finish, material content, or preparation of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, is an unfair trade practice. § 158.12 Inducing breach of contract. Inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers 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 business, is an unfair trade practice. § 158.13 "Push money," "gratuities," etc. It is an unfair trade practice for any member of the industry to bribe by giving or contracting to give or causing to be given, or by loaning or causing to be loaned, directly or indirectly, to any orchestra leader, band leader, official, singer, musician, music teacher, or any other person, employed by another, or to the agent or representative of, or to any one else on behalf of, such orchestra leader, band leader, official, singer, musician, music teacher, or other person, any "push money," gift, bonus, fee, gratuity, payment, discount, refund, rebate, royalty, service, musical instrument, favor or other thing or act of value, as an inducement to such individual to play or use or cause to be played or used, in a public performance, any musical instrument or accessory of such industry member in either of the following cases: (a) Without the knowledge and consent of said employer; or (b) With or without the knowledge and consent of said employer, where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade in the marketing of such musical instruments or accessories, or where the effect is to be mislead or deceive purchasers or prospective purchasers. § 158.14 Misuse of word "free,” etc. The use of the word "free," or the equivalent thereof, when the article is in fact not free with the capacity and tendency or effect of misleading or deceiving The practice of selling industry products below the seller's cost with the intent and with the effect of injuring a competitor and where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section. The costs, however, which are referred to in the rule 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. § 158.16 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 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 section 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 section shall prevent persons engaged in selling goods, wares, or merchandise in |