sumers.

(4) Coated fabrics and those portions of textile fiber products made of coated fabrics.

(5) Secondhand household textile articles which are discernibly secondhand or which are marked to indicate their secondhand character.

(6) Non-woven products of a disposable nature intended for one-time use only.

(7) All curtains, casements, draperies, and table place mats, or any portions thereof otherwise subject to the Act, made principally of slats, rods, or strips, composed of wood, metal, plastic, or leather.

(8) All textile fiber products in a form ready for the ultimate consumer procured by the military services of the United States which are bought according to specifications, but shall not include those textile fiber products sold and distributed through post exchanges, sales commissaries, or ship stores; provided, however, that if the military services sell textile fiber products for nongovernmental purposes the information with respect to the fiber content of such

products shall be furnished to the purchaser thereof who shall label such products in conformity with the Act and regulations before such products are distributed for civilian use.

(9) All hand woven rugs made by Navajo Indians which have attached thereto the "Certificate of Genuineness" supplied by the Indian Arts and Crafts Board of the United States Department of Interior. The term "Navajo Indian" means any Indian who is listed on the register of the Navajo Indian Tribe or is eligible for listing thereon.

(b) The exclusions provided for in paragraph (a) of this section shall not be applicable (1) if any representations as to the fiber content of such products are made on any label or in any advertisement without making a full and complete fiber content disclosure on such label or in such advertisement in accordance with the Act and regulations with the exception of those products excluded by subparagraph (6) of paragraph (a) of this section, or (2) if any false, deceptive, or misleading representations are made as to the fiber content of such products.

(c) The exclusions from the Act provided in paragraph (a) of this section are in addition to the exemptions from the Act provided in section 12(a) of the Act and shall not affect or limit such exemptions.

(Sec. 12, 72 Stat. 1723; 15 U.S.C. 701) [24 F.R. 4480, June 2, 1959, as amended at 25 F.R. 4318, May 14, 1960; 25 F.R. 7044, July 26, 1960; 29 F.R. 48, Jan. 3, 1964]

PART 310-QUANTITY LIMIT RULES
UNDER SECTION 2(a) OF THE
CLAYTON ACT AS AMENDED BY
THE ROBINSON-PATMAN ACT
§ 310.1

Quantity-Limit Rule 203–1, to fix and establish a quantity limit as to replacement tires and tubes made of natural or synthetic rubber for use on motor vehicles as a class of commodity.

The quantity limit as to replacement tires and tubes made of natural or synthetic rubber for use on motor vehicles as a class of commodity is twenty thousand (20,000) pounds ordered at one time for delivery at one time.

(Sec. 6, 38 Stat. 721, sec. 2, 49 Stat. 1526; 15 U.S.C. 46, 13) [17 F.R. 113, Jan. 4, 1952]

The Rule.

(a) The Commission finds that: (1) Manufacturers and distributors have engaged in the practice of selling sleeping bags in commerce, as "commerce" is defined in the Federal Trade Commission Act, marked as to "cut size," 1.e. the dimensions of the material used in making such sleeping bags, without disclosing the size of the finished products; (2) this practice has the tendency and capacity (1) to mislead and deceive purchasers into believing that the "cut size" represents the actual dimensions of the finished products, whereas the finished size of sleeping bags is in fact substantially smaller than the "cut size" of the materials from which they are made, a matter of primary importance to the consumer, and (ii) to divert business from competitors who clearly disclose the finished size of their sleeping bags; and that, therefore, (3) this practice constitutes an unfair method of competition in commerce, and an unfair and deceptive act or practice in commerce, in violation of section 5 of the Federal Trade Commission Act.

Commission

(b) Accordingly, the hereby promulgates, as a Trade Regulation Rule, its findings and determination that in connection with the sale or offering for sale of sleeping bags, any representation of the "cut size" or the dimensions of materials used in the construction of sleeping bags, in advertising, labeling, marking or otherwise, constitutes an unfair method of competition and an unfair and deceptive act or practice, unless

(1) The dimensions of the cut size are accurate measurements of the yard goods used in construction of the sleeping bags; and

(2) Such "cut size" dimensions are accompanied by the words "cut size";

and

(3) The "cut size" is accompanied by a clear and conspicuous disclosure of the length and width of the finished products and by an explanation that such dimensions constitute the finished size.

Example. An example of proper size marking when the product has a finished size of 33" x 68" and a cut size of 36" x 72",

and disclosure is made of the cut size, isFinished size 33" x 68"; cut size 36" x 72". (38 Stat. 717, as amended; 15 U.S.C. 41-58) [28 F.R. 10900, Oct. 11, 1963]

PART 401-MISUSE OF "AUTOMATIC" OR TERMS OF SIMILAR IMPORT AS DESCRIPTIVE OF HOUSEHOLD ELECTRIC SEWING MACHINES

Sec.

401.1

401.2 401.3 401.4 401.5

Facts regarding "automatic" claims.
Deceptive nature of the claims.
Arguments in opposition to the rule.
The rule.

Future product improvement.

AUTHORITY: The provisions of this Part 401 issued under 38 Stat. 717, as amended; 15 U.S.C. 41-58.

SOURCE: The provisions of this Part 401 appear at 30 F.R. 8900, July 15, 1965, unless otherwise noted.

§ 401.1 Facts regarding “automatic” claims.

(a) The terms "automatic," "fully automatic," "automatic zig-zag sewing machine," and other words and expressions of similar import as well as illustrations and depictions indicative of automaticity have been widely used in labeling and advertising by manufacturers, distributors, and retailers as descriptive of the overall functions or operations of household electric sewing machines, in the sale of such machines in commerce, as "commerce" is defined in the Federal Trade Commission Act. Such terms, illustrations, and depictions have similarly been used to describe the function or operation of specific attachments or components of household electric sewing machines, which after activation and by self-operation, without human intervention, will perform the mechanical function or operation indicated by its descriptive name or term.

(b) "Automatic' means self-operating or self-regulating. Consumers therefore are led to believe that once activated, a sewing machine so described or depicted will operate mechanically without intervening human effort. However, no household electric sewing machine is automatic or self-operating in its entirety or as to its overall functions or operations, since all require considerable control, skill, knowledge, and personal intervention by the operator to achieve satisfactory results. Sewing machines,

unlike "automatic" washing machines or dishwashers, cannot be turned on and left to operate by themselves.

(c) In any event, the industry asserts that terms such as "automatic" may properly be used with reference to a number of attachments or components of sewing machines, which may be attached to or built in such machines to automatically perform specified operations. It would appear that insofar as such attachments or components, after activation and by self-operation, will perform their function or cycle of operation without manual intervention, they may be described as "automatic": Provided, The descriptive word or term used does not imply that the entire machine is automatic.

§ 401.2 Deceptive nature of the claims.

Many consumers, including the less sophisticated, paying substantial sums which may be up to $395 and more for a sewing machine, by the use of the term "automatic,' as well as illustrations and depictions indicative of automaticity, are led in many instances to believe that merely by the twist of a dial or the flick of a lever they will be able to easily perform complicated sewing operations. In short, they are given the impression that the machines so described or depicted are simple and easy to use because they are self-operating and require no manual intervention. This is deceptive. In fact, the machines are not self-operating and are not necessarily simple and easy to use. Prerequisite to successful operation of such machines for certain uses is a considerable degree of manual dexterity and sewing skill in which many such consumers are frequently deficient. Accordingly, the use of such terms, words, illustrations, and depictions has the capacity and tendency to mislead and deceive the purchasing public. § 401.3

rule.

Arguments in opposition to the

(a) Sewing machine manufacturers and distributors point to the long-standing use of such phrases as "automatic zig-zag sewing machine" to maintain that they have acquired a secondary meaning to the purchasing public. Because of this secondary meaning, it is argued, consumers are not deceived into believing that a machine described by such terms as "automatic zig-zag sewing machine" would sew by itself, after

activation, without human intervention. Absent deception or injury to the public, it is stated, the promulgation of a Trade Regulation Rule would be beyond the power and authority of the Federal Trade Commission and would engender more confusion than benefit to consumers.

(b) Neither the record nor other facts of which the Commission has knowledge support the contention that a secondary meaning has been established for "automatic zig-zag sewing machine" or similar terms connoting automatism. At best, only certain functions or operations of such machines are possibly automatic. There is also substantial evidence in the record that purchasers were deceived and misled as to the performing ability of so-called "automatic" sewing machines, to the extent that even some of the functions described as automatic required considerably more skill and dexterity to operate than consumers believed would be necessary.

(c) In the event of future product development, provision is made for amendment of the rule in this part or for other appropriate action.

(a) On the basis of the foregoing, the Commission concludes that the practice of representing or describing household electric sewing machines as "automatic," "fully automatic,' "automatic zig-zag sewing machine,' or by other words, terms, illustrations, or depictions indicative of automaticity, has the capacity and tendency to mislead and deceive purchasers and prospective purchasers and to divert business from competitors who do not so describe their products. The Commission further concludes that this practice is violative of section 5 of the Federal Trade Commission Act, and that the public interest therein is substantial.

(b) Accordingly, for the purpose of preventing such practice, the Commission hereby promulgates, as a Trade Regulation Rule, its conclusions and determination that in connection with the sale of household electric sewing machines in commerce, as "commerce" is defined in the Federal Trade Commission Act, it is an unfair method of competition and an unfair or deceptive act or practice to:

(1) Use the word "automatic" or any other word or term of similar import to describe a household electric sewing machine either in its entirety or as to its overall function or operation, or use any

illustration or depiction which represents that such a machine is automatic in its entirety or as to its overall function or operation. Examples of terms prohibited by the rule in this part are: Automatic sewing machine. Automatic zig-zag sewing machine. Automatic machine.

Sews automatically.

Automatic straight stitcher.

(2) Use the word "automatic" or any word or term of similar import to describe a specific attachment or component, or the function of such attachment or component, of a household electric sewing machine or use any illustration or depiction which represents that such attachment or component or the function of such attachment or component of such machine is automatic unless, after activation and by selfoperation, such attachment or component will without human intervention perform the mechanical function indicated by any accompanying descriptive term such as "bobbin winder" or "zig-zag attachment" and the descriptive word or term so used does not imply that the entire machine is automatic. Examples of representations which may be used when properly descriptive of sewing machine attachments and components, or the functions thereof, are: Automatic zig-zag attachment. Winds bobbin automatically.

Automatic buttonhole stitch attachment.
Makes zig-zag stitches automatically.

§ 401.5 Future product improvement.
In the event any person develops a
household electric sewing machine which
he believes is in fact automatic in that it
will sew by itself, after activation, with-
out human intervention, he may apply to
the Commission for an amendment of the
rule in this part or for other appropriate
relief. The application shall be filed
with the Secretary, Federal Trade Com-
mission, and be accompanied by a full
report of the data upon which the appli-
cant relies to substantiate his claim that
the sewing machine is automatic.
Commission will give public notice of the
application and afford interested persons
an opportunity to submit written data,
views, or arguments. The Commission
in its discretion shall also order such
further proceedings as it deems to be nec-
essary. If the Commission determines
that the applicant's claim has been sub-
stantiated it will issue an appropriate
order amending the rule in this part or

The

§ 402.2

Trade and public understanding of "binocular."

The record in this proceeding shows that neither the trade nor the consuming public has a clear understanding of the meaning of the term "binocular." Some members of the trade expressed the view that a "binocular” is any two-tubed viewing instrument, whether prismatic or nonprismatic, while others thought that the word "binocular" meant a fully prismatic instrument only. Although the record does not include any direct expression from consumers as to their understanding of the word, members of the trade and others have furnished statements based on their experience with consumer purchasers. These statements indicate that in the minds of many consumers a binocular is a viewing instrument which is fully prismatic. There is ample justification for the conclusion that a substantial portion of the consuming public understands an instru

ment described as a binocular to be a fully prismatic instrument.

§ 402.3 Deceptive appearance of instruments having bulges.

Prismatic binoculars characteristically have a bulge on each tube which houses or covers the prisms. Some nonprismatic and partially prismatic instruments, however, are made with bulges which give them the appearance of prismatic binoculars. By reason of such bulge construction, consumer purchasers are led to believe that nonprismatic instruments are prismatic unless there is adequate disclosure that they are nonprismatic or only partially prismatic.

§ 402.4

Use of "binocular" with qualifi cation.

Many members of the trade and others have urged that the word "binocular” not be barred completely as descriptive of nonprismatic instruments, but that its use be permitted with appropriate qualification. The Commission has given careful consideration to the question of whether a remedy less drastic than excision would suffice. tion of the entire matter, the Commission has concluded that the deception would be removed and the public interest fully served if the word "binocular" were clearly qualified to disclose the fact that the instrument contains no prisms or is only partially prismatic.

§ 402.5 The rule.

Upon considera

(a) On the basis of the foregoing, the Commission concludes that in connection with the sale of nonprismatic and combination prism - mirror two-tube hand-held observation instruments the practices of (1) unqualifiedly describing such instruments as "binocular" or "binoculars," and (2) failing to disclose that instruments having bulges on the tubes which simulate prismatic instruments are not prismatic instruments or do not contain complete prism systems, as the case may be, have the capacity and tendency to mislead and deceive purchasers and prospective purchasers and to divert business from competitors who truthfully and properly describe and label such products. The Commission further concludes that these practices are violative of section 5 of the Federal Trade Commission Act, and that the public interest in preventing their use is specific and substantial.

(b) Accordingly, for the purpose of preventing such unlawful practices, the Commission hereby promulgates, as a trade regulation rule, its conclusions and determination that in connection with the sale of nonprismatic or combination mirror-prismatic two-tube hand-held observation instruments in commerce, as "commerce" is defined in the Federal Trade Commission Act, it constitutes an unfair method of competition and an unfair or deceptive act or practice to:

(1) Represent in any manner that nonprismatic instruments are prismatic or that combination mirror-prismatic instruments contain complete prismatic systems; or

(2) Describe such instruments as "binocular" or "binoculars" unless clear and conspicuous disclosure is made that nonprismatic instruments do not contain prisms or that combination mirrorprismatic instruments do not contain complete prismatic systems; or

(3) Fail clearly and conspicuously to disclose the fact that nonprismatic instruments do not contain prisms or that combination mirror-prismatic instruments do not contain complete prismatic systems, when such instruments have bulges on the tubes which create the characteristic appearance of prismatic binoculars.

(c) The disclosures required by this section shall be clearly and conspicuously made in all advertising and on the product and be of such permanence as to remain legible until received by the consumer purchaser.

(d) Examples of terms acceptable as descriptive of such products under this section are:

(1) "Binocular" may be used without qualification to describe any product which is fully prismatic.