Sec.

87.107 False invoicing.

87.108 Production and marketing statistics. 87.109 Dissemination of credit information. 87.110 Violation of discount agreement.

COMMITTEE ON TRADE PRACTICES

87.201 Industry committee.

AUTHORITY: The provisions of this Part 87 issued under secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46, 45.

SOURCE: The provisions of this Part 87 contained in trade practice rules, Electrical Wholesalers, FTC, Dec. 24, 1932, unless otherwise noted.

§ 87.1

GROUP I

Misrepresentation in general.

The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any product of the industry having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 87.2 Inducing breach of contract.

Willfully inducing or attempting to induce the breach of existing contracts between competitors and their customers 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 embarrassing competitors in their businesses, is an unfair trade practice.

§ 87.3

Defamation of competitors.

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 grade or quality of their goods, with the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair trade practice.

§ 87.4 Sales below cost.

The selling of goods below cost, with the intent and with the effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice.

§ 87.6 Commercial bribery.

Directly or indirectly to give or permit to be given or offer to give 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 industry products from the maker of such gift or offer, or to influence such employers or principals to refrain from dealing or contracting to deal with competitors is an unfair trade practice.

§ 87.8 Enticing employees.

Willfully enticing away the employees of competitors with the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their businesses is an unfair trade practice.

ticularly such material as is removed from the original factory containers, and the electrical wholesale industry hereby records its approval of the labeling or identifying, in accordance with accepted standards of the industry, of all products of the industry in such manner as to establish the grade, quality, and quantity of the products.

§ 87.102 Repudiation of contracts.

Contracts, either written or oral, are business obligations which should be performed in letter and spirit. The repudiation of contracts by sellers on a rising market, or by buyers on a declining market, is equally reprehensible, and is condemned by the industry. § 87.103

Cost accounting.

The industry approves the practice of handling disputes in a fair and reasonable manner, coupled with a spirit of moderation and wood will, and every effort should be made by the disputants themselves to arrive at an agreement. If unable to do so they should agree, if possible, upon arbitration under some one of the prevailing codes.

§ 87.106 Unwarranted return of merchandise.

The unwarranted return of merchandise, not due to error on the part of the shipper, creates waste and loss and increases the cost of doing business, and such practice is condemned by the industry.

§ 88.2

Defamation of competitors or disparagement of their products or service.

The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing or integrity, or by other false representations, or the false disparagement of the grade, quality, durability, workmanship, quantity, composition, construction, specifications, make, type, size, origin, appearance, value, or performance of their products, or of the nature, quality, or extent of the service furnished by them, or of their prices, credit terms, or contract conditions, or of their business methods, practices, or policies, is an unfair trade practice.

the information so obtained in such manner as to injure said competitor in his business or to suppress competition or unreasonably restrain trade.

§ 88.4

Prejudicing competitors' relationships with their agents.

It is an unfair trade practice for any member of the industry to induce, or attempt to induce, an agent of a competitor to become the industry member's agent also, with the understanding or agreement between such industry member and agent that, though retaining his agency relationship with such competitor, such agent is not to continue to promote in good faith the business of such competitor.

§ 88.5 Enticing away employees of competitors.

Willfully enticing away the employees of competitors with the purpose and effect of thereby unduly hampering or injuring competitors in their business and destroying or substantially lessening competition is an unfair trade practice: Provided, however, That nothing in this section shall be construed as prohibiting employees from obtaining more favorable employment.

§ 88.6 Commercial bribery.

It is an unfair trade practice for any member of the industry, directly or indirectly, to give or permit to be given, or offer to give, 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 for the supplying or servicing of saws, saw frames, blades, meat-chopper plates, knives, or other articles from the maker of such gift or offer, or to influence such employers or principals to refrain from dealing or contracting to deal with competitors. § 88.7

Deception of customers of competitors as to identity.

It is an unfair trade practice for any member of the industry, his agent or representative, to feign his identity to a customer of a competitor as being that of an agent or representative of such competitor and thereby obtain possession of money or property belonging to a competitor, or to obtain any advantage with

(a) It is an unfair trade practice for any member of the industry to sell, lease, loan, or otherwise furnish to any customer or prospective customer, any saw frame, grinding or cutting machine, saws, knives, blades, or plates, or any other article of property, on the condition, agreement, or understanding that such customer shall not use, or contract for the use of, machinery, supplies, or other articles of property of a competitor or competitors of such industry member, where the effect of such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of

commerce.

(b) The inhibitions of this section shall apply though the furnishing of property by industry member upon such condition be without charge to the customer.

§ 88.10

Transactions below cost.

(a) The practice of selling or supplying equipment and service below the seller's or supplier's cost, when pursued with wrongful intent of thereby injuring a competitor and where the effect of such practice is to unreasonably restrain trade, tend to create a monopoly, or substantially lessen competition, is an unfair trade practice.

(b) This section is not to be construed as prohibiting all transactions below cost, but only such selling or supplying below the seller's or lender'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.

The making of any guarantee or purported guarantee respecting the efficacy, durability, or quality of an industry product or service which has the capacity and tendency or effect of deceiving customers or prospective customers, or which is impossible for the guarantor to assure because of contingencies over which he has no control, or which is not made in good faith, is an unfair trade practice. § 88.12

Substitution of products.

The practices of shipping or delivering products which do not conform to samples submitted, to specifications upon which the sale or loan is consummated, or to representations made prior to securing the order or contract, without the consent of the purchasers or borrowers to such substitutions, and with the tendency and capacity or effect of misleading or deceiving purchasers, borrowers, prospective purchasers or borrowers, is an unfair trade practice.

It is an unfair trade practice to falsely or deceptively mark, brand, or label any products of the industry with any word, phrase, mark, name, label, design, device, or other representation with respect to the size, quality, durability, finish, material, or construction of such products or of any of the component parts thereof. § 88.17 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, dating of commencement of service, or other form of price differential, whether in the form of free service or otherwise, where such rebate, refund, discount, credit, dating of commencement of service, or other form of price differential, effects a discrimination in price between different purchasers or customers of goods of like grade and quality, where either or any of the transactions 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 or supplied 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 cost resulting from the differing methods or quantities in which such commodities are to such purchasers sold, supplied, or delivered;

(3) That nothing contained in this. section shall prevent persons engaged in selling or supplying goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade;