(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, distress sales under court process, or sales made in good faith in discontinuance of business in the goods concerned.

(b) Prohibited brokerage and commission. 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, purchase, or supplying 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) 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.

(d) Purchases by or loans to schools, colleges, universities, hospitals, and charitable institutions not operated for profit. The Robinson-Patman Antidiscrimination 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, 1963 (Public, Numbered 692, Seventy-fourth Congress, second session), known as the Robinson-Patman 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)

§ 88.18 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 regulations of this part.

The industry expresses its approval of the trade custom of granting such limited trial period as is necessary to acquaint new customers with a product or present customers with a new type of product. However, the industry condemns the practice of hampering a competitor in his relations with a customer by furnishing equipment to such customer free of charge for a period of time in excess of that reasonably required for a fair trial thereof under the subterfuge of granting a trial period.

NOTE: § 68.101 is also subject to the limitation that the furnishing of any equipment shall not be accomplished in such manner as to effect a discrimination contrary to § 88.17.

In the competition attendant upon the exchanging, lending, selling, and supplying of saw frames, blades, meatchopper plates, and knives, the said articles are frequently lost and come into the hands of a competitor or competitors of the owner who fails not only to disclose the fact of his find, but actually converts the said saw frames, blades, meat-chopper plates, and knives to his own use. This practice is strongly condemned by the industry.

§ 88.103 Arbitration.

The industry approves the practice of handling business disputes between members of the industry and their customers in a fair and reasonable manner, coupled with a spirit of moderation and good will, and every effort should be made by the disputants themselves to compose their differences. If unable to do so they should, if possible, submit these disputes to arbitration.

99-134-69- -29

The false marking or labeling of icecream products or the aiding or abetting in the false marking or labeling of icecream products, or the misrepresentation of the character or manufacture of icecream products, or the sale or offering for sale of ice cream products in any manner calculated to mislead or deceive purchasers with respect to the kind, character, quantity, quality, grade, or origin of the products is an unfair trade practice.

§ 89.4 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.

§ 89.5 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. § 89.6

Sales below cost.

Securing information from competitors concerning their businesses by false or misleading statements or representations or by false impersonations of one in authority and the wrongful use thereof to unduly hinder or stifle the competition of such competition is an unfair trade practice.

§ 89.12 Coercing purchases.

The practice of coercing the purchase of several or a group of products as a condition to the purchase of one or more products under the exclusive control of the seller, 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. GROUP II

§ 89.105 Dummy companies and corporations.

For any number of small units to organize a dummy corporation without capital stock or without taking other necessary steps to form a real corporation, and with no other purpose than to deceive manufacturers or producers of ice cream as to their ability to purchase in large quantities, and by shopping around among different manufacturers securing a profitless price from the manufacturer or manufacturers, and thereafter distributing the products so purchased among the various small units involved, is injurious to the industry and to the public, disrupting the cordial and longtime business relations of the manufacturers with their customers, and having withal a tendency to cheapen the quality of ice cream and other milk products and is condemned by the industry. § 89.106

Arbitration.

The industry approves the practice of handling disputes in a fair and reasonable manner, coupled with a spirit of moderation and good 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.

COMMITTEE ON TRADE PRACTICES

§ 89.201 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]

GROUP I

§ 90.2 Deceptive selling methods.

The sale or offering for sale of any product of the industry by any false means or device which has the tendency and capacity to mislead or deceive customers or prospective customers as to the quantity, quality, substance, or size of such product is an unfair trade practice. § 90.3

Imitation of trade-marks, trade names, etc.

The imitation of the trade-marks, trade names, slogans, or other marks of identification of competitors, having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, or prospective purchasers, is an unfair trade practice. § 90.4

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.

§ 90.5 Sales below cost.

The sale or consignment of goods below cost for the purpose and with the effect of injuring a competitor 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.

§ 90.6 Inducing breach of contract.

Maliciously 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 a unfair trade practice.

§ 90.8 Fictitious prices.

Offering for sale merchandise at a price reduced from a marked-up or fictitious price with the tendency and capacity to mislead or deceive purchasers or prospective purchasers is an unfair trade practice.

SOURCE: The provisions of this Part 92 appears at 25 F.R. 5835, June 24, 1960; 25 F.R. 6134, June 30, 1960, unless otherwise noted. § 92.0 The industry and its products de

fined.

(a) Products of the industry consist of all types of new, rebuilt, or used power-driven machinery which are designed for use in the commercial fabrication of logs and wood into finished or semi-finished products, and which are of such size, weight, or type as not to be easily and conveniently transported by hand; and parts and accessories for such products.

(b) Members of the industry are persons, firms, corporations, and organizations engaged in the manufacture, sale, offering for sale, lease, or distribution of such products.

GROUP I

$92.1 Misrepresentation (general).

It is an unfair trade practice to make dr publish, or cause to be made or published, by way of advertising, labeling or otherwise, any statement or representation which, directly or by implication, has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the grade, quality, quantity, weight, working range, efficiency, use, size, material, finish, origin, character, nature, design, condition, performance, durability, manufacture, distribution, availability, or delivery dates, of any industry product, or part or accessory therefor, or which has the capacity and tendency or effect of deceiving purchasers or prospective purchasers in any other material respect. [Rule 1]

§ 92.2 Misrepresentation as to character of business.

It is an unfair trade practice for any member of the industry to represent, directly or by implication, in his advertising or otherwise, that he is a producer or manufacturer of products of the industry, 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. [Rule 2]

§ 92.3 Misrepresenting products as conforming to standard.

In the sale, offering for sale, lease, or distribution of industry products, it is an unfair trade practice to represent,

through advertising or otherwise, that such products conform to any standards recognized in or applicable to the industry when such is not the fact. [Rule 3] § 92.4 Guarantees, warranties, etc.

(a) In the sale, offering for sale, lease, or distribution of industry products, it is an unfair trade practice for any industry member:

(1) To represent that any industry product is guaranteed unless, prominently and in close conjunction with such representation, the identity of the guarantor, the extent and nature of the guarantee, and any material conditions or limitations relating to the liability of the guarantor under the guarantee, are adequately and nondeceptively disclosed; or (2) To offer or use any guarantee respecting an industry product under which the guarantor fails to observe his obligations; or

(3) To offer or use any guarantee which is otherwise deceptive or unfair.

(b) This section shall be applicable not only to guarantees but also to warranties, to purported guarantees and warranties, and to any promise or representation in the nature of a guarantee or warranty.

NOTE: On April 26, 1960, the Commission adopted "Guides Against Deceptive Advertising of Guarantees," which are set forth as an appendix to these rules.1

[Rule 4]

§ 92.5 Deception as to rebuilt or secondhand products.

(a) It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise, or otherwise represent, any industry product as being new when such is not the fact.

(b) In the marketing of industry products which are second-hand or rebuilt, or which contain second-hand or rebuilt parts, it is an unfair trade practice to fail to make full and nondeceptive disclosure, by a conspicuous tag or label firmly attached to the products, and in all advertising and promotional literature relating thereto, of the fact:

(1) That such products are secondhand, rebuilt, or contain rebuilt or second-hand parts, as the case may be; and

(2) That the rebuilding was done by other than the original manufacturer,

1 Copies available at the Federal Trade Commission.