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FEDERAL REGISTER, Wednesday, June 28, 1939

2508

F E D E M W P E G IS T E R

1934

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Published by the Division of the Federal Register, The National Archives, pursuant to the authority contained in th e Federal Register Act, approved July 26, 1935 49
Stat. L. 500, under regulations prescribed by the Administrative Committee, with the approval of the President.
The Adm in istra tiv e Committee consists of the Archivist or Acting Archivist, an officer of the Department of Justice designated by the Attorney General, and the Public Printer or Acting Public Printer.
The daily issue of the F ederal R egister will be furnished by mail to subscribers,-free of postage, for $1 per month or $10 per year;
single copies 10 cents each; payable in ad vance. Remit by money order payable to Superintendent of Documents, Government Printing Office, Washington, D. C.
Correspondence concerning the .publica tion of the F ederal R egister should be ad dressed to the Director, Division of the Federal Register, The National Archives, Washington, D. C.

a department or branch thereof, when such is not true in fact; or in any other manner to misrepresent the character, nature or status of the business of such person, partnership or corporation.
R ule 5. Imitation or simulation of trade-marks, etc. The imitation or simu lation of the trade-marks, trade names, brands or labels of competitors, or of the exclusively owned symbols of com petitors which have not been directly or by operation of law dedicated to the public, with the tendency and capacity or effect of misleading or deceiving pur chasers or the consuming public, is an unfair trade practice.
R ule 6. a Prohibited discriminatory prices, or rebates, refunds, discounts, credit, etc., which effect unlawful price discrimination. It is an unfair trade practice for any member of the industry engaged in commerce,3 in the course of such commerce, to grant or allow, se cretly or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential,3 where such rebate, refund, discount, credit, or other form of price differential effects a discrimination in price between dif ferent purchasers of goods of like grade and quality, where either or any of the purchases involved therein are in com merce,3 and where the effect thereof may be substantially to lessen competition or tend to create a monopoly in any line of commerce,3 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, con sumption, or resale within any place under the jurisdiction of the United States;
2 That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or de livery resulting from the differing meth ods or quantities in which such com modities are to such purchasers sold or delivered;
3 That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in com merce3 from selecting their own cus-

or the yarn or any -component of the product, or in any other material respect.
R ule 2. Misbranding. The false or de ceptive marking or branding or prod ucts of the industry with respect to the character, grade, quality, quantity, sub stance, nature, material, content, use, origin, size, serviceability, color color fastness, workmanship, washability, fiber content or identification, shinkage prop erties, manufacture or distribution of such products, or the yarn or any com ponent of the product, or in any other material respect, is an unfair trade prac tice.
R ule 3. Fiber identification of product.
Identification arid disclosure of fiber and other material content of the product of this industry shall be made in accord ance with the applicable requirements of the Group I fiber identification rules ap proved and promulgated by the Commis sion, such as the Group I Rayon Rules promulgated October 26, 1937, relating to products containing rayon in whole or in part, and the Group I Silk Rules pro mulgated November 4, 1938, relating to products containing or purporting to con tain silk in whole or in part, and such other provisions of laws and regulations on the subject as or when made appli cable to the products of this industry.
Paragraph a of Rule 6 shall not be con R ule 4. MisrepresentationCharacter strued as embracing practices prohibited by paragraphs b, c and d of this rule.
of business, a It is an unfair trade 3As herein used, the word commerce practice for any person, partnership or means trade or commerce among the several corporation, by trade or corporate name States and with foreign nations, or between the District of Columbia or any Territory or otherwise, to hold himself or itself the United States and the State, Territory, out as being a manufacturer, producer of or foreign nation, or between any insular or importer when such is not true in possessions or other places under the juris diction of the United States, or between any fact.
possession or place and any State or b It is an unfair trade practice forsuch Territory of the United States or the District any person, partnership or corporation of Columbia or any-foreign nation, or within in the conduct of business to represent the District of Columbia or any Territory or any insular posséssion or other place under himself or itself, directly or indirectly, the jurisdiction of the United States: Pro as having or operating a knitted outer vided, That this shaU not apply to the wear business, in whole or in part, or Philippine Islands.

tomers in bona fide transactions and not in restraint of trade;
4 That nothing herein contained shall prevent price changes from time to time where made in response to changing conditions affecting either a the market for the goods concerned, or b 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 Com missions. It is an unfair trade prac tice 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 com pensation, or any allowance or discount in lieu thereof, except for services ren dered in connection with the sale or pur chase of goods, wares, or merchandise, either to the other party to such trans action 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 promo tional 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 adver tising 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 compensa tion 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 proportion ally 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 prac tice for any member of the industry engaged in commerce to discriminate in favor of one purchaser against smother purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or by furnishing, or by contrib uting. to the furnishing of, any services or facilities connected with the process ing, 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 in dustry engaged in commerce,3 in the course of such commence, knowingly to induce or receive a discrimination in