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FEDERAL REGISTER, Friday, June 30, 1939
Group I
The unfair trade practices which are embraced in these Group I rules are con sidered to be unfair methods of competi tion, unfair or deceptive acts or practices, or other illegal practices, prohibited, within the purview of the Federal Gov ernment, by acts of Congress, as con strued in the decisions of the Federal Trade Commission or the courts; and appropriate proceedings in the public in terest will be taken by the Commission to prevent the use, by any person, part nership, corporation or other organiza tion, of such unlawful practices in or directly affecting interstate commerce.
R u l e 1. Misbranding of industry prod ucts. The false or deceptive marking or branding of ribbons with respect to the grade, quality, yardage, size, use, color fastness, content, origin, construction, fabrication, manufacture or distribution thereof, or in any other material respect, is an unfair trade practice.
R ule 2. Misrepresentation o f industry products. 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 statement, representation, guarantee or warranty, by way of advertisement or otherwise, concerning the grade, quality, yardage, size, use, color fastness, content, origin, construction, fabrication, manufacture or distribution of any ribbon, or in any other material respect.
R ule 3. Misrepresentation as to char acter of business. It is an unfair trade practice for any member of the industry to represent, directly or indirectly, through the use of the word m ill or mills , or any other word or term of similar import or meaning, in his or its corporate or trade name, or otherwise, ih at he or it is a manufacturer of rib bons or that he or it is the owner or op erator of a mill or producing company manufacturing ribbons, when such is not the fact, or in any other manner to misrepresent the character, extent or type of his or its business.
R ule 4. False invoicing. Withholding from or inserting in invoices or sales tickets any statements or information by reason of which omission or insertion a false record is made, wholly or in part, of the transactions represented on the face of such invoices or sales tickets, with the effect of thereby misleading or deceiving purchasers or the consuming public, is an unfair trade practice.
R ule 5. Defamation of competitors or disparagement of their products. The defamation of competitors by falsely im puting to them dishonorable conduct, inability to perform contracts, question able credit standing, or by other false representations, or the false disparage ment of the grade, quality or manufac ture of the products of competitors or of their business methods, selling prices, values, credit terms, policies or services, is an unfair trade practice.

R u l e 6. Commercial bribery. I t Is an unfair trade practice for a member of the industry directly or indirectly to give, or offer to give, or permit or cause to be given, money or anything of value to agents, employees or representatives of customers or prospective customers, or to agents, employees or representa tives of competitors customers or pro spective customers, without the knowl edge of their employers or principals, as an inducement to influence their em ployers or principals to purchase or con tract to purchase ribbons manufactured or sold by such industry member or the maker of such gift or offer, or to in fluence such employers or principals to refrain from dealing in the products of competitors or from dealing or contract ing to deal with competitors.
R ule 7. Im itation or simulation of trade-marks, trade names, etc. The im itation or simulation of the trade-marks, trade names, brands or labels of com petitors, or of the exclusively owned pat terns of competitors which have not been directly or by operation of law dedicated to the public, with the tendency and ca pacity or effect of misleading or de ceiving purchasers or the consuming public, is an unfair trade practice.
R ule 8. Circulation of threats of suit.
The circulation of threats of suit for in fringement of patents or trade-marks among customers or prospective custom ers of competitors, not made in good faith but for the purpose or with the effect of harassing or intimidating such cus tomers or prospective customers, or of unduly hampering, injuring or prejudic ing competitors in their businesses, is an unfair trade practice.
R ule . 9. Consignment selling. It is an unfair trade practice for any member of the industry to use the practice of shipping goods on consignment or pre tended consignment for the purpose and with the effect o f artificially clogging trade outlets and unduly restricting com petitors use of said trade outlets in get ting their goods to consumers through regular channels of distribution, or with such purpose to entirely close said trade outlets to such competitors so as to sub stantially lessen competition or tend to create a monopoly or to unreasonably re strain trade; Provided, however, That nothing herein shall be construed or used as restricting or preventing consignment shipping or marketing of commodities in good faith and without artificial inter ference with competitors use of the usual channels of distribution in such manner as thereby to suppress competition or restrain trade.
R ule 10. Deception as to origin. In respect to any ribbons of the following types, 1 ribbons which have been woven or fabricated in a foreign country and imported in the greige or other un finished state and dyed or finished in the United States; or 2 ribbons which have been imported in the finished state and
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redyed or refinished in the United States;
or 3 ribbons which have been made from fabric which has been woven or fabricated in a foreign country and im ported either in the greige or unfinished state or in the dyed or finished state, it is an unfair trade practice:
a To offer for sale, sell or distribute any such ribbons under marks, stamps, brands, labels or representations which have the capacity and tendency or effect of misleading or deceiving purchasers or the consuming public into the erroneous belief that such ribbons or the fabrics thereof were woven or fabricated in the United States, or that they were not so dyed, finished, redyed or refinished in the United States, as the case may be;
or b To offer for sale, sell or distribute any such ribbons without the same being marked, stamped, branded or labeled so as to indicate clearly and nondeceptively 1 the country of origin of the fabric, and 2 that the ribbons were woven or fabricated in such country and were dyed or finished or redyed or refinished in the United States, as the case may be; the failure, refusal or omission to so mark, stamp, brand or label such ribbons hav ing the tendency and capacity or result 9f thereby promoting, abetting or effectu ating the marketing of the ribbons under conditions which are misleading or de ceptive to purchasers or the consuming public.
Nothing in this rule shall be construed as relieving any member of the industry or other party of the necessity of com plying with the requirements of the cus toms laws or regulations, or other ap plicable provisions of law or regulation, relating to the marking of imported ar ticles.
R ule 11. Disclosure of yardage. In order that purchasers may not be de ceived as to the yardage of ribbons and that misrepresentation and deceptive concealment in respect thereto may be avoided and prevented, the minimum yardage of the article should be clearly and nondeceptively marked on the prod uct or on the spools, bolts, cards or other immediate packaging of the product; and the sale, offer for sale or distribution of any ribbons not so marked, with the tendency and capacity or effect of mis leading or deceiving purchasers or the consuming public, is an unfair trade practice.1

R ule 12. " Cut-edge and pastedback products. T o the end that pur chasers may have adequate information concerning the following types of indus try products, and that confusion, mis representation and deception may be avoided and prevented, the spool, bolt, card or other form of immediate pack1In cutting industry products in the greige or after finishing, adequate allowance should be made for the subsequent shrinkage and/or contraction of such products, to the end that purchasers may be assured the fu ll yardage represented.