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2702

FEDERAL REGISTER, Friday, June 30, 1939

d Prohibited discriminatory services aging of such products should be clearly either grants or knowingly receives the and nondeceptively marked in the fo l benefit of such discrimination or with or facilities. It is an unfair trade prac customers of either o f them: Provided, tice for any member of the industry en lowing manner:
however gaged in commerce to discriminate in a Ribbons having cut, and not 1 That the goods involved in any favor of one purchaser against another woven, edges should be marked or labeled with the words Cut-Edge, or with word such transaction are sold for use, con purchaser or purchasers of a commodity or words of similar import or meaning. sumption, or resale within any place bought for resale, with or without proc essing, by contracting to furnish or by b Ribbons made by the adhesion of under the jurisdiction of the United furnishing, or by contributing to the separate layers of fabric should be States;
furnishing of, any services or facilities marked or labeled with such appropriate 2 That nothing herein contained connected with the processing, handling, word or words as will adequately disclose shall prevent differentials which make sale, or offering for sale of such com that such products are so made, as for only due allowance for differences in the modity so purchased upon terms not ac example, Pasted-Back.
cost of manufacture, sale, or delivery re corded to all purchasers on propor c Ribbon products which are both sulting from the differing methods or tionally equal terms.
cut-edge and pasted-back are sub quantities in which such commodities are e Inducing or receiving an illegal ject to the disclosure requirements of to such purchasers sold or delivered;
discrimination in price. It is an unfair both paragraphs a and b of this rule.
3 That nothing herein contained trade practice for any member of the It is an unfair trade practice to cause shall prevent persons engaged in selling industry engaged in commerce, in the any such product to be offered for sale, goods, wares, or merchandise in com course of such commerce, knowingly to sold or distributed without being so merce from selecting their own custom induce or receive a discrimination in marked or labeled, with the tendency and ers in bona fide transactions and not in price which is prohibited by the fore capacity or effect of thereby misleading restraint of trade;
going provisions of this Rule 13.
4 That nothing herein contained or deceiving purchasers or the consum R ule 14. Discriminatory returns. It shall prevent price changes from time is an unfair trade practice for any mem ing public.
to time where -made in response to Nothing in this rule shall be construed, changing conditions affecting either a ber of the industry engaged in com merce to discriminate in favor of one however, as preventing the use of the the market for the goods concerned, or customer-purchaser against another cus word ribbon or ribbons in properly b the marketability of the goods, such tomer-purchaser of ribbons, bought describing such products of the industry:
as, but not limited to, actual or imminent Provided, That the words cut-edge deterioration of perishable goods, ob from such member of the industry for resale, by contracting to furnish or fur and/or pasted-back or other appro solescence of seasonal goods, distress priate term are set forth in immediate sales under court process, or sales in nishing in connection therewith, upon conjunction therewith, and with at least good faith in discontinuance of business terms not accorded to all customerpurchasers on proportionally equal equal prominence, conspicuousness and in the goods concerned.
terms, the service or facility whereby emphasis, as for example, Cut-Edge b Prohibited brokerage and commis such favored purchaser is accorded the Ribbon, Pasted-Back Ribbon, or Cutsions. It is an unfair trade practice for privilege of returning ribbons so pur Edge Pasted-Back Ribbon.
any member of the industry engaged in chased and receiving therefor credit or R ule 13. a Prohibited discriminatory commerce, in the course of such com refund of purchase price; Provided, how prices, or rebates, refunds, discounts, merce, to pay or grant or to receive or ever, nothing in any of the rules herein credits, etc.,2 which effect unlawful price accept, anything of value as a commis shall prohibit or be used to prevent the discrimination. I t is an unfair trade sion, brokerage, or other compensation, return of merchandise by purchaser, for practice for any member of the industry or any allowance or discount in lieu credit or refund of purchase price, when engaged in commerce, in the course of thereof, except for services rendered in and because such merchandise has not such commerce, to grant or allow, connection with the sale or purchase of been properly labeled by the seller as secretly or openly, directly o f indirectly, goods, wares, or merchandise, either to to fiber content, or has been otherwise any rebate, refund, discount, credit, or the other party to such transaction or to falsely or deceptively labeled or repre other form of price differential, where an agent, representative, or other inter sented, or when and because such mer such rebate, refund, discount, credit, or mediary therein where such intermedi chandise is defective in material, work other form of price differential effects ary is acting in fact for or in behalf, or manship or in any other respect con a discrimination in price between differ is subject to the direct or indirect con trary to warranty or purchase contract.
ent purchasers of goods of like grade trol, of any party to such transaction R ule 15. Fiber identification of prod and quality, where either or any of the other than the person by whom such uct. Identification and disclosure of purchases involved therein are in com compensation is so granted or paid.
fiber and other material content of the merce, and where the effect thereof may products of this industry shall be made c Prohibited advertising or promo be substantially to lessen competition or in accordance with the applicable re tional allowances, etc.
It is an unfair tend to create a monopoly in any line of quirements of the Group I fiber identi trade practice for any member of the commerce, or to injure, destroy, or pre fication rules approved and promulgated vent competition with any person who industry engaged in commerce to pay by the Commission, such as the Group I
or contract for the payment of advertis Rayon Rules promulgated October 26, ing or promotional allowances or any 1937, relating to products containing 2Paragraph a of Buie 13 shall not be other thing of value to or for the benefit construed as embracing practices prohibited rayon in whole or in part, and the Group of a customer of such member in the by paragraphs b , c , and d of this rule.
I Silk Rules promulgated November 4, 2As herein used, the word commerce course of such commerce as compensa means trade or commerce among the several tion or in consideration for any services 1938, relating to products containing or States and with foreign nations, or between purporting to contain silk in whole or in the District of Columbia or any Territory of or facilities furnished by or through such part, and such other provisions of laws customer in connection with the proc the United States and any State, Territory or foreign nation, or between any insular pos essing, handling, sale, or offering for sale and regulations on the subject as or when made applicable to the products of sessions or other places under the jurisdic of any products or commodities manu tion of the United States, or between any this industry.
factured, sold, or offered for sale by such such possession or place and any State or Group I I
Territory of the United States or the Dis member, unless such payment or con trict of Columbia or any foreign nation, or within the District of Columbia or any Ter ritory or any insular possession or other place under the Jurisdiction of the United States: Provided, That this shall not apply to the Philippine Islands.

sideration is available on proportionally Compliance with the trade practice equal terms to all other customers com provisions embraced in these Group u peting in the distribution of such prod rules is considered to be conducive to sound business methods and is to be enucts or commodities.