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L REGISTER,
Saturday, August 19, 1939

3671

represent the character, extent or type of 97.11 R ule 11. Defamation of com distributors on consignment or pretended his or its business, is an unfair trade petitors or disparagement of their prod consignment for the purpose and with practice.
ucts. The defamation of competitors by the effect o f artificially clogging trade 97.4 R ule 4. Substitution of prod falsely imputing to them dishonorable outlets and unduly restricting competi ucts. The practice of shipping or de conduct, inability to perform contracts, tors use of said trade outlets in getting livering products which do not conform questionable credit standing, or by other their goods to consumers through regu to samples submitted, to specifications false representations, or the false dispar lar channels of distribution, or with such upon which the sale is consummated, or agement of the grade, quality or manu purpose to entirely close said trade out to representations made prior to secur facture of the products of competitors, or lets to such competitors so as to sub ing the order, without the consent of of their business methods, selling prices, stantially lessen competition or tend to the purchasers to such substitutions and values, credit terms, policies or services, create a monopoly or to unreasonably with the tendency, capacity or effect or conditions of employment, is an un restrain trade: Provided, however, That of misleading or deceiving purchasers, fair trade practice.
nothing herein shall be construed or used prospective purchasers or the consum 97.12 R ule 12. Unfair threats of as restricting or preventing consignment ing public, is an unfair trade practice. infringement suits. The circulation of shipping or marketing of commodities in 97.5 R ule 5. Misuse of word threats of suit for infringement of pat good faith, and without artificial inter Free. The use of-the word free , or ents or trade-marks among customers or ference with competitors use of the usual the equivalent thereof, where not prop prospective customers of competitors, not channels of distribution in such manner erly or fairly qualified when the article made in good faith but for the purpose as thereby to suppress competition or is in fact not free, with the tendency or with the effect of harassing or intimi restrain trade.
97.17 R ule 17. Selling below cost.
or capacity to mislead or deceive pur dating such customers or prospective chasers, prospective purchasers or the customers, or of unduly hampering, in The practice of selling industry products consuming public, is an unfair trade juring or prejudicing competitors in their below the sellers cost, when pursued with businesses, is an unfair trade practice.
wrongful intent of thereby injuring a practice.
97.13 R ule 13. Procurement of competitor and where the effect o f such -97.6 R ule 6. Im itation of trade marks, etc. The imitation or simulation competitorsf confidential information by practice is to unreasonably restrain trade, of the trade-marks, trade names, labels unfair means and wrongful use thereof. tend to create a monopoly, or substan or brands of competitors, with the tend It is an unfair trade practice for any tially lessen competition, is an unfair ency and capacity or effect of mislead member of the industry to obtain infor trade practice.
ing or deceiving purchasers, prospective mation concerning the business of a This rule is not to be construed as purchasers or the consuming public, is competitor, by bribery of an employee or prohibiting all sales below cost, but only an unfair trade practice.
agent of such competitor, by false or such selling below the sellers cost as is 97.7 R ule 7. False invoicing. misleading statements or representations, resorted to and pursued as a monopolistic Withholding from or inserting in an in by the impersonation of one in author practice with the wrongful intent referred voice, billing or statement any material ity, or by any other unfair means, and to to and coupled with the effect of un information by reason of which omission use the information so obtained in such reasonably restraining trade, tending to or insertion a false record is made, a manner as to injure said competitor create a monopoly or substantially les wholly or in part, of the transaction in his business or to suppress competi sening competition. Sales below cost by which such invoice or billing or state tion or unreasonably restrain trade.
a competitor not in a sufficiently strong, ment purports to represent, with the e f 97.14 R ule 14. Commercial bribery. competitive position to produce, and not fect of thereby misleading or deceiving It is an unfair trade practice for a mem actually producing, the monopolistic or purchasers, prospective purchasers or ber of the industry directly or indirectly restraining effect mentioned, do not fall the consuming public, is an unfair trade to give, or offer to give, or permit or within the inhibitions of this rule.
practice.
cause to be given, money or anything of The costs referred to in the rule are 97.8 R ule 8. False and misleading value to agents, employees or representa actual costs of thé respective seller and price quotations. The publishing or cir tives of customers or prospective custom not some other figure or average costs in culating by any member of the industry ers, or to agents, employees or repre the industry, determined by an industry of false or misleading price quotations, sentatives of competitors customers or cost survey or otherwise.
price lists, terms or conditions of sale, prospective customers, without the 97.18 R ule 18. Unlawful interfer with the tendency and capacity or effect knowledge of their employers or prin ence. I t is an unfair trade practice for of misleading or deceiving purchasers, cipals, as an inducement to influence any member of the industry, by means prospective purchasers or the consuming their employers or principals to purchase of any monopolistic practices, or public, is an unfair trade practice.
or contract to purchase products manu through combination, conspiracy, co 97.9 R ule 9. Inducing breach of factured or sold by such industry mem ercion, boycott, threats or any other contract. Inducing or attempting to in ber or the maker of such gift or offer, unlawful means, directly or indirectly, duce the breach of existing lawful con or to influence such employers or prin to interfere with a competitors right to tracts between competitors and their cipals to refrain from dealing in the purchase his materials and supplies customers or their suppliers by any products of competitors or from dealing from whomsoever he chooses, or to sell false or deceptive means whatsoever, or or contracting to deal with competitors. to whomsoever he chooses.
interfering with or obstructing the per 97.19 R ule 19. a Prohibited 97.15 R ule 15. Coercing purchase formance of any such contractual duties of one product as a prerequisite to the discriminatory prices, o r rebates, re or services by any such means, with the purchase of other products. The prac funds, discounts, credits, etc.,1 which ef purpose and effect of unduly hampering, tice of coercing the purchase of one or fect unlawful price discrimination. It injuring, or prejudicing competitors in more prdducts as a prerequisite to the is an unfair trade practice for any mem their businesses, is an unfair trade purchase of one or more other products, ber of the industry engaged in com practice.
where the effect may be to substantially merce,3 in the course of such commerce,
97.10 R ule 10. Enticing away em lessen competition or tend to create a to grant or allow, secretly or openly, ployees of competitors. Wilfully entic monopoly or to unreasonably restrain directly or indirectly, any rebate, re ing away the employees of competitors, trade, is an unfair trade practice.
fund, discount, credit, or other form of with the purpose and effect of unduly 97.16 R ule 16. Consignment ship hampering, injuring or prejudicing com ping. It is an unfair trade practice for 1P a ra g ra p h a o f R u le 19 sh a ll not be petitors in their businesses, is an unfair any member of the industry to use the con stru ed as em b rac in g practices p ro h ib
ited b y p arag ra p h s b , c a n d d of th is trade practice.

practice of shipping goods to dealers or rule.