Schwarz, 1944, D. 5058, 9 F.R. 1414; International Research, etc. et al., 1944, D. 4832, 9 FR. 5637; H. L. Robinson Co., 1944, D. 4906, 9 FR. 5888; United Delivery System and Esther Kressin, 1944, D. 4873, 9 F.R. 6009; Samuel B. Smith, 1944, D. 5030, 9 F.R. 7811; National Bureau of Missing Heirs, 1944, D. 5061, 9 F.R. 8007; William H. Kampf, 1944, D. 4988, 9 FR. 8175; Thomas J. Casey, 1944, D. 4586, 9 F.R. 10390; American Products Co. and Zanol Products Co, 1944, D. 2836, 9 F.R. 10447; William C. Steffy, et al., 1944, D. 3238, 9 FR. 10975; K & S Sales Co., et al., 1944, D. 3497, 9 FR. 11095; Novelty Premium Co., 1944, D. 3505, 9 F.R. 11388; Universal Industries, Inc., et al., 1944, D. 3882, 9 F.R. 11462; Consolidated Silver Co. of America, 1944, D. 3789, 9 F.R. 12435; National Committee for Education, et al., 1944, D. 4877, 9 F.R. 12609; Atlantic Commercial Agency, Inc., et al., 1944, D. 5100, 9 F.R. 12916; Averbach Company, Inc., et al., 1944, D. 3342, 9 F.R. 13800; National Publicity Bureau, Inc., etc., et al., 1944, D. 2908, 9 F.R. 14123; Russell M. Braddock, 1944, D. 5056, 9 F.R. 14226; Rucker's Imperial Breeding Farm, Inc., et al., 1944, D. 5117, 9 F.R. 14417; David Jacobs, et al., 1944, D. 4884, 9 F.R. 14667.

UNDERTAKINGS, IN GENERAL: National Technical Institute, 1944, D. 4789, 9 F.R. 7367; K & S Sales Co. et al., 1944, D. 3497, 9 F.R. 11095; Thomas J. Casey, 1944, D. 4586, 9 F.R. 10390; William C. Steffy, et al., 1944, D. 3238, 9 F.R. 10975; Consolidated Silver Co. of America, 1944, D. 3789, 9 F.R. 12435.

§ 3.80 Securing agents or representatives falsely or misleadingly.

DEMAND OR BUSINESS OPPORTUNITIES: American Products Co. and Zanol Products Co., 1944, D. 2836, 9 F.R. 10447; C. I. Togstad Co., et al., 1944, D. 5080, 9 F.R. 13742.

EARNINGS: American Products Co. and Zanol Products Co., 1944, D 2836, 9 F.R. 10447; Universal Industries, Inc., et al., 1944, D. 3882, 9 FR. 11462; Averbach Company, Inc., et al., 1944, D. 3342, 9 F.R. 13800.

TERMS AND CONDITIONS: American Products Co. and Zanol Products Co., 1944, D. 2836, 9 FR. 10447; Novelty Premium Co., 1944, D. 3505, 9 F.R. 11388; Universal Industries, Inc. et al., 1944, D. 3882, 9 F.R. 11462.

§ 3.805 Securing orders falsely or misleadingly.

H. L. Robinson Co., 1944, D. 4906, 9 F.R. 5888. § 3.81 Securing signatures wrongfully or deceptively.

H. L. Robinson Co., 1944, D 4906, 9 F.R. 5888.

$3.85 Selling and quoting on systematic, price matching basis. Discriminating among purchasers by quoting or selling rigid steel conduit at prices which systematically differ in terms of mill nets according to the location of purchasers, and which mill nets, plus common carrier transportation charges to the re

spective locations of such purchasers, produce delivered costs identical with those to such purchasers from differently located respondents; prohibited.

BASING POINTS AND DELIVERED PRICE SYSTEMS:

Rigid Steel Conduit Association, et al., 1944, D. 4452, 9 F.R. 9040.

§ 3.92 Submitting sham or fictitious bids or price quotations. Arranging or attempting to arrange for the filing of any bid in the name of one ostensibly competing bidder when the prices and terms are in fact determined by some other bidder, or when in fact the bid is not a bona fide bid, prohibited.

Grater-Bodey Co., et al., 1944, D. 4799, 9 F.R. 12915; D 4804, 9 F.R. 12950; Delta Equipment Co., 1944, D. 4803, 9 F.R. 12951; O'Brien Machinery Co., 1944, D. 4805, 9 F.R. 12952; Westinghouse Electric Supply Co., et al., 1944, D. 4798, 9 F.R. 13147; J. P. Rainey & Co., 1944, D. 4800, 9 F.R. 13193; Charles F. Rohleder, et al., 1944, D. 4806, 9 F.R. 13452; James A. Clancy, et al., 1944, D. 4801, 9 F.R. 13552. § 3.96 Using misleading name. Goods.

COMPOSITION: S. Friedman & Sons, etc., 1944, D. 4891, 9 F.R. 1200; Ben Kalish, 1944, D. 4974, 9 F.R. 2842; Valmor Products Company, etc., 1944, D. 4866, 9 F.R. 7368; James Jebaily, Inc., 1944, D. 5066, 9 F.R. 8006; Wakita Herb Co., 1944, D. 5091, 9 F.R. 12116; Slagter Oil & Grease Co., 1944, D. 4720, 9 F.R. 13553; Averbach Company, Inc., et al., 1944, D. 3342, 9 F.R. 13800.

HISTORY: A. P. W. Paper Co., 1944, D. 4747, 9 F.R. 874; Wakita Herb Co., 1944, D. 5091, 9 F.R. 12116; New York Merchandise Co., Inc., 1944, D. 4765, 9 F.R. 13553.

INDORSEMENTS, APPROVAL AND TESTIMONIALS: A. P. W. Paper Co., 1944, D. 4747, 9 F.R. 874.

MANUFACTURE OR PREPARATION: A. P. W. Paper Co., 1944, D. 4747, 9 F.R. 874.

NATURE: Kay Laboratories, Inc., et al., 1944, D. 5054, 9 F.R. 1202; Ben Kalish, 1944, D. 4974, 9 F.R. 2842; C. F. Lusk Co., 1944, D. 4911, 9 F.R. 3679; All-Winter Anti-Freeze Company, 1944, D. 5016, 9 F.R. 5108; Averbach Company, Inc., et al., 1944, D. 3342, 9 F.R. 13800; General Foods Corp., et al., 1944, D. 4627, 9 F.R. 14667.

QUALITIES OR PROPERTIES: C. F. Lusk Co., 1944, D. 4911, 9 F.R. 3679; Belt Oil & Chemical Corp., et al., 1944, D. 4973, 9 F.R. 6055; Valmor Products Company, etc., 1944, D. 4866, 9 F.R. 7368; Robert M. Calvert and Ralph D. Webster, 1944, D. 5019, 9 F.R. 13741; The Colran Institute, et al., 1944, D. 4886, 9 F.R. 14007.

SOURCE OR ORIGIN.

MAKER: Howard Clock Corp., 1944, D. 5119, 9 F.R. 14008.

PLACE: Indian River Fruit & Vegetable Distributors, Inc., et al., 1944, D. 4730, 9 F.R. 7509; Slagter Oil & Grease Co., 1944, D. 4720, 9 F.R. 13553.

PLACE; DOMESTIC PRODUCT AS IMPORTED: Preferred Havana Tobacco Company, etc., 1944, D. 4983, 9 F.R. 5889.

PLACE; FOREIGN IN GENERAL: S. Friedman & Sons, etc., 1944, D. 4891, 9 F.R. 1200.

SUCCESS, USE OR STANDING: A. P. W. Paper Co., 1944, D. 4747, 9 F.R. 874.

OTHERS: William C. Steffy, et al., 1944, D. 3238, 9 F.R. 10975; National Publicity Bureau, Inc., etc., et al., 1944, D. 2908, 9 F.R. 14123.

GOVERNMENT CONNECTION: Chief Statisticlan, etc., et al., 1944, D. 4809, 9 F.R. 1413; International Research, etc., et al., 1944, D. 4832, 9 F.R. 5637.

IDENTITY: William C. Steffy, et al., 1944, D. 3238, 9 F.R. 10975; Howard Clock Corp., 1944, D. 5119, 9 F.R. 14008; National Publicity Bureau, Inc., etc., et al., 1944, D. 2908, 9 F.R. 14123.

INDIVIDUAL OR PRIVATE BUSINESS BEING EDUCATIONAL, RELIGIOUS OR RESEARCH INSTITUTION: Washington Institute, et al., 1944, D. 4890, 9 F.R. 5199; Commonwealth Training Institute, 1944, D. 4880, 9 F.R. 6937; National Technical Institute, 1944, D. 4789, 9 F.R. 7367; Preparatory Training Institute, 1944, D. 4454, 9 F.R. 9347; National Committee for Education, et al., 1944, D. 4877, 9 F.R. 12609; David Jacobs, et al., 1944, D. 4884, 9 F.R. 14667. NATURE IN GENERAL: L. A. Schwarz, 1944, D.

5058, 9 F.R. 1414; International Research, etc., et al., 1944, D. 4832, 9 F.R. 5637; United Delivery System and Esther Kressin, 1944, D. 4873, 9 F.R. 6009; Samuel B. Smith, 1944, D. 5030, 9 F.R. 7811; National Bureau of Missing Heirs, 1944, D. 5061, 9 F.R. 8007; William H. Kampf, et al., 1944, D. 4988, 9 F.R. 8175; Atlantic Commercial Agency, Inc., et al., 1944, D. 5100, 9 F.R. 12916; Russell M. Braddock, 1944, D. 5056, 9 F.R. 14226.

PRODUCER OR LABORATORY STATUS OF DEALER OR SELLER: Kay Laboratories, Inc., et al., 1944, D. 5054, 9 F.R. 1202; Superior Textile Mills, 1944, D. 3190, 9 F.R. 11095; Savoy Mfg. Co., 1944, D. 4763, 9 F.R. 14477.

IN MERCHANDISING: Rodin Novelty Co., 1944, D. 5082, 9 F.R. 1610; Exhibit Sales Co., 1944, D. 4024, 9 F.R. 2683; J. P. Leonard Co. et al., 1944, D. 4949, 9 F.R. 5637; Fort Worth Peanut Co., etc., 1944, D. 4544, 9 F.R. 6393; Central States Supply Co., 1944, D. 3845, 9 F.R. 6803; Nation-Wide Distributors, 1944, D. 3407, 9 F.R. 10973; William C. Steffy, et al., 1944, D. 3238, 9 F.R. 10974; Linwood Sales Co., Inc., et al., 1944, D. 3414, 9 F.R. 11093; Premio Sales Co., Inc., et al., 1944, D. 3489, 9 F.R. 11148; Novelty Premium Co., 1944, D. 3505, 9 F.R. 11388; Davenport Candycrafts, 1944, D. 5083, 9 F.R. 12610; Plattner Distributing Co., 1944, D. 4655, 9 F.R. 12950; National Merchandising Co., et al., 1944, D. 4936, 9 F.R. 13831; Savoy Mfg. Co., 1944, D. 4763, 9 F.R. 14477; Imperial Candy Co., 1944, D. 5046, 9 F.R. 15038.

158.10 Deception in respect of keyboard or number of keys.

158.11

Defamation of competitors or dis

Sec.

158.12

158.1

158.13

Misrepresentation and misbranding. 158.2 Deceptive testimonials.

paragement of their products.

Inducing breach of contract.

"Push money," "gratuities," etc. 158.14 Misuse of word "free," etc. 158.15 Selling below cost. 158.16 Discrimination.

158.17 Aiding or abetting use of unfair trade practices.

AUTHORITY: §§ 158.1 to 158.17, inclusive, issued under 38 Stat. 719, as amended; 15 U.S.C. 45.

SOURCE: §§ 158.1 to 158.17, inclusive, contained in Trade Practice Rules, Musical Instrument and Accessories Industry, Federal Trade Commission, Feb. 2, 1944, 9 F.R. 1362. § 158.1 Misrepresentation and misbranding. In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry products, it is an unfair trade

practice to use or cause to be used any trade promotional literature, advertising matter, guarantee, warranty, mark, brand, label, designation or representation, however disseminated or published, which directly, or by implication or otherwise, has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers in respect to the grade, quality, quantity, substance, character, make, type, price, nature, size, tone, origin, use, endorsement, appearance, performance, construction, specifications, finish, material content, or preparation of such product, or in any other material respect.

§ 158.2 Deceptive testimonials. In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry product, it is an unfair trade practice to use or cause to be used any testimonials, written or oral, which are false, misleading, or deceptive as to the merits or qualities of such industry product, or which are false, misleading, or deceptive in any other material respect.

NOTE: Under this section, the following types of testimonials are among those which should not be used, namely:

(a) Testimonials previously given in respect of a product of a manufacturer or distributor but which are receptive by reason of being so old as no longer to be applicable to the products or instruments currently produced by such manufacturer or sold by such distributor.

(b) Testimonials which deceptively purport to be in support of the merits of the instruments or products endorsed but which were in fact given because of advertising benefits and other considerations and not because of the merits of such instruments or products or the testifier's good-faith belief in the merits thereof.

(c) Testimonials which deceptively purport or imply that the testifier regularly or principally uses the instrument or make of instrument endorsed, when in fact the testifler does not use the instrument, or uses it only to a minor or insubstantial extent and not regularly or principally.

(d) Testimonials which deceptively represent, purport, or imply, directly or indirectly, that the endorsement therein is or has been given by the testifier as his unbiased, unsubsidized, or bona fide endorsement of the instrument, when in fact such testimonial was procured by or given solely because of a financial or other consideration or subsidy received by or for the benefit of such testifier.

(e) Testimonials which in any respect are untrue, or which contain inferences or implications not fully justified by the facts, or which are in any other way deceptive or

misleading by reason of undisclosed facts or circumstances or for any other reason.

§ 158.3 Misrepresentation as to the designing, use, or endorsement of musical instruments. In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry product, it is an unfair trade practice to represent, directly or indirectly, through advertising or otherwise, that a musician, composer, orchestra leader, or other person or organization, designed, uses or endorses a particular musical instrument or instruments or other products of the industry, when such is not the fact.

§ 158.4 Misrepresentation as to price reductions. It is an unfair trade practice for any member of the industry to represent, in advertising or otherwise, that the price of any industry product has been reduced from what is in fact a fictitious price, or that such price is a reduced or a special price when it is in fact the regular selling price of such product, or that the regular price thereof is higher when such is not the fact, or otherwise to falsely or deceptively represent the past or current price of any industry product.

§ 158.5 Use of “bait” advertising. (a) In the course of or in connection with selling, distributing, or promoting the sale or distribution of any industry product, it is an unfair trade practice to publish or use advertising, or other representations written or oral, which have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the belief that a larger supply of such products is available to purchasers at the advertised or stated price or prices than is in fact so available, or that industry products so offered for sale or sold under such representations or conditions are of high grade or quality when such is not true in fact.

(b) It is also an unfair trade practice to advertise, represent or describe the prices at which any musical instruments or accessories are offered for sale as being the "balance due" or unpaid portion on a previous sale under a conditional or time-payment contract, when such is not true in fact, or when such advertisement, representation or offer is otherwise false, misleading or deceptive.

§ 158.6 Deception as to rebuilt, used, converted, reconstructed, restyled, repossessed, 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 musical instrument or accessory (1) as being new when it is in fact rebuilt, used, repossessed, or secondhand; or (2) as being of new design or new style when it has been converted, reconstructed, or restyled from a used instrument or accessory and such fact is deceptively concealed.

(b) It is an unfair trade practice for any member of the industry to advertise or otherwise represent, directly or indirectly, that he owns or has in his possession for sale new, rebuilt, used, repossessed, or secondhand musical instruments or accessories of a particular type, make, or description, when such is not true in fact.

(c) In the sale or distribution of musical instruments or accessories which are rebuilt, used, repossessed, or secondhand, it is an unfair trade practice to fail or refuse to make full and nondeceptive disclosure of the fact that such instruments or accessories are not new, but are rebuilt, used, repossessed, or secondhand, as the case may be, such failure or refusal to disclose having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers.

§ 158.7 Misrepresentation as to being manufacturer, importer, wholesaler, jobber, distributor, or retailer, and prices in relation thereto. (a) It is an unfair trade practice for any person, partnership, corporation or organization, by trade or corporate name or otherwise, to represent or to hold himself or itself out as being the manufacturer, importer, wholesaler, jobber, distributor, or retailer of any industry product advertised, offered for sale, sold or distributed, when such is not the fact.

(b) It is an unfair trade practice to use any other deceptive or misleading device, method or representation respecting the character, nature or status of the business of any person, concern or organization engaged in selling or promoting the sale of any industry product.

(c) It is an unfair trade practice for any member of the industry, whether selling as manufacturer, importer, wholesaler, jobber, distributor, or retailer, to misrepresent his prices as being either wholesale or retail prices when such is not true in fact, or to otherwise misrepresent his prices.

§ 158.8 Deception as to origin. In respect to musical instruments or accessories made wholly or partially in a foreign country, or from parts manufactured in a foreign country and assembled into the finished product in the United States, it is an unfair trade practice:

(a) To offer for sale, sell, or distribute any such musical instruments or accessories under marks, stamps, brands, labels, or representations which have the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers into the erroneous belief that such products were produced wholly within the United States; or

(b) To offer for sale, sell, or distribute any such musical instruments or accessories without the same being conspicuously marked, stamped, branded, or labeled so as to indicate clearly and nondeceptively the country of origin of such products, the failure, refusal, or omission to so mark, stamp, brand, or label such products having the capacity and tendency or effect of thereby promoting, abetting, or effectuating the marketing of such products under conditions which are misleading or deceptive to purchasers or prospective purchasers.

(Nothing in this section shall be construed as relieving any member of the industry or other party of the necessity of complying with the requirements of the customs laws or regulations, or other applicable provisions of law or regulations, relating to the marking of imported articles.)

§ 158.9 Misrepresentation as to installment sales contracts, their terms or conditions, etc. 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 statements or representations, through advertising or otherwise, concerning installment sales contracts used or their terms or conditions, including down payments, interest, carrying charges, etc., or respecting any other matter relative to such contracts or their terms or conditions.

§ 158.10 Deception in respect of keyboard or number of keys. (a) It is an unfair trade practice to cause any piano having less than the standard or 88-note keyboard to be represented or passed off, directly or indirectly, as and for a piano having such standard or 88-note keyboard.

(b) It is an unfair trade practice to cause any other musical instrument having less than the full or standard keyboard or number of keys to be represented or passed off, directly or indirectly, as and for a musical instrument having such full or standard keyboard or number of keys.

§ 158.11 Defamation of competitors or disparagement of their products. 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, quality, quantity, substance, character, make, type, price, nature, size, tone, origin, appearance, performance, construction, specifications, finish, material content, or preparation of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, is an unfair trade practice.

§ 158.12 Inducing breach of contract. Inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers 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 prejudicing competitors in their business, is an unfair trade practice.

§ 158.13 "Push money," "gratuities," etc. It is an unfair trade practice for any member of the industry to bribe by giving or contracting to give or causing to be given, or by loaning or causing to be loaned, directly or indirectly, to any orchestra leader, band leader, official, singer, musician, music teacher, or any other person, employed by another, or to the agent or representative of, or to any one else on behalf of, such orchestra leader, band leader, official, singer, musician, music teacher, or other person, any "push money," gift, bonus, fee, gratuity, payment, discount, refund, rebate, royalty, service, musical instrument, favor or other thing or act of value, as an inducement to such individual to play or use or cause to be played or used, in a public performance, any musical instrument or accessory of such industry member in either of the following cases:

(a) Without the knowledge and consent of said employer; or

(b) With or without the knowledge and consent of said employer, where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade in the marketing of such musical instruments or accessories, or where the effect is to be mislead or deceive purchasers or prospective purchasers.

§ 158.14 Misuse of word "free,” etc. The use of the word "free," or the equivalent thereof, when the article is in fact not free with the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice.

§ 158.15 Selling below cost. The practice of selling industry products below the seller's cost with the intent and with the effect of injuring a competitor and where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section. The costs, however, which are referred to in the rule are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise.

§ 158.16 Discrimination-(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. It is an unfair trade practice for any member of the industry engaged in commerce,' in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, discount, credit, or other form of price differential

1 As here used, the word "commerce" means "trade or commerce among the several States and with foreign nations, or between the District of Columbia or any territory of the United States and any State, Territory, or foreign nation, or between any insular possession or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States," (exclusive, however, of the Philippine Islands)