Federal Trade Commission Re-Words and Re-Groups Trade Practice Rules of Millwork Industry

A Trade Practice Conference for the Millwork Industrv was held at the Hotel Stevens, Chicago, Illinois, May 15, 1928, under the direction of Commissioner Garland S.'Ferguson, Jr., of the Federal Trade Commission. assisted by M. Markham Flannery, Director of Trade Practice Conference. Based on volume, more than eighty-five per cent (8570) of the industry was represented.

After a brief address by eommissioner Ferguson, the Conference discussed and adopted eighteen iesolutions dealing with various trade or business practices. The Commission, after consideration, has reworded some of these resolutions and has divided them into Group I and Group I-I. T.hosg in Group I the Commission has-approved, ani those in Group II the Commission has accepted as expressions of the trade. The Commission declined to approve or accept Rules 6 and 7 (Group I), and Rules 8,- 9, 14, l6and 17 (Group II), as publishid July 19, 1928.

The Commissibn has directed thai nbtice be given that in referring to or quoting trade practice conferJnce rules, the form in which they appear in the Commission's Official Statement be followed with reference to wording, group- ing, nunibgling and lettering.

GROUP I.

Rule l.

The Commission substituted and approved the following for Rule 1, Group I, as published July 19, 1928l.

Maliciously inducing or atteinpting to induce the breach of existing contracts between competitors and their customers byr any false or deceptive means whatsoever, or interfering with or obstructing the pelformance of any such contractual duties or services by any such means, with the purpose and effect of unduly hampering, injuring, or.embarrassing competitors in their businesses, is an unfair trade practice.

Rule 2.

The Commission substituted and approved the following for Rule 2, Group I, as published July 19, L9%:

The false marking or branding of products of the industry, with the effect of misleading or deceiving purchasers with respect to the quantity, quality, grade or substance of the goods purchased, is an unfair trade practice.

Rule 3.

The Commission substituted and approved the following for Rule 3, Group I, as published July L9, 1928:

The sale or offering for sale of any product of the industry by any false means or device which has the tendency and capacity to mislead or deceive customers or prospective customers as to th'e quantity, quality, substance or size of such product, is an unfair trade practice.

Rule 4.

The Commission substituted and approved the following for Rule 4, Group I, as published July 19, 1928:

The. secret payment or allowance of rebates, refu-nds, commissions, or unearned discounts, whether in the form of money or otherwise, or secretly extending to certain purchasers special services or privileges, not extended to all purchasers under like terms and conditions, with the intent and with the effect of injuring q competitor and where the effect may be to substantially lessen comp€- tition or tend to create_ a monopoly or to unreasonably restrain trade, is an unfair trade practice.

Rule 5.

The Commission substituted and approved the follow- ing for Rule 5, Group I, as published July 19, 1928: It is an unfair trade practice for any person engaged in interstate commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities, where the effect of such discrimination may be to substantially lessen ,competiti"on or tend to cr'eate a monopoly in any line of commerce; pro- vided that nothing her€in contained ihall prevent discrimination in price between purchasers of the same class on aecount of differences in the gradc, quallty or quantity of the commodity sold, or that makes only due all,owanc-e for differences in the cost of selling or transportation, or discrimination in price in the same or different communlties made in good faith to meet competition: and provided further, that nothing herein contained shall prevent per-: sons engaged in selling the products of this industry in commerce from selecting their own customers in bona-fide transactions and not in restraint of trade.

Rule A. GROUP rr'

The Commission substituted and accepted the following for Rule 10, Group II, as published Jul!' 19, 1928: The industry hereby records its approval of the definition of a qualified wholesale distributor of millwork to

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