residential aluminum siding; and manufacturers and marketers of prefabricated homes having aluminum siding. Those engaged in the marketing of industry products who are not agents, but who purport to act as agents of manufacturers or suppliers of industry products are to be regarded as industry members. § 57.1 Deception in general.

(a) It is an unfair trade practice to sell, offer for sale, or distribute any industry product, or to promote the sale or distribution thereof under any representation or by any method or under any circumstances, including failure adequately to disclose additional relevant information, which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers with respect to the construction, composition, installation, design, finish, color or colorfastness, size, origin, manufacturer, value, price, quality, strength, weight, gauge, durability fit alignment, ventability, or utility of such product or any part thereof, or the ease of application of such product, or the benefits to be derived from the use thereof; or with respect to the immunity or resistance of such product to weather conditions, fire, corrosion, or sag, or the need for maintenance, repair, replacement of all or any part of such product, or in any other material respect.

(b) Among practices to be considered as prohibited by paragraph (a) of this section are the following claims:

(1) That industry products require no repainting or repair for the life of the structure, or that the initial cost is the only cost; or

(2) That the colors in which the industry products are finished will remain unchanged or are impervious to the elements or will last a lifetime; or

(3) That industry products, or any part or parts thereof, are everlasting or are made of indestructible materials; or (4) That industry products provide everlasting insulation; or

(5) That the thermal insulating values of aluminum exceed that of any other metal or other material; or

(6) That nothing can damage aluminum siding.

(c) The prohibitions of this section are applicable with respect to every species of advertisement or form of representation, whether oral or in a newspaper or other periodical, telephone directory, sales catalog, sales promotional

literature, radio, or television broadcast, or other media, or whether in the form of mark, tag, or label, affixed to or accompany, the product. [Rule 1]

§ 57.2 Deceptive use of "model home" representations.

In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any member of the industry to represent to any purchaser or prospective purchaser that his dwelling will serve as a so-called model home or advertising job, or to make any other similar representation, if in connection therewith the industry member misleads the purchaser or prospective purchaser into the belief that he will be paid a commission or other compensation for any sale which the industry member may make in the vicinity or within any specified distance from the customer's home, or that the cost of the purchase of any industry product to the customer will thereby be reduced or fully paid. [Rule 2]

§ 57.3 Deceptive pricing.

It is an unfair trade practice for any member of the industry to represent or imply, in advertising or otherwise, that residential aluminum siding may be purchased for a specified price, or at a saving, when such is not the fact; or that such product is being offered for sale at a reduced price when such is not the fact; or otherwise to receive purchasers or prospective purchasers with respect to the price of such products offered for sale; or to furnish any means or instrumentality by which others engaged in the sale of residential aluminum siding may make any such representation. Among the practices prohibited by this section

are:

(a) Representing or implying in advertising or otherwise that a quoted price, whether determined on the basis of a stated price per square foot or otherwise, is the total cost for a complete installation when in fact the products sold do not include all costs for labor and all parts and accessories necessary for the proper function and appearance of such installed products (such as starter strips, door and window trim, window head flashing, back-up pieces and corner pieces).

(b) Representing or implying in advertising or otherwise that a specified price for residential aluminum siding is for any size structure (e.g., "installed on

your home $______") when in fact such price applies only to structures of limited size without adequate and conspicuous disclosure of such limitation (e.g., "$ installed on your home when area to be covered does not exceed 1,000 square feet" or "installed price $---per square foot").

(c) The use of pictures or illustrations of large houses or structures in connection with specified prices which is likely to mislead purchasers or prospective purchasers as to the cost of the installation of aluminum siding, as when the aluminum siding for the illustrated house would not be installed for the specified price. [Rule 3]

NOTE: On December 20, 1963, the Commission adopted Guides Against Deceptive Pricing which became effective January 8, 1964. Copies thereof will be furnished upon request.

[31 F.R. 11108, Aug. 20, 1966]

§ 57.4 False gift offers in sales promotion plans.

In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any member of the industry to make any offer, however disseminated or published, that gift merchandise will be given to persons complying with certain conditions unless such merchandise is given to the persons complying with such conditions. [Rule 4]

§ 57.5 Deceptive claims as to the efficacy of industry products to reduce the effects of outside temperatures in building interiors.

In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any member of the industry to make any representation which, directly or by implication, or through failure adequately to disclose additional relevant information, has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the efficacy of such products to effect fuel savings or other heating costs or to reduce or control temperature in rooms, buildings, etc.

NOTE: As used in this rule the term "relevant information" has reference to the conditions essential to effect the claimed fuel savings or other heating costs or temperature reduction or control, including, but not limited to, the location, construction, elevation and insulation of the building and its exposure to the elements. [Rule 5]

placed next to the word "free," will not be regarded as compliance.

[Rule 10]

$ 57.11 Deception as to agency status and authority.

(a) It is an unfair trade practice for any member of the industry to aid or abet any person in effecting deception of purchasers or prospective purchasers as to his authority to represent and make commitments in behalf of such industry member.

(b) It is also an unfair trade practice for any person engaged in the sale of industry products to represent that he is an agent of, or otherwise affiliated with, a manufacturer or distributor of such products, or that he is in a position to transfer title to industry products, or to assure of the delivery and/or installation of any such products, when such is not the fact. [Rule 11]

§ 57.12 Deception as to identify of manufacturer or seller.

In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any member of the industry to use any corporate name, trade name, trademark, slogan, or other means of identification, which, by reason of its similarity with the corporate name, trade name, trademark, slogan, or other means of identification used by another party, has the capacity and tendency or effect of deceiving purchasers or prospective purchasers as to the identity of the manufacturer or vendor of any industry product which is sold or offered for sale by the industry member. [Rule 12]

It is an unfair trade practice for a member of the industry to use any testimonial of a user of any industry product, or of any other person, or to use any picture or depiction thereof, which is false or which has the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers. [Rule 13]

§ 57.14 Deceptive use of seals.

In the sale, offering for sale, or distribution of industry products, it is an unfair trade practice for any industry member to use a seal or insignia of any organization without the authorization

of that organization, or to use any seal or insignia which is of such form or design, or contains such wording, as to simulate the seals or insignia which are issued by an organization or use with respect to other products, when the use thereof has the capacity and tendency or effect or deceiving purchasers or prospective purchasers.

NOTE: Seals of approval used by industry members should identify the organization issuing and/or authorizing the use of the seal. Such seal should be based on adequate inspection and tests of the industry member's products and not otherwise contravene the provisions of § 57.1 relating to deception generally.

§ 57.16

Guarantees, warranties, etc.

(a) Advertising of products shall not contain representations that a product is "guaranteed" without clear and conspicuous disclosure of:

(1) The nature and extent of the guarantee, and

(2) Any material conditions or limitations in the guarantee which are imposed by the guarantor, and

(3) The manner in which the guarantor will perform thereunder, and

(4) The identity of the guarantor. Representations that a product is "guaranteed for life" or has a "lifetime guarantee" in addition to meeting the requirements of subparagraphs (1), (2), (3), and (4) of this paragraph, shall contain a conjunctive and conspicuous disclosure of the meaning of "life" or "lifetime" as used (whether that of the purchaser, the product or otherwise). (b)

Guarantees shall not be used which under normal conditions are impractical of fulfillment or which are for such a period of time or are otherwise of such nature as to have the capacity and tendency of misleading purchasers or prospective purchasers into the belief that the product so guaranteed has a greater degree of serviceability, durability or performance capability in actual use than is true in fact. [Rule 16]

§ 57.17 Substitution of products.

It is an unfair trade practice for a member of the industry to make an unauthorized substitution of products, where such substitution has the capacity and tendency or effect of misleading or deceiving purchasers, by:

(a) Shipping or delivering industry products which do not conform to samples submitted, to specifications (in bids or otherwise) upon which the sale is consummated, or to representations made prior to securing the order, without advising the purchaser of the substitution and obtaining his consent thereto prior to making shipment or delivery; or

(b) Falsely representing the reason for making a substitution.

NOTE: Nothing in this rule shall be construed as preventing the application of such tolerances as are agreed upon between buyer and seller or are otherwise deemed reasonable and proper and where no misrepresentation, or deception of purchasers, is practiced or promoted in relation to the product or its deviation from samples or specifications. [Rule 17]

§ 57.18 Defamation of competitors or false disparagement of their prod

ucts.

The circulation of threats of suit for infringement of patents or trademarks among customers or prospective customers of competitors, not made in good faith but for the purpose or with the effect of thereby harassing or intimidating such customers or prospective customers, or of unduly hampering, injuring, or prejudicing competitors in their business, is an unfair trade practice. [Rule 191

§ 57.20 Inducing breach of contract.

(a) Knowingly inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers, or interfering with or obstructing the per

formance of any such contractual duties or services, under any circumstance having the capacity and tendency or effect of substantially injuring or lessening present or potential competition, is an unfair trade practice.

(b) Nothing in this section is intended to imply that it is improper to solicit the business of a customer of a competing industry member; nor is the section to be construed as in anywise authorizing any agreement, understanding, or planned common course of action by two or more industry members not to solicit business from the customers of either of them, or from customers of any other industry member. [Rule 201

§ 57.21 Procurement of competitors' confidential information.

It is an unfair trade practice for any member of the industry to obtain information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements or representations, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained so as to injure said competitor in his business or to suppress competition or unreasonably restrain trade. [Rule 211 § 57.22 Deceptive invoicing, etc.

It is an unfair trade practice for any member of the industry to issue invoices, billings, or sales slips which by reason of misstatements therein or omissions therefrom have the capacity and tendency or effect of deceiving purchasers or prospective purchasers in any material respect. [Rule 22]

§ 57.23 Exclusive deals.

It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale, of any industry product, for use, consumption, or resale within any place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the goods of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale, or such condition, agreement, or understanding, may be to substantially lessen competition or tend to create a monopoly in any line of commerce. [Rule 23]