Evening star., 1933-10-29
FAIR TRADE BASIS
OFFERED DBYM. R. A.
Proposals. Are Founded on
Six Points Reached
- After Study.
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fullest extent possible with the require
mentS which would be otherwise
obligatory"
The special committee on the fair
practice provisions laid no claim to be-
under the six point enumerated, point
ing out that supplementary group OF
regulations could be developed in codes
to regulate subjects such as return
goods. piracy of design. hidden demon
stret9rs. trading stamps, schemes OF
chance and others. On the SIX general
points, q summary of its report said:
'Inaccuracy: Under this heading are
the restrictions against inaccurate ad-
vertising and ether Misrepresentation
Of commodities, credit terms. values
policies and services. Also advertising
ceive or mislead the customer, usually
referred to as bait and misbranding
The report points out that the COM
mittee recognized that the test Of fall
bility can be more satisfactorily admin
istered with the scientific approach to
accuracy than by the moral appeal to
truth with its implied converse. All
persons are liable to unintentional error
and are appreciative for having the mis-
take brought to their attention for cor
rection. but no one wants to be accused
either Justly or otherwise Of dishonesty.
These rules eliminate from business dis
cipltne any moral element and place
the adherence to the principle Of fair
practice on q basis OF factual proof.
Attacks on Competitors.
Attacking competitors: This head
ing embraces the practices aimed
against competitors and their business
such as inaccurate reference thereto.
claims Of generally underselling all COM
petitors, unjustified threats OF legal pro-
ceedings and most important Of all, SELL
ing below cost, which has recently been
referred to as 'cut-throat competition.
Price discrimination: Secret pay
ments or allowances of any kind fall
within this class, also any form of dis
criminatory rebate and consignment ex-
cept on a bona fide order or in a form
that is accountable.
Commercial bribery: Than which
there is no greater evil as it results in
the betrayal Of a trust, Is covered By
prohibiting the influencing or rewarding
tne actlon OF an employe OF agent WIFI
out the knowledge Of the employer or
the principal. and the rendering of an
inaccurate bill
Breach Of contract: It Is considered
in this bracket that the interference
with another's contracts or the repudi-
alton OF ones own are equally repre-
hensible.
Forced Purchases.
Coercion: Under this caption are
the forced purchase Of one article by
the purchase Of another and the dis
elimination known as black list The
report concluded:
American employers promised re-
ward from N. r. A. for the hours-wages
benefits recently given their employees
Is the immediate protection against the
unfair competition Of recalcitrants. Be-
cause OF the complex overlapping OF in
dustries protection against this cut
throat" minority Is practically impos-
sible without the adoption Of uniform
basic fair-practice rules, that will en-
able business to be effectively and eco
nomically policed. and insure that the
consumers will receive the benefits of
the new deal to which they are Justly
entitled" :.