Approved Code No. 64-Amendment No. I Registry No. 228-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON APRIL 10, 1934
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Approved Code No. 64-Amendment No. I
Registry No. 228-01
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Approved Code No. 64-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
DRESS MANUFACTURING INDUSTRY
As Approved on April 10, 1934
AMENDMENT TO THE CODE OF FAIR COMPETITION FOR THE DRESS
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of amendments
to a Code of Fair Competition for the Dress Manufacturing Indus-
try, and hearings having been duly held thereon and the annexed
report on said amendments, containing findings with respect thereto,
having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson. Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise, do hereby incorporate, by reference, said
annexed report and do find that amendments and the Code as con-
stituted after being amended comply in all respects with the perti-
nent provisions and will promote the policy and purposes of said
Title of said Act, and do hereby order that except as hereinafter
provided said amendments be and they are hereby approved, and
that the previous approval of said Code is hereby modified to
include an approval of said Code in its entirety as amended; it is
FURTHER ORDERED that except as herein expressly specified,
the approval of said amendments shall constitute a supplement to
and not a repeal of existing provisions in the Code;
IT IS FURTHER ORDERED that said amendments shall be-
come effective as part of the Code ten (10) days after the date
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
SOL. A. ROSENBLATT,
APRIL 10, 1934.
REPORT TO THE PRESIDENT
The White House.
SiR: The Public Hearing on an amendment to the Code of Fair
Competition for the Dress Industry as proposed by the Code Au-
thority for this Industry was conducted on Monday, March 26, 1934,
in Room 2062, Department of Commerce Building, Washington, D.C.
Each person who requested an appearance was fairly heard in
public in accordance with the usual requirements. Present were au-
thorized representatives of the Code Authority for this Industry,
representatives of the National Retail Dry Goods Association, and
representative members o(f the Industry.
The propo-als of modifications to amend Article IX of the Dress
Code, approved October P31, 1933, were the subject of conferences be-
tween the Code Authority and representatives of the Retailers Pro-
tective Asociation of the N.R.D.G.A. and the Chairman of the Mer-
chandise Managers' Group of this Association, at which agreement
was reached respecting the substance of the several modifications
The Deputy Administrator in his final report to me on said amend-
ment to said Code having found has herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise rehabili-
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and will not eliminate or
(f) Those enig:;gedt in otlier st--.ps of the economic process have not
been deprived of the right to 1Ie hear 1 prior to approval of said
For these reasons, these trade practice provisions have been
HIU c S. .JOHNSON,
Adm is trator.
APRIL 10, 11934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE DRESS MANUFACTURING INDUSTRY
I. The following is substituted for the first, paragraph of Article
IX of the Code:
For all purposes of this Code the provisions hereinafter set forth
shall constitute unfair trade practices. Any member of the Industry
who shall directly, or indirectly through any officer, employee, agent,
or representative, knowingly use, employ, or permit to be employed
or be engaged in any of such unfair trade practices, shall be guilty
of violation of the Code and be subject to the penalties provided in
II. The following is substituted for Section 1 of Article IX and
is designated as Section 1:
1. No member of the Industry shall accept returned merchandise
for credit under any circumstances except, in accordance with the
"(a) Members of the industry may accept merchandise for credit
which has been shipped by a customer within five working days from
the date of receipt by the customer in his store, only for the follow-
ing reasons: errors in shipment, delay in delivery, defective material
or workmanship or any breach of contract. Members of the indus-
try shall not accept merchandise for credit unless accompanied by a
letter or regular return form mailed by the customer to the manu-
facturer and received by the manufacturer prior to the arrival of
the merchandise stating the contents of the package, reason for the
return and the date on which the merchandise was received. Any
dispute shall be subject to arbitration in accordance with procedure
agreed upon by the Dress Code Authority and the National Retail
"(b) Members of the Industry may accept merchandise for credit
which has been shipped by the customer after five working days
from the date of receipt by the customer in his store, only for the
following reasons: defective material or workmanship or breach of
contract which cannot be detected by a reasonable inspection within
the stated five working days. Members of the Industry shall not
accept merchandise for credit shipped after the stated five working
days unless accompanied by a letter or regular return form in dupli-
cate, mailed by the customer, one copy to the manufacturer and one
copy to the Dress Code Authority at 1440 Broadway, New York,
New York, or such other place as shall be designated by the Code
Authority, and received by the manufacturer prior to the arrival
of the merchandise, stating the contents of the package, the reason
for the return and the date the merchandise was received.
"(c) Merchandise returned after the stated five days period in
areas designated by the Code Authority shall be held, Intact or un-
opened by the manufacturer, subject to examination by an impartial
representative of the Dress Code Authority who shall direct the
acceptance by the manufacturer or the return of the merchandise
to the customer. Any appeal from the decision of the impartial
representative shall be subject to arbitration in accordance with
procedure agreed upon by the Code Authority of the Dress Industry
and the National Retail Code Authority.
III. The following is sulbtituted for Section 2 of Article IX of
the Code and is designated as Section 2:
2. The articles of the Fair Trade Practices now or hereafter con-
tained in this Code Ishall constitute uniform conditions of sale of
the Industry, and it -lsall be an unfair trade practice for any one
engaged in the Industry to sell in violation of any of such trade
IV. The following is substituted for Section 4 of the Code and
designated as Sectioi 4:
4. It shall be unfair trade practice to sell goods on open order
subject to consignment or by any other method which has the effect
of selling on consignment or memorandum or guaranteeing retail
V. Section 5 of Article IX continues to be designated as Section
5, but it is modified to read as follows:
5. It shall be unfair trade practice to make, accept or demand
allowances, or refunds, rebates, donations, gifts, credits or unearned
discounts, (whether in the form of money or otherwise) and/or
special privileges or services not openly extended to all on like terms
VI. The following provision is inserted as Section 8 of Article IX
of the Code:
8. No member of the trade shall falsely advertise, (whether by
printing, radio, display, or by any other form) or falsely brand,
mark or pack any goods, in any manner which is misleading. Nor
shall any member of the Industry in any way misrepresent any goods
(including, but without limitation, their use, trademark, quality,
quantity, origin size, finish, material or serviceability) or credit
terms, values, policies, services or the nature or form of the business
VII. The following provision is inserted as Section 9 of Article
IX of the Code:
"9. It shall be unfair trade practice to approach or entice the
employees of designing and selling departments of competitors with
the intent of hampering, injuring, and 'or embarrassing such com-
petitors in the conduct of their business; to secure confidential in-
formation concerning the business of a competitor by a false or
misleading statement or representation, by a false impersonation of
one in authority, bribery, or by any other unfair method."
VIII. The following provision is inserted as Section 10 of
Article IX of the Code:
10. It shall be unfair trade practice to make loans or give
gratuities, or special commissions or rewards to employees of jobbers,
retailers, resident or commission buyers."
IX. The following provision is inserted as Section 11 of Article
IX of the Code:
"11. It shall be unfair trade practice for those members of the
Dress Industry, normally selling to the trade for resale, to sell
merchandise to anyone except to recognized wholesale or retail dis-
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tributors. This shall not prevent, however, bona fide sales by mem-
bers to their own employees of merchandise which is for the personal
use of such employees, or to retail buyers at not less than the regular
wholesale prices, provided the buyers are employed in the department
in which the merchandise of the member of the industry is usually
X. The following provision is inserted as Section 12 of Article IX
of the Code:
12. All members of the Industry shall sell merchandise on the
shipping terms of f.o.b. city of manufacture which includes free
deliver to any shipping or forwarding point or store within the city
in which the manufacturer is located. In cases of disputed claims
on returned merchandise, transportation charges shall be paid by
whichever disputant loses the decision."
XI. The following provision is inserted as Section 13 of Article IX
of the Code:
13. No member of the Industry shall sell merchandise except
under contract which shall provide:
(a) that no purchase order for merchandise shall be subject to
cancellation BEFORE the specified and agreed upon shipping date
written on said order;
(b) that no purchase order shall be subject to cancellation AFTER
the agreed upon shipping date unless cancellation is in writing, and it
permits the manufacturer three additional working days from the
date of receipt of such cancellation, to complete and ship any and
all merchandise in work at that time;
(c) that if no notice of cancellation is received by the manufac-
turer from the customer, all merchandise remaining on order shall
be cancelled by the manufacturer two (2) weeks after the expiration
date of order.
XII. The following provision is inserted as Section 14 of Article
IX of the Code:
14. No member of the Industry, shall accept and execute any
order for merchandise which is placed by resident buyers unless
such order shall be a bona fide order for the sale and purchase of
said merchandise. No member of the Industry shall accept orders
from a resident buyer unless said resident buyer submits written
authorization that he is the agent of the customer and able to bind
his principal. Printed announcements in a trade paper shall con-
stitute public notice to this Industry of the change in the resident
buying office of a retailer."
XIII. The following provision is inserted as Section 15 of Article
IX of the Code:
15. It shall be unfair trade practice for any member of the In-
dustry to give advertising allowance to any customer or customer's
XIV. The following provision is inserted as Section 16 of Article
IX of the Code:
16. It shall be unfair trade practice for members to accept
charges for telegrams or long distance telephone messages from cus-
tomers with reference to the purchase or sale of goods."
Approved Code No. 64-Amendment No. 1. :;r
Registry No. 228-01.
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