Radio: Fair Trade

In 1938 U. S. radio receiving set manufacturers sold some 7,150,000 sets, with a retail value of $225,000,000. Last week, on the application of this highly competitive industry, the Federal Trade Commission promulgated its first set of fair-trade rules. Some unfair trade practices proscribed by FTC:

1) Using the terms “All-Wave,” “World-Wave,” “World-Wide-Wave,” to describe sets “not constructed to receive . . . with reasonable or adequate consistency, the entire spectrum of radio frequencies in recognized use in the art. …” Lawful designation: “Limited All-Wave,” etc., with the exact wave bands or frequencies clearly stated.

2) Counting as tubes for advertising purposes “dummy or fake” tubes, “ballast” tubes, dial or other illuminating lamps.

3) Advertising “fictitious” list prices, or prices marked up to provide deceptive trade-in allowances.

4) Paying dealers “push money” or “spiffs” (gratuities to promote one manufacturer’s product over others).