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Dhotogrrphs and engravings necessary to illustrate our merchandise."

The ruling of the Code Authority follows

"Since the above office is arbuyer of your product, and nlso beca-use
they re-oresent retailers who buy your -oroduct directly or indirectly,
it would be considered a violation of the Code if you we-e to contri-
bute or nay for any advertising sponsored by this resident buying office
or their anoointed advertising agency."

ADVEITISI'TG: In the past it has been customary for printers to solicit
m-nufacturers for the purnose of obtaining advertisin-- for annro-oriation
or allowances for the printing of a holiday catV'log for retailers in whi
the goods of the manufacturer are offered for sale Pt retail thru the
medium of the retailers' catalog. This form of advertising definitely
comes under Section 12 of Article VIII of tne Code of Fair Comnetition,
and..the payment for such advertising by a manufacturer would be con-
sidered a violation of the Code.

 .r
RETU.iSS: The following letter addressed to n member of the industry,
is of considerable interest and show's the attitude of the NRA in suonort
of our Code provisions:

"Your letter of October 12 addressed to 'Ir. Richberg, in which you cite.,
the refusal of a handbag manufacturer to accent the 'return of faulty
merchandise with the inference that the code orohibits it, has been re-
ferred to me for attention and reply. Article VIII, Section 13 of the
Code reads as follows:

 '.1To member of the industry shall accent the return of any
 merchandise shinned to a nurchpser, nor allow credit there-
 for, nor exchange merchandise, after the merchandise has
 been in the possession of the onurchnser for more than seven
 days, where the agreement of sale hns been fully performed
 by such member.

This nrovision was included in the Code to remedy an abuse of the re-
turn goods practice which had grown in the industry. '!any merchants
had formed the habit of leaving merchandise on their shelves or in
their ui3 ehouses, and "-hen the season was over and they found the mer-
chandise did not have a ready sale they returned it, asking the manu-
facturer for credit. Likewise, many merchants permitted the merchandise.
to become damaged in storage,-and after weeks and even months they aske
the manufacturer to accent the return of merchandise which had become
damaged through no fault of the manufacturer. It was felt in anoroving.
the code that seven days was sufficient time for a merchant to scrutini.
the merchandise, and that by putting this limit on its return an unfair
trade practice would be eliminated.

There is also a provision in Article VIII, Section 4 of the Code which
prohibits a .Mnember of the industry from branding or marking or backing
any goods in any manner which is intended to or does mislead purchasers


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