Code of Federal Regulations Title 16 - Commercial Practices
Title 16 of the Code of Federal Regulations (CFR) is titled "Commercial Practices" and primarily contains regulations issued by the Federal Trade Commission (FTC) and other agencies concerning trade, consumer protection, advertising, product labeling, warranties, and fair business practices.
🔹 Overview of Title 16 - Commercial Practices
Purpose:
To regulate business conduct in the marketplace with a focus on protecting consumers from unfair, deceptive, or fraudulent practices and ensuring fair competition.
🔑 Major Agencies Covered:
Federal Trade Commission (FTC) – Primary regulator.
Department of Transportation
Department of Commerce
Consumer Product Safety Commission (CPSC)
National Highway Traffic Safety Administration (NHTSA) (in some parts)
📚 Key Parts & Topics in Title 16 (Select Examples):
| Part | Subject |
|---|---|
| Part 0–1 | Organization and functions of the FTC |
| Part 14 | Advertising substantiation |
| Part 23 | Guides for the jewelry, precious metals, and pewter industries |
| Part 233 | Deceptive pricing practices |
| Part 238 | Bait advertising |
| Part 239 | Mail, Internet, or telephone order merchandise |
| Part 240 | FTC rules on price discrimination (Robinson-Patman Act) |
| Part 255 | Endorsements and testimonials in advertising |
| Part 300 | Wool Products Labeling Act |
| Part 301 | Fur Products Labeling Act |
| Part 303 | Textile Fiber Products Identification Act |
| Part 306 | Automotive Fuel Ratings, Certification and Posting |
| Part 435 | Mail or telephone order merchandise rule |
| Part 455 | Used Motor Vehicle Trade Regulation Rule (“Buyers Guide”) |
| Part 500–503 | Fair Packaging and Labeling Act (FPLA) rules |
📌 Topics Commonly Regulated Under Title 16:
Advertising and Marketing: Including online, print, and influencer marketing.
Warranties: Such as the Magnuson-Moss Warranty Act.
Labeling: Requirements for textiles, wool, fur, and other consumer products.
Product Claims: Green/environmental claims, health claims, etc.
Mail and Online Orders: Delivery timelines, refunds, and disclosures.
Consumer Protection: Misleading claims, unfair business practices.
Credit and Lending: Includes Truth in Lending Act (Regulation Z) references.
🏛️ Legal Impact:
Title 16 provides the enforceable rules of trade and business conduct in the U.S. These rules support:
Transparent advertising
Honest labeling
Consumer safety and protection
Equal competition among businesses
Violations can lead to FTC enforcement actions, fines, and court orders.
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