Guides for Advertising Allowances and Other Merchandising Payments and Services (Fred Meyer Guides)

• Pages: 345-357

345

GUIDES FOR ADVERTISING ALLOWANCES AND

OTHER MERCHANDISING PAYMENTS AND

SERVICES (FRED MEYER GUIDES)

Code of Federal Regulations, Title 16

§ 240.1 Purpose of the Guides.

The purpose of these Guides is to provide assistance to businesses

seeking to comply with sections 2 (d) and (e) of the Robinson-Patman

Act (the “Act”). The guides are based on the language of the statute, the

legislative history, administrative and court decisions, and the purposes

of the Act. Although the Guides are consistent with the case law, the

Commission has sought to provide guidance in some areas where no

definitive guidance is provided by the case law. The Guides are what

their name implies--guidelines for compliance with the law. They do not

have the force of law.

§ 240.2 Applicability of the law.

(a) The substantive provisions of section 2 (d) and (e) apply only

under certain circumstances. Section 2(d) applies only to:

1. A seller of products

2. Engaged in interstate commerce

3. That either directly or through an intermediary

4. Pays a customer for promotional services or facilities provided

by the customer

5. In connection with the resale (not the initial sale between the

seller and the customer) of the seller’s products

6. Where the customer is in competition with one or more of the

seller’s other customers also engaged in the resale of the seller’s

products of like grade and quality.

(b) Section 2(e) applies only to: