637-0 

NATIONAL RECOVERY ADMINISTRATION 

C·ODE OF FAIR COMPETITION 

FOR THE 

GREETING CARD INDUSTRY 

AS SUBMITTED ON AUGUST 22, 1933 

REGISTRY No. 505-02 

The Code for the Greeting Card Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administraticn J I I 

as applying to this industry 

WE DO OUR PART 

, -. ' 0 -= 

UNITIID-,o-8-'f.A TES 

GOVERNMEN T PRINTING OI<'FICE 

WASHINGTON : 1933 

I 

For sale by the Superintendent of Documents, Washington, D .C. • • • • • • • • Price 5 cents 

CODE OF FAIR COMPETITION FOR THE GREETING CARD 

INDUSTRY 

ARTICLE I-PURPOSE OF THE CODE 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, during the .period of the emergency, by reducing and 

relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public, 

employees and employer , relieving the disastrous effects of overproduction and in other re. pects, the following provisions are established as a code of fair competition, for the greeting card industry. 

ARTICLE II-PREAMBLE 

It i the consensus of opinion of this industry that certain very 

definite action, as herein outlined, must be taken to preserve the 

very exi tence of the greetino- card industry and thus continue. the 

opportunity for em.ployment to the many thousands of workers engaged in both production and distribution and also to continue the 

postal revenue to the United States now estimated at twenty million 

dollars annually. 

The very life of this industry is seriously threatened if the prevailing tendency to cheapen the product continues. Greeting cards 

were conceived and developed to fill a definite and useful place in 

our social order. They a.re used by folks everywhere to convey personal messages of good will and good wishes and will survive only 

as long as they retain the dignity and incerity which must surround 

all social cu tom . The American public will not continue a practice so cheapened that it has lost its social significance and qualifications. Gree.ting cards belong to that branch of creative art 

through which the individual seeks to express personality in the 

ocial graces, an i com.petition in such a field hould be wholly within 

the realm of charm, adaptability, cleverness of design appropriateness of caption and verse, and expert craftsmanship, rather than 

mere physica.l size and price. The public interest is benefited by 

maintaining a quality rather than a quantity product. Highly intelligent creation, expert execution, and skilled craftsmanship will 

ree tablish greeting card in the public consciousne and pre en e 

this industry with increasing opportunity for employment at better 

wages · wherea the present tendency toward cheaply made ma hine 

product unwisely distributed, will seriou ly curtail employment 

oppress small enterpri e , and actually de troy the industry. 

ARTICLE III-DEFINITION OF INDUSTRY 

The greeting card indu try within the meaning of thi code includes all manufacturers, jobbers, whole alers, direct seller and 

9666-33 (1) 
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distributors of greeting cards, whether firms, corporations, or individuals, and includes all methods and phases of production and distribution and each and every operation necessary to the delivery of 

the finished product to those who sell the ultimate consumer, whether 

by persons or corporations engaged regularly in the industry, or by 

others not in such manner regularly engaged, but who, in whole or 

in part, at irregular intervals participate in any of its functions. 

This code recognizes the legitimate functions of the manufacturer, 

the jobber, the retailer, and the distributor by mail and/or through 

a.gents, and seeks to stabilize both production and distribution in 

full accord with the National Industrial Recovery Act. 

ARTICLE IV-HOURS OF LABOR, RATES OF PAY, AND OTHER 

CONDITIONS OF EMPLOYMENT 

As required by Section 7 (a) of Title 1 of the National Industrial 

Recovery Act, the following provisions are conditions of this Code: 

SECTION 1. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and 

shall be free from the interference, restraint, or coercion of employers 

of labor, or their agents, in the designation of such representatives 

or in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

SEc. 2. No employee and no one seeking employment shall be required as a condition of employment to join. any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing. Nothing in this code is to prevent the 

selection, retention, and/or advancement of employees on the basis 

of their individual merit, without regard to their affiliations, or 

nonaffiliations with any labor organization. 

SEc. 3. Employers shall comply with the maxim.um hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

(a) No employer shall cause or permit any employee to work at an 

average of more than forty ( 40) hours per week in any six ( 6) 

months period, excepting executives, outside salesmen, those employed in supervisory capacities, and those employed in emeraency 

maintenance and repair work. This is not intended to limit the 

number of days or shifts. Owing to the seasonal nature of the bu iness, which forces manufacturing plants to meet xce siYe d :)111.-md. 

for production which must be shipped in time for ea onal u · or 

anceled, such manufacturers, or distributors, may b permitt l t 

operate durino- such rush period on a chedule not x djng fort. -

ei ht ( 4 ) hours per w ek, provided that no mpl hall b l rmitted to work more than on thou and and fort (1,040) hour 

lurino- any ix (6) months' p ri d. 

(b) Th minjmum wao- that hall be pail by m1 lo. r. to an 

of th ir mploy . hall b at th rat f thirt (3 . ) ntfi 1 r hour 

.x · pt 1 an wr.· an l ap1 r nti ·, for an initial i ' (G) , 'ks 1 eriod 

provi c1Pd thi. · ·la . .- of mpl . , . hall not at any tim . ·c· d li.v ' 

perr nt ( 5 7, ) of th tal numb 'l' f m1 1 . <' . 

( ·) o 'mplo rc•r : h all 'llll Jo any p 1-. · n un lcr sixll'l'n ( 1 G) . ,ar: of ag . 
ARTICLE V-STANDARDIZATION OF PRODUCTION AND DISTRIBUTION 

SECTION 1. Since its inception the prqducts of this industry have 

been sold at established prices to the ultimate consumer such as 2 

for 5¢, 5¢, 10¢, 15¢, 25¢, 35¢, 50¢, and $1.00 each. Because of these 

inflexible price limits a uniform trade discount or mark-up is necessary to prevent unfair competition. 

SEc. 2. In order to standardize and stabilize distribution in accordance with Section 1 of this Article, trade discounts from the 

retail list price shall not be greater than fifty percent ( 50%) to the 

retailer nor greater than fifty percent ( 50%) and forty-five percent 

( 45%) to the wholesaler. Any retailer who owns and operates a 

sufficient number of stores to justify buying specially made items 

in sufficiently large quantities to enable substantial reduction in production costs to be effected, may be entitled to quantity discounts 

based upon such actual savings but in no case shall the total discount 

to such customers exceed the wholesale discount or be in violation of 

Section 8 of Article V; and further providing no such quantity discount shall apply to cards listed at retail for less than five ( 5¢) each. 

Schedule A attached to and considered part of this code sets forth 

standardization details with respect to the various products of the 

industry. 

SEc. 3. Where it is necessary to furnish sample books of Christmas Personal Greeting Cards that include service for imprinting 

consumers' personal names no greater than forty percent ( 40% ) 

discount shall be allowed on orders resulting from such samples. 

SEc. 4. In order to preserve this industry no manufacturer or 

wholesale distributor shall sell or offer for sale any greeting card 

to anyone for resale at retail for less than two for five ( 5¢) cents. 

This is not intended to prevent the sale of the established penny 

Valentines. 

SEc. 5. All greeting cards shall be sold F.O.B. Factory. 

SEc. 6. (a) For manufacturers selling retailers, jobbers, and/ or 

wholesalers the maximum billing dating shall be 

Everyday cards, end of month. 

Christmas and New Year Cards, December 1st. 

Valentine, Washington's, and Lincoln's Birthday Cards, February 1st. 

Easter and St. Patrick's Cards, April 1st. 

:Mother's Day and Father's Day Cards, May 1st. 

Hallowe'en and Thanksgiving Cards, N ovemher 1 t. 

Greeting cards produced for special lines as defined in Article V, 

Section 2, where immediate payment is a consideration, shall be sold 

and billed on terms no better than two percent (2%) ten (10) days. 

(b) Maximum ca h discounts hall be two percent (2% ) ten (10) 

days, net thirty (30) days. 

( c) Terms of sale shall be shown on all order blanks and/ or 

1nvo1ce . 

(cl) No price quotation shall be guaranteed for a period longer 

than ninety (90) days either to prospective purchaser who is considering samples or on unconfirmed memorandum orders. The date 

of qnotation is to be e tablished in writing. 

( e) The acceptance of payments with unearned discount · of note 

without interest for past-due accounts, or of trade acceptances either 
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in settlement of past-due accounts, or for the purpose of extending 

net terms on all or any part of new shipments, or of giving extra 

dating in any manner ,Yhat oever is a violation of this Code. 

SEo. 7. Lack of uniformity in credit practices prevents stabilization and encourages unfair competition. This code contemplates 

the formation of a central credit interchange and collection bureau, 

member hip in which will be open to all me1nbers of this industry. 

SEc. 8. It is the concensus of opinion of thi industry that overproduction is a serious menace to the stabilization of distribution 

and continuity of employment; therefore all manufacturers should 

control production to prevent carry-overs. Only seasonal greeting 

cards carried in stock after the season for which they were made and 

any everyday greeting cards carried one year after first offered for 

sale shall be considered a close-out within the meaning of this code 

and shall be sold at no greater discount than forty percent ( 40 % ) 

from the price to which the purchaser would have been entitled if 

buying same items as new mechandise in accordance with his status 

as retailer or wholesaler, as determined by Article V, Section 2. 

Providing further that no close-out greeting cards shall be sold in 

violation of Article V, Section 4. 

SEc. 9. Selling below cost is a violation of the• code. Close-outs 

as defined in Section 8 of Article V excepted. The term cost is 

understood to include all expenses of whatsoever nature necessary 

and incidental to the shipping of the finished product and must include among other items labor, material, original drawings, plates, 

creative and plant burden, administration, selling expense: interest, 

taxes, depreciation, bad debts, and all other factors as determined 

by standard accounting practices. · 

SEc. 10. The variable practice of supplying samp]es encourages 

unfair competition. The practice which shall govern the supplying 

of samples is as follows: 

(a) In cases where sample are required by retail stores for merchandising their own stocks of Everyday and/ or seasonal counter 

card , loo e amples shall be charged fqr at one half and mounted 

samples shall be charged for at the full established net price to the 

retailer. All loose samples shall be indelibly marked " ample." 

(b) Where it is necessary for a manufacturer to submit samples 

to a prospective cu tomer for the purpose of obtaining stock order 

for pecial line a defined in Article V, Section 2, such sample may 

be upplied without charge providing uch ample are unmounted 

and ach ard indelibly mark d " ample." 

( ) vVher ten r more e of ample ar r quir cl l y li, tribntor elling by m an of ampl book u h ampl hall b bill d 

at full pric when .. hipp cl and a am11 all wan e ma 1 at th nd 

of th . · a ·on whi ·h all wan hall in no a x l th amount of 

th sampl bill r fiv I r · nt ( ) f th'.) am unt pur ha d from 

it m. · thu.- .-ampl <1. 

(d) o fr<' . ampl .· f bx 1 a. ortm nt 

a11y mannfa ·tur<'r or cli .-tribut r t al ab nt 

ad1 earcl in .'Uch ho. j , incl lib) mark cl . amt 1 ." If lmmarke l 

. alabJe . a111 1 le•.- an• . llJ I li <l a, ·harg r 1 ·r o ·iL qual t t.h' n t 

wlwlPsalc• priC'(' ol' th<' l ox shall h r (luir l. 

(r) , h 1 11. pts of .-ampl<'s nr • r 1 q11irNl l,y jobl> rs or wholC'salPr 

S il ·h ·amplP.- . hall be sold and billc d a.- foll ow ·: 
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Where twenty-five (25) sets or less are required, a discount not to 

exceed twenty-five (25 % ) percent from regular net whole ale price of 

cards may be allowed, but the cost of mounts and mounting hall 

be added thereto. . Where more than twenty-five (25) sets are required., the first 

twenty-five (25) sets may be supplied as provided above and all sets 

in excess of twenty-five (25) shall be charged for at full net wholesale price of cards plus the cost of mounts and mounting. 

(f) No dating of any kind shall be given on samples sold at a 

discount. 

SEo. 11. (a) Where a manufacturer or distributor desires to supply 

retail display fixtures they shall be sold at no less than the purchase 

price paid by said manufacturer or distributor plus ten (10%) percent. This provision is not intended to prevent manufacturer or distributor from supplying without extra charge cardboard cartons for 

counter display which are in themselves shipping cartons. 

(b) In cases where any metal or cardboard dispay distributed 

through wholesalers is not in itself a shipping carton, but is an integral part of an assortment of merchandise, a charge shall be made 

for such displays, which shall not be less than ten (10%) percent 

of the net wholesale value of the merchandise in the assortment. 

SEO. 12. In order to stabilize distribution no samples shall be 

shown, displays made, or orders taken prior to the following dates: 

(a) For those selling retailers: 

Christmas and New Year Cards, February 15th. 

Valentine and Easter Cards, June 1st. 

Mother's Day and Father's Day, September 1st. 

(b) For those selling jobbers and/ or wholesalers: 

Christmas and New Year items, February 1st. 

Valentine items, February 1st. 

Easter, Mother's Day, and Father's Day items, July 1st. 

( c) For those selling special lines as defined in Article V, Section 2: 

Christmas and New Year items, January 1st. 

Valentine items, January 1st. 

Easter, Mother's Day, and Father's Day items, June 1st. 

(d) For those selling special items and/ or lines to direct sellers: 

No restrictions on showing dates. 

( e) It is the intent of paragraphs (a), (b), ( c), and ( d) immediately preceding that in all cases of mixed distribution where any 

manufacturer or distributor sells to more than one of these classifications he shall conform to the showing dates for such items and lines 

only as prescribed for each classification. For example, any manufacturer selling Christmas items to both jobbers and retailers shall 

not show to retailers prior to February 15th. 

ARTICLE VI-UNFAIR TRADE PRACTICES 

For all purposes of this code the following-described acts shall constitute unfair practices: 

SECTION 1. (a) Piracy of designs originated and used by member 

of the industry is seriously contributing to its present state of disorganization and to the gradual elimination of producing units, with 

consequent reduction in number of employees; further, the continua-
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tion of this practice, by destroying the element of quality of product 

upon which the future of the industry necessarily depends, seriously threatens the very existence of the industry, and reflects a dishonest cost of production. . (b) Within the meaning of this code, any attempt to copy, immitate, or simulate any design, or verse, originated and used by any 

manufacturer is an unfair method of competition and a violation of 

this code. 

SEc. 2. Greeting cards shall be sold outright; any delivery on consignment or with return privilege is a violation of this code, subject 

to Article VII, Section 5. 

SEo. 3. The production and/ or sale of vulgar, indecent, or sacriligious greeting cards is a violation of this code. 

SEc. 4. Any mismarking, misbranding, or misrepresentation of 

merchandise is a violation of this code. 

SEc. 5. Any campaign, concerted action or specifically directed 

effort, act, or conduct, the purpose or intent of which is to cause 

breaches of a competitor's contracts; or inducing or attempting to 

induce a breach of contract between a seller and his customers is a 

violation of this code. 

SEc. 6. To promote, encourage, or carry on, directly or indirectly, 

for or in behalf of any member or members of this industry, any 

campaign or propaganda, designed or intended to create or develop 

ill will or sales resistence against any of the channels of production 

and/ or distribution herein recognized, is a violation of this code. 

SEC. 7. The act of enticing or hiring or attempting to entice or 

hire away the employees of a competitor for the purpose of obtaining 

secret or confidential trade information or otherwise injuring his 

business, is a violation of this code. 

SEC. 8. Making or promising to any purchaser or prospective purchaser of any product or to any officer, employee, agent, or representative of any such purchaser or prospective purchaser, any bribe, 

gratuity, gift, or other payment or remuneration, directly or indirectly is a violation of this code. 

SEC. 9. The payment or allowance of secret rebates, refunds, or 

credits, whether in the f orm of money or otherwise, or extending to 

certain purchasers special services or privileges not extended to all 

purchasers under like terms and conditions is a violation of this 

code. 

SEc. 10. To imr rove labor conditions and to control hours of work 

and rates of wao-e a provided in Article IV, Section 3, of this code, 

the employm nt of workers at home, wh ther directly, throuo-h contractors, or in any other way that would place them b yond the control of ~h J rovision of . ub. tion 3, par agr aph (a ) of S tion 7 f 

th ati nal Inchl trial R cov ry Act i a violation of thi. od . 

. , EC. 11. ny m m ber of th indn try which shall dire tl. r in- d1l' ·tly through any offi r m1 loy , ag nt, or r pr ntatjv u 

<>: C'mplo. any unfair pl'a ti a. d fin 1 in thi oc1 or whi h .'hall 

~H.l or a lJC:t any l' r:on _firm a. so i at ion or oq or, t i n in any un- 1 air pnt<·t1rC" : hall be glllH. oi a vi laLion o:f thi 1 . 

RTI<'LT~ II-, •rr~<'TAL, Pnovr. 10 H 1"0R D1m~ 'T m,LEHS 

, 'r~nHJ. · 1. ThC" <'onqwm,ation to snJc'sp 'r:on.- for th .·oJJal gn•e>ting <·arcls din•<· to the• ·on: 11nwr shall no . r1-
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mum of forty ( 40%) percent of the retail selling price plus trans• 

portation and such percentage shall include any and all bonuses 

and/or premiums to such salespersons. 

SEc. 2. The compensation to salespersons on boxed assortments 

of greeting cards sold direct to the consumer shall not exceed a maximum of forty ( 40%) percent of the retail selling price plus trans• 

portation and said percentage shall include any and all bonuses 

and/or premiums allowed to such persons. 

SEC. 3. The maximum compensation set forth in Sections 1 and 2 

of Article VII does not include a bona fide additional commission 

to subdistributors, but where distribution is effected through such 

subdistributors the maximum of such additional commission shall 

not exceed ten ( 10%) percent of the retail selling price. 

N OTE.-A subdistributor is an agent selling on a commission basis 

who redistributes through ten or more subagents and who pays said 

subagents a portion of his commission. 

SEc. 4.-Publishing rates of commission or profit on greeting card 

sales in advertisements in newspapers or general magazines is a violation of this code. This, however, does not apply to the publication of such data in trade magazines. 

SEc. 5. Nothing in this code i's intended to prevent direct sellers 

from retaining title to merchandise placed in the hands of agents 

for delivery and collection; nor to prevent the return for credit or 

refund of .Christmas merchandise sold to agents; nor is it intended 

to prohibit direct by mail sellers from granting a return privilege. 

ARTICLE VIII-GENERAL PROVISIONS 

SECTION 1. Nothing contained in this code shall be interpreted 

or applied in such a manner as to: 

(a) Promote monopolies. 

(b) Permit or encourage unfair competition. 

( c) Eliminate or oppress small enterprises. 

.. 

( d) Discriminate against small enterprises. 

SEc. 2. To the extent required or permitted under the provi ions 

of Title I of the National Industrial Recovery Act, the provisions 

of this code shall be binding upon every member of the Indu try. 

SEc. 3. Participation in this code and any ub equent revi ion of 

or addition to the code shall be extended to any person, partner hip, 

or corporation manufacturing or distributing gree6ng cards who 

accepts his share of the cost and responsibility, as well a the benefit 

of uch participation. 

SEc. 4. Pursuant to subsection ( c) of Section 10 of the ational 

Industrial Recovery Act, the President may from time to time 

cancel or modify any · order, approval, license, rule, or regulation 

issued under Title I of said Act. 

ARTICLE IX-ADJHil\ISTR.A TIO:X OF THE CODE 

SE TION 1. The administration of the code hall be under the 

<Jirect supervision of the Board of Director of the ational Greet- ing Card A sociation. 

EC. 2. All complaints regarding violation of any provi ion~ of 

this code shall be reported in writing to the afore aid Board of 
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Directors which shall review such complaints, and if necessary 

arrange for an investigating committee of three. One member of 

this committee shall be nominated by the complainant, one by the 

alleged violator, and the third by the Board of Directors. If either 

the complainant and/ or the alleged violator fails to nominate a 

representative for this committee within ten (10) days after written 

notification from the Board, then in such event the Board shall fill 

the vacancy, or vacancies, thus created and the committee thus 

formed shall have full power and authority to act. It shall be the 

duty of this committee to investigate the complaints brought to 

its attention. For the purpose of obtaining necessary information, 

or evidence, this committee may employ auditors, or other agencies, 

and all members of the industry shall be bound by thi.s section of the 

code to cooperate fully, afford access to their records, and otherwise 

carry out the spirit and intent of this provision. If, in the opinion 

of the committee, the complaint is well founded and cannot be 

otherwise adjusted to the entire satisfaction of the Board of Directors, then all evidence shall be turned over to the United States District Attorney in accordance with paragraph ( c) of Section 3 of the 

National Industrial Recovery Act. 

ARTICLE X-DATE EFFECTIVE 

This code shall be in effect immediately upon its approval by the 

President so far as all mandatory provisions of the National Industrial Recovery Act are concerned but its other provisions shall not 

necessarily apply to lines or items already made and/ or sampled such 

as Christmas 1933 and Valentine, Easter, Mother's Day, and/ or 

Everyday items on which sales will continue into 1934. Nor shall 

these other provisions apply to any lines or items produced and 

delivered prior to September 15, 1933, provided, however, that from. 

the elate of approval by the President all new work must conform 

to this code in it entirety. 

ARTICLE XI-AMENDMENTS 

With the approval of the industry thi code may be amended at 

any time. Such amendments shall become effective wh n approved 

by the Pre ident. 

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UNIVERSITY OF FLORIDA 

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