Registry No. 1625-2-02A

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

RETAIL DRUG TRADE

Compilation of provisions relating to the Retail Drug Trade

taken from the Code of Fair Competition

for the Retail Trade

APPROVED BY

PRESIDENT ROOSEVELT

OCTOBER 21, 1933

MEMSSR

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - - Price 5 cents
This publication is for sale by the Superintendent of Documontcs. Government

Printing Office, Washington, D.C., and by district ollices of the Bri i tu of Foreign

and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE E

Atlanta, Ga.: 504 Post Oflice Building.

iirmiiglin, Ala.: 257 Federal Building.

Bost bn, A1ss.: 1801 Customhiuse.

BuffIio, N.Y.: Chamber of Commerce Building.

Charleston, S.C. Chamber of Commeree Builling.

Chiago, 111.: Suite 17(-6, 201 North WVells Stroet.

Clevelnd, Ohio: Cha niber of Conineree.

1DIns. Tex.: Chiznih Wr of Commlerce 1 iiiin!.

DAtroit, Mich.: 2213 First National hank Bu'Iding.

houston, Tex.: Chaimber of Coniueree Buidine.

In idi-1 Hanpolis, 111d.: (hmbillir of COlbmnerce Immi Idiug.

Jac!-onville, Fla.: Chianmbiir of Commer'2 1}ilding.

Kon sas City, fo1.: 1028 Balitimnoro Avelino.

Los Angeles, Clif.: 1163 South 1rnadway.

Louisyille. Ky.: Room 405, 421 West MArket Street.

Memphis, Tenn.: 2(6; South Wat r S ircet.

Milmealohis, Mimn.: 213 Fedrl'n Building.

New O)leans, La.: Room 225-A, Cusomh use.

New Yorik, N.Y.: 734 Customhouse.

Norfolk, Va.: 406 East Plume Street.

Ph ildelphina, Pa.: Room 812. 20 South Fiftenth Street.

Pittsburgh, Pa.: Chamber of Commerce BuiIduing.

Portlha d, Oreg.: 215 New Pu st O ie Iniliding.

St. Louis, Mo.: 5(K; Olive Slreet.

San Francisco. Calif.: 310 Customhouse.

Seattle, Wash.: 1400 Vanee Building.

(II)
EXECUTIVE ORDER

CODE OF FAIR COMPETITION FOR THE RETAIL TRADE

An application having been duly made, pursuant to and in full

compliance with the provisions of title I of the National Industrial

Recovery Act, approved June 16, 1933, for my approval of a Code of

Fair Competition for the Retail Trade, and hearings having been

held thereon and the Administrator having rendered his report containing an. analysis of the said code of fair competition, together

with his recommendations and findings with respect thereto, and

the Administrator having found that the said code of fair competition complies in all respects with the pertinent provisions of title I

of said act and that the requirements of clauses (1) and (2) of subsection (a) of section 3 of said act have been met;

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the

United States, pursuant to the authority vested in me by title I of

the National Industrial Recovery Act, approved June 16, 1933, and

otherwise, do adopt and approve the report, recommendations. and

findings of the Administrator and do order that the said code of

fair competition be and is hereby approved.

FRANKLIN D. ROOSEVELT.

THE WHITE HousE,

October 01, 1933.

Approval recommended:

HUGH S. JOHNSON,

Administrator.

18S76*-188-159-33
EXECUTIVE ORDER

In order to effectuate the policy of title I of the National in(lustrial

Recovery Act, approved June 16, 19."3, and to provide for equitable

enforcement uf :greemens heretofore made with the Presiden t and

codes appro-ved Iby the President under said act, I, Fra inklin D.

Roosevelt, President of the United States, pursuant to the authority

vested in me by title I of said National Industrial Recovery Act,

hereby prescribe the following rules and regulations which shall have

the effect of modifying any inconsistent provisiolis of any order,

approval, riule or regulation heretofore issued under title I of said act.

1. The provisions of the President's reemployment agreed lent,

issued July 27, 1933, shall not be held to apply to employers engaged

only locally in retail trade or in local service industries (and not in

a business in or affecting interstate connerce) who do not employ

more than five persons and who are located in towns of less than

2,5010 population (according to the 1930 Federal census) which are

not in the imnmediate trade area of a city of larger population, except

so far as such employers who have signed the President's reemployment agreement desire to continue to comply with the terms of said

agreement after the date of this order; and this release of such employers who have heretofore signed the President's reemployment

agreement shall be further extended so as to release to the same extent

all such employers of obligations not voluntarily assumed under the

provisions of a code of fair competition approved by the President.

This exemption is intended to relieve small business enterprises in

small towns from fixed obligations which might impose exceptional

hardship, but it is expected that all such enterprises will conform to

the fullest extent possible with the requirements which would be

otherwise obligatory upon them.

2. In view of general increases in prices which may or may not be

justified in specific instances by increased costs caused by compliance

with the President's reemployment agreement, or with approved

codes of fair competition, the Administrator for Industrial Recovery

is hereby directed to cause to be conducted such investigations as may

be necessary to determine the extent to which manufacturers and

producers have increased prices following, or in anticipation of, the

approval of codes of fair competition, or after the signing of the

President's reemployment agreement, and to set up adequate organizations for the handling of complaints against such price increases

and of local complaints against retail price increases alleged to be

contrary to the requirements of codes of fair competition, or the

President's reemployment agreement, or in conflict with the policy

of the National Industrial Recovery Act.

FRANKLIN D. ROOSEVELT.

THE WHITE HOUSE,

October 23, 1933.

(IV)
CODE OF FAIR COMPETITION FOR THE RETAIL DRUG TRADE

[ARTICLE I.] DEFINITIONS

[SECTION 1.] Retail drug trade.-The term " retail drug trade " as

used herein shall mean all selling to the consumer and not for the

purpose of resale in any form ot drugs, medicines, cosmetics, toilet

preparations, drug sun dries, and/or allied items, in the continental

United States excluding the Panama Canal Zone. It is provided, however, that the term " retail drug trade " shall not include the

dispensing of drugs, medicines, and medical supplies by a physician, dentist, surgeon, or veterinarian in the legitimate practice of his

profession.

[SECTIoN 2.] Drug retailer.-The term " drug retailer " as used

herein shall mean any individual or organization engaged wholly or

partially in the retail drug trade.

[SECTION 3.1 Retail drug establisvnent.-The term " retail drug

establishment ' as used herein shall mean any store or department

of a store engaged in the retail drug trade, but shall not include

stores or departments in which the principal business is the selling

at retail of products other than drugs, medicines, cosmetics, toilet

preparations, drug sundries, and/or allied items.

[SECTION 4.] Drugs.-The term " drug " as used herein shall mean

all medicinal substances and preparations recognized in the United

States Pharmacopoeia and National Formulary or any supplements

thereto, and all substances and preparations intended for external

or internal use in the cure, mitigation, treatment, or prevention of

disease in man or other animals, and all substances and preparations

other than food (but including medicinal or quasi-medicinal preparations, such as those sold or produced primarily for their vitamin

content), intended to affect the structure or any function of the body

of man or other animals.

[SECTioN 5.] Cosmetics and toilet preparationm.-The term " cosmetics " and the term "toilet preparations " as used herein shall

mean toilet articles and perfumes, toilet waters, face powders, face

creams, rouges, shaving creams, dentifrices, soaps, and similar substances and preparations designed and intended for application to

the person for the purpose of cleansing, improving the appearance

of, refreshing or preserving the person.

[SEcTioN 6.] Drug sundTie.-The term " drug sundries " as used

herein shall mean such articles as are used in conjunction with but

not included in " drugs "1, " cosmetics ", or " toilet preparations ".

[SECTION 7.j Registcred pharmacist, a.sitant pharmaci.st, apprentice pharmacvt.-The terms " registered pharmacist " "assistant

pharmacist ", and " apprentice pharmacist ", as used herein shall

have the meaning given to them under the laws of the respective

states of the United States and of Alaska.

(1)
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[SECTIN 8.1 Curb boys or girls.-The term " curb boys or girls"

as used herein shall mean employees engaged exclusively in serving

curb customers.

[S:CT1'oN 9.] Employee.-The term " employee" as used herein

shall m11an any person employed by any retailer but shall not include

pe'sions employed principally in the selling at retail of products not

included within the definition of retail trade.

SECTION 10.] Definitions of personel.-(a) Executive: The term

executive " as used herein shall mean an employee responsible for

the management of a business or a recognized subdivision thereof.

(b) Professional person: The term " Professional person " as used

herein shall mean lawyers, doctors, nurses, research technicians, advertising specialists, and other persons engaged in occupations requiring a special discipline and special attainments.

(c) Outside salesmen: The term " outside salesmen " as used herein

shall mean a salesman who is engaged not less than sixty (60) perceiK (0 his working hours outside the establishment, or any branch

thereof, by which he is employed.

(d) Outside collector: The term "outside collector " as used herein

shall mean a collector of accounts who is engaged not less than sixty

(60) percent of his working hours outside the establishment, or any

branch thereof, by which he is employed.

(e) Watchmen and guards: The terms " watchmen " and " guards"

as used herein shall mean employees engaged primarily in watching

and safeguarding the premises and property of a retail establishment.

(/) Store detective: The term "store detective" as used herein

shall mean an employee engaged exclusively in detective work.

(g) Maintenance employee: The term " maintenance employee " as

used herein shall mean an employee essential to the upkeep and/or

preservation of the premises and property of a retail establishment.

(h) Outside service employee: The term "outside service employee " as used herein shall mean an employee engaged primarily

in delivering, installing, or servicing merchandise outside the establishment, and shall include stable and garage employees.

(i) Junior employee: The term " junior employee " as used herein

shall mean an employee under eighteen (18) years of age. (j) Apprentice employee: The term " apprentice employee" as

used herein shall mean an employee with less than six (6) months'

experience in the retail trade.

(k) Part-time employee: The term " part-time employee " as used

herein shall mean an employee who works for less than the maximum

work week.

[SECTION 11.1 South.-The term " South " as used herein shall

mean Virginia, West Virginia. Maryland, North Carolina, South

Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, New Mexico, Texas, and the

District of Columbia.

[SECTioN 12.] Population.-Population shall be determined by reference to the Fifteenth Census of the United States (U.S. Department of Commerce, Bureau of Census, 1930).
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[ARTICLE II.] EFFECTivE DkTE

The effective date of this Code shall be the second Monday after

its approval by the President of the United States.

[ARTICLE III.] GENERAL LABOR PROVISIONS

[SECTION 1.] Collective bargaining.-(a) Employees shall have the

right to organize and bargain collectively through representatives

of their own choosing, anJ 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.

(b) 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.

(c) Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President.

[SECTION 2.] Child labor.-On and after the effective date of this

Code, no person under the age of sixteen (16) years shall be employed, except that persons fourteen (14) and fifteen (15) years of

age may be employed either-

(a) for a period not to exceed three (3) hours per day on six

(6) days per week, or

(b) for one day per week, such day not to exceed eight (8)

hours.

In either case, all such hours of work shall be between 7 A.M. and

7 P.M. and shall not conflict with the employee's hours of day school.

It is provided, however, that no person under the age of sixteen (16)

years shall be employed in delivering merchandise from motor

vehicles.

It is further provided that where a State law prescribes a higher

minimum age no person below the age specified by such State law

shall be employed within such State.

[ARTICLE IV.] STORE HOURs AND HOURS OF LABOR

[SECTION 1.] Basic store and working hours.-On and after the

effective date of this Code establishments in the retail trade shall

elect to operate upon one of the following schedules of store hours

and hours of labor:

Group A.-Any establishment may elect to remain open for

business less than fifty-six (56) hours but not less than fiftytwo (52) hours per week, unless its store hours were less than

fifty-two (52) hours prior to June 1, 1933, in which case such

establishment shall not reduce its store hours: no employee of

these establishments shall work more than forty (40) hours

per week, nor more than eight (8) hours per day, nor more

than six (6) days per week.

Group B.-Any establishment may elect to remain open for

business fifty-six (56) hours or more per week but less than
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sixty-three (63) hours per week; no employee of such establishment shall work more than forty-our (44) hours per

week, nor more than nine (9) hours per day, nor more than

six (6) days per week.

Group C.-Any establishment may elect to remain open for

business sixty-three (63) hours or more per week; no employee of such establishment shall work more than forty-eight

(48) hours per week, nor more than ten (10) hours per day,

nor more than six (6) days per week.

Group D.-In place of any of the schedules of store hours

and hours of labor set forth [above], retail drug establishments may elect to remain open for business seven (7) days a

week for a total of eighty-four (84) hours or more per week,

but on no day for less than eight (8) hours; no employee of

such establishment, except as provided [below], shall work

more than fifty-six (56) hours per week, nor more than ten

(10) hours per day, nor more than thirteen (13) days in any

two consecutive weeks.

No employee shall work for two or more establishments a greater

number of hours, in the aggregate, than he would be permitted to

work for that one of such establishments which operates upon the

lowest schedule of working hours.

No employee not included in the foregoing paragraphs, and not

specifically excepted hereinafter, shall work more than forty (40)

hours per week, nor more than eight (8) hours per day, nor more

than six (6) days per week.

[SmEToN 2.] Sclwdvle of hours to be posted.-On or within one

week after the effective date of this Code every retail establishment

shall designate under which of the Groups set forth in the preceding

Section it elects to operate and shall post and maintain in a conspicuous place in the establishment a copy of such election showing its

store hours and employee working hours.

[SECT1ON 3.] Changes in store hours and employee working

hor5s.-

(a) No establishment may change from the Group in which it has

elected to operate except upon December 31 of every year.

(b) Any establishment, however, may at any time increase its

store hours, provided it maintains the basic employee work week of

the Group in which it originally elected to operate.

(e) Any establishment may, for a period not to exceed three (3)

months during the Summer, temporarily reduce its store hours, but

the weekly wages of its employees shall not on that account be

reduced.

[SECTION 4.] Exreptions to maxrmum periods of labor.-

(a) Professional persons, on tside salesmen, outside collectors,

watchmena, guards, and store detrctiz'es.-The maximum periods of

labor prescribed in Section 1 of this Article shall not apply to professional persons employed and working at their profession, or to

outside salesmen, outside collectors, watchmen, guards, and store

detectives.

(b) Maintenan ce and outside ser ice employees.-The maximum

periods of labor prescribed in Section 1 of this Article shall not

apply to maintenance and outside service employees; but such em-
5

ployees shall not work more than six (6) hours per week above the

maximum hours per week otherwise prescribed by Section L unless

they are paid at the rate of time and one-third for all hiotirs over

such additional six (6) hours per week.

(c) Executives.-Subject to the conditions set forth in Section 5

of this Article, executives receiving $35.00 or more per week in cities

of over 500,000 population, or receiving $:0.00 or more per week in

cities of 100,000 to 500,000 population, or receiving $27.50 or more

per week in cities of 25,000 to 100,000 population, or receiving $25.00

or more per week in cities, towns, villages, and other places ider

25,000 population, may work in excess of the maximumn periods of

labor prescribed in Section 1 of this Article. In the South executives paid not less than ten (10) per cent below the wages just

specified may work in excess of such maximum periods.

(d) Peak periods.-At Christmas, inventory, and other peak

times, for a period not to exceed two (2) weeks in the first six (6)

months of the calendar year and not to exceed three (3) weeks in

the second six (6) months, an employee whose basic work week is

forty (40) hours may work not more than forty-eight (48) hours

per week and nine (9) hours per day; an employee whose basic work

week is forty-four (44) hours may work not more than fifty-two

(52) hours per week and nine and one-half (912) hours per day; an

employee whose basic work week is forty-eight (48) hours may work

not more than fifty-six (56) hours per week and ten (10) hours per

day. All such work may be without'the payment of overtime.

[e] Exception in case of plarmacists.-The maximum hours of

labor prescribed [in Section 1 of this Article] shall not apply to

registered pharmacists, assistant pharmacists, and apprentice phlarmacists, employed and working as such, who may work ten (10) percent above the maximum hours otherwise applicable, or more in cases

of emergency.

[SECTION 5.] Limitation upon iunber of persons working mnre-

.3tricted hours.-Notwithstanding the provisions of the foregoing

sections of this Article, and regardless of the number of persons

otherwise permitted to work unrestricted hours, the total number of

workers in any establishment (whether such workers are executives, proprietors, partners, persons not receiving monetary wages, or others) who shall be permitted to work unrestricted hours shall not

exceed the following ratio: In establishments comprised of twenty

(20) workers or less the total number of workers who may work

unrestricted hours (not including those workers specified in Section

4 (a) of this Article) shall not exceed one worker for every five (5)

workers or fraction thereof; in establishments comprised of more

than twenty (20) workers the total number of workers who may

work unrestricted hours (not including those workers specified in

Section 4 (a) of this Article) shall not exceed one worker for every

five (5) workers for the first twenty (20) workers, and shall not

exceed one worker for every eight (8) workers above twenty (20).

[SECTION 6.] Hours of work to be consecutive.-The hours worked

by any employee during each day shall be consecutive, provided that

an interval not longer than one hour may be allowed for eaich regular meal period, and such interval not counted as part of the em1-876 0-188-199-33-2
6

ployee's working time. Any rest period which may be given employees shwll not be (ledticted from such employee's working time.

[S( rm d 7.1 Fitra wo,' hour on one day a week.-On one day

each week CmIployes mIay work one extra hour, but such hour is to

b e incl ded within the mnaximmui hours perimitted each week.

[S: ,'TiON 8.] Co)ifict tth Strate lawis.-Wlhen any State law preseribIes for any class of employees shorter hours of labor than those

prescribed in this Article, no employee included within such class

shall be emIployed within such State for a greater number of hours

than such State law allows.

[ARTICLE V.] WAGES

[Siruox 1.1 Basic rhcadiles of iwages.-On and after the effective

date of this Code, the mininun weekly rates of wages which shall be

paid for a work week as specified in Article V-whether such wages

are calculated upon an hourly, weekly, monthly, commission, or any

other basis-shall, except as hereinafter provided, be as follows:

(a) 11ith in cities of over 500,000 population, no employee shall be

paid less than at the rate of $14.00 per week for a forty (40) hour

work week, or less than at the rate of $14.50 per week for a fortyfour (44) hour work week, or less than at the rate of $15.00 per

week for a forty-eight (48) hour work week.

(1) Vithn cities of from 100,000 to 500,000 population, no employee shall be paid less than at the rate of $13.00 per week for a

forty (40) hour work week, or less than at the rate of $13.50 per

week for a forty-four (44) hour work week, or less than at the rate

of $14.00 per week for a forty-eight (48) hour work week.

(C) Within cities of from 25,000 to 100,000 population, no emPloyee sball be paid less than at the rate of $12.00 per week for a

forty (40) hour work week, or less than at the rate of $12.50 per week

for a forty-four (44) hour work week, or less than at the rate of

$13.00 per week for a forty-eight (48) hour work week.

(d) Within cities, towns, villages of from 2,500 to 2-5,000 poputlation, the wag-es of all classes of employees shall be increased from the

rates existing on June 1, 1933, by not less than twenty (20) percent,

provided that this shall not require an increase in wages to more

than the rate of $11.00 per week and provided further that no employee shall be paid less than at the rate of $10.00 per week.

(e) 11ith in towns, villages, and other places with less than 2,500

population, the wages of all classes of employees shall be increased

from the rates existing on June 1, 1933, by not less than twenty (20)

percent, provided that this shall not require an increase in wages to

more than the rate of $10.00 per week.

1f Baic rates for retal drag establishments electing to operate

J? (irovp D.-No employee of a retail drug establishment which has

elected to operate in Group D as set forth above, shall, except as proviled in [Sections 2 and 3 of this Article], be paid for a fifty-six

(56) hour work week less than at the rate of $16.00 per week in cities

of over 500.000 population, or less than at the rate of $15.00 per week

in cities of from 100,000 to 500,000 population, or less than at the

rate of $14.00 per week in cities of from 25,000 to 100,000 population;

in cities, towns, and villages of from 2,500 to 25,000 population, the
7

wages of all classes of employees of such establislbnients sh,ll be increased from the rates existing on Jine 1, 1933, by not les than

twenty (20) percent, provided that this shall not reqitire an Increase in wages to more than the rate of $11.00 per wekA, and provided further that no employee shall be paid less than at the rate of

$10.00 per week; in towns, villages, alnd other 11 places withI less tiamn

2,500 population, the wages of all classes of employees of such establishinents shall be increased from the rates existing on Jine 1, 1933,

by not less than twenty (20) percent, provided that tis shall not

require an increase in wages to more than the rate of $10.0( per week.

The minimum wages paid to professional persons, outside salesmen, outside collectors, watchmen, guards, store detectives, and maintenance and outside service employees shall be upon the basis of the

basic employee work week upon which the establishment by which

they are employed has elected to operate.

The mininuin wages of any eiployee not included in the foregoing paragraphs and not specifically excepted hereinafter shall be

upon the basis of a forty (40) hour work week.

[SECTION 2.] Juniors and appientiCes.-Junior and apprentice employees may be paid at the rate of $1.00 less per week than the

minimum wage otherwise applicable; it is provided, however, that

no employee shall be classified both as a junior and as an apprentice

employee, and it is further provided that the number of employees

classified as junior and as apprentice employees, combined, shall not

exceed a ratio of one such employee to every five employees or fraction thereof up to twenty (20), and one such employee to every ten

(10) employees above twenty (20).

Exception for establishments employing curb boys or girls.-The

minimum wages prescribed [above] may not apply to curb boys or

girls employed by retail drug establishments when such employees

are paid upon a commission basis.

[SECTION 3.] Southern wage dilferential.-In the South, within

cities of over 25,000 population, the minimum wages prescribed in the

foregoing sections may be at the rate of $1.00 less per week; within

cities, towns, and villages of from 2,500 to 25,000 population the

wage of all classes of employees shall be increased from the rates

existing on June 1, 1933, by not less than twenty (20) percent, provided that this shall not require an increase in wages to more than

the rate of $10.00 per week, and provided further that no employee

shall be paid less than at the rate of $9.00 per week except as provided in Section 2 of this Article; within cities, towns, villages, and

other places under 2,500 population the wages of all classes of employees shall be increased from the rates existing on June 1. 1933,

by not less than twenty (20) percent, provided that this shall not

require an increase in wages to more than the rate of $9.00 per week.

[SECTION 4.] Part-time employees.-Part-tinie employees shall be

paid not less than at an hourly rate proportionate to the rates prescribed in the foregoing sections of this Article.

[SECTION 5.] Weekly wages abore rinun m not to bi red'urd.-

The weekly wages of all classes of employees receiving more than the

minimum wages prescribed in this Article shall not be reduced

from the rates existing upon July 15, 1933. notwithstanding any reduction in the number of working hours of such employees.
8

[SECTION 6.1 (onf/ict with State laws.-When any State law pre- scribes for any class of employees of either sex a higher minimum

wage than that prescribed in this Article, no employee of such class

of either sex employed within that State shall be paid less than such

state law re(luires.

[A'riC'u:E VI.] LIMITATIONS UPON PRICE INCREASES; PRIOR

CONTRACTS

[SEcTIoN 1.] LiMiafown UPO)O price increass.-No retailer shall

iiciease the price of any merchandise sold after the effective date of

this Code over the price existing June 1, 1933, by more than is made

necessary bv the amount of increases In protdIction, operating, replacement, and/or invoice costs of merchandise, and/or by taxes or

other costs resulting from action taken pursuant to the National

Industrial Recovery Act and/or the Agricultural Adjustment Act

since Junie 1, 1933, and in setting such price increases retailers shall

give ill weight to probable increases in sales volume. It is provided, however, that, if any price on June 1, 1933, was a distress

price, an equitable adjustment may be made.

[SECTION 2.] 4d)jistment o/ prior contracfs.--Vhere costs of executing contracts entered into before June 16, 1933, by any retailer for

the pllrchase of goods at fixed prices for delivery during the duration of this Code are increased by the al)plication of the provisions

of the National Industrial Recoverv Act and/or the Agricultural

Adjustment Act, it is deemed equitable and promotive of the purposes of the Act that appropriate adjustments of such contracts to

reflect such increased costs actually incurred be arrived at by mutual

agreement or arbitral proceedings or otherwise, and the National

Retail Trade Council provided for in Article I hereinafter is constituted an agency to assist in effecting such adjustments.

[ARTICLE VII.] Loss LIMITATION PROVISION

[SECTION 1.] Loss Nimitation. pr'ovis4on.-In order to prevent unfair competition against local merchants, the use of the so-called " loss

leader is hereby declared to be an unfair trade practice. These

loss leaders " are articles often sold below cost to the merchant for

the purpose of attracting trade. This practice results, of course,

either in efforts by the merchant to make up the loss by charging

more than a reasonable profit for other articles, or else in driving

the small merchant with little capital out of legitimate business. It

works back against the producer of raw materials on farms and in

indtistry and against the labor so employed.

1. This declaration against the use of " loss leaders " bv the storekeeper does not prohibit him from selling an article without any

pro1it to himself. But the selling price of articles to the consumer

shomild include an allowance for actual wages of store labor, to be

fixed and published from time to time by the Trade Authority hereinafter established.

2. Such an allowance for labor need not be included in the selling

price of any article of food, or be applied by storekeepers doing business 0uV in communities of less than 2,500 population (according to

the 1930 Census) which are not part of a larger trade area.
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Prorlded, however, That any retailer may sell any article of merchandise at a price as low as the price set by any competitor in his

trade area on merchandise which is identical or essentially the same, if such competitor's price is set in conformity with the foregoing provision. A retailer who thus reduces a price to meet a competitor's

price as above defined shall not be deemed to have violated the provisions of this section if such retailer immediately notifies the nearest

representative retail trade organization of such action and all facts

pertinent thereto.

[SECTION 2.] Eceptions.-(a) Nothwithstanding the provisions of

the preceding Section, any retailer may sell at less than the prices

specified above, merchandise sold as bona fide clearance, if advertised, marked, and sold as such ; highly perishable merchandise, which

must be promptly sold in order to forestall loss; imperfect or actually

damaged merchandise, or bona fide discontinued lines of inerchandise, if advertised, marked, and sold as such; merchandise sold upon

the complete final liquidation of any business; merchandise sold in

quantity on contract to public carriers, departments of government, hospitals, schools and colleges, clubs, hotels, and other institutions,

not for resale and not for redistribution to individuals; merchandise

sold or donated for charitable purposes or to unemployment relief

agencies; and drugs or drug sundries sold to physicians, nurses, dentists, veterinarians, or hospitals.

(b) Nothing in the provisions of the preceding Section shall be

construed to prevent bona fide farmers' associations engaged in purchasing supplies and/or equipment for their membership from makingp atronage refunds to their membership.

(c) Where a bona fide premium or certificate representing a share

in a premium is given away with any article the base upon which

the minimum price of the article is calculated shall include the cost

of the premium or share thereof.

[ARTICLE VIII. TRADE PRACTICES

All retailers shall comply with the following trade practices:

[SECTION 1.]A dvertising and selling methods.-(a) No retailer

shall use advertising, whether printed, radio, or display or of any

other nature, which is inaccurate in any material particular or misrepresents merchandise (including its use, trade-mark, grade, quality, quantity, size, origin, material, content, preparation, or curative or

therapeutic effect) or credit terms, values, policies, or services; and

no retailer shall use advertising and/or selling methods which tend to

deceive or mislead the customer.

(b) No retailer shall use advertising which refers inaccurately in

any material particular to any competitor or his merchandise, prices,

values, credit terms, policies, or services.

(c) No retailer shall use advertising which inaccurately lays

claim to a policy or continuing practice of generally underselling

competitors.

(d) No retailer shall secretly give anything of value to the employee or agent of a customer for the purpose of influencing a sale,

or in furtherance of a sale render a bill or statement of account to

the employee, agent, or customer which is inaccurate in any material

particular.
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(e) No retailer shall place obstacles in the way of the purchase of

a product which a consumer orders by brand name by urging upon

the consumer a substitute product in a manner which disparages the

product ordered.

[/] No drug retailer shall substitute another article or any part

thereof for the kind ordered, without due notice to and consent of

the customer.

[g] No drug retailer shall advertise to fill prescriptions at a uniform price irrespective of cost of ingredients or quantity prescribed.

[h] No drug retailer shall permit any demonstrator or sales employee, whose salary is wholly or partially paid by a manufacturer

or distributor, to work in his establishment unless such demonstrator

or sales employee is clearly and openly identified as the agent of such

manufacturer or distributor.

[SECTIoN 2.] NRA label.-No retailer shall purchase, sell, or exchange any merchandise manufactured under a Code of Fair Competition which requires such merchandise to bear an NRA label, unless

said merchandise bears such label. Any retailer rightfully possessing the insignia of the NRA who has in stock or purchases similar merchandise which has been manufactured before the effective

date of the Code of Fair Competition requiring such merchandise to

bear an NRA label may attach thereto the NRA insignia.

[SECTION 3.] Prison-made good.-Pending the formulation of a

compact or code between the several States of the United States to

insure the manufacture and sale of prison-nade goods on a fair competitive basis with goods not so produced, the following provisions of

this Section will be stayed for ninety (90) days, or further at the

discretion of the Administrator:

(a) Where any penal, reformatory, or correctional institution

either by subscribing to the code or compact hereinbefore referred

to, or by a binding agreement of any other nature, satisfies the

Administrator that merchandise produced in such institution or by

the inmates thereof will not be sold except upon a fair competitive

basis with similar merchandise not so produced, the provisions of

paragraph (b) hereof shall not apply to any merchandise produced

in such manner in the institutions covered by such agreement.

(b) Except as provided in the foregoing paragraph, no retailer

shall knowingly buy or contract to buy any merchandise produced

in whole or in part in a penal, reformatory, or correctional institution. After May 31, 1934, no retailer shall knowingly sell or offer

for sale such merchandise. Nothing in this Section, however, shall

affect contracts, which the retailer does not have the option to cancel,

made with respect to such merchandise before the approval of this

Code by the President of the United States.

(c) Nothing in this Section shall be construed to supersede or

interfere with the operation of the Act of Congress approved Januarv 19, 1929, being Public No. 669 of the 70th Congress and entitled "An Act to Divest Goods, Wares, and Merchandise Manufactured, Produced or Mined by Convicts or Prisoners of their Interstate Character in Certain Cases ", which Act is known as the

Hawes-Cooper Act, or the provisions of any State legislation enacted under, or effective upon, the effective (late of the said HawesCooper Act, the said effective date being January 19, 1934.
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[SEcTIoN 4.] Company scrip.-The following provisions of this

Section shall not become effective until March 1, 1934. Pending such

effective date the Administrator shall appoint a Connittee of not

more than three persons to investigate the economic and social implications of these provisions. Said Cominittee may make recommendations, based upon its investigations, and such recommendations

shall, upon approval by the President of the United States, become

effective in the place of these provisions:

(a) No retailer shall accept as payment for inerchandise any nonnegotiable scrip, company checks, or other evidence of wage payment

issued by any individual or private profit organization in payment

of wages or as an advance upon unearned wages. A negotiable

instrument issued by any individual or private profit organization in

payment of wages shall be accepted only if it is payable in cash

within one month of the date of issue. This paragraph shall not

apply in cases where the cash funds of any individual or organization are rendered temporarily unavailable due to the closing by

state or federal order of the bank in which such funds are deposited.

(b) No retailer shall extend credit in the form of goods, money, or

services to any person other than its own employees engaged exclusively in the retail trade, upon any employer's guarantee of part

or all of said person's future wages, or pursuant to a wage-deduction

arrangement entered into with said employer, unless an identical

guarantee or wage-deduction arrangement is available to all retailers.

[AnTICLE IX.] ADMINISTRATION

[SEcTIoN L.] Retail Drug Trade Authority.-The Retail Drug

Trade Authority shall consist of the Administrator or his deputy,

and three members appointed by the President of the United States,

who shall advise and assist the Administrator or his Deputy. Members of the Retail Drug Trade Authority shall be members, without

vote, of the National Retail Drug Trade Council, provided for

hereinafter.

[SECTION 2.] National Retail Drug Trade Counil.-(a) Composition.-The National Retail Drug Trade Council shall consist of

one representative from the American Pharmaceutical Association,

one representative from the Drug Institute of America, Incorporated, two representatives from the National Association of Retail

Druggists, and such representation from any national association of

the retail drug trade as may be approved by the Administrator.

Such representatives shall be elected, in accordance with a fair

method approved by the Administrator, by the respective national

trade associations.

(b) General powers.-The National Retail Drug Trade Council

shall in addition to the specific powers herein conferred, have all

general powers necessary to assist the Administrator or his deputy

in the administration and enforcement of this Code insofar as it

relates to the retail drug trade.

(c) Reports and investigations.-The National Retail Drug Council shall, subject to the approval or upon the request of the Administrator, require from all drug retailers such reports as are necessary

to effectuate the purposes of this Code insofar as it relates to the
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retail drug trade, and may, upon its own initiative or upon cornplaint of any person allected, make investigation as to the functioning and observance of any provisions of the Code relating to the

retail drug trade and report the results of such investigation to the

A dministrator.

(d) Rccommendations.-The National Retail Drug Trade Council may from time to time present to the Administrator recoinmendations (including interpretations), based on conditions in the

retail dru(g trade, which will tend to effectuate the operation of the

provisions of this Code, and the policy of the National Industrial

Recovery Act. Such recommendations shall, upon approval by the

Administrator, become operative as part of this Code.

(e) Local comm ittces.-The National Retail Drug Trade Council

shall, subject to the approval of the Administrator, supervise the

setting lip within local trading areas of local committees for the purpose of assisting in the administration and enforcement of this Code

within such local areas insofar as it relates to the retail drug trade.

(f) Expenses.-The expenses of the National Retail Drug Trade

Council shall be equitably assessed and collected by the Council, subject to the approval of the Administrator.

[SECTION 3.] fvterpretations.-The Administrator may from time

to time, after consultation with the National Retail Drug Trade

Council, issue such administrative interpretations of the various provisions of this Code relating to the retail drug trade as are necessary

to effectuate its purposes, and such interpretations shall become operative as part of this Code unless the Administrator shall otherwise

specify.

[SECTION A.] Exceptions in cases of unusual or undue hardsip.-

Where the operation of the provisions of this Code imposes an unusual or undue hardship upon any drug retailer or group of drug

retailers, such drug retailer or group of drug retailers may make

application for relief to the Administrator or to his duly authorized

agent, and the Administrator or his agent may, after such public

notice and hearing as he may deem necessary, grant such exception

to or modification of the provisions of this Code as may be required

to effectuate the purposes of the National Industrial Recovery Act.

[ARTICLE X.] GENERAL

[SECTION 1.1 Membership in associations.-Membership in the national retail associations represented upon the National Retail Trade

Council, or in any affiliated associations, shall be open to all retailers

of that portion of the retail trade which said associations respectively represent and said associations shall impose no inequitable

restrictions upon admission to membership therein.

[SECTION 2.] Information to be fur7nished GovrnmenIt Agencies.-

In addition to information required to be submitted to the National

Retail Trade Council, there shall be furnished to Government agencies such statistical information as the Administrator may deem

necessary for the purposes recited in Section 3 (a) of the National

Industrial Recovery Act.

[SECTioN 3.] Prohibition against monopolies.-The provisions of

this Code shall not be interpreted or applied to promote monopolies
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or monopolistic practices or to eliminate or oppre s small enterprises

or to discriminate against them.

[SECTION 4.] Fi ohlb i tio a abnst use Of sub1citaie.-No retailer

shall use any subterfuge to frustrate the spirit and intent of this

Code, which is, among other things, to increase employment by

universal covenant, to remove obstructions to conmiece, to shorten

hours of work, and to raise wages to a living basis.

[SECTION 5.] Right of P'(8ide'nt to can ci o modify.-This Code

and all the provisions thereof are expressly made subject to the right

of the President, in accordance with the provisions of Section 10 (b)

of Title I of the National Industrial Recovery Act, from time to

time, to cancel or modify any order, approval, license, rule, or regulation, issued under Title I of said Act.

[SECTION 6.] 111odifications and supplcMicntary 1Ocisiors.--Such

of the provisions of this Code as are not required to be included

herein by the National Industrial Recovery Act may, with the approval of the President, be modified or eliminated as changes in conditions or experience may indicate. It is contemplated that from

time to time supplementary provisions to this Code or additional

Codes will be submitted for the approval of the President to prevent

unfair competitive practices and to effectuate the other purposes and

policies of Title I of the National Industrial Recovery Act.

[SECTION 7.] Expiration.-This Code shall continue in effect until

June 16, 1935, or the earliest date prior thereto on which the President shall by proclamation, or the Congress shall by joint resolution

declare that the emergency recognized by Section 1 of the National

Industrial Recovery Act has ended.

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UNIVERSITY OF FLORIDA

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