314A-l 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE I 

RETAIL DRUG INDUSTRY 

AS REVISED AUGUST 26, 1933 

REGISTRY No. 1-98-2-21 

The Code for the Retail Drug Industry in its present form merely re-fleets 

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 

Administration as applying to this industry 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

CODE OF FAIR COMPETITION FOR THE RETAIL DRUG 

TRADE 

AS REVISED AUGUST 26, 1933 

To effectuate the policy of Title I of the National Indu trial Recovery Act, the following provisions a re established as a Code of 

Fair Competition for the retail Drug Trade. 

ARTICLE I 

SECTION 1. Application of th Code.-The provisions of thi · code 

~hall apply to any individual or organization engaged in the elling 

at retail of drug , medicines, cosmetics, toilet preparation ·, and drug 

sundries. 

SEc. 2. Definitions.-( a) The term "Drug" means and includes 

all medicinal substances and preparations recognized in the United 

States Pharmacopeai and National Formulary or any supplements 

thereto and all substances, preparations, and device · 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 qua i-medicinal 

preparations, such as those sold or produced primarily for their 

vitamin content) and all devices intended to affect the structure or 

any function of the body of man or other animals. 

(b) The term "co~metics" and the term "toilet preparation '' 

mean and include '· toilet article · " and perfume , extracb, toilet 

waters, face powders, face cream., rouges, shaving cream·, dentifrice ~, perfumes, soap , and similar substances and preparation.- designed and intended for application to the person for the purpo:-:e of 

cleansing, improving the appearance of, refreshing, or pre.-erving 

the person. 

( c) The term "drug sundrie · ' hall include uch articles u~ed in 

conjunction with but not included in the words "drug~· ' . "co - metic ", or toilet preparations." 

( cl) The term " Drug Store ' or "Pharmacy" mean.· a retail 

establishment primarily engaged in the busine ·s of compounding and 

clispen. ing physician ·' pr .-cription,. an l the ·elling of drugs, medicines, ·hemicals, and allied item · and which place of bnsine .. s hall 

at all times be under the direct and personal ·uperYision of one or 

more regi tered pharmaci .. L. 

( e) The term "Regi terecl Pharmaci t" ha the ignificance giYen 

it uncler the law of the respective State or Territorie of the United 

tates. 

( f) The term '· a. ·si. tant pharmacist " ha the ·ignificance gi yen 

it under the laws of the re pective States or Territorie of the United 

State . 

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RTICLE II-EFFE TI E DATE 

The ff tiv date of this cod hall be ten (10) day after it .approval b the Pr id nt of the United States. 

RTI LE III-L BOR PROV! IO T 

E TI 1. All employ r in the retail Drug trad hall comply 

with the followino· provi ions of Section 7 (a) of Title I of th 

National In lu trial R overy Act. 

(a) Employees hall have the right to organize and baro-ain collecti el r throuo·h repre entativ s of th ir own choo ing and hall b 

free fr01n the inter£ rence , restraint, or coercion of mployer of 

labor or their agents, in the de ignation of such repre entativ . or in 

self-organization or in other concerted activities for the purpo e of 

collective baroainin<Y or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required a a condition of employment to join any company union or 

to refrain from joining, organizinO', or assisting a labor oro-anization 

of his own choo ing. 

( c) Employers shall comply with the maximum hours of labor 

minimum rates of pay, and other condition of employment, approved 

or prescribed by the President. 

SEc. 2. On and after the effective date of this Code, no per on 

under the age of sixteen years shall be mployed by any member of 

the retail Drug trade, except that persons between fourteen and 

sixteen may be employed for not to exceed three hour per day, and 

these hours between 7 a.m. and 7 p.m., in such work a will not 

interfere with the hours of day school; it is provided, however that 

where a State law prescribes a higher minimum age, no employer 

shall employ within such State any person below the ao-e specified 

by such State law. 

ARTICLE IV-STORE HoUR AND EMPLOYEE Ho R 

SECTION 1. (A) On and after th ffective date of thi ®de no 

non registered employee in any retail drug store open for busin 

180 hour or le s in any two (2) con ecutive weeks hall work mor 

than 96 hours in the two con ecutive week , and hall not work more 

than 13 alendar day in any two on ecutive week . 

(b) In any store open over 180 hour int o (2) conse utive w eks 

no nonregistered emplo ee hall work over 112 hour in an} two (-) 

con cutive weeks and shall not work more than L calendar da s 

in an two consecutive weeks. 

(c) othing in this section shall apply to ex cutiv , h alarie ar 30 a week or more, nor to registered pharmaci , as istant 

pharmaci t or apprentice pharmaci t or other profe ional per-
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sons employed in their profession, nor to outside salemen nor to 

delivery or maintenance employees, which delivery and maintenance 

employees may work 60 hours a week or more, if paid time and one 

third for all hours over 60 hours weekly. Curb boys and delivery 

boys not continuously employed may be on duty not over 63 hours in 

any one week and may be actually employed not over 56 hours in any 

one week. 

( d) The maximum hours fixed in the foregoing paragraphs one 

and two shall not apply to employees in retail drug stores employing 

not more than two ( 2) persons in towns of less than 2,500 population, which towns are not part of a larger trading area; to registered pharmacists or other professional persons employed in their 

profession; nor to employees in a managerial or executive capacity, 

who now receive more than $30 per week; nor to en1ployees on 

emergency, maintenance, and repair work, except that employees 

engaged in such emergency, maintenance, or repair work shall be 

paid at the rate of time and one third for all hours in excess of 60 

in any one week. 

Population for the purpose of this agreement shall be determined 

by reference to the 1930 Federal Census. 

ARTICLE V-W AGES 

SECTION 1. On and after the effective date of this code, members 

of the- retail drug trade shall establish minimum weekly rate of 

wages of all employees except registered pharmacists, assistant 

pharmacists, and apprentice pharmacists and executives for a work 

week specified in Article IV, Section 1, as follows: 

( 1) Within cities of over 500,000 population (by reference to the 

1930 Federal Census) at the rate of $15.00 per week for a 48-hour 

week and at the rate of $16.00 for a 56-hour work week. 

(2) Within cities of from 100,000 to 500,000 population (by 

reference to the 1930 Federal Census) at the rate of $14.00 per 

week for a 48-hour work week; and at the rate of $15.00 per week 

for a 56-hour work week. 

(3) Within cities of from 25,000 to 100,000 population (by reference to the 1930 Federal Census) at the rate of $13.00 per week for 

a 48-hour work week, and at the rate of $14.00 per week for a 56-

hour' work week. 

( 4) Within villages, towns, and cities of from 2,500 to 25,000 

population (by reference to the 1930 Federal Census) all wages shall 

be increased from the rates at which they were on July 1, 1933, by 

not less than 20 percent, provided that this shall not require wages 

in excess of $11.00 per week, but in no case shall the minimum be 

less than $10.00 per week. 

( 5) Within villages and towns of less than 2,500 population (by 

1·eference to the 1930 Federal Census), all wages shall be increased 

from the rates at which they were on July 1, 1933, by not less than ·20 percent, provided that this shall not require wages in excess of 

$10.00 per week. 

( 6) In the South all minimum wages specified in this Section 

shall be $1.00 less provided, however, that in no case shall the minimum wage be less than $10.00 per week, except in villages and 
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towns of less than 2,500 population, in v-vhich Yillage~ and town., 

all wages shall be increased from the rates at which they were on 

,July 1, um:3, by not less than 20 percent. . 

('i") Curb boys and cleliYery boys not contmuously employed may 

be pnicl on a commission bnsis or on a per package cleliYery basis. 

ARTICLE VI-RIGHT OF C'O:N'l'R.-\.CT 

The retailer shall have the right to and nothing in the anti-trust 

laws as designated in Section 1 of the Act entitled ·· an act to supplement existing laws under unlawful restraints and monopolies 

and for other purposes approved October 15, 1914 ··, shall be deemed 

to preYent him from entering into contracb; with manufacturers. 

,Yholesa lers, or distributors relative to price agreements on trademarked, copyrighted, or identified merchandise. 

ARTICLE VII-TRADE PR.\CTICE . 

To effectuate the purposes of the National Industrial RecoYer~· 

A ct all members of the retail drug trade shall comply with the 

following trade practices, and violation of any of them shall contitute an act of unfair competition within the meaning of th 

Federal Trade Commission A'ct and amendments thereto: 

ECTION 1. It shall be considered an unfair trade practice for an~-

retailer to receive or accept any secret payment or allowa,1ce of 

rebates, refunds, concessions, or unearned discounts whether in the 

form of money. or otherwise, or to accept any offer on the part of 

any manufacturer or wholesaler to pay any commission or any part 

of the salary or wa?eS of any employee, demon:::trator, or ::-ales person.:--

in the retail shop or store. 

Any payment for advertising including windmY or counter displays shall be paid for in cash and the amount paid shall in no 

way_ be contingent upon the arn.ount of merchandise pnrchasecl. 

:3Ec. 2. Any trading allowance gi,'"en to any purchaser in connection with the sale of any product or article or deliYering to such purchaser in connection with such sale any other merchandise of any 

description, except upon payment in acconlnnce with the proYision 

of the Code. Note: Nothing in this code shall pre,·ent an)T per2on 

from selling any drug or drug sundry at retail at a different price to 

a physician: nurse, dentist, Yet erinarian, or hospital. 

· EC. 3. Xo plans, schemes, subterfuges. snch as gifts, prize:.c;. 

chances, ~rc1·et discounts, bonn~es. rebate:-, conr•rs~· on. combination 

deal::;, 01· any other <l evi"es vdrntsoen_:ir intrndecl to e ,'acl e or obYiatC' . 

weaken, or irnllify this cocle or preYent the l'ffectna tion of this c:cH1,~ 

. hall be permitted. 

'Ee. 4. Substjtu b 11g ,mother article for the kind on1(>rec1 witho,,t 

clt1e notice to the purchaser. 

,Ee. !'5. Packaging <>l' selling any produc-t or item that j..., an imittttion or 11n f!a irly ~imilar to another prodnd i 11 <1<.'f.; ipi. st)'l<>, mark. or 

Lranrl. 

ection 7 in the new code will b(l Section G. 

EC'. 7. No member of the retail chug tracle '->lia 11 tb<' advertising 

(whether printecl, raclio, display, or of ai1y other nature) which i 

inacC'urate and/ or in any way misrepn•scnts 11H1 rclumclise (inclnding 
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its u ·e, trade mark. grade, qnality, quantity s,nb tance, c~aracter, 

nature ori<Yin, ize, material, content, or preparat10n), or rreLht term~ 

values' policie , or services, nor shall any me1~1ber of the retai~ drng 

trade u ·e adverti:ing or selling methods wluch tend to deceive or 

mi lead the consumer, including "bait" offers of merchandise. 

The term " bait offer of merchandise " as used herein means the 

practice whereby a member of the retail drug trade, throngh an 

appeal by price, brand de cription, or other mean , attracts prospective customers into his store and then, through inadequate or disparaO'inO' sale presentation or through the quantity aYailable or 

throtfgh0other means, p~aces obstacles in the way of the purchase of 

the advertised merchandise. 

SEC. 8. To misbrand rnerchandi ·e a to quality and/ or misrepresentation a to price. 

Section::; 9 and 10 will be de]eted, and in place of 9 ,Ye have the 

following: 

To ad ,·ertise, to fill prescriptions, irrespective of cot of ingre-

<lients or quantity prescribed, at a uniform price. 

Section 11 as it is here; the number will have to be chanO'ed. 

No member of the retail clrng trade '"hall u ·e arlYerti:ing which 

lays claim to or implies a policy or continuing practice of generally 

underselling competitors. 

Under the heading of control of stock leaders. a c;i.t p:ice by the 

retailers of trade-marked and identified merchanc1i~e covered by 

this code shall not be old at a discount greater than 21 percent 

from the manufacturers base price. 

On all other products covered by thi code percentages of mark-up 

are to be applied to the prevailing wholesale price to secure to the 

retailer cost sold on such sales, to be established on the basi · of the 

National Drug Store survey and further cost re ·earch. 

~ase price means the manufacturers' published or declared retail 

price. 

It is the intent of thi provi ion that, in making the computation 

of prices a · indicated above federal and tate excise or sale tax 

~hall not be inclu.ded as a part of costs, b ut shall be added to the 

price of the goods after ·uch computations have been made. 

Under the heading of general sale provision,·-ancl number thi · 

sub ection 12-

N othing in the code shall be interpreted to pre-vent bona fide ea-

.·onable clearances of merchandise when so adverti eel, plainly 

marked; of highly perishable or damaged good , o advertisecl, 

plainly marked in order to how individually to the retail organization for the purpose of bona fide discontinuance of the handling of 

any_ line when o advertised or plainly marked, to be topped from 

selling ·nch merchancli ·e, provided, however, in all ca e the manufacturer ·hall, if his ad lres be known, be given an opportunity to 

repurcha e hi own merchandise . 

. Under the heading of Admini tration, page 9 Article VIII, Section 1: 

To effectuate further the policie.- of the Act a National Retail 

Druo- ~racle G.overning Board i hereby set up to act as a planning 

and fa1r-practice agency for the retail druo- trade and to cooperate 

with the Aclmini trator in the administration and enforcement of 

this Code. Thi uthority hall be con tituted as follow : 
UNIVERSITY OF FLORIDA 

6 II I II IIIIII Ill Ill lllll lllll II IIIIII II IIII IIIIII IIII II IIIIII Ill I I 

3 1262 08583 0460 

(a) ◄ our men1ber app int l b. r th ational A sociation of 

R tail Drucro-i t el ct l by a fair m th l of election. 

(b) Thr m mbers ar pointed b. th n rican Pharmaceutical 

\. iation le t l b , a £air metho 1 of el ction. 

( c) On member appointed b th ruo- In ti tut of ... \.merica, Inoq rat d I tecl b r a £air m th cl { lcction. 

( cl) A r pre ntativ of repre en • iv with ut vol appoin ed 

by th Pr i l nt of th nit d tat . EC. . The ationa,l Retail Dru5 Trade Go rnino- B ard may 

from tim to time I r nt to the Admini trator recommenda ion 

ba eel on condition in the trade which ill tend to eff ctuate the 

operation of the pro,i ions of this ode and the policy of the ational Indu trial Recovery Act. 

SEc. 3. The Drug Institute of 'America, Incorporated of 330 ,v e t 

42nd Street, ew York, New York, acting througl the .L ational 

Retail Drug Trade Governing Board is hereby constitut <l an acr n y 

of the trade to collect, receive, and tran mit, subject t the approval 

of the Administrator and through the ational Retail Drug Trade 

Governing Board and its agencie uch reports concerning waa . 

hours of labor, and unfair methods of competition as may be requir cl 

by the National Retail Drug Trade Governing Board, subject to the 

approval of the Administrator, unless and until any other agency 

is selected by the National Retail Drug Trade Governing Board. 

SEO. 4. The National Retail Drug Store Governing Board hall .. 

subject to approval of the Administrator, designate in the e,eral 

states, committees, and the manner of their election for the purpo~e 

of assisting in the administration and enforcement of thi od . 

ARTICLE IX-GE ER.AL 

SECTION 1. The A sociation mentioned in this Code hall in1p ~eno inequitable restrictions upon admission to member hip in their· organizations. 

SEc. 2. The provisions of this Code shall not be int rpreted or 

applied to promote monopolies or monopoli tic practice or to eliminate or oppress small enterprises or di riminate ·a o-ain t them. 

SEc. 3. Thi Code and all the provisions ther of are expr ~ly 

made subject to the right of the President in accordance with th 

provisions of Clause ( 10) (b) of the National Indu lrial Recoy ry 

Act, from time to time to cancel or modify any ord r, approYal. 

license rule, or regulation i sued under Titl.~ ... l of ail ct an i 

specifically to the right of the Pre ident toMcan el or modify hi 

approval of this Code or any conditions imposed by him upon hi~ 

approval thereof. · 

EC. 4. Such of the provisions of thi Code as ar no required t 

be included therein by the National Indu tri~t1 R coy r. Act ma ·, 

with the approval of the Pre ident be modified or eliminat d a. 

changes in conditions or experience may indicate. It i cont mplat I 

that from time to time supplementary provision to this od r 

additional codes will be submitte l for the approval of the Pr id nt 

to pre ent unfair competition pra tices and to eff ctuate th~ 

other purpo and policies of Title 1 f th ation. 1 In lu trial 

Recovery ct. 

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