California Code of Regulations › Title 3 - Food and Agriculture › Division 3 - Economics › Chapter 3 - Milk Stabilization and Marketing of Milk and Dairy Products › Subchapter 1 - Unlawful Practices in Marketing Milk and Dairy Products › Article 5 - Terms and Conditions, Price Differences and Meeting Competition › Section 1941 - Price Discrimination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Discrimination in price by a distributor between customers that purchase milk,
					 cream or any dairy product of like grade and quality, under like conditions of
					 service, is prohibited if the effect of such discrimination may be
					 substantially to lessen competition or to injure or destroy or prevent
					 competition with the person that either grants or knowingly receives the
					 benefit of such price discrimination.
(b) The establishment of price schedules by a
					 distributor which offer to any customer special prices or services which are
					 not offered to all customers purchasing any milk, cream, or dairy product of
					 like quantity, under like terms and conditions, within the same area is
					 prohibited.
(c) Discrimination in
					 price by a wholesale customer between consumers that purchase milk, cream or
					 any dairy product of like grade and quality, under like conditions of service,
					 is prohibited if the effect of such discrimination may be substantially to
					 lessen, injure, destroy or prevent competition with the wholesale customer that
					 grants such price discrimination, or substantially to produce competitive
					 detriment to consumers who are not afforded the benefit of such price
					 discrimination.
(d) A distributor
					 who is not a processor, purchasing processed milk from a distributor that is a
					 processor, whether such milk is packaged under the label of the selling
					 distributor or the label of the purchasing distributor, shall not, except for
					 the purpose of meeting a lawful competitive price or lawful competitive
					 condition, offer or establish lower wholesale prices for such milk than those
					 offered or established by the selling distributor, if the effect of the price
					 differences may be substantially to lessen competition or tend to create a
					 monopoly, or to injure, destroy, or prevent competition with any person who
					 either grants or knowingly receives the benefit of them.
(e) Proof of any sale of, or offer or
					 agreement to sell, milk, cream, or any dairy product, by a distributor at less
					 than the prices offered to other like customers subject to the provisions of
					 Chapter 1, Part 3, Division 21 of the Code and these regulations, or offer by
					 such distributor to sell any other product in combination with any dairy
					 product at less than cost, establishes a rebuttable presumption of a violation
					 of said Chapter 1 and these regulations. This presumption is a presumption
					 affecting the burden of producing evidence. Offers or agreements to sell, as
					 used in this section, include offers, or agreements to sell which are
					 conditional, or for which price schedules will be established at a future
					 date.
1. New
						section filed 1-29-65; effective thirtieth day thereafter (Register 65, No.
						2).
2. Amendment filed 10--77; effective thirtieth day thereafter
						(Register 77, No. 41).
3. New subsections (e) and (f) filed 6-12-79;
						effective thirtieth day thereafter (Register 79, No. 24).
4.
						Repealer and new subsections (e) and (f) filed 5-15-80; effective thirtieth day
						thereafter (Register 80, No. 20).
5. Amendment of subsection (b)
						filed 10-25-82; effective thirtieth day thereafter (Register 82, No.
						44).
6. Amendment of subsections (a)-(c) and (f) filed 9-1-83;
						effective thirtieth day thereafter (Register 83, No. 36).
7.
						Amendment filed 9-12-84; designated effective 11-1-84 (Register 84, No.
						37).
8. Amendment of NOTE filed 8-8-2005; operative 9-7-2005
						(Register 2005, No. 32).
Note: Authority cited: Sections
						  407
						  and
						  61341,
						  Food and Agricultural Code. Reference: Sections
						  61382,
						  61383
						  and
						  61384,
						  Food and Agricultural Code.