Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part XXXI - Milk, Milk Products and Substitutions › Chapter 3 - Dairy Stabilization Board › Section XXXI-317 - Disruptive Trade Practices

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				Disruptive trade practices are any act or acts by any person in commerce where
				the effect of such act or acts may tend to substantially lessen competition or
				tend to create a monopoly in the sale of dairy products; or which tend to
				injure, reduce, prevent, or destroy competition in the sale of dairy
				products.
B. The following acts
				are, but not by way of limitation, disruptive trade practices.
1. It shall be prohibited for any person
				engaged in commerce, in the course of such commerce, either directly or
				indirectly, to discriminate in price between different purchasers of dairy
				products of like grade and quality, where either or any of the purchasers
				involved in such discrimination are in commerce, where such dairy products are
				sold for use, consumption, or resale within the state of Louisiana.
2. No person engaged in the processing,
				production, manufacture, distribution or sale of dairy products shall
				discriminate between different sections, communities, cities, or localities in
				the state by selling such dairy products at a lower rate in one section,
				community, city, or locality, than is charged for the dairy product by such
				person in another section, community, city or locality, after making due
				allowance for the difference, if any, in the grade or quality of the dairy
				product and in the actual cost of transportation of the dairy product from the
				point of production, if a raw product, or from the point of manufacture, if a
				manufactured product, where the effect of such discrimination may tend to harm
				competition. All sales so made shall be prima facie evidence of the unfair
				discrimination prohibited hereby.
3. It shall be unlawful for any person
				engaged in commerce, in the course of such commerce, to either directly or
				indirectly, pay or grant, or to receive or accept, anything of value as a
				commission, brokerage, any other compensation, any allowance or any discount
				other than the volume discount established herein and slotting allowance as
				defined herein, except for the actual cost of services rendered in connection
				with the sale or purchase of dairy products.
4. It shall be unlawful for any person
				engaged in commerce to pay anything of value to or for the benefit of a
				customer of such person in the course of such commerce as compensation or in
				consideration for any services or facilities furnished by or through such
				customer in connection with the processing, handling, sale or offering for sale
				of any dairy products manufactured, sold, or offered for sale by such
				person.
5. It shall be unlawful for
				any person to discriminate in favor of one purchaser against another purchaser
				or purchasers of dairy products bought for resale, with or without processing,
				by contracting to furnish or furnishing, or by contributing to the furnishing
				of any services or facilities connected with the processing, handling, sale or
				offering for sale of such dairy product so purchased upon terms not accorded to
				all purchasers on proportionally equal terms.
6. It shall be unlawful for any person
				engaged in commerce, in the course of such commerce, knowingly to induce or
				receive a discrimination in price which is prohibited by this
				Section.
7. It shall be unlawful
				for any person engaged in commerce, in the course of such commerce, to be a
				party to, or assist in, any transaction of sale, or contract to sell, which
				discriminates against competitors of the purchaser and to sell, or contract to
				sell, dairy products in any part of Louisiana at prices lower than those
				exacted by said person elsewhere in Louisiana.
8. The granting or offering to grant of any
				discount, rebate or allowance, except the volume discount established herein
				and slotting allowance as defined herein.
9. The granting or offering to grant of any
				volume discount different from or in excess of the volume discount authorized
				herein is a disruptive trade practice, unfair method of competition and unfair
				or deceptive act or practice and is hereby prohibited with respect to the sale
				of dairy products.
10. Any
				advertisement, offer to sell, or sale of any dairy products by any processor,
				distributor or retailer at less than cost as defined herein plus any state,
				parish, or municipal sales tax that is then payable under any existing law or
				ordinance, is a disruptive trade practice, unfair competition and contrary to
				and violative of public policy as tending to deceive purchasers or prospective
				purchasers, or tending to substantially lessen competition.
11. Giving or receiving or offering to give
				or receive, directly or indirectly, anything of apparent, present or
				prospective value with the intent or effect of influencing the recipient in the
				business relationship.
12. The
				selling or offering to sell dairy products by a retailer, distributor, or
				processor who is not licensed by the board or commissioner is
				prohibited.
13. The sale to or
				purchase from a person whose license has been suspended or revoked is
				prohibited.
14. The granting of a
				volume discount to any retailer without notification from the board or
				commissioner of the retailer's eligibility for such discount is
				prohibited.
15. The extending to or
				receiving of further credit by any licensee where the account is
				delinquent.
16. The filing of any
				false information of any kind with or the making of any false statements of any
				kind to the board or commissioner, or any agent of either is
				prohibited.
17. The failing or
				refusing to maintain or permit an examination of financial or other records
				when the request of the commissioner, board or any agent of either to audit is
				made for valid purposes is prohibited.
18. The failing or refusing to provide any
				report required by the board or commissioner is prohibited.
19. The use by a retailer, processor, or
				distributor of equipment furnished by a frozen dessert processor or distributor
				for the storage or display of frozen desserts other than those frozen desserts
				sold to such retailer by such frozen dessert processor or distributor which
				provides the equipment is prohibited. The storage or display of products other
				than frozen desserts received from such processor or distributor, in such
				storage or display cabinet by a retailer shall constitute prima facie evidence
				of a violation of this regulation.
20. The advertising of lowfat milk (milk with
				a milk fat content of not less than 1/2 of 1 percent nor more than 2 percent)
				in any form of mass media without clearly stating the percentage of milk fat
				contained in said product is prohibited.
21. The failing by a processor or distributor
				to provide an invoice to a purchaser of dairy products at the time of delivery
				is prohibited. Mailing of said invoice on the date of delivery shall satisfy
				the requirement of providing an invoice as required herein.
22. The selling or the offering to sell dairy
				products under terms or prices which result in said sale being below cost as
				defined herein is prohibited.
23.
				Combined sales at less than cumulated costs where one or more of the items in
				combination is a dairy product is prohibited.
24. The furnishing, giving, lending, selling,
				or renting, by a processor or distributor or the accepting, receiving, buying,
				or renting by a retailer of any signs or display materials advertising and
				containing the name or product of any retailer is prohibited.
25. Donating dairy products except as
				provided in
				§321. A 4
26. The using, shipping, lending, borrowing,
				possessing, giving away, throwing away, donating or disposing of in any manner,
				of milk cases belonging to another licensee is prohibited without written
				authority from the director of the board.
27. The providing of a fluid milk dispenser
				to any retailer, except under the following conditions.
a. The processor or distributor has been
				engaged in selling dispenser milk to the retailer for at least 60 days prior to
				the date on which the dispenser is furnished.
b. The dispenser is replacing the retailer's
				dispenser which is undergoing repair and the period during which the dispenser
				is furnished does not exceed 30 days.
c. The processor or distributor must report
				to the board or commissioner within 10 days after the date on which the
				dispenser is furnished to the retailer the make and serial number of the
				dispenser, the name and address of the retailer and the date on which the
				dispenser was installed.
28. The failure of the purchaser, licensee,
				to assume all responsibility for product losses except where a portion of the
				price is dedicated to the seller for assuming that loss, sometimes referred to
				as a "full service" sale or except in the case of manufacturing or processing
				defects.
29. Utilization of coupons
				in connection with the marketing of dairy products without the prior written
				approval of the director of the Dairy Stabilization Board. When submitted for
				approval, the coupons shall be reviewed to determine if said coupons are in
				compliance with the Act and these rules and regulations.