Statutes, codes, and regulations
Louisiana Administrative Code
Title 7 - AGRICULTURE AND ANIMALSPart XXXI - Milk, Milk Products and Substitutions
Chapter 3 - Dairy Stabilization Board
Section XXXI-317 - Disruptive Trade Practices

La. Admin. Code tit. 7 § XXXI-317

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Current through Register Vol. 50, No. 11, November 20, 2024
Section XXXI-317 - Disruptive Trade Practices
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.

La. Admin. Code tit. 7, § XXXI-317

Promulgated by the Department of Agriculture, Dairy Stabilization Board, LR 9:5 (January 1983), amended by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Diary Stabilization Board, LR 20:401 (April 1994).
AUTHORITY NOTE: Promulgated in accordance with R.S. 3:4108 (formerly R.S. 40:931.8).