Code of fair competition for the retail trade as approved on October 21, 1933 by President Roosevelt

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Title:
Code of fair competition for the retail trade as approved on October 21, 1933 by President Roosevelt
Portion of title:
Retail trade
Physical Description:
16 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Retail trade -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Summary:
The term "retail trade" as used herein shall mean all selling of merchandise to the consumer and not for purposes of resale in any form, in the continental United States excluding the Panama Canal Zone.
Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1625-2-02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004917214
oclc - 632310794
System ID:
AA00007832:00001

Full Text



Registry No. 1625-2--02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


RETAIL TRADE

AS APPROVED ON OCTOBER 21, 1933
BY
PRESIDENT ROOSEVELT


WE DO OUR PART


I,


ive Order


Order


4. Code


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


For sale bp the Superintendent of Documents, Washington, D.C. -Price 6 cents























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

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San Francisco, Calif.: 310 Customhouse.
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(II)

















EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THI 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 con-
taining 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 compe-
tition complies in all respects with the pertinent provisions of title I
of said act and that the requirements of clauses (1) and (2) of sub-
section (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.
THa WanmE HousE,
October 21, 1933.

Approval recommended:
HUGH S. JOHNSON,
Administrator.
(mi)


17441-- 188-44---33













NATIONAL RECOVERY ADMINISTRATION,
October 90, 1933.
The PRESIDENT,
The White Hose, Wo.Ta .!h.fon, D.C.

I. INTRODUCTION
MY DEAR MR. PRESIDENT : This is a report of the hearing on the
Code of Fair Competition for the Retail Trade as proposed by the
following associations:
The National Retail Furniture Association.
The National Retail Hardware Association.
Mail Order Association of America.
The National Association of Retail Clothiers & Furnishers.
The National Retail Dry Goods Association.
The National Shoe Retailers Association.
The National Council of Shoe Retailers.
The Limited Price Variety Stores.
National Association of Music Merchants.
Attached herewith is a copy of the Code as finally proposed and
the Report of the Deputy Administrator.
This Code covers all the retail field except the selling of foods,
tobacco, and milk, and except such other divisions of the retail trade
as are now or may subsequently be governed by separate codes.
Schedule A, attached to the Code, contains certain special provisions
which apply only to drug retailers. Inasmuch as the drug retailers
asked for a separate code, we are submitting at the same time with
this Code a Code for the Retail Drug Trade which is identical in
all its provisions with the provisions of the Code for the General
Retail Trade, including Schedule A.
The hearing was conducted in Washington on August 22, 23, and
24. Every person who requested an appearance was heard in accord-
ance with statutory and regulatory requirements. The Code has the
approval of a substantial portion of the retail trade.
II. PRICE PROVISIONS

The general retail hearing required three full days, and during the
entire period the majority of witnesses presented statements to sub-
stantiate their belief that it was imperative that regulations of a
drastic nature be incorporated in the Retail Trade Code.
Retailers were insistent that the Administration should recognize
their position as expressed in the Code submitted regarding the "loss
limitation" provisions and "trade practice" provisions affecting
selling, pricing, and advertising policies.
The Code had been given Nation-wide publicity by the sponsoring
associations prior to the hearing, and the conviction that these pro-
(IV)








visions must be included in the Code had become firmly entrenched
in the minds of the great majority of tho.e present, who claimed
to reflect the attitude of the retailers in their respective communities.
Retailers stated that in working under the wage and hour pro-
visions of the substitute Retail Code, which had been in effect about
30 days, operating expenses had.been substantially increased due to
the additions to pay rolls which required enlarged current cash out-
lays, and .that this new burden could not be carried by tens of
thousands of financially weakened concerns unless provisions for
protection against predatory price cutting became effective at once.

111. LABOR PROVISIONS

The elective provisions regarding wages, work hours, and store
hours suggested by the Administration were generally accepted as
equitable.
The working hours may not be entirely satisfactory from a purely
social viewpoint; but they represent a substantial reduction from
the hours which prevailed in the retail trade. This reduction in
working hours will restore employment in retailing to the 1929 level.

IV. ADMIN ISTRATION

The provisions for administration of this Code are capable of
providing the NRA and the retail trades with sufficient data to
make recommendations for the limitation of certain provisions of
the Code as herewith presented and/or the addition of further pro-
visions to this Code which would be beneficial to the trade as a whole.
The Administrator finds that--
(a) The provisions of the Code as recommended comply in all
respects with the pertinent provisions of clauses one and two, sub-
section (a) of Section 3 of the National Industrial Recovery Act;
and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein, and is truly representative of the
Retail Trade; and that
(c) The provisions of the Code as recommended are not designed
to promote monopolies or to eliminate or oppress small enterprises
and will not operate to discriminate against them, and will tend to
effectuate the policy of Clauses one and two of the National Indus-
trial Recovery Act.
It is recommended, therefore, that the provisions of this Code be
.adopted immediately.
Respectfully submitted,
HUGH S. JOHNsoN,
A administrator.













EXECUTIVE ORDER


In order to effectuate the policy of title I of the National Industrial
Recovery Act, approved June 16, 1933, and to provide for equitable
enforcement of agreements heretofore made with the President and
codes approved by the President under said act, I, Franklin 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 provisions of any order,
approval, rule or regulation heretofore issued under title I of said act.
1. The provisions of the President's reemployment agreement,
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 commerce) who do not employ
more than five persons and who are located in towns of less than
2,500 population (according to the 1930 Federal census) which are
not in the immediate trade area of a city of larger population, except
so far as such employers who have signed the President's reemploy-
ment agreement desire to continue to comply with the terms of said
agreement after the date of this order; and this release of such em-
ployers 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.
his 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 organi-
zations 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.
TnE WHITE HOUSE,
October 23, 1933.
(Vi)













CODE OF FAIR COMPETITION FOR THE RETAIL TRADE
To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are established as a Code of
Fair Competition for the Retail Trade.

ARTICLE I. ArLICATIoN OF CODE

Snzrrow 1. Application of Codc.-The provisions of this Code,
except such provisions as are included in Schedule A annexed hereto
and in such other schedules as may subsequently be approved and
annexed hereto, and except as hereinafter specifically provided, shall
apply to all retailers and/or retail establishments engaged in the
retail trade as defined in Article II hereinafter. The provisions of
Schedule A and such other schedules as may subsequently be annexed
hereto shall apply only to those retailers and/or retail establishments
as are specifically included within the provisions of such schedules.
SECTION 2. Request for separate Code.-Any division of the retail
trade which has not participated in the formation or establishment
of this Code may make application to the Administrator to operate
under a separate Code of Fair Competition. The Administrator
shall determine whether such division of the retail trade shall operate
under this Code or under a separate Code, and may, if justice re-
quires, stay the application of this Code to such division pending
his decision or pending the approval by the President of the United
States of a Code of Fair Competition for such division.
ARTICLE II. DEFINITIONS

SErrow 1. Retail trade.-The term retail trade as used herein
shall mean all selling of merchandise to the consumer and not for
purposes of resale in any form, in the continental United States
excluding the Panama Canal Zone. It is provided, however, that
the term shall not include the selling at retail of milk and its prod-
ucts, tobacco and its products, and foods and foodstuffs, or the dis-
pensing of drugs, medicines, and medical supplies by a physician,
dentist, surgeon or veterinarian in the legitimate practice of his pro-
fession; and it is further provided that the term shall not include
any division of retail selling (except the selling of drugs and allied
products) which is now or may hereafter be governed by a separate
Code of Fair Competition approved by the President of the United
States.
SECTION 2. Retai7er.-The term "retailer" as used herein shall
mean any individual or organization engaged wholly or partially in
the retail trade.
SEzTON 3. Establishment.-The term "establishment" as used
herein shall mean any store or department of a store, shop, stand,








or other place where a retailer carries on business, other than those
places where the principal business is the selling at retail of products
not included within the definition of retail trade. The term is also
used herein to refer to the retailer who carries on business in such
establishments.
SECTION 4. Employee.-The term employee as used herein shall
mean any person employed by any retailer but shall not include
persons employed principally in the selling at retail of products not
included within the definition of retail trade.
SECTION 5. Definitions of personnel.-(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, ad-
vertising specialists, and other persons engaged in occupations re-
quiring 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) per-
cent of 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.
(f) 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 em-
ployee" as used herein shall mean an employee engaged primarily
in delivering, installing, or servicing merchandise outside the estab-
lishment, 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.
(Qc) 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 6. South.-The term South as used herein shall mean
Virginia, West Virginia, Maryland, North Carolina, South Caro-
lina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi,
Arkansas, Louisiana, Oklahoma, New Mexico, Texas, and the Dis-
trict of Columbia.
SECTION 7. Population.-Population shall be determined by ref-
erence to the Fifteenth Census of the United States (U.S. Depart-
ment of Commerce, Bureau of Census, 1930).








ARTICLE III. EFFECTIVE DATE

The effective date of this Code shall be the second Monday after
its approval by the President of the United States.
ARTICLE IV. GENERAL LABOR PROVISIONS

SECTION 1. Collective bargaining.-(a) Employees shall have the
right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, re-
straint, 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 re-
quired 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, ap-
proved 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 em-
ployed, 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 V. STORE HouRS AND HOURS OF LABOR

SECTIoN 1. Basic store and working h.ours.-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 fifty-
two (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.
17441 --188-44-33--2







Group B.-Any establishment may elect to remain open for
business fifty-six (56) hours or more per week but less than
sixty-three (63) hours per week; no employee of such estab-
lishment shall work more than forty-four (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 em-
ployee 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.
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.
SECTION 2. Schedule 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 Sec-
tion 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.
SEOTION 3. Changes in store hours and employee working hours.--
(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.
(c) 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. Exceptions to maximum periods of labor.-
(a) Professional persons, outside salesmen, outside collectors
watchmen, guards, and store detectives.-The maximum periods of
labor prescribed in Section 1 of this Article shall not apply to pro-
fessional persons employed and working at their profession, or to
outside salesmen, outside collectors, watchmen, guards, and store
detectives.
(b) Maintenance and outside service 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-
ployees shall not work more than six (6) hours per week above the
maximum hours per week otherwise prescribed by Section 1 unless
they are paid at the rate of time and one-third for all hours 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 $30.00 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 under
25,000 population, may work in excess of the maximum periods of
labor prescribed in Section 1 of this Article. In the South execu-
tives 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 pea.k
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 (91/) 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.
SECTION 5. Limitation. upon number of persons working unre-
stricted 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 oth-
ers) 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 consecdive.-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 each regu-
lar meal period, and such interval not counted as part of the em-
ployee's working time. Any rest period which may be given em-
ployees shall not be deducted from such employee's working time.
SECTrON 7. Extra working hour on. one day a week.-On one day
each week employees may work one extra hour, but such hour is to
be included within the maximum hours permitted each week.
SECTION 8. Conflict with State laws.-When any State law pre-
scribes for any class of employees shorter hours of labor than those
prescribed in this Article, no employee included within such class
shall be employed within such State for a greater number of hours
than such State law allows.
ARTnLE VI. WAGES

SECTION 1. Basicschedules of wages.--On and after the effective
date of this Code, the minimum 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) Within 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 forty-
four (44) hour work week, or less than at the rate of $15.00 per
week for a forty-eight (48) hour work week.
(b) Within cities of from 100,000 to 500,000 population, no em-
ployee 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 em-
ployee shall 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 25,000 popula-
tion, 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 $11.00 per week and provided further that no em-
ployee shall be paid less than at the rate of $10.00 per week.
(e) Within 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.
The minimum wages paid to professional persons, outside sales-
men, outside collectors, watchmen, guards, store detectives, and main-
tenance 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 minimum wages of any employee not included in the fore-
going paragraphs and not specifically excepted hereinafter shall be
upon the basis of a forty (40) hour work week.
SECTION 2. Juniors and apprentices.-Junior and apprentice em-
ployees 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 frac-
tion thereof up to twenty (20), and one such employee to every ten.
(10) employees above twenty (20).
SECTION 3. Southern wage differential.--In the South, within cities
of over 25,000 population, the minimum wages prescribed in the fore-
going 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 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; 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 enmployees.-Pa rt-time 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. WVeekly wages above min.immnt not to be reduced.-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 re-
duction in the number of working hours of such employees.
SECTION 6. Conflict 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 requires.

ARTICLE VII. LIMITATIONS UPON PRICE INCREASES; PRIOR CONTRACTS

SECTON 1. Limitation upon price increases.-No retailer shall in-
crease 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 by the amount of increases in production, operating, re-
placement, 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 June 1, 1933, and in setting such price increases retailers shall
give full weight to probable increases in sales volume. It is pro-
vided, however, that if any price on June 1, 1933, was a distress
price, an equitable adjustment may be made.
SECTION 2. Adjustment of prior contracts.-Where costs of execut-
ing contracts entered into before June 16, 1933, by any retailer for
the purchase of goods at fixed prices for delivery during the dura-
tion of this Code are increased by the application of the provisions
of the National Industrial Recovery Act and/or the Agricultural
Adjustment Act, it is deemed equitable and promotive of the pur-
poses 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 con-
stituted an agency to assist in effecting such adjustments.
ARTICLE VIII. Loss LIMITATION PROVISION

SECxoNr 1. Loss limitation provision.-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
industry and against the labor so employed.
S1. This declaration against the use of "loss leaders by'the store-
.keeper does not prohibit him from selling an article without. any
profit to himself. But the selling price of articles to the consumer
should include an allowance for actual wages of store labor, to be
fixed and published from time to time by the Trade Authority here-
inafter 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 busi-
ness only in communities of less than 2,500 population (according to
the 1930 Census) which are not part of a larger trade area.
Provided, however, That any retailer may sell any article of mer-
chandise 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 pro-
visions of this section if such retailer immediately notifies the nearest
representative retail trade organization of such action and all facts
pertinent thereto.
SECTION 2. Exceptions.-(a) Notwithstanding the provisions of the
preceding Section, any retailer may sell at less than the prices
specified above, merchandise sold as bona fide clearance, if adver-
tised, marked, and sold as such; highly perishable merchandise, which
,must be promptly sold in order to forestall loss; imperfect or actually
ldhraged merchandise, or bona fide discontinued lines of merchan-
dise, 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, den-
tists, veterinarians, or hospitals.
(b) Nothing in the provisions of the preceding Section shall be
construed to prevent bona fide farmers' associations engaged in pur-
chasing supplies and/or equipment for their membership from mak-
ing patronage 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 uppn which
the minimum price of the article is calculated shall include the cost
of the premium or share thereof.

ARTICLE IX. TRADE PRACTICES

All retailers shall comply with the following trade practices:
: SECTION 1. Advertising an 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 misrepre-








sents 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 em-
ployee 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.
(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.
SECTION 2. N.R.A. label.-No retailer shall purchase, sell, or ex-
change any merchandise manufactured under a Code of Fair Compe-
tition which requires such merchandise to bear an N.R.A. label, unless
said merchandise bears such label. Any retailer rightfully pos-
sessing the insignia of the N.R.A. who has in stock or purchases simi-
lar merchandise which has been manufactured before the effective
date of the Code of Fair Competition requiring such merchandise to
bear an N.R.A. label may attach thereto the N.R.A. insignia.
SECTION 3. Ptison-made goods.-Pending the formulation of a
compact or code between the several States of the United States to
insure the manufacture and sale of prison-made goods on a fair com-
petitive basis with goods not so produced, the following provisions of
this Section will be stayed for ninety (90) datvs, 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 institu-
tion. 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 Jan-
uary 19, 1929, being Public No. 669 of the 70th Congress and en-








titled "An Act to Divest Goods, Wares, and Merchandise Manu-
factured, Produced or Mined by Convicts or Prisoners of their In-
terstate Character in Certain Cases ", which Act is known as the
Ilawes-Cooper Act, or the provisions of any State legislation en-
acted under, or effective upon, the effective date of the said Hawes-
Cooper Act, the said effective date being January 19, 1934.
SECTION. 4. Comr.pany scrip.-The following provisions of this Sec-
tion shall not become effective until March 1, 1934. Pending such
effective date the Administrator shall appoint a Committee of not
more than three persons to investigate the economic and social im-
plications of these provisions. Said Committee may make recom-
mendations, 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 merchandise any non-
negotiable 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
instruminnt 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 organiza-
tion are rendered temporarily unavailable due to the closing by
state or federal order of the bank in which such funds are deposited.
(6) No retailer shall extend credit in the form of goods, money, or
services to any person other than its own employees engaged exclu-
sively 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
arr:iTn~,neint entered into with said employer, unless an identical
guarantee or wage-deduction arrangement is available to all retailers.

ARTICLE X. ADMINISTRATION

The following provisions for the administration of this Code shall
not apply to the retail drug trade, which shall be governed by the
provisions of Section 5 of Schedule A annexed hereto.
SECTION 1. Retail Trade Authority.-The Retail 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
Trade Authority shall be members, without vote, of the National
Retail Trade Council provided for hereinafter.
SECT-ON 2. Nat'irid Retail Trade Council.-(a) Con.pofsi.on..-
The National Retail Trade Council shall consist of at least. one, but
not more than three, representatives from each major division of
the retail trade presenting this Code or hereafter subscribing to it,
as the Administrator shall designate.
Such representatives shall be elected, in accordance with a fair
method approved by the Administrator, by the national trade asso-
ciations representing the above divisions of the retail trade. Where
more than one national trade association each represents a portion
of a single division of the retail trade, the Administrator shall, for
the purpose of establishing the membership of the National Retail








Trade Council in the first instance, determine whether such associa-
tions are truly representative and what shall be the number and
proportionate vote of such associations upon the Council; after the
initial establishment of the Council such decisions shall be made by
the Council subject to an appeal to the Administrator. Regardless
of the number of its representatives, each division of the retail trade
shall have one vote in all action taken by the National Retail Trade
Council.
(b) General powers.-The National Retail Trade Council shall,
in addition to the specific powers herein conferred, have all general
powers necessary to assist the Administrator or his Ieputy in the
administration and enforcement of this Code.
(c) Reports and in.vestigations.-The National Retail Trade
Council shall, subject to the approval or upon the request of the Ad-
ministrator, require from all retailers such reports as are necessary
to effectuate the purposes of this Code, and may, upon its own ini-
tiative or upon complaint of any person affected, make investiga-
tion as to the functioning and observance of any provisions of the
Code and report the results of such investigation to the Admin-
istrator.
(d) Reconm,,endations.-The National Retail Trade Council may
from time to time present to the Administrator recommendations
(including interpretations) based on conditions in the trade, which
will tend to effectuate the operation of the provisions of this Code
and the Policy of the National Industrial Recovery Act. Such rec-
ommendations shall, upon approval by the Administrator, become
operative as part of this Code.
(e) Local commnittees.-The National Retail Trade Council shall,
subject to the approval of the Administrator, supervise the setting
up, within local trading areas, of local committees for the purpose of
assisting in the administration and enforcement of this Code within
such local areas.
(f) Expenses.-The expenses of the National Retail Trade Coun-
cil shall be equitably assessed and collected by the Council, subject
to the approval of the Administrator.
SECTION 3. Regional Advisory Comnmittee.-The National Retail
Trade Council shall, subject to the approval of the Administrator,
appoint annually a Regional Advisory Committee consisting of one
member appointed from and representing each major geographical
section of the country as established by Federal Reserve Districts.
It shall be the function of the Regional Advisory Committee to serve
in an advisory capacity to the Administrator and to the National
Retail Trade Council on matters pertaining to the administration
of this Code in the respective districts. The Committee shall meet
subject to the call of the Administrator, the National Retail Trade
Council, or the Committee's chairman.
SECTION 4. National Retail Trade Economics Board.-The National
Retail Trade Economics Board shall consist of five (5) members
appointed by the President of the United States or by the Admin-
istrator. Such Board shall observe and study the economic effects
and results of the various provisions of this Code and shall report
from time to time to the Administrator.








SEc'FrON 5. Interpretatdion.-The Administrator may from time
to time, after consultation with the National Retail Trade Council,
issue such administrative interpretations of the various provisions
of this Code as are necessary to effectuate its purposes, and such
interpretations shall become operative as a part of this Code, unless
the Administrator shall otherwise specify.
SECnTIoN 6. Exceptions in cases of unusual or ,'nduie harYds;ip.-
Where the operation of the provisions of this Code impose an
unusual or undue hardship upon any retailer or group of retailers,
such retailer or group of retailers may make application for relief
to the Administrator or to his duly authorized agent, and the Ad-
ministrator 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
purpose of the National Industrial Recovery Act.
ARTICLE XI. GENERAL

SECTION 1. Membership in associations.-Membership in the na-
tional 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 respec-
tively represent and said associations shall impose no inequitable
restrictions upon admission to membership therein.
SECTION 2. Information to be fwr8ished Government agenies.-In
addition to information required to be submitted to the National
Retail Trade Council, there shall be furnished to Government agen-
cies 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
or monopolistic practices or to eliminate or oppress small enterprises
or to discriminate against them.
SECTION 4. Prohibition against use of subterfuge.-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 commerce, to shorten
hours of work, and to raise wages to a living basis.
SECTION 5. Right of President to cancel or 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. Modificati:ons and supplementary provisions.-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






13

submitted for the approval of the President to prevent unfair com-
petitive 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 Presi-
dent 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.
















SCHEDULE A


St PPrEMENTAL PROVISIONS APPLICABLE TO RFrAIL DRUG ESTABLISHMENTS' AND
TO ALL RETAILERS DEALING IN DRUGS ANI) ALLIED PRODUCTS

In addition to the foregoing provisions of this Code, the following supple-
mental provisions shall apply to retail drug establishments and to all retailers
dealing in drugs and allied products.

SECTION 1. DEFINITIONS

(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
of drugs, medicines, cosmetics, toilet preparations, drug sundries, 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.
surrein, or veterinarian in the legitimate practice of his profession.
(2) Drug ictailrr.-The term drug retailer" as used herein shall mean any
individual or organization engaged wholly or partially in the retail drug trade.
(3) Retail drug establishment.-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, cos-
metics, toilet preparations, drug sundries, and/or allied items.
(4) Drugs.-The term "drug" as used herein shall mean all medicinal sub-
stances 'and preparations recognized in the United States Pharmacopoein anil
National Formulary or any supplements thereto, and all substances and prepa-
rations intended for external or internal use in the cure, mitigation, treatment,
or prevention of disease in man or other animals, and all substances and prep-
arations other than food (but inclblin medicinal or quasi-medicinal prepara-
tions, 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.
(5) Cosmetics and toilet preparations.-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 ap-
plication to the person for the purpose of cleansing, improving the appearance
of, refreshing or preserving the person.
(6) Drug sundries.-The term "drug sundries" as used herein shall mean
such, articles as are used in conjunction with but not included in "drugs",
"cosmetics ", or toilet preparations".
:(7) Reg i.trmril p liarml-,arim.t, assistant phiarmarei. t. apprentice pharmacist.-
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.
(8) Curb boys or girls.-The term "curb boys or girls" as used herein shall
mean employees engaged exclusively in serving curb customers.

SETrION 2. STORE HOURS AND HOURS OF LABOR

(1) Group D, for retail drug establishments.-In place of any of the schedules
of store hours and hours of labor set forth in Article V, Section 1, 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
in Article V, Sections 4 and 5, 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.
(14)










(2) Exoeption in case of pharmacists.-The maximum hours of labor pre-
scribed in Article V and in paragraph (1) of this Sectiou shall not apply to
registered pharmacists, assistant pharmacists, and apprentice pharmacists, em-
ployed and working as such, who may work ten (10) percent above the max-
imum hours otherwise applicable, or more in cases of emergency.
SEcION 3. WAOES

(1) Basic rates for retail drug establish8n.cnts c.'ckting to operate in Group
D.-No employee of a retail drug establislunent wnich has clcted to operate
in Group D as set forth above, shall, except as provided in Article VI. Sections
2 and 3, 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 Dopulation; in
cities, towns, and villages of from 2,500 to 25,000 population, the wages of all
classes of employees of such establishments shall be increased from the rates
existing on June 1, 1933, by not less than twenty (20) per cent, 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; in towns, villages, and other places with less than
2,500 population, the wages of all classes of employees of such establishments
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.
(2) Exception for establish.meaits employing curb boys or girls.-The mini-
mum wages prescribed in Article VI and paragraph (1) of this Section may
not apply to curb boys or girls employed by retail drug establishments when
such employees are paid upon a commission basis.

SECTION 4. TRADE PRACTICES

In addition to the trade practices set forth in Article IX, all drug retailers
shall comply with the following:
(a) No drug retailer shall substitute another article or any part thereof for
the kind ordered, without due notice to and consent of the customer.
(b) No drug retailer shall advertise to fill prescriptions at. a uniform price
irrespective of cost of ingredients or quantity prescribed.
(o) 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 5. ADMINISTRATION

The administration of this Code, including this Schedule, insofar as it relates
to the retail drug trade shall be governed by the following provisions:
(1) Retail Drug Trade Authority.-The Retail Drug Trade Authority shill
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 mem-
bers, without vote, of the National Retail Drug Trade Council, provided for
hereinafter.
(2) National Retail Drug Trade Cowncil.-(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 ap-
proved 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 neces-
sary to assist the Administrator or his deputy in the administration and enforce-
ment of this Code insofar as it relates to the retail drug trade.








16.


(c) Reports and investigation..--lThe National Retail Drug Council shall,
subject to the approval or upon the request of the Administrator, require from
all dtru retailers such reports as are necessary to effectuate the purposes of
this Code insofar as it relates to the retail drug trade, and may, upon its own
initiative or upon complaint of any person affected, make investigation as to
tLe fuiictioirin-g and observance of any provisions of the Code relating
to the retail drug trade and report the results of such investigation to the
Administrator.
(I) l( cjn.mcnJintio.ns.-The National Retail Drug Trade Council may from
time to time present to the Administrator recommendations (including inter-
pretn lio:is), based on conditions in the retail drug 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 committees.-The National Retail Drug Trade Council shall, subject
to the approval of the Administrator, supervise the setting up within local
tradin- areas of local committees for the purpose of assisting in the adminis-
tration and enforcement of this Code within such local areas insofar as it
relates to the retail drug trade.
(f) Exrpcic.N.-The expenses of the National Retail Drug Trade Council
shall be equitably assessed and collected by the Council, subject to the a approval
of the Administrator.
(3) Interpretations.-The Administrator may from time to time, after con-
sultation with the National Retail Drug Trade Council, issue such administra-
tive interpretations of the various provisions of this Code relating to the retail
dru- trade as are necessary to effectuate its Ipurposes, and such interpretations
shall become operative as part of this Code unless the Administrator shall
otherwise specify,
(4) L'.xrcvin,.. in cases of unusual or undue hardshMp.-WVhere the operation
of the provisions of this Code imposes an unusual or undue hardship upon any
drug retailer or gri'ip of drug retailers, such drug retailer or group of drug
retailers may make application for relief to the Administrator or to his lul:,
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 modi-
fication of the provisions of this C.ide as rn: v be required to effc(ltuate the
purposes of the National Industrial Recovery Act.


































































S





UNIVERSITY OF FLORIDA


3 1262 08728 5515