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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
FOR THE / \
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 reflects
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 Natiohal Recovery
Administration as applying to this industry
GOVERNMENT PRINTING OFFICE
.u sde by the Superintendent of Documents, Washington, D.C. Price 5 cents
CODE OF FAIR COMPETITION FOR THE RETAIL DRUG
AS REVISED AUGUST 26, 1933
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the retail Drug Trade.
SECTION 1. Application of the Code.-The provisions of this code
shall apply to any individual or organization engaged in the selling
at retail of drugs, medicines, cosmetics, toilet preparations, and drug
SEC. 2. Deflintions.-(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 devices intended for
external or internal use in the cure, mitigation, treatment, or preven-
tion of disease in man or other animals and all substances and prepa-
rations, other than food (but including medicinal or quasi-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 cosmetics and the term toilet preparations"
means and includes '" toilet articles and perfumes, extracts, toilet
waters, face powders, face creams, rouges, shaving creams, denti-
frices, perfumes, soaps, and similar substances and preparation, de-
signed and intended for application to the person for the purpose of
cleansing, improving the appearance of, refreshing, or preserving
(c) The term drug sundries shall include such articles used in
conjunction with but not included in the words "drugs". cos-
metics ", or "toilet preparations."
(d) The term Drug Store or Pharmacy means a retail
establishment primarily engaged in the business of compounding and
dispensing physicians' prescriptions and the selling of drugs, medi-
cines, chemicals, and allied items and which place of business shall
at all times be under the direct and personal supervision of one or
more registered pharmacists.
(e) The term Registered Pharmacist has the significance given
it under the laws of the respective States or Territories of the United
(f) The term assistant pharmacist has the significance given
it under the laws of the respective States or Territories of the United
(g) The term apprentice has the signification given it under
the laws of the respective States or Territories of the United States.
(h) The term "member means any person engaged wholly or
partially in the trade. Where a member is engaged partially in the
industry, only that part of his business which is included in the
industry shall be covered by this code.
ARTICLE II-EFFECTIVE DATE
The effective date of this code shall be ten (10) days after its
.approval by the President of the United States.
ARTICLE III-LABOR PROVISIONS
SECTION 1. All employers in the retail Drug trade shall comply
with the following provisions of Section 7 (a), of Title I of the
National Industrial Recovery Act.
(a) Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from the interference, restraint, 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, approved
or prescribed by the President.
SEC. 2. On and after the effective date of this Code, no person
under the age of sixteen years shall be employed by any member of
the retail Drug trade, except that persons between fourteen and
sixteen may be employed for not to exceed three hours per day, and
these hours between 7 a.m. and 7 p.m., in such work as 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 age specified
by such State law.
ARTICLE IV-STORE HOURS AND EMPLOYEE HOURS
SECTION 1. (A) On and after the effective date of this wode, no
nonregistered employee in any retail drug store open for business
180 hours or less in any two (2) consecutive weeks shall work more
than 96 hours in the two consecutive weeks, and shall not work more
than 13 calendar days in any two consecutive weeks.
(b) In any store open over 180 hours in two (2) consecutive weeks
no nonregistered employee shall work over 112 hours in any two (2)
consecutive weeks and shall not work more than 13 calendar days
in any two consecutive weeks.
(c) Nothing in this section shall apply to executives, whose sal-
aries are $30 a week or more, nor to registered pharmacists, assistant
pharmacists, or apprentice pharmacists or other professional per-
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
(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 popula-
tion, which towns are not part of a larger trading area; to regis-
tered 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 employees 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.
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 refer-
ence 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
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
$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 min-
imum wage be less than $10.00 per week, except in villages and
towns of less than 2,500 population, in which villages and towns
all wages shall be increased from the rates at which they were on
July 1, 1933, by not less than 20 percent.
(7) Curb boys and delivery boys not continuously employed may
be paid on a commission basis or on a per package delivery basis.
ARTICLE VI-RIGHT OF CONTRACT
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 sup-
plement existing laws under unlawful restraints and monopolies
and for other purposes approved October 15, 1914 ", shall be deemed
to prevent him from entering into contracts with manufacturers,
wholesalers, or distributors relative to price agreements on trade-
marked. copyrighted, or identified merchandise.
ARTICLE VII-TRADE PRACTICES
To effectuate the purposes of the National Industrial Recovery
Act all members of the retail drug trade shall comply with the
following trade practices, and violation of any of them shall con-
stitute an act of unfair competition within the meaning of the
Federal Trade Commission Act and amendments thereto:
SECTION 1. It shall be considered an unfair trade practice for any
retailer to receive or accept any secret payment or allowance 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 wages of any employee, demonstrator, or sales persons
in the retail shop or store.
Any payment for advertising including window or counter dis-
plays shall be paid for in cash and the amount paid shall in no
way be contingent upon the amount of merchandise purchased.
SEC. 2. Any trading allowance gifen to any purchaser in connec-
tion with the sale of any product or article or delivering to such pur-
chaser in connection with such sale any other merchandise of any
description, except upon payment in accordance with the provisions
of the Code. Note: Nothing in this code shall prevent any person
from selling any drug or drug sundry at retail at a different price to
a physician. nurse, dentist, veterinarian, or hospital.
SEC. 3. NI, plans. Sc hemles. slblterfulges. 1Lch as gifts, prizes..
chances. secret discounts, bonuses, rebatet, conlC.es'~n. combination
deals, or any other levi oes whatsoever intended to evade or obviate.
weaken, or nullify this code or prevent the effectuation of this code
-hall be permitted.
SEC. 4. Substituting another article for the kind ordered witho'lt
due notice to the purchaser.
SEC(. 5. Packaging or selling any product or item that is an imita-
tion or unfairly similar to another product in design. style, mark, or
Section 7 in the new code will be Section G.
SEC.. 7. No member of the retail drug trade shall use advertising
(whether printed, radio, display, or of any other nature) which is
inaccurate and -'or in any way misrepresents merchandise (including
its use, trade mark, grade, quality, quantity, substance, character,
nature, origin, size, material, content, or preparation), or credit terms,
values, policies, or services, nor shall any member of the retail drug
trade use advertising or selling methods which tend to deceive or
mislead 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, through an
appeal by price, brand, description, or other means, attracts prospec-
tive customers into his store and then, through inadequate or dis-
paraging sales presentation or through the quantity available or
through other means, places obstacles in the way of the purchase of
the advertised merchandise.
SEC. 8. To misbrand merchandise as to quality and/or misrepre-
sentation as to price.
Sections 9 and 10 will be deleted, and in place of 9 we have the
To advertise, to fill prescriptions, irrespective of cost of ingre-
dients or quantity prescribed, at a uniform price.
Section-11 as it is here; the number will have to be changed.
No member of the retail drug trade shall use advertising which
lays claim to or implies a policy or continuing practice of generally
Under the heading of control of stock leaders, a cut price by the
retailers of trade-marked and identified merchandise covered by
this code shall not be sold at a discount greater than 21 percent
from the manufacturers' base price.
On all other products covered by this 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 basis of the
National Drug Store survey and further cost research.
Base price means the manufacturers' published or declared retail
It is the intent of this provision that, in making the computation
of prices as indicated above, federal and state excise or sales tax
shall not be included as a part of costs, but shall be added to the
prices of the goods after such computations have been made.
Under the heading of general sales provisions-and number this
Nothing in the code shall be interpreted to prevent bona fide sea-
sonable clearances of merchandise when so advertised, plainly
marked; of highly perishable or damaged goods, so advertised,
plainly marked in order to show individually to the retail organiza-
tion for the purpose of bona fide discontinuance of the handling of
any line when so advertised or plainly marked, to be stopped from
selling such merchandise, provided, however, in all cases the manu-
facturer shall, if his address be known, be given an opportunity to
repurchase his own merchandise.
Under the heading of Administration, page 9, Article VIII, Sec-
To effectuate further the policies of the Act, a National Retail
Drug Trade Governing Board is hereby set up to act as a planning
and fair-practice agency for the retail drug trade and to cooperate
with the Administrator in the administration and enforcement of
this Code. This Authority shall' be constituted as follows:
UNIVERSITY OF FLORIDA
3 1262 08583 0460
(a) Four members appointed by the National Association of
Retail Druggists elected by a fair method of selection.
(b) Three members appointed by the American Pharmaceutical
Association elected by a fair method of selection.
(c) One member appointed by the Drug Institute of America, In-
corporated, elected by a fair method of selection.
(d) A representative of representatives, without vote, appointed
by the President of the United States.
SEC. 2. The National Retail Drug Trade Governing Board may
from time to time present to the Administrator recommendations
based on conditions in the trade which will tend to effectuate the
operations of the provisions of this Code and the policy of the Na-
tional Industrial Recovery Act.
SEC. 3. The Drug Institute of America, Incorporated, of 330 West.
42nd Street, New York, New York, acting through the National
Retail Drug Trade Governing Board, is hereby constituted an agency
of the trade to collect, receive, and transmit, subject to the approval
of the Administrator and though the National Retail Drug Trade-
Governing Board and its agencies, such reports concerning wages,.
hours of labor, and unfair methods of competition as may be required
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.
SEC. 4. The National Retail Drug Store Governing Board shall,
subject to approval of the Administrator, designate in the several
states, committees, and the manner of their selection, for the purpose
of assisting in the administration and enforcement of this Code.
SECTION 1. The Associations mentioned in this Code shall impose
no inequitable restrictions upon admission to membership in their
SEC. 2. The provisions of this Code shall not be interpreted or
applied to promote monopolies or monopolistic practices or to elimi-
nate or oppress small enterprises or discriminate against them.
SEC. 3. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the-
provisions of Clause (10) (b) of the National Industrial Recovery
Act, from time to time to cancel or modify any: order, approval,
license, rule, or regulation, issued under Title,.,, of said Act, and
specifically to the right of the President- td"ancel -or modify his
approval of this Code or any conditions imposed by him upon his 4
SEC. 4. Such of the provisions of this Code as are not required to
be included therein 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 submitted for the approval of the President
to prevent unfair competition practices and to effectuate the
other purposes and policies of Title 1 of the National Industrial
Recovery Act. .'