Citation
Code of fair competition for the perfume, cosmetic and other toilet preparations industry as approved on March 23, 1934

Material Information

Title:
Code of fair competition for the perfume, cosmetic and other toilet preparations industry as approved on March 23, 1934
Portion of title:
Perfume, cosmetic and other toilet preparations industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 435-448 : ; 24 cm.

Subjects

Subjects / Keywords:
Perfumes industry -- Law and legislation -- United States ( lcsh )
Cosmetics industry -- Law and legislation -- United States ( lcsh )
Toilet preparations industry -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 604-03."
General Note:
"Approved Code No. 361."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004938352 ( ALEPH )
63654762 ( OCLC )

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NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE

PERFUME, COSMETIC AND

OTHER TOILET PREPARATIONS

INDUSTRY


AS APPROVED ON MARCH 23, 1934


I II




* I,


WE DO OUR PART


UNIV. OF "
I



U.S. DEPO C rC-Y
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


ibr oale by the Superintendent of Documents. Washington. D.C. - Price 5 cents


Approved Code No. 361


Registry No. 604-03
























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.
Seattle, Wash.: 809 Federal Office Building.

























Approved Code No. 361


ERRATA SHEET

CODE OF FAIR COMPETITION
FOR THE

PERFUME, COSMETIC, AND OTHER TOILET
PREPARATIONS INDUSTRY

As Approved on March 23, 1934

Page 447, Article XII, Section 5, Subsection (a) last sentence, the
word liberal should be "Literal."
713156--829----34 (1)


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Approved Code No. 361


CODE OF FAIR COMPETITION
FOR THE

PERFUME, COSMETIC AND OTHER TOILET
PREPARATIONS INDUSTRY

As Approved on March 23, 1934


ORDER

CODE OF FAIR COMPETITION FOR THE PERFUME, COSMETIC AND OTHER
TOILET PREPARATIONS INDUSTRY
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 approval of a Code of
Fair Competition for the Perfume, Cosmetic and other Toilet
Preparations Industry, and hearings having been duly held there-
on and the annexed report on said Code, containing findings with
respect thereto, having been made and directed to the President.
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and
purposes of said Title of said Act; and do hereby order that said
Code of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Admnii.strator for Industrial Recovery.
Approval recommended:
A. D. WHITESIDE,
Division A dm niistrator.
WASHINGTON, D.C.,
March 23, 1934


483030-425-135--34


(435)












REPORT TO THE PRESIDENT

The PRESIDENT,
The BWhite House.
SIR: This is a report on the Hearing on the Code of Fair Compe- 4.
tition for the Perfume, Cosmetic and Other Toilet Preparations
Industry, held in the Carlton Room of the Carlton Hotel on January
17, 1934. The Code, which is attached, was presented by duly quali-
fied and authorized representatives of the Industry, complying with
statutory requirements and claiming to represent seventy (70) per-
cent by volume of the Industry.
In accordance with the customary procedure every person who had .
filed a request for appearance was freely heard in public; and regu-
latory requirements were complied with.

THE INDUSTRY

The Ind ustry comprises about 650 concerns, having an investment in
1929 of approximately $80,000,000. Aggregate annual sales fell from
$201,689,000 in 1929 to about $140,000,000 in 1932. In 1929 the
Industry employed 19,495 persons of whom 13,109 were wage earners.

PROVISIONS OF THE CODE

The Code provides a basic work week of 40 hours which is a
reduction in working time of 13% in the Northern states and 25%
in the Southern states from the respective 1929 figures. It is be-
lieved that the 40 hour week will maintain employment in normal
periods almost equal to the 1929 figure whereas during peak periods
employment will be more than the. 1929 average.
The basic minimum hourly rate of 350 in the North and 32/ in
the South should provide minimum weekly earnings noticeably
above those in effect prior to the President's Reemployment Agree-
ment. It is estimated payrolls will be increased 15% in normal and
about 25% in peak periods above July 1933 figures and average
purchasing power will be restored nearly to the 1929 level.
At. the public hearing considerable controversial material was
presented pertaining to the employment of demonstrators and to
the corrollary questions of the payment of commissions by manufac-
turers to retail sales clerks, and other forms of special sales con-
cessions incident thereto. For a number of years the Industry has
indulged in these practices and asda consequence many competitive
abuses have arisen, which can not be directly eliminated without
danger of destroying some bona fide merchandising methods. This
Code provides an open price system designed to put these competi-
tive abuses into the open and it is believed this procedure will cause
their elimination. However, to be sure the Code will be effective in
(436)






437


this respect, the Code Authority is instructed to gather evidence as
to the effect of the trade practice provisions in correcting these
conditions and to report its findings to the Administrator at the end
of a six months' trial period.
The Code provides for the appointment of representatives to
serve on a Drug Industry Coordinating Council which sivtll have
representatives from all the various branches of the drug industry
and be constituted to act as an advisory and planning body for the
whole drug industry.
FINDINGS

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of inter-state and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
nment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practice, by promoting the fullest
possible utilization of the present production capacity of Industries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power,
by reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said trade industry normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associ-
ation is an industrial association truly representative of the afore-
said Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
Code.
For these reasons, this Code of Fair Competition for the Perfume,
Cosmetic and Other Toilet Preparations Industry has been
approved.
Respectfully,
HUGH S. JOHNSON,
Admiinistrator.
MARCH 23, 1934.






:!




CODE OF FAIR COMPETITION FOR THE PERFUME
COSMETIC AND OTHER TOILET PREPARATIONS
INDUSTRY
ARTICLE I-PURPOSES

To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Perfume, Cosmetic and Other Toilet Prepa-
rations Industry, and shall be the standard of fair competition for
such industry and shall be binding upon every member thereof.
ARTICLE II-D EIN TONs

SECTION 1. (a) The term "Perfume, Cosmetic and Other Toilet
Preparations Industry as used herein shall mean the industry each
member of which is engaged in the manufacturing, and/or in having
manufactured for him under his own brand and specifications, and/
or in importing in consumer packages for resale, and/or in packag-
ing from bulk materials under his name or brand, perfume, toilet
waters, face powders, face creams, toilet soaps, compact powders
skin lotions, lipsticks, rouges, shaving creams, shaving soaps, and
other shaving preparations, bath salts and bath preparations, hair
tonics, hair lotions, shampoos, depilatories, personal deodorants, man-
icure preparations, and similar substances and preparations designed
and intended for external application to the person for the purpose
of cleansing, improving the appearance of, refreshing, or preserving
the person; and such related branches or subdivisions as may from
time to time be included under the provisions of this Code by the
President of the United States, after such notice and hearings as he
may prescribe.
(b) This definition does not include dentifrices and mouth washes.
(c) This industry does not include the manufacture of soap or
soap products as defined in the Code of Fair Competition for the
Soap and Glycerine Industry-#623/03, as approved by the Presi-
dent on November 2 1933, nor does this Code or any amendments
thereto that may subsequently be approved, apply in any manner
whatsoever to members of the Soap and Glycerine Manufacturing
Industry as defined in the aforementioned Code of that Industry.
(d) This definition does not include any retailer operating under
a retail code who performs any..of the acts specified herein solely for
the purpose of sale at retail to his own customers, and not for the
purpose of sale to other distributors; provided, however, that where
a retailer operates a laboratory or $lant distinct from his retail op-
erations, and employs a special group of employees to work primarily
in such laboratory or plant distinct from that group of his employees
who work primarily in his retail establishmentss, and such labora-
tory or plant performs any of the acts specified herein, whether for
(438)






439


sale to such retailer's own customers or to other distributors, such
laboratory or plant is subject to the provisions of this Code.
SECTION 2. The term member of the industry as used herein
shall mean any individual, partnership, association, corporation, or
other form of enterprise engaged in the industry, either as an
employer or on his or its own behalf.
SECTION 3. The term "employee" as used herein shall mean and
include any and all persons engaged in the industry, however com-
pensated, except a member of the industry.
SECTION 4. The term employer as used herein includes anyone
by whom such employee is compensated.
SECTION 5. The term establishment" as used herein shall mean
any plant, laboratory, business, branch or department thereof engaged
in this industry.
SECTION 6. The terms "Act and "Administrator" as used herein
shall mean, respectively, Title I of the National Industrial Recovery
Act, and the Administrator for Industrial Recovery.
SECTION 7. The term export as used herein shall include, in
addition to shipments to foreign countries, shipments to territories
and possessions of the United States.
SECTION 8. The term manufacturer of private brands as used
herein shall mean a manufacturer of products embraced by this Code
who manufactures for individuals, firms, or corporations or others
who own or control the brand or trade-mark under which the article
is sold or distributed.
SECTION 9. The term primary distributor as used herein shall
mean a wholesale dealer or retail dealer to whom a member of the
industry sells its products directly.
SECTION 10. The term P.M." as used herein shall mean a com-
mission or payment made by a member of the industry directly or
indirectly to any sales employee of any retail establishment not
owned by such member of the industry, for the purpose of inducing
such employee to exert special sales efforts on behalf of the goods of
such member of the industry; but shall not include payments or
commissions paid by such member of the industry to his own
demonstrators.
SECTION 11. Definitions of Personnel.-(a) The term executive "
as used herein shall mean an employee solely responsible for the
management of a business or a recognized subdivision thereof.
(b) The term "outside salesman shall mean a salesman who is
engaged not less than sixty (60) percent of his working hours out-
side the establishment or any branch thereof, by which he is
employed.
(c) The term research and scientific worker as used herein shall
mean an employee engaged primarily in research and scientific work
where special education or scientific training is essential.
(d) The term "outside service employee" as used herein shall
mean an employee engaged not less than 60% of his working hours
in delivering, installing, and/or servicing merchandise outside of
the establishment and shall include stable and garage employees.
(e) The term watchman as used herein shall mean an employee
engaged primarily in safeguarding the premises and property of a
member of the industry.





440

(f) The terms "firemen and "engineers as used herein shall
mean employees engaged primarily in the upkeep, preservation,
operation and repair of furnaces, boilers, engines, pumps, compres-
sors, heating and ventilating equipment, electrical generating plants,
or other machinery used for supplying heat, light, ventilation, or
power to a building or plant of a member of the industry; but do not
include such employees as porters, elevator operators, cleaners, or
operators of machines used directly in a manufacturing process.
(g) The term apprentice office worker as used herein shall
mean an office employee with less than six (6) months total office
work experience.
(h) The terms "beginner" and "learner" as used herein shall
mean an employee with less than sixty (60) days working experi-
ence in the Industry.
(i) The term demonstrator as used herein shall mean a special
representative employed to work in retail stores not owned by a
member of the industry and whose salary is paid in whole or in part
directly or indirectly by such member of the industry.
ARTICLE III-HOURS
SECTION 1. No watchman, fireman, engineer, or outside service
employee shall be permitted to work in excess of forty-eight (48)
hours per week averaged over a consecutive two weeks' period and in
no event shall be permitted to work in excess of twelve (12) days
in any consecutive fourteen (14) days' period.
SECTION 2. No other employees except pharmacists, chemists, ex-
ecutives, and research and scientific workers, earning in excess of
thirty-five (35) dollars per week, and outside salesmen, shall be
permitted to work in excess of forty (40) hours in any one week or
eight (8) hours in any twenty-four (24) hour period, except as here-
inafter provided in Sections 3 and 4 of this Article, and in no event
shall any such employee be permitted to work in excess of six (6)
days in any consecutive seven (7) days' period.
SECTION 3. (a) The maximum hours fixed in the foregoing section
shall not apply to any employee on emergency maintenance or emer-
gency repair work involving breakdowns or protection of life or
property, but in any such special case such employees shall be paid at
the rate of at least time and one third (11/) for hours worked in
excess of the maximum hours herein provided.
(b) No employee working on continuous process operations shall
be permitted to work in excess of twelve (12) hours in any one day or
more than forty (40) hours in any one week.
SECTION 4. During a peak period, of not to exceed eight (8) weeks
in any calendar year, any employee shall be permitted to work not in
excess of forty-eight (48) hours in any one week, provided that he
shall not be permitted to work more than eight (8) hours in any
twenty-four (24) hour period, and that hours in excess of forty (40)
per week shall be compensated for at the rate of time and one third
(1,).
SECTION 5. No employer shall knowingly permit any employee to
work for any time which when totaled with that already performed
with another employer, or employers, exceeds the maxima permitted
herein.


.1











"I
.,i






441


ARTICLE IV-WAGES

SECTION 1. No employee, other than apprentice office workers and
beginners and learners, shall be paid at less than the rate of thirty-
five (35) cents per hour, except employees in the States of North
Carolina, South Carolina, Georgia, Florida. Tennessee, Alabama,
Mississippi, Arkansas, Louisiana, Oklahoma and Texas where the
minimum rate shall be two and one half (2i.2) cents less per hour.
SECTION 2. No apprentice office worker, beginner or learner shall
be paid less than eighty (80) per cent of the rates specified in Sec-
tion one of this Article. Employees of this class thus compensated
shall not exceed five (5) per cent of the total number of employees in
any establishment.
SECTION 3. The weekly compensation for all employees as of June
16, 1933, shall not be reduced, notwithstanding that the hours worked
in such employment may be hereby reduced. Methods of adjustment
in hourly rates made since June 16, 1933, shall be reported to the
Code Authority.
SECTION 4. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
employees.
SECTION 5. This Article establishes a minimum rate of pay which
shall apply irrespective of whether an employee is actually compen-
sated on a time-rate, piece-rate, or other basis.
SECTION 6. No employee now employed at a rate in excess of the
minimum shall be discharged and reemployed at a lower rate for
the purpose of evading the provisions of this Code.
SECTION 7. A person whose earning capacity is limited because of
age or physical' handicap may be employed on light work at a wage
below the minimum established by this Code if the employer ob-
tains from the State Authority designated by the United States
Department of Labor a certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.
ARTICLE V-GENERAL LABOR PROVisIONS

SECTION 1. No person under sixteen (16) years of age shall be
employed in the industry.
No person under eighteen (18) years of age shall' be employed at
operations or occupations hazardous in nature or dangerous to
health. The Code Authority shall submit to the Administrator
within six (6) months after the effective date of this Code a list of
such operations or occupations. In any State an employer shall be
deemed to have complied with this provision as to age if he shall
have on file a certificate or permit duly issued by the Authority in
such State empowered to issue employment or age certificates or
permits showing that the employee is of the required age.
SECTION 2. In compliance with Section 7 (a) of the Act, it is
provided:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall





442


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) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organ-
ization of his own choosing, and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SECTION 3. No employer shall reclassify employees or duties of
occupations performed, or engage in any subterfuge, for the purpose
of defeating the purposes or provisions of the Act or of this Code.
SECTION 4. Every employer shall provide for the safety and
health of his employees at the place and during the hours of their
employment in accordance with the standards for safety and health
which shall be submitted by the Code Authority to the Adminis-
trator within six (6) months after the effective date of this Code,
and upon approval by the Administrator such standards shall
become operative as part of this Code.
SECTION 5. No provision in this Code shall supersede any State
or Federal Law which imposes more stringent requirements on
employers as to age of employees, wages, hours of work, or as to
safety, health, sanitary op- general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 6. All employers shall post complete copies of this Code
in conspicuous places accessible to employees.
SECTION 7. The hours worked by any employee, except outside
salesmen, during each day shall be consecutive, provided that an
interval not longer than one hour may be allowed for each regular
meal period, and such interval not counted as part of the employee's
working time. Any rest period which may be given employees shall
not be deducted from such employee's working time.
SECTION 8. No homework shall be allowed in this industry.

ARTICLE VI-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
AUTHORITY

ORGANIZATION

SECTION 1. A Code Authority is hereby constituted to administer
this Code.
SECTION 2. The Code Authority shall consist of:
(a) Seven (7) representatives of the industry, or such other num-
ber as may be approved from time to time by the Administrator, to
be selected as hereinafter provided.
(b) Such additional members, without vote and without expense
to the industry, not to exceed three (3), as the Administrator may
appoint to represent such groups or interests or governmental
agencies and to serve for such periods as he may designate.
(c) The Administrator shall appoint a temporary Code Author-
ity to serve until the selection of a permanent Code Authority can






443


be accomplished. Such temporary Code Authority shall devise an
equitable method of selection of the Code Authority and submit the
same to the Administrator for approval within thirty (30) days
after the effective date of this Code.
SECTION 3. Members of the industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expense of its administration. Such
reasonable share of the expense of the administration shall be deter-
mined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and,'or such other factors
as may be deemed equitable.
SECTION 4. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor shall
any member of the Code Authority be liable in any manner to any-
one for any act of any other member, officer, agent, or employee of
the Code Authority. Nor shall any member of the Code Authority
exercising reasonable diligence in the conduct of his duties here-
under be liable to anyone for any action or omission to act under
the Code, except for his own wilful misfeasance or non-feasance.
SECTION 5. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on membership, and
(2) submit to the Administrator true copies of its articles of asso-
ciation, by-laws, rules or regulations, and all amendments when
made thereto, together with such other information as to member-
ship, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
SECTION 6. In order that the Code Authority shall, at all times,
be truly representative of the industry and in other respects comply
with the provisions of the Act, the Administrator may provide such
hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
Authority, or any sub-Code Authority.

POWERS AND DUTIES

SECTION 7. The Code Authority shall have the following powers
and duties:
(a) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of this Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval together with true copies of any
amendment or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effect the purposes of the Act.
(b) To obtain from members of the industry for use of the Code
Authority, for the Administrator in the administration and enforce-
ment of the Code, and for the information of the President, reports
based on periods of one, two or four weeks, or multiples thereof, as





444


soon as the necessary readjustment within the industry can be made,
and to give assistance to members of the industry in improving
methods, or in prescribing a uniform system, of accounting and
reporting. All individual reports shall be kept confidential as to
members of the industry and only general summaries thereof may be
published.
(c) Subject to rules and regulations issued by the Administrator
to receive complaints of violations of this Code2 make investigations
thereof, and bring to the attention of the Administrator recommenda-
tions and information relative thereto for such action as, in his dis-
cretion, the facts warrant.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions thereof.
(e) To coordinate the administration of this Code with such
other codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity, with the approval of the Administrator, such powers as will
promote joint and harmonious action upon matters of common inter-
est, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code.
(f) To secure an equitable and proportionate payment of the ex-
pense of maintaining the Code Authority and its activities from
members of the industry, assenting to the Code.
(g) To cooperate with the Administrator in regulating the use
of the NRA Code Insignia solely by those members of the industry
who have assented to, and are complying with, this Code.
(h) To initiate, consider and make recommendations for the modi-
fication or amendment of this Code.
(i) The Code Authority shall appoint representatives to serve on
any Drug Industry Coordinating Council which may be established
to be composed of representatives from the various code authorities
governing codes which are directly related to the drug industry, and
to act as a planning and coordinating agency, and as an agency
for the stabilization of employment, for the entire drug industry.
SECTION 8. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investiga-
tion of the merits of such action and further consideration by such
code authority or agency pending final action which shall not be
effective unless the Administrator approved or unless he shall fail
to disapprove after thirty (30) days' notice to him of intention to
proceed with such action in its original or modified form.
SECTION 9. General Administrative Provisions.-In addition to the
information required to be submitted to the Code Authority as set
forth in this Article members of the industry shall furnish such sta-
tistical information as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of the Act to such Federal and






445


State agencies as the Administrator may designate; and nothing in
this Code shall relieve any member of the industry of any existing
obligations to furnish reports to Government agencies.
SECTION 10. An appeal from any section by the Code Authority
affecting the rights of any employer or employee in the industry may
be taken to the Administrator.
ARTICLE VII-TRADE PRACTICE PROVISIONS

The Code Authority shall collect evidence as to the effect of the
following trade practice provisions in correcting the competitive
abuses in this industry. The Code Authority shall report to the
Administrator six months after the effective date of this Code, or
before if the facts warrant, on the conditions in the industry. If
the trade practice provisions in this Code are not adequate to correct
the competitive abuses, the Code Authority shall recommend such
modifications of or additions to the trade practice provisions which
they deem necessary and upon approval by the Administrator, after
such hearings as he shall specify, such recommendations shall become
operative as a part of this Code.
SECTION 1. (a) Where a commodity or article sold by a member
of the industry bears (or its label or container bears), the trade-mark,
brand, or name of the producer or owner of such commodity or article
it shall be sold only on the basis of open prices to those engaged as
primary distributors of its products, clearly setting forth the basis
or granting of discounts, (specifying the particular function which
must be performed or the quantities which must be purchased) which
are uniform to all trade buyers of the same class of distributors and
which are strictly adhered to while effective.
No member of the industry shall offer a discount, payment, or
allowance on a functional basis except where an effective means exists
for assuring the Code Authority that the function for which the
payment is made can be actually and faithfully performed.
(b) The term open prices as used in this section means a price
list which is published by each member of the industry for the equal
information of all primary distributors in the separate or the several
classes of primary distributors, and which states all the prevailing
terms of sale for the separate or the several classes of primary
distributors.
(c) This Section shall be strictly construed to prohibit any direct
or indirect price concession and,'or payment of compensation for
the functions performed by those engaged as primary distributors
which is not declared in the published price list. The term indirect
price concession" as used in this paragraph means any concession
or payment indirectly made by a member of the industry to a pri-
mary distributor or his agent, or his employee, through a rebate
or allowance or commission or refund or P. M. or payment or deal
or ift or by any other means whatever.
d) Nothing in this section shall be interpreted so as to limit the
right of a member of the industry to select or classify his primary
distributors as he shall see fit.
(e) Each member of the industry shall file his current price list
with the Code Authority within thirty (30) days after the approval






446


of this Code. Each member of the industry shall file (by registered
mail) any subsequent revision of such price list with said Code
Authority.
(f) Within thirty (30) days after the effective date of this Code,
every member of this industry shall file with the Code Authority
all brand names owned or used by them. And thereafter new trade
marks, brands or trade names shall be filed with the Code Authority
within five (5) days after the adoption thereof.
This section shall not apply to the sale of private brand products
on contract by a manufacturer or private brands to the owner of such
private brand, nor to the sale of products for export, nor to bids
submitted to governmental units.
SECTION 2. (a) No member of the industry shall .ive, permit to
be given, or directly offer to give, anything of value for the purpose
of influencing or rewarding the action of any employee, agent or
representative of another in relation to the business of the employer
of such employees, the principal of such agent or the represented
party, without the knowledge of such employer, principal, or party.
This provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as here-
inabove defined.
(b) No member of the industry or his agent shall pay p. m.'s or
commissions directly or indirectly to employees of retail dealers to
influence the sale of his products.
(This paragraph (b) is stayed for a period of six months after
the effective date of this Code, and shall go into effect at the end of
this period only upon the approval of the Administrator after such
hearing as he shall deem necessary, provided the Code Authority
shall have presented to the Administrator sufficient evidence to justify
such approval.)
SECTION 3. (a) No member of the industry shall employ or per-
mit to be employed for him any demonstrator or sales employee in a
retail establishment whose salary is wholly or partially directly or
indirectly paid by the member of the industry or his agent to work
in such retail establishment unless such demonstrator or sales em-
ployee is clearly and openly identified.to the public as the employee
or agent of the member of the industry; provided, however, that
the demonstrator shall be available at all times for the sale of
merchandise.
(b) The payment of wages of a demonstrator or special sales
representative by the member of the industry in a retail establish-
ment whose identity is clearly and openly disclosed to the public as
being an employee or agent of the member of the industry shall not
be considered a form of unfair trade practice or of price discrimina-
tion.
SECTION 4. (a) Cooperative advertising, the expense of which is
borne or shared by the member of tne industry and retailer, shall not
be considered a form of price discrimination, but no payment shall
be made for cooperative advertising until the member of the industry
has received proof of insertion and statement of the cost of such
advertising and the member of the industry's share thereof.






447


(b) No member of the industry or his agent shall make payment
for advertising, where such payment is made for the purpose of pay-
ing for the services of a special demonstrator or for the payment
of p. m.'s or other gratuities to the dealer's employees.
SECTION 5. The term advertising'" shall include all forms of
printed or oral recommendation of products manufactured or con-
trolled by the member of the industry and shall include publicity
of all kinds, including newspaper and magazine advertising, cir-
culars, labels, booklets, radio advertising, and statements made orally
in the promotion of sales of such products by salesmen or others
employed directly or indirectly by a member of the industry.
(a) No member of the industry shall make or cause or permit, to
be made or published any false, untrue, or deceptive statements by
way of advertisement or otherwise concerning the grade, quality,
quantity, substance, character, origin, size, or preparation of any
product of the industry having the tendency and capacity to mislead
or deceive purchasers or prospective purchasers or to affect injuriously
the business of competitors. The truth of an advertisement shall
be judged by its intended effect as well a.s by a liberal rendering
thereof.
(b) No member of the industry shall use fictitious or deceptive
prices in advertising or selling merchandise, such as affixing labels
to merchandise with fictitious or deceptive prices thereon.
SECTION 6. (a) No member of the industry shall use advertising
or other representation which refers inaccurately in any material
particular to any competitors or their commodities, prices, values,
credit terms, policies, or services.
(b) No member of the industry shall brand or mark any com-
modity in any manner which tends to deceive or mislead purchasers
with respect to the brand, grade, quality, quantity, origin, size,
material content, or preparation of such commodity.
(c) No member of the industry shall, in selling or advertising
his merchandise, offer said merchandise as copies, blends, reproduc-
I tions or imitations of another member of the industry where the
S name or brand of such other member of the industry is used without
It his consent.
SSECION 7. No member of the industry shall withhold from or in-
sert in any quotation or invoice any statement that makes it inaccu-
rate in any material particular.
SECTION 8. No member of the industry shall procure, otherwise
than with the consent of another member of the industry, any infor-
mation concerning the business of such other member which is
properly regarded by it as a trade secret or confidential within its
organization other than information relating to a violation of any
provision of the Code.
SECTION 9. No member of the industry who has performed his
part of the agreement of sale shall accept return of merchandise,
by the vendee, damaged or shop-worn without previous written
authorization by the said member of the industry. A charge to
cover the cost of reconditioning and handling such merchandise
S shall be made.




UNIVERSITY OF FLORIDA

lilill lil I 111llll llll 111111111
448 3 1262 08584 7548

ARTICLE VIII--MODIFICATION

SECTION 1. This Code and all the provisions thereof are expressly 1
made subject to the right of the President, in accordance with the .i*
provisions of subsection (b) of Section 10 of the National Indus-
trial Recovery Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said
Act and specifically, but without limitation, to the right of the Presi- ...
dent to cancel or modify his approval of this Code or any condi-
tions imposed by him upon his approval thereof.
SECTION 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on the approval of the President.
ARTICLE IX-MONOPOLIES, ETC.

No provision of this Code shall be applied as to permit monopolies
or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE X-PRICE INCREASES

Whereas the policy of the Act to increase purchasing power will
be made more difficult of consummation if prices of goods and. -
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual costs
should be delayed. But when made such increases should, so far as
possible, be limited to actual increases in the sellers' cost.
ARTICLE XI-GENERAL

SECTION 1. No member of the industry shall use any subterfuge :
to frustrate the spirit and intent of this Code which is, among ;
other things, to increase employment, to remove obstructions to com-
merce, to shorten hours of work, and to raise wages. I
SECTION 2. Except as may be subsequently provided in a specific
or supplementary export Code for this industry, the provisions of
this Code now or hereafter adopted with regard to prices, dis-
counts, deductions, allowances, extras, commissions, or methods
and/or terms of sale, are not to apply to direct export sales in course :i;
of export, i.e., sales destined ultimately for export.

ARTICLE XII--EFFECTIE DATE

This Code shall become effective on the second Monday after
its approval by the President.
Approved Code No. 361.
Registry No. 604-03.

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Full Text

PAGE 1

Approved Code No. 361 Registry No. 604-03 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE PERFUME, COSMETIC AND OTHER TOILET PREPARATIONS INDUSTRY AS APPROVED ON MARCH 23, 1934 WE DO OUR PART U '41V. OF . . f C u .. J ._., >--....-..:. fl l"t,, u . ....... --'11111C.SPr."'"~ WWW. --.. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 I I For aale by the Superintendent of Documents, Washington, D.C. Price 5 cents V

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This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreim and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo , N . Y.: Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Jacksonville, Fla. : Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif. : 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philad e lphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Louis, Mo. : 506 Olive Street. San Francisco, Calif.: 310 Customhouse. Seattle, Wash. : 809 Federal Office Building.

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Approved Code No. 361 Registry No. 604---03 ERRATA SHEET CODE OF FAIR COMPETITION FOR THE PERFUME, COSMETIC, AND OTHER TOILET PREPARATIONS INDUSTRY As Approved on March 23 , 1934 Pag e 447 , Articl e XII , Se c tion 5 , Su bsec t i on (a) la s t sen~nce , the word "liberal " should be "Lite r al. " 71315-829-7-34 ( 1) U , 9 . IIOV!IINIIENT PIIINTIIIII OFPICI I tit•

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I Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation ./ http://www.archive.org/details/codeoffaircompet7548unit

PAGE 5

Approved Code No. 361 CODE OF FAIR COMPETITION FOR THE PERFUME, COSMETIC AND OTHER TOILET PREP ARAT,IONS INDUSTRY As Approved on March 23, 1934 ORDER CooE OF FAIR COMPETITION FOR THE PERF ME, Cosl\rnTic A xo OTHER TOILET PREP ARATIO s I N D USTRY An application ha,inobeen duly made pur uant to and in full compliance with the pro ision of Titl I of th e National Indu trial Recovery Act, approved June 16 , 1933 , for approYal of a Code of Fair Competition for the Perfum e, Co metic and other Toilet Preparations Indu try, and h earing having been duly held there on and the annexed report on aid ode contai ning finding with respect ther e to, ha Ying been made and directed to the Pre s ident. NO,v, THEREFORE, on behalf f t h e Pre sident of the United States, I, Hugh S. John on Admini -trator for In dustria l Recovery, pur uant to authority vested in me by Executive Order of the President, including Ex ecut iY e Order o. 6543-A, dated December 30, 1933: and otherwi e; do hereby incorporate by reference sa id annexed n'port and do find that sa id Code complies in all respects with th pertinent provisions and will promote the policy and purposes of aid Title of sa id Act; and do hereby order that sa id Code of Fair Comp e tition be and it i hereby approved. HUGH 8. JOHNS ON, Admini1:drator for Indu strial R ec o ' very. ApproYal recommended: A. D. ,v HITESIDE, Divisfon Adminristrator. ,vAsHrNaToN, n.c., March f3, 19 34 48303-425-135-34 (435)

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REPORT TO THE PRESIDENT The PRESIDENT, The White House. Srn: This is a repor t on the Hearing on the Code of Fair Compe tition for the Perfume, Cosmetic and Other Toilet Preparations Indu stry, held in the Carlton Room of the Carlton Hotel on January 17, 1934. The Code, which is atta c hed, was presented by duly quali fied and authorized representatives of the Industry, complying with statutory requirements and claiming to represent seventy (70) per cent by vo lum e of the Industry. In accordance wi th the customary procedure every person who had filed a request for appearance was freely heard in public; and regu l atory req uirement s were complied with. THE INDUSTRY The Industry comprises about 650 concerns, having an investment in 1929 of app roxima te ly $80,000,000. Aggregate annual sales fell from $201,689,000 in 1929 to about $140,000,000 in 1932. In 1929 the Industry employed 19,495 persons of whom 13,109 were wage earners. PROVISIONS OF THE CODE The Code provides a b as ic work week of 40 hours which is a reduction in wor king time of 13% in the Northern states and 25% in the Southern states from the respective 1929 figures. It is be li eved that the 40 hour week will maintain employment in normal periods almost equal to the 1929 figure whereas during peak periods employment will be more than the 1929 average. The basic minimum hourly rate of 35 in the North and in the South should provide minimum weekly earnings noticeably above those in e ffect prior to the President's Reemployment Agree ment. It is estimated payrolls will be increased 15% in normal and about 25% in peak periods above July 1933 figures and average purchasing power will be restored nearly to the 1929 level. At the public h e aring considerable controver s ial material was presented pertaining to the employment of demonstrators and to the corrollary que s tions of the payment of commissions by manufac turer s to retail sales clerks, and other forms of special sales con cessions incident thereto. For a number of years the Industry has indulged in these practices and as a consequence many competitive abuses have arisen, which can not be directly eliminated without danger of destroying some bona fide merchandising methods. This Code provides an open price system designed to put these competi tive abuses into the open and it is believed this procedure will cause th e ir elimination. However, to be sure the Code will be effective in (436)

PAGE 7

437 this respect, the Code Authority is instruct~d to gather evidence as to the effect of the trade practice provisions in correcting these conditions and to report its finding to the Administrator at the end of a six months' trial period. The Code provides for the appointment of r ep re sentat ives to serve on a Drug Industry Coor linating Council which sb,'1.ll have representatives from all the various branche of the drug industry and be constituted to act as an advisory and planning body for the whole drug industry. FINDINGS The Deputy Admini trator in his final report to me on said Code having found as herein set forth and on the ba is of all the proceed ings in this matter; I find that: (a) Said Code is well designed to promote the policies and pur poses of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of intertate and foreign commerce which tend to dimini h the amount thereof and will pro vide for the general welfare by promoting the organization of in dustry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of la . bar and manage ment under adequate governmrntal sanctions and supervision, by eli1ninating unfair competitive pra c tice, by promoting the fulle -t possible utilization of the pre ent production capacity of Indu tries, by a voiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving tandards of labor, and by otherwi e rehabilitating indu s try. (b) Said trade industry normally employs not more than 50 000 employees; and is not classified by me as a major indu try. (c) The Code as approved complies in all respects with the perti nent provisions of said Title of said Act, including without limita tion Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant associ ation is an industrial association truly representative of the afore said Industry; and that said association imposes no inequitable restrictions on admission to membership therein. ( d) The Code is not designed to and will not permit monopolies or monopolistic practices. ( e) The Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Code. For these reasons, this Code of Fair Competition for the Perfume, Cosmetic and Other Toilet Preparations Industry has been approved. Respectfully, MARCH 23, 1934. HUGH s. JOHNSON' Administrator.

PAGE 8

CODE OF FAIR COMPETITION FOR THE PERFUME COSMETIC AND OTHER TOILET PREPARATIONS INDUSTRY ARTIOLE I-PURPOSES To e:ffe tuate the policy of Title I of the National Industrial Reco ery Act, the following provisions are established as a Code of Fair ompetition for the Perfume, Cosmetic and Other Toilet Prepa rations Industry, and shall be the standard of fair competition for such industry and shall be binding upon every member thereo , f. ARTICLE II-DEFINITIONS SECTION 1. (a) The term " Perfume, Cosmetic and Other Toilet Preparations Industry " as used herein shall mean the industry each member of which is engaged in the manufacturing, and/or in having manufactured for him under his own brand and specifications, and/ or in importing in consumer packages for resale, and/or in packag ing from bulk materials under his name or brand, perfume, toilet waters, face powders, face creams, toilet soaps, compact powders, skin lotions, lipsticks, rouges, shaving creams, shaving soaps, and other shaving preparations, bath salts and bath preparations, hair tonics, hair lotions, shampoos, depilatories, personal deodorants, man icure preparations, and similar substances and preparations designed and intended for external application to the person for the purpose of cleansing, improving the appearance of, refreshing, or preserving the person; and such related branches or subdivisions as may from tin1e to time be included under the provisions of this Code by the President of the United States, after such notice and hearings as he may prescribe. (b) This definition does not include dentifrices and mouth washes. ( c) This industry does not include the manufacture of soap or soap products as defined in the Code of Fair Competition for the Soap and Glycerine Industry-#623/03, a approved by the Presi dent on November 2 1933, nor does this Code or any amendments thereto that may subsequently be approved, apply in any manner whatsoever to members of the Soap and Glycerine Manufacturing Industry as defined in the aforementioned ode of that Industry. ( d) This definition does not include any retailer operating under a retail cod who performs any of the acts specified herein solely for the purpose of sale at retail to hi own cu tamers, and not for the purpose of ale to other di tributor ; pro ided however that where a retailer op rates a laboratory or plant di tin t from hi retail op eration , and mploys a special group of mploy e to work primarily in su h laboratory or J?lant distinct from that group of his mployees who work primarily 1n his retail tabli. hment ( ) , and such labora tory or plant perform any of the a t1 pe ified h rein, whether for (438)

PAGE 9

439 sale to such retailer's own customers or to other distributors, such laboratory or plant is sub ject to the provisions of this Code. SECTION 2. The term " member of the industry " as used herein shall mean any individual, partnership, association, corporation, or other form of enterprise en~aged in the industry, either as an employer or on his or its own behalf. SECTION 3. The term "employee" as used herein shall mean and include any and all persons engaged in the industry, howe--\ er com pensated, except a member of the industry. SECTION 4. The term "employer" as used herein includes anyone by whom such employee is compensated. SECTION 5. The term " establishment " as used herein hall mean any plant, laboratory , business, branch or department thereof engaged in this indu stry. SECTION 6. The terms "Act " and "Administrator " as used herein shall n1ean, respectively, Title I of the National Industrial Recovery Act , and the Administrator or Indu strial Recovery. SECTION 7. The term " export " as used herein shall include, in addition to shipments to foreign countries, shipments to territories and possessions of the United States. SECTION 8. The term "manufacturer 0 private brands" as u ed herein shall mean a manufacturer of products embraced by this Code who manufactures for individuals, firms or corporations or others who own or control the brand or trade-mark under which the article is sold or distributed. SECTION 9. The term " primary distributor ' a used herein shall mean a wholesale dealer or retail dealer to whom a member of the industry sells its products directly. SECTION 10. The term "P.M.'' as used herein shall mean a com mission or payment made by a member of the indu try directly or indirectly to any sales employee 0 any retail establishment not owned by suc h member of the industry, for th e purpo e of inducing such employee to exert special sales e:ff orts on behalf of the goods of such member of the industry; but shall not include payments or commissions paid by such member 0 the industry to hi s own demonstrators. SECTION 11. Definitions of Personn e l.-(a) The term" executive" as used herein shall mean an employee solely respon ible :for the management of a business or a recognized subdivision thereof. (b) The term "outside salesman" shall mean a sal es man who jg engaged not less than sixty (60) percent of his working hours out side the establishment or any branch thereof, by which he is employed. ( c) The term " research and sc ientifi c worker " as used herein shall mean an employee engaged primarily in research and scientific ,vork where specia l education or scientific training is essential. ( d) The term " outside service employee " as used herein shall mean an employee engaged not l ess than 60% of his working hours in delivering, installing, and/or servicing merchandise out ide of the establishment and shall include stab le and garage emp loye es . ( e) The term " watchman " as used herein shall mean an employee engaged primarily in safeguarding the premises and property of a member of the industry.

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440 ( f) The terms "firemen " and " engineers " as used herein shall mean employees engaged primarily in the upkeep, preservation, operation and repair of furnaces, boilers, engines, pumps, compres sors, heating and ventilating eq uipment, electrical generating plants, or other machinery used for supp lying heat, light, ventilation, or power to a building or plant of a member of the industry; but do not include such employees as porters, elevator operators, cleaners, or operators of machines used directly in a manufacturing process. (g) The term "apprentice office worker" as used herein shall mean an office employee with le ss than six (6) months total offire work experience. (h) The terms "beginner" and "learner" as used herein shall mean an employee with less than sixty (60) days working experi ence in the Industry. (i) The term "demonstrator" as used herein shall mean a special repre sentativ e employed to work in retail stores not owned by a member of the industry and whose salary is paid in whole or in part dire ct ly or indirectly by such member of the industry. ARTICLE III-HouRs SEOTION 1. No wat c hman, fireman, engineer, or outside service employee shall be permitted to work in excess of forty-eight ( 48) hours per week averaged over a consecutive two weeks' period and in no event shall be permitted to work in excess of twelve (12) days in any consecutive fourteen (14) days' period. SECTION 2. No other employees except pharmacists, chemists, ex e c utives, and research and scientific workers, earning in excess of thirty-five (35) dollars per week, and outside salesmen, shall be permitted to work in excess of forty ( 40) hours in any one week or eight (8) hours in any twenty-four (24) hour period, except as here inafter provided in Sections 3 and 4 of this Article, and in no event shall any such employee be permitted to work in excess of six ( 6) days in any consecutive seven (7) days' period. SECTION 3. (a) The maximum hours fixed in the foregoing section shall not apply to any employee on emergency maintenance or emer gency repair work involving breakdowns or protection of life or property, but in any such special case such employees shall be paid at the rate of at least time and one third ( 11/2) for hours worked in excess of the maximum hours herein provided. (b) No employee working on continuous process operations shall be permitted to work in excess of twelve (12) hours in any one day or more than forty ( 40) hours in any one week. SECTION 4. During a peak period, of not to exceed eight (8) weeks in any calendar year, any employee shall be permitted to work not in excess of forty-eight ( 48) hours in any one week, provided that he sha ll not be permitted to work more than eight (8) hours in any twenty-four (24) hour period, and that hours in excess of forty ( 40) per week shall be compensated for at the rate of time and one third (11/3). SECTION 5. No employer shall knowingly permit any employee to work for any time which when totaled with that already performed with another employer, or employers, exceeds the maxima permitted h&cin. .

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441 ARTICLE IV-WAGES SECTION 1. No employee, other than apprentice office workers and beginners and learners, shall be paid at less than the rate of thirty five (35) cents per hour, except employees in the States of North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma and Texas where the minimum rate shall be two and one half (2) cents less per hour. SECTION 2. No apprentice office worker, beginner or learner shall be paid less than eighty ( 80) per cent of the rates specified in Sec tion one of this Article. Employees of this cla ss thus compensated shall not exceed five (5) per cent of the total number of employees in any establishment. SECTION 3. The weekly compensation for all employees as of June 16, 1933, shall not be reduced, notwithstanding that the hours worked in such employment may be hereby reduced. Methods of adjustment in hourly rates made since June 16, 1933, shall be reported to the Code Authority. SECTION 4. Female employees performing substantially the sa1ne work as male employees shall receive the same rate of pay as male emvloyees. SECTION 5. This Article establishes a minimum rate of pay which shall apply irrespective of whether an employee is actually compen sated on a time-rate, piece-rate, or other basis. SECTION 6. No employee now employed at a rate in excess of the minimum shall be discharged and reemployed at a lower rate for the purpose of evading the provisions of this Code. SECTION 7. A person whose earning capacity is limited because of age or physical 1 handicap may be employed on light work at a wage below the minimum established by this Code if the employer ob tains from the State Authority designated by the United States Department of Labor a certificate authorizing his employment at such wages and for such hours as shall be stated in the certificate. Each employer shall file with the Code Authority a list of all such persons employed by him. ARTICLE V-GENERAL LABOR PROVISIONS SECTION 1. No person under sixteen (16) years of age shall be employed in the industry. No person under eighteen (18) years of age shall' be employed at operations or occupations hazardous in nature or dangerous to health. The Code Authority shall submit to the Administrator within six (6) months after the effective date of this Code a list of such operations or occupations. In any State an employer shall be deemed to have complied with this provision as to age if he shall have on file a certificate or permit duly issued by the Authority in such State empowered to issue employment or age certificates or permits showing that the employee is of the required age. SECTION 2. In compliance with Section 7 (a) of the Act, it is provided: (a) That employees shal 1 l have the right to organize and bargain collectively through representatives of their own choosing, and shall

PAGE 12

442 be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in elf-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) That no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organ ization of his own choosing, and (c) That employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. SECTION 3. No employer shall reclassify employees or duties of occupations performed, or engage in any subterfuge, for the purpose of defeating the purposes or provisions of the Act or of this Code. SECTION 4. Every employer shall provide for the safety and health of his employees at the place and during the hours of their employment in accordance with the standards for safety and health which shall be submitted by the Code Authority to the Adminis trator within six (6) months after the effective date of this Code, and upon approval by the Administrator such standards shall become operative as part of this Code. SECTION 5. No provision in this Code shall supersede any State or Federal Law which imposes more stringent requirements on employers as to age of employees, wages, hours of work, or as to safety, health, sanitary 011 general working conditions, or insurance, or fire protection, than are imposed by this Code. SECTION 6. All employers shall post complete copies of this Code in conspicuous places accessible to employees. SECTION 7. The hours worked by any employee, except outside salesmen, during each day shall be consecutive, provided that an interval not longer than one hour may be allowed for each regular meal period, and such interval not counted as part of the employee's working time. Any rest period which may be given employees shall not be deducted from such employee's working time. SECTIO :r 8. No homework shall be allowed in this industry. ARTICLE VI-ORGANIZATION, PowERS, AND DuTIES OF THE ConE AUTHORITY ORGANIZATION SECTION 1. A Code Authority is hereby constituted to aclmini ter this Code. SECTION 2. The Code Authority hall consist of: (a) Seven (7) representatives of the industry, or ' UCh other num ber as may be approved from time to time hy the Admini trator, to be sel cted as hereinafter provided. (b) ~uch additional members, without Yot and with ut expen e to the rndn-try, not to exceed thr e (3), a the dmini trator may appoint to rer resent such groups or interc t or governmental agenci s and to serve for uch period as h may designate. . ( c ) The Adn~inistrator !1all appoint a t mp rary -,ode uthor1ty to serve until the select10n of a permanent Code Authority can

PAGE 13

443 be accomplished. Such temporary Code Authority shall devi se an equitable method of selection of the Code Authority and su bmit th e same to the Administrator for approval within thirty (30) days after the effective date of this Code. SECTION 3. Members of the industry shall be entitled to participate in and share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and complying with the requir eme nts of this Code and sustainin g their reasonable share of the expense of it s administration. Such reasonable share of the expense of the administration shall be deter mined by the Code Authority, sub j ect to review by the Adminis trator, on th e basis of volume o f business and /or such other factors as may be deemed equitable. SECTION 4. Nothing contained in this Code sha ll constitute the members of the Code Authority partners for any purpose . Nor sha ll any member of the Code Authority be liable in any manner to any one for any act of any other member, officer, agent, or employee of the Code Authority. Nor shall any member of the Code Authority exercising reasonable diligence in the conduct of hi s duties here under be liable to anyone f or any action or omission to act under the Code, except for his own wilful misfeasance or non-fea sance . SEOTION 5. Each trade or industrial association directly or indi r ect ly participating in the selection or activities of the Code Author ity shall (1) impose no inequitable restrictions on membership, and (2) s ubmi t to the Administrator true copies of its articles of asso ciation, by-laws, rules or regulations, and all amendments when made thereto, together with such other information as to member ship, organization, and activities as the Administrator may deem. nec essary to effec tuate the purposes of the Act. SEOTION 6. In order that the Code Authority shall, at all times, be truly representative of the industry and in other respects comp ly with the provisions of the Act, the Administrator may provide suc h hearings as he may deem proper ; and thereafter if he s h a ll find that the Code Authori ty is not tru l y representative or does not in other respects comply with the provisions of th e Act, may require an appropriate modification in the method of select i on of the Code Authority, or any sub-Code Authority. POWER S AND DUTIES SECTION 7. The Code Authority sha ll have the following powers and duties: (a) To adopt by-laws and rules and regulations for its procedure and for the administration and enforcement of this Code, in accord ance with the powers herein granted , and to s ubmit t h e same to the Administrator for his approval tog et h er with true copies of any amendment or additions when made thereto, minutes of meetings when held, and such oth er information as to it s activities as the Administrator may deem necessary to effect the purposes of the Act. (b) To obtain from . members of the industry for use of the Code Authority, for the Administrator in th~ administration and enforce ment of the Code, and for the information of the Pr eside nt, reports based on periods of one, two or four weeks, or multiples thereof , as

PAGE 14

444 soon as the necessary readjustment within the industry can be made, and to give as s i s tance to members of the industry in improving methods, or in pre sc ribing a uniform system, of accounting and reporting. All individual reports shall be kept confidential as to ,members of the industry and only general summaries thereof may be published. ( c) Subje c t to rules and regulations issued by the. Administrator to receive complaints of violations of this Code 1 make investigations thereof, and bring to the attention of the Administrator recommenda tions and information relative thereto for such action as, in his dis cretion, the facts warrant. ( d) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein and to pay such trade associations and agencies the cost thereof, provided that nothing herein shall relieve the Code Author ity of its duties or responsibilities under this Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions thereof. ( e) To coordinate the administration of this Code with such other codes, if any, as may be related to the industry, or any sub division thereof, and to delegate to any other administrative author ity, with the approval of the Administrator, such powers as will promote joint and harmonious action upon matters of common inter est, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code. (f) To secure an equitable and proportionate payment of the ex pense of maintaining the Code Authority and its activities from members of the industry assenting to the Code. (g) To cooperate with the Administrator in regulating the use of the NRA Code Insignia solely by those members of the industry who have assented to, and are complying with, this Code. (h) To initiate, consider and make recommendations for the modi fication or amendment of this Code. (i) The Code Authority shall appoint representatives to serve on any Drug Industry Coordinating Council which may be established to be composed of representatives from the various code authorities governing codes which are directly related to the drug industry, and to act as a planning and coordinating agency, and as an agency for the stabilization of employment, for the entire drug industry. SECTION 8. If the Administrator shall determine that any action of a Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investiga tion of the merits of such action and further consideration by such code authority or agency pending final action which shall not be effective unless the Administrator approved or unless he shall fail to di s approve after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. SECTION 9. G e n e ral Ad?ninistrative P1ovisions.-In addition to the information required to be submitted to the Code Authority as set forth in this Article members of the industry shall furnish such sta tistical information as the Administrator may deem necessary for the purpo es recited in Section 3 (a) of the Act to such Federal and

PAGE 15

445 St~te agencies as t~e Administrator may d~signate; and nothi_n~ in this Code shall relieve any member of the industry of any existing obligations to furnish reports to Government agencies. SECTION 10. An appeal from any sec t ion by the Code Authorit y affecting the rights of any employer or employee in the industry may be taken to the Administrator . ARTICLE VII-ThADE PR A. CTICE PROYISIONS The Code Authority shall collect evidence as to the effect of the following trade practice provisions in corr e cting the competitive abuses in this industry. The Code Authority shall report to the Admini strator six months after th e effective date of this Code, or before if the facts warrant, on the conditions in the industry. If the trade practice prov i sion s in this Code are not adequate to correct the competitive abuses, the Code Authority shall recommend such modifications of or addi t ions to the trade prac t ice provi ions which they deem necessary and upon approval by the Administrator, after such hearings as he hall specify such recommendations shall become operati ve as a :part of thi Code. SECTION 1. (a) Where a commodity or article sold by a member of the industry bears ( or its lab e l or container bear s ), the trade-mark, brand, or name of the producer or owner of s uch commodity or article it shall be sold only on the ba s is of open prices to those engaged as primary distributors of its products, clearly setting forth the basis for granting of discounts, (specifying the parti c ular function which must be performed or the quantities which mu t be purcha ed) which are unifor m to all trade buyers of the same cla ss o:f distributors and which are strictly adhered to while effective. No member of the industry shall offer a discount, payment, or allowance on a functional basis except where an effective means exists for assuring the Code Authority that the function for which the payment i s made can be actually and faithfully performed . (b) The term "open prices" as u eel in this section means a price list which is publi shed by each member of the industry for the equal information of a ll primary distributors in the separate or the several classes of primary distributors, and which states all the prevai ling terms of sa le for the separate or the several cla ses of primary distributor s . ( c) Thi s Section shall be trictly construed to prohibit any direct or indirect price conces ion and / or payment of compensat i on for the functions performe d by those engaged a primary distributors which is not declared in the published price list. The term " indirect price concession" as us ed in this paragraph means any concessio n or payment indirectly made by a member of the industry to a pri mary distributor or his agent, or his employee, through a rebate or allowance or commission or refund or P. M. or payment or deal or gift or by any other means whatever. (d) Nothing in this section shall be inter preted so as to limit the right of a member of the indu stry to select or clas s ify his prim ar y distributors as he shall see fit. ( e) Each member of the indu s try shall file his current price list with the Code Authority within thirty (30) days after the approval

PAGE 16

446 of this Code. Each member of the industry shall file (by registered mail) any subsequent revision of such price list with said Code Authority. (f) Within thirty (30) days after the effective date of this Code, every member of this industry shall file with the Code Authority all brand names owned or used by them. And thereafter new trade marks, brands or trade names shall be filed with the Code Authority within five ( 5) days after the adoption thereof. This section shall not apply to the sa le of private brand products on contract by a manufacturer or private brancls to the owner of such private brand, nor to the sale of products for export, nor to bids submitted to governmental units. SECTION 2. (a) No member of the industry sha ll give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative of another in relation to the business of the employer of such employees, the principal of such agent or the represented party, without the knowledge of such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles common ly used for advertising except so far as such articles are actually used 10r commercia l bribery as here inabove defined (b) No member of the industry or his agent shall pay p. m.'s or commissions directly or indirectly to employees of retail dealers to influence the sale of his products. (This paragraph (b) is stayed for a period of six months after the effective date of this Code, and shall go into effect at the end of this period only upon the approval of the Administrator after suc.h hearing as he shall deem necessary, provided the Code Authority shall have presented to the Administrator sufficient evidence to ju stify such approval.) SECTION 3. (a) No member of the industry sha ll employ or per mit to be employed for him any demonstrator or sales employee in a retail establishment whose salary is wholly or partially directly or indirectly paid by the member of the industry or his agent to work in such retail establishment unless such demonstrator or sales em ployee is clearly and openly identified . to the public as the employee or agent of the member of the industry; provided, however, that the demonstrator shall be available at all times for the sa le of merchandise. (b) The payment of wao-es of a demonstrator or specia l sales representative by the member of the industry in a retail establish ment whose identity is clearly and openly disclosed to the public as being an employee or agent of the member of the industry sha ll not be considered a form of unfair trade practice or of price discrimina tion. SECTION 4. (a) Cooperative advertising, the expense of which is borne or shared by the member of the industl'y and retailer, shall not be considered a form of price discrimination, but no payment sha ll be made for cooperative advertising until the member of the industry has received proof of insertion and statement of the co t of such advertising and the member of the industry's hare thereof.

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447 (b) No mem.ber of the industry or his agent shall make paymen t for advertising, where such payment i s made for the purpo e of pay ing for the services of a special demonstrator or for the payment of p. m . 's or other gratuitie to the dealer's employees. SECTION 5 . The term "advertising sha ll include all forms of printed or oral recommendation of products manufactured or con trolled by the memb er of th e indu try and shall include publicity o:f a ll kinds, including new paper and magazine advertising, cir cu la rs, labels, booklet , radio adverti ing, and statements made ora lly in the promotion of sales of such products by ale men or others employed directly or indirectly by a member of the industry. (a) No member of the indu stry shall make or cause or permit to be made or published any fal e, untrue, or deceptiYe stateme nt by way of advertisement or otherwise concerning the grade, quality, quantity, substance, character, origin, size, or preparation of any product of the industry having the tendency and capac ity to m . i sle ad or de ce ive purchasers or prospective purchasers or to affect injuriously the business of competitors. The truth of an acl-vertisement sha ll be judg ed by its intended effect as "ell as by a liberal rendering thereof. (b) No member of the industry shall u se fictitiou or deceptive prices in advertising or selling merchandise, such as affixing labels to nierchandise with fictitious or deceptive price s thereon . SE C TION 6. (a) No m e mber of the industry s hall u e advertis ing or other representa.tion which refers inaccurately in any material particular to any competitors or their commodities, prices, values, credit terms, policies , or services. (b) No member of the indu str y sha ll brand or mark any com modity in any manner which tends to deceive or mislead purchase rs with resp ec t to the brand, grade, qua li ty, quantity origin, s ize, material content, or preparation of such commodity. ( c) No member of the industry shall, in sell in g or advert ising his merchandi se, offer said merchandis e as copie , blends, reprodnc tions or imitations o:f another member of the industry w here the name or brand of such other member of the industry is used without his consent. SECTION 7. No member of the industry sha ll withhold from or in sert in any quotation or invoice any sta.teme nt that makes it inaccu rate in any material particular. SECTION 8. No memb e r of the industry sha ll pro cure, otherwise than with the consent of anoth er member of the industry, any infor mation concerning the bu s ine ss of suc h other member which is properly regarded by it as a tr ade secret or co nfidential within its organization other than information relating to a violation of any provision of the Code. SECTION 9. No member of the indu s try who ha s performed his part of the agreement of sale shall accept return of merchandise, by the vendee, damaged or s hop-worn without previous written authorization by the said member of the industry. A charge to cover the cost of reconditioning and handling such merchandise shall be made .

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448 1111111111~1\ H~11iillll11i1f 11111\ rnl1i111i 111111111 3 1262 08584 7548 ARTICLE VIII-MODIFICATION SECTION 1. This Code and all the provisions thereof are express l y made sub je ct to the right of the Pre s ident, in accordance with the provision s of subsection (b) of Section 10 of the Nationa l Indus trial Recovery Act, from time to time to cancel or modify any orde r , approval, licen se, rule, or r eg ulation i ss ued under Title I of sa i d Act and specifically, but without limitation, to the right of the P resi dent to cancel or modify hi s approval of this Code or any condi tions imposed by him upon hi s approval thereof. SECTION 2. This Code, except as to provisions required by the Act , may be modified on the basis of experience or changes in circum stances, such modifications to be ba se d upon application to the Ad ministrator and s u c h notice and hearing as he shall specify, and t o become effective on the approval of the President . ARTICLE IX-MONOPOLIES, ETC. No provision of this Code s hall be applied as to permit monopo l ies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. ARTICLE X-PRICE INCREASES Whereas the policy of the Act to increase purchasing power wi ll be made more difficult of consummation if prices of goods and services increase as rapidly as wages, i t is recognized tha t price i n crea ses except such as may be required to meet individual costs should be delayed. But when made such increases shou l d, so far as possible, be limited to actual increases in the sellers ' cos t . ARTICLE XI-GENERAL SECTION 1. No member of the industry shall use any subterfuge to frustrate the spirit and intent of this Code whic h i s, am o ng other things, to increase emp l oyment, to remove obstr u c t io n s to com merce, to shorten hours of work, and to raise wages. SECTION 2. Except as may be subsequently provided in a speci fi c or supp lementary export Code for t his indu s try, the provis i ons o f this Code now or hereafter adopted with regard to prices, dis counts, deductions, allowan ces, extras, commissions, or methods and/or terms of sale, are not to app l y to direct export sales in course of export, i.e., sa les destined ultimately for export. ARTICLE XII-EFFECTIVE DATE This Code shall become effective on the second Monday after its approval by the President. Approved Code No. 361. R egistry No. 604--03. 0