1-pint, 1-quart, 1⁄2-gallon, and 1-gallon capacities are exempt from the placement requirement of § 1.8b (f) that the declaration of net contents be located within the bottom 30 percent of the principal display panel, provided that other required label information is conspicuously displayed on the cap or outside closure and the required net quantity of contents declaration is conspicuously blown, formed, or molded into or permanently applied to that part of the glass or plastic container that is at or above the shoulder of the container.

(iii) The products listed in subdivision (i) of this subparagraph, when packaged in containers of 1-pint, 1-quart, and 1⁄2gallon capacities are exempt from the dual net-contents declaration requirement of § 1.8b(j).

(8) Wheat flour products, as defined by §§ 15.1, 15.10, 15.20, 15.30, 15.50, 15.60, 15.70, 15.75, 15.80, and 15.90 of this chapter, packaged:

(i) In conventional 2-, 5-, 10-, 25-, 50-, and 100-pound packages are exempt from the placement requirement of § 1.8b (f) that the declaration of net contents be located within the bottom 30 percent of the area of the principal display panel of the label; and

(ii) In conventional 2-pound packages are exempt from the dual net-contents declaration requirement of § 1.8b (j) provided the quantity of contents is expressed in pounds.

(9) (1) Twelve shell eggs packaged in a carton designed to hold 1 dozen eggs and designed to permit the division of such carton by the retail customer at the place of purchase into two portions of one-half dozen eggs each are exempt from the labeling requirements of this part with respect to each portion of such divided carton if the carton, when undivided, is in conformance with the labeling requirements of this part.

(ii) Twelve shell eggs packaged in a carton designed to hold 1 dozen eggs are exempt from the placement requirements for the declaration of contents prescribed by § 1.8b (f) if the required content declaration is otherwise placed on the principal display panel of such carton and if, in the case of such cartons designed to permit division by retail customers into two portions of one-half dozen eggs each, the required content declaration is placed on the principal display panel in such a manner that the context of the content declaration is destroyed upon division of the carton.

(10) Butter as defined in 42 Stat. 1500 (excluding whipped butter):

(1) In 8-ounce and in 1-pound packages is exempt from the requirements of § 1.8b (f) that the net contents declaration be placed within the bottom 30 percent of the area of the principal display panel;

(1) In 1-pound packages is exempt from the requirements of § 1.8b(j) (1) that such declaration be in terms of ounces and pounds, to permit declaration of "1 pound" or "one pound"; and

(iii) In 4-ounce, 8-ounce, and 1-pound packages with continuous label copy wrapping is exempt from the requirements of §§ 1.8 (d) and 1.8b (f) that the statement of identity and net contents declaration appear in lines generally parallel to the base on which the package rests as it is designed to be displayed, provided that such statement and declaration are not so positioned on the label as to be misleading or difficult to read as the package is customarily displayed at retail.

(11) Margarine as defined in § 45.1 of this chapter and imitations thereof in 1-pound rectangular packages, except for packages containing whipped or soft margarine or packages that contain more than four sticks, are exempt from the requirement of § 1.8b (f) that the declaration of the net quantity of contents appear within the bottom 30 percent of the principal display panel and from the requirement of § 1.8b(j) (1) that such declaration be expressed both in ounces and in pounds to permit declaration of "1 pound" or "one pound," provided an accurate statement of net weight appears conspicuously on the principal display panel of the package.

(12) Corn flour and related products, as they are defined by §§ 15.500 through 15.514 of this chapter, packaged in conventional 5-, 10-, 25-, 50-, and 100-pound bags are exempt from the placement requirement of § 1.8b (f) that the declaration of net contents be located within the bottom 30 percent of the area of the principal display panel of the label.

(13) (i) Single strength and less than single strength fruit juice beverages, imitations thereof, and drinking water when packaged in glass or plastic containers of 2-pint, 1-pint, 1-quart, 1⁄2gallon, and 1-gallon capacities are exempt from the placement requirement of § 1.8b (f) that the declaration of net contents be located within the bottom 30 percent of the principal display panel:

Provided, That other required label information is conspicuously displayed on the cap or outside closure and the required net quantity of contents declaration is conspicuously blown, formed, or molded into or permanently applied to that part of the glass or plastic container that is at or above the shoulder of the container.

(ii) Single strength and less than single strength fruit juice beverages, imitations thereof, and drinking water when packaged in glass, plastic, or paper (fluid milk type) containers of 1-pint, 1-quart, and 2-gallon capacities are exempt from the dual net-contents declaration requirement of § 1.8b(j).

(iii) Single strength and less than single strength fruit juice beverages, imitations thereof, and drinking water when packaged in glass, plastic, or paper (fluid milk type) containers of 8- and 64-fluidounce capacity, are exempt from the requirements of § 1.8b (b) (2) to the extent that net contents of 8 fluid ounces and 64 fluid ounces (or 2 quarts) may be expressed as 2 pint (or half pint) and 1⁄2 gallon (or half gallon), respectively. (b) Drugs. (1) Liquid over-the-counter veterinary preparations intended for injection shall be exempt from the declaration of net quantity of contents in terms of the U.S. gallon of 231 cubic inches and quart, pint, and fluid-ounce subdivisions thereof as required by § 1.102d (b), (i), and (j), and from the dual declaration requirements of § 1.102d (1), if such declaration of net quantity of contents is expressed in terms of the liter and milliliter, or cubic centimeter, with the volume expressed at 68° F. (20° C.).

[32 F.R. 10731, July 21, 1967, as amended at 33 F.R. 6861, May 7, 1968; 33 F.R. 9482, June 28, 1968; 33 F.R. 10141, July 16, 1968; 33 FR. 10206, July 17, 1968; 33 F.R. 10391, July 20, 1968; 33 FR. 11902, Aug. 22, 1968; 33 F.R. 12039, Aug. 24, 1968; 33 F.R. 19007, Dec. 20, 1968; 34 F.R. 931, Jan 22, 1969; 34 F.R. 11541, July 12, 1969; 34 F.R. 15354, Oct. 2, 1969; 34 F.R. 15840, Oct. 15, 1969]

§ 1.1d "Cents-off," coupon, savings representations.

or other

Any food, drug, cosmetic, or device that bears on the label or labeling a representation that the consumer commodity is being offered for retail at a reduction in retail price is subject to the following conditions: Provided, however, That such conditions do not apply to any such savings representations initiated by persons who do not manu

66-041-72- -2

facture, package, or import such commodities and who do not prescribe or specify by any means the manner in which such commodities are packaged or labeled by a manufacturer, packager, or importer:

(a) A "cents-off," coupon, or other savings representation that states or implies a reduction in the ordinary and customary retail price may be used by a manufacturer, packer, distributor, or retailer, hereinafter known as the sponsor, initiating such promotion only if:

(1) An ordinary and customary selling price of such consumer commodity has been established at the retail level,

(2) The sponsor's selling price and the selling price at all subsequent levels of commerce such as wholesalers and jobbers has been reduced by at least the savings differential represented on the package or labeling, and

(3) The sponsor and all subsequent levels of commerce keep and maintain invoices or other records for each promotion and for all successive promotions which occur within a 12-month period for at least 1 year subsequent to the end of the year (calendar, fiscal, or market) in which the promotion occurs in order to show that the invoice cost to the retailer has been reduced in an amount sufficient to enable the retailer to pass the savings on to the purchaser.

(b) (1) Each "cents-off" price reduction representation imprinted on the package or label shall be limited to a phrase which reflects that the price marked by the retailer represents the savings in the amount of the "cents-off" the retailer's regular price, e.g., "Price Marked Is __. -¢ Off the Regular Price," "Price Marked Is

Cents

Off the Regular Price of This Package;" provided, the package or label may in addition bear in the usual pricing spot a form reflecting a space for the regular price, the represented "cents-off," and a space for the price to be paid by the consumer. The sponsor who sells the commodity at retail shall display the regular price, clearly and conspicuously designated as "regular price," on the package or label of the commodity or on a sign, placard, or shelf-marker placed in a position contiguous to the retail display of the "cents-off" marked commodity. The sponsor who does not sell at retail shall provide the retailer with a sign, placard, shelf-marker, or other device for the purpose of clearly and conspicuously displaying the re

only Sellmodity has une sponsor's selling

cling price at all subsequent commerce such as wholesalers and ubers has been reduced by at least the savings differential represented on the package or labeling, and (3) the sponsor and all subsequent levels or commerce keep and maintain invoices or other records for each promotion and for all successive promotions which occur within a 12-month period for at least 1 year beyond the termination date of the last of such promotions set by the sponsor in order to show that the invoice cost to the retailer has been reduced in an amount sufficient to enable the retailer to pass the savings on to the purchaser.

(b) (1) A price reduction representation shall be presented on the package to show the ordinary and customary retail price and the savings to the consumer as follows:

shelf marker placed in conspicuous and prominent position contiguous to the retail display of the consumer commodity.

(2) For the purposes of this section, the terms "ordinary and customary" and "regular" when used with the term "price" means the price at which a consumer commodity has been openly and actively sold in the most recent and regular course of business in a particular market or a trade area for a reasonably substantial period of time; that is, at least 30 days. For consumer commodities that fluctuate in price, the ordinary and customary price shall be the lowest price at which any substantial sales were made during said 30 days.

(c) Shipments of consumer commodities bearing "cents-off," coupon, or other savings representations to a given geographic trade area made by the sponsor initiating such promotion shall be in no greater volume than 50 percent of the total units of that identical consumer commodity distributed in the same geographic trade area during any period of 12 consecutive months.

(d) The "cents-off," coupon, or other savings promotion may not be employed by a sponsor on consumer commodities for distribution to a specific geographic trade area until after 1 month has elapsed since their last distribution of the same consumer commodity bearing a savings representation to the same geographic trade area. No more than three such promotions for the same consumer commodity may occur within a 12-month period, and the total period of time for such promotions of any given size consumer commodity shall not exceed 6 months within that 12-month period.

(e) A newly developed consumer commodity, one which has been changed in a functionally significant respect, or one which is newly introduced into a given geographic trade area may be the subject of an introductory-offer type promotion. Such offers are not considered subject to the provisions of paragraphs (a) through (d) of this section, provided labeled representations (1) are qualified by a phrase such as "introductory offer," (2) include the suggested postintroduction retail price, and (3) do not exceed a period of 6 months duration. Any subsequent price reduction promotion of the consumer commodity is subject to the provisions of paragraphs (a) through (d) of this section and shall be preceded by the 30-day period required for a determination of the ordinary and customary selling price in that retail establishment. At the time of making the introductory offer promotion, the sponsor must intend in good faith to offer the commodity alone, immediately following the introductory offer promotion, for a reasonably substantial period of time, that is, at least 30 days, at the anticipated postintroductory price. The sponsor and all subsequent levels of commerce shall maintain invoices and records for at least 1 year beyond the termination date of such introductory offers.

tailer's regular price, designated as "regular price," in a position contiguous to the "cents-off" marked commodity.

EFFECTIVE DATE: This revision of paragraph (b) (1) will become effective June 30, 1972. (2) Other savings representations which appear on the label or labeling of a package, e.g., "bonus offer," "twofor-one sales," "one-cent sales," etc., are subject to the provisions of this section. Due to the infinite variety and scope of such promotions, the label format of such representations may differ from that set forth in subparagraph (1) of this paragraph for "cents-off" promotions; however, such representations shall include all material facts relative to the offer and shall in no way be misleading.

(3) For the purposes of this section, the terms "ordinary and customary" and "regular" when used with the term "price" mean the price at which a consumer commodity has been openly and actively sold in the most recent and regular course of business in a particular retail outlet or a trade area for a reasonably substantial period of time (at least 30 days). For consumer commodities that fluctuate in price, the ordinary and customary price shall be the lowest price at which any substantial sales were made during said 30 days.

or

(c) Shipments of consumer commodities bearing "cents-off," coupon, other savings representations to a given geographic trade area made by the sponsor initiating such promotion shall be in no greater volume than 50 percent of the total units of that identical consumer commodity distributed in the same geographic trade area during any period of 12 consecutive months comprising a calendar, fiscal, or market year.

(d) The "cents-off," coupon, or other savings promotion may not be employed by a sponsor on consumer commodities for distribution to a specific geographic trade area until after 1 month has elapsed since their last distribution of that identical consumer commodity bearing a savings representation to the same geographic trade area. No more than three such promotions for that identical consumer commodity may occur within a 12-month period comprising a calendar, fiscal, or market year, and the total period of time for such promotions of that identical consumer commodity shall not exceed 6 months within that 12month period.

(e) A newly developed consumer commodity, one which has been changed in a functionally significant respect, or one which is newly introduced into a given geographic trade area may be the subject of an "introductory offer" type promotion. Such offers are not considered subject to the provisions of paragraphs (a) through (d) of this section, provided: (1) Each such labeled offer is clearly and conspicuously qualified with the phrase "Introductory Offer," and

(2) If the introductory offer promotion is in the form of a "cents-off" representation, each such labeled offer shall include clearly and conspicuously in immediate conjunction therewith the phrase " -¢ Off the After-Introductory-Offer Price;" and

(3) Labeled representations do not exceed a period of 6 months duration. Any subsequent price reduction promotion of the consumer commodity is subject to the provisions of paragraphs (a) through (d) of this section and shall be preceded by the 30-day period required for a determination of the ordinary and customary selling price in that retail establishment. At the time of making the introductory offer promotion, the sponsor must intend in good faith to offer the commodity alone, immediately following the introductory offer promotion, for a reasonably substantial period of time (at least 30 days) at the anticipated afterintroductory-offer price. The sponsor of the introductory offer promotion and all subsequent levels of commerce shall sell the commodity at a reduction from their anticipated after-introductory-offer price which reduction shall be at least equal to the savings differential represented on the package or labeling. The sponsor and all subsequent levels of commerce shall maintain invoices and records for at least 1 year subsequent to the end of the year (calendar, fiscal, or market) in which such introductory offer occurs.

(f) A representation on the label or labeling that the consumer commodity is being offered for retail sale at a reduced price by virtue of a redeemable coupon shall not be used unless the coupon is redeemable at retail unconditionally or upon the purchase or subsequent purchase of either that product or other consumer commodities involved in the promotion. It is provided, however, that in lieu of unconditional redemption at retail, the sponsor may request that coupons be mailed via first class