416.440. Rebates, discounts, allowances or gifts by processor or distributor--exceptions--evidence. - Missouri Statutes

Rebates, discounts, allowances or gifts by processor ordistributor--exceptions--evidence.

416.440. 1. No milk processor or distributor shall, withthe intent or with the effect of unfairly diverting trade from acompetitor, or of otherwise injuring a competitor, or ofdestroying competition, or of creating a monopoly, give or offerto give any milk product purchaser any rebate, discount, freeservice or services, advertising allowance, pay for advertisingspace used jointly, donation, free merchandise, rent on spaceused by the retailer for storing or displaying the milkprocessor's or distributor's merchandise, financial aid, freeequipment, or any other thing of value; except the bona fidereturn by a cooperative association to its members on a patronagebasis of the savings realized on products sold and distributed tothe members or patrons.

2. Proof of the giving or offer to give anything of value isprima facie evidence of a violation of this section.

3. No milk product purchaser shall accept from any milkprocessor or distributor any rebate, discount, free service orservices, any advertising allowance, pay for advertising spaceused jointly, donation, free merchandise, rent on space used byretailer for storing or displaying the milk processor's ordistributor's merchandise, financial aid, free equipment, or anyother thing of value; except the bona fide receipt from acooperative association of a patronage refund based on thepatronage of the purchaser with the cooperative association.

4. Proof of the acceptance of any thing of value by any milkproduct purchaser is prima facie evidence of the violation ofthis section.

5. This section does not prevent a processor or distributorfrom furnishing point-of-sale advertising material to a retailerwithout cost for the promotion of the sale of the processor's ordistributor's products.

6. This section does not prevent a discount of two percentor less for payment on or before a certain date.

(L. 1959 H.B. 255 § 7)

(1964) Evidence that dairy gave milk to certain number of persons first entering store on three consecutive days as part of an introductory sales promotion in the locality held insufficient to establish that dairy intended to and did unfairly divert trade from a competitor. State ex rel. Thomason v. Adams Dairy Co. (Mo.), 379 S.W.2d 553.

(1964) The word "discount" was not intended to include volume pricing or quantity discounts which are cost justified price differences available to all customers and rules of commissioner prohibiting such practices were void. Foremost Dairies, Inc. v. Thomason (Mo.), 384 S.W.2d 651.

(1982) Section construed to prohibit franchise agreements whereby a grocery store franchisor distributed food, supplied related services, leased property, and on occasion loaned money to franchisees. Fleming Foods of Missouri, Inc. v. Runyan (Mo.banc), 634 S.W.2d 183.