(a) The term introductory offer means any printed matter consisting of the words ``introductory offer'' or words of similar import, placed upon a package containing any new commodity or upon any label affixed to such new commodity, stating or representing by implication that such new commodity is offered for retail sale at a price lower than the anticipated ordinary and customary retail sale price.
(b) The package or label of a consumer commodity may not have imprinted thereon by a packager or labeler an introductory offer unless:
(1) The product contained in the package is new, has been changed in a functionally significant and substantial respect, or is being introduced into a trade area for the first time.
(2) The packager or labeler clearly and conspicuously qualifies each offer on a package or label with the phrase ``Introductory Offer.''
(3) The packager or labeler does not sell any commodity so labeled in a trade area for a duration in excess of 6 months.
(4) At the time of making the introductory offer promotion, the packagers or labeler intends in good faith to offer the commodity, alone, at the anticipated ordinary and customary price for a reasonably substantial period of time following the duration of the introductory offer promotion.
(c) The package or label of a consumer commodity shall not have imprinted thereon by a packager or labeler an introductory offer in the form of a ``cents-off'' representation unless, in addition to the requirements in paragraph (b) of this section:
(1) The packager or labeler clearly and conspicuously and in immediate conjunction with the phrase ``Introductory Offer'' imprints the phrase ``---- cents-off the after introductory offer price''.
(2) The packager or labeler sells the commodity so labeled (either to the trade in the event such commodity is not sold at retail by the packager or labeler, or to the public in the event such commodity is sold at retail by the packager or labeler) at a reduction from his anticipated ordinary customary price, which reduction is at least equal to the amount of the reduction from the after introductory offer price representation on the commodity package or label.
(d) A packager or labeler will not make an introductory offer with a ``cents-off'' representation available in any circumstance where he knows or should have reason to know that it will be used as an instrumentality for deception or for frustration of value comparison, e.g., where the retailer charges a price which does not fully pass on to consumers the represented price reduction. Nothing in this rule, however, should be construed to authorize or condone the illegal setting or policing of retail prices by a packager or labeler.
(e) A packager or labeler who sponsors an introductory offer shall prepare and maintain invoices or other records showing compliance with this section. The invoices or other records required by this section shall be open to inspection by duly authorized representatives of this Commission and shall be retained for a period of 1 year subsequent to the period of the introductory offer. Sec. 502.102 ``Economy size.''
(a) The term economy size means any printed matter consisting of the words ``economy size,'' ``economy pack,'' ``budget pack,'' ``bargain size,'' ``value size,'' or words of similar import placed upon any package containing any consumer commodity or placed upon any label affixed to such commodity, stating or representing directly or by implication that a retail sale price advantage is accorded the purchaser thereof by reason of the size of that package or the quantity of its contents.
(b) The package or label of a consumer commodity may not have imprinted thereon an ``economy size'' representation unless:
(1) The packager or labeler at the same time offers the same brand of that commodity in at least one other packaged size or labeled form.
(2) The packager or labeler offers only one packaged or labeled form of that brand of commodity labeled with an ``economy size'' representation.
(3) The packager or labeler sells the commodity labeled with an ``economy size'' representation (either to the trade in the event such commodity is not sold at retail by the packager or labeler, or to the public in the event such commodity is sold at retail by the packager or labeler), at a price per unit of weight, volume, measure, or count which is substantially reduced (i.e., at least 5 percent) from the actual price of all other packaged or labeled units of the same brand of that commodity offered simultaneously.
(c) A packager or labeler will not make an ``economy size'' package available in any circumstances where he knows that it will be used as an instrumentality for deception, e.g., where the retailer charges a price which does not pass on to the consumer the substantial reduction in cost per unit initially granted by the packager or labeler. Nothing in this rule, however, should be construed to authorize or condone the illegal setting or policing of retail prices by a packager or labeler.
(d) A packager or labeler who sponsors an ``economy size'' package shall prepare and maintain invoices or other records showing compliance with paragraph (b) of this section. The invoices or other records required by this section shall be open to inspection by duly authorized representatives of this Commission and shall be retained for one year.
Common Name and Ingredient Listing Sec. Sec. 502.200-502.299 [Reserved]
Nonfunctional-Slack-Fill Sec. Sec. 502.300-502.399 [Reserved]