2005 Idaho Code - 37-1003b — UNFAIR AND UNLAWFUL PRACTICES ENUMERATED

                                  TITLE  37
                             FOOD, DRUGS, AND OIL
                                  CHAPTER 10
                          DISCRIMINATION AND UNFAIR
                          COMPETITION IN BUYING AND
                            SELLING DAIRY PRODUCTS
    37-1003b.  UNFAIR AND UNLAWFUL PRACTICES ENUMERATED. In the marketing of
milk, cream and dairy products the following methods of doing business or
trade practices are hereby declared unfair and unlawful:
    (a)  The payment, allowance, or acceptance of secret rebates, secret
refunds, or unearned discounts, whether in the form of money or otherwise,
except as provided in paragraph (i) of this section.
    (b)  The giving of any milk, cream, dairy products, services, money, or
articles of any kind except to bona fide charities for the purpose of securing
or retaining the milk, cream, or dairy products business of any wholesale
customer; provided, however, that nothing herein shall be construed to
prohibit a distributor of frozen dairy products, frozen dessert and frozen
novelties, for reasonable compensation as provided in section 37-1003c, from
furnishing a wholesale customer with, and maintaining such refrigeration
facilities as shall be reasonably necessary for the storage and preservation
of the frozen products distributed by such distributor to such wholesale
customer; provided further, that the use of said refrigeration facilities by
any person for the storage or preservation of any product other than the
frozen products distributed to said wholesale customer by the distributor
furnishing such facilities shall be an unfair and unlawful business practice.
    (c)  The extension to any wholesale customer or consumer of special prices
or services not made available to all wholesale customers or consumers who
purchase milk, cream, or dairy products of like quantity under like terms and
conditions.
    1.  No payment, credit, or compensation may lawfully be allowed by a
    distributor to a wholesale customer for advertising or display in
    connection with the sale of a distributor's milk, cream, or dairy product.
    2.  No payment of money, or payment, or gift, or loan of anything of value
    may lawfully be given to a wholesale customer for the privilege of
    painting or placing a sign, advertisement, or other advertising material,
    or otherwise advertising a distributor's products in, on, or adjoining any
    premises selling milk, cream or dairy products.
    3.  No outside advertising material permissible under this section may
    lawfully advertise items other than the distributor's milk, cream, and
    dairy products, and items made from the same, except not more than
    one-third (1/3) of the space on such advertising material may be allocated
    to the wholesale customer's name and products served in conjunction with
    milk, cream, and dairy products.
    4.  Inside advertising material furnished by a distributor of frozen dairy
    products shall be confined and limited to the advertising of the frozen
    dairy products manufactured by and/or distributed by the manufacturer or
    distributor of said frozen dairy products and/or their agents and may
    include the name, brands and description of the frozen dairy products of
    said manufacturer or distributor. Provided, further, that not more than
    one-third (1/3) of the space on such advertising material may be allocated
    to the wholesale customer's name and products served in conjunction with
    milk, cream, and dairy products.
    (d)  Any false or misleading advertising of milk, cream or dairy products.
    (e)  Discriminations in price between wholesale customers, or between
consumers, who purchase milk, cream, or dairy products of like grade and
quality under like conditions of service where the effect of such
discrimination may be substantially to lessen competition or to injure or
destroy or prevent competition with the person who either grants or knowingly
receives the benefit of such discrimination; provided, that nothing herein
shall prevent differentials which make only due allowance for differences in
the cost of the raw product used in such milk, cream, or dairy products, or
the cost of manufacture, processing, sale or delivery resulting from the
different methods or quantities in which said commodities are manufactured,
processed, sold or delivered.
    (f)  The sale of milk, cream, and dairy products at less than cost which,
as used herein, shall mean the cost of raw product, plus all costs of
manufacturing, processing, handling, sale and delivery, including overhead
costs. Evidence of cost, based on impartial audits or surveys, made within a
reasonable time prior to an alleged violation of this sub-paragraph shall
constitute prima facie proof of such cost at the time of the commission of
such violation.
    (g)  False statements or representations, knowingly made, by any wholesale
customer or consumer, or anyone acting on the behalf of either, to any
distributor or manufacturer, or any representative thereof, that a competitor
or such distributor or manufacturer has offered or is offering to sell, or is
selling milk, cream, or dairy products to said wholesale customer or consumer
at a lower price or prices than said manufacturer or distributor has offered
or is offering to sell, or is selling the same, or that said competitor has
offered or is offering to do, or is doing any of the business practices
heretofore declared to be unfair and unlawful.
    (h)  The making or renewal of any money loans to any wholesale customer.
    (i)  The provisions of this chapter shall not prohibit the use of a
discount coupon or the giving of an article in connection with the sale of
dairy products to consumers, provided in doing so, the price of the dairy
product is not lowered below its cost.