warrant a conclusion that the proposal is reasonable.

(3) The proposal if adopted would not unduly impinge upon the consumer's right to information essential to efficient marketing and to the making of value comparisons and would not otherwise promote deception or unfair competition.

(4) Full compliance with the declarations required by law would be impracticable, deceptive, or otherwise unnecessary.

(c) Opportunity will be given to amend petitions regarded as inadequate.

(d) At any time prior to the issuance of an order acting on his proposal under section 701(e) (1) of the act, the petitioner may withdraw his petition without prejudice to a future filing. Notice of withdrawal of the petition and termination of the rulemaking proceeding will be published in the FEDERAL REGISTER.

(e) Established exemptions are set forth in § 1.1c.

[32 F.R. 10730, July 21, 1967]

§ 1.1b Packages; definition; presence of mandatory label information.

The term "package" means any container or wrapping in which any food, drug, device, or cosmetic is enclosed for use in the delivery or display of such commodities to retail purchasers, but does not include:

(a) Shipping containers or wrappings used solely for the transportation of any such commodity in bulk or in quantity to manufacturers, packers, processors, or wholesale or retail distributors;

(b) Shipping containers or outer wrappings used by retailers to ship or deliver any such commodity to retail customers if such containers and wrappings bear no printed matter pertaining to any particular commodity; or

(c) Containers subject to the provisions of the Act of August 3, 1912 (37 Stat. 250, as amended; 15 U.S.C. 231233), the Act of March 4, 1915 (38 Stat. 1186, as amended; 15 U.S.C. 234-236), the Act of August 31, 1916 (39 Stat. 673, as amended; 15 U.S.C. 251-256), or the Act of May 21, 1928 (45 Stat. 685, as amended; 15 U.S.C. 257-2571).

(d) Containers used for tray pack displays in retail establishments.

(e) Transparent wrappers or containers which do not bear written, printed, or graphic matter obscuring the label information required by this part.

A requirement contained in this part that any word, statement, or other information appear on the label shall not be considered to be complied with unless such word, statement, or information also appears on the outer container or wrapper of the retail package of the article, or, as stated in paragraph (e) of this section, such information is easily legible by virtue of the transparency of the outer wrapper or container. Where a consumer commodity is marketed in a multiunit retail package bearing the mandatory label information as required by this part and the unit containers are not intended to be sold separately, the net weight placement requirement of § 1.8b (f) applicable to such unit containers is waived if the units are in compliance with all the other requirements of this part.

[32 F.R. 10730, July 21, 1967, as amended at 32 F.R. 13277, Sept. 20, 1967]

§ 1.1c Exemptions from required label

statements.

The following exemptions are granted from label statements required by this part:

(a) Foods. (1) While held for sale, a food shall be exempt from the required declaration of net quantity of contents specified in this part if said food is received in bulk containers at a retail establishment and is accurately weighed, measured, or counted either within the view of the purchaser or in compliance with the purchaser's order.

(2) Random food packages, as defined in § 1.8b (j), bearing labels declaring net weight, price per pound or per specified number of pounds, and total price shall be exempt from the type size, dual declaration, and placement requirements of § 1.8b if the accurate statement of net weight is presented conspicuously on the principal display panel of the package. In the case of food packed in random packages at one place for subsequent shipment and sale at another, the price sections of the label may be left blank provided they are filled in by the seller prior to retail sale. This exemption shall also apply to uniform weight packages of cheese and cheese products labeled in the same manner and by the same type of equipment as random food packages exempted by this subparagraph except that the labels shall bear a declaration of price per pound and not price per specified number of pounds.

(3) Individual serving-size packages of foods containing less than 1⁄2 ounce or less than 2 fluid ounce for use in restaurants, institutions, and passenger carriers, and not intended for sale at retail, shall be exempt from the required declaration of net quantity of contents specified in this part.

(4) Individually wrapped pieces of "penny candy" and other confectionery of less than one-half ounce net weight per individual piece shall be exempt from the labeling requirements of this part when the container in which such confectionery is shipped is in conformance with the labeling requirements of this part. Similarly, when such confectionery items are sold in bags or boxes, such items shall be exempt from the labeling requirements of this part, including the required declaration of net quantity of contents specified in this part when the declaration on the bag or box meets the requirements of this part.

(5) (i) Soft drinks packaged in bottles shall be exempt from the placement requirements for the statement of identity prescribed by § 1.8 (a) and (d) if such statement appears conspicuously on the bottle closure. When such soft drinks are marketed in a multiunit retail package, the multiunit retail package shall be exempt from the statement of identity declaration requirements prescribed by § 1.8 if the statement of identity on the unit container is not obscured by the multiunit retail package.

(ii) A multiunit retail package for soft drinks shall be exempt from the declaration regarding name and place of business required by § 1.8a if the package does not obscure the declaration on unit containers or if it bears a statement that the declaration can be found on the unit containers and the declaration on the unit containers complies with § 1.8a. The declaration required by § 1.8a may appear on the top or side of the closure of bottled soft drinks if the statement is conspicuous and easily legible.

(iii) Soft drinks packaged in bottles which display other required label information only on the closure shall be exempt from the placement requirements for the declaration of contents prescribed by § 1.8b (f) if the required content declaration is blown, formed, or molded into the surface of the bottle in close proximity to the closure.

(6) (1) Ice cream, french ice cream, ice milk, fruit sherbets, water ices, quiescently frozen confections (with or without dairy ingredients), special dietary frozen desserts, and products made in semblance of the foregoing, when measured by and packaged in 2-liquid pint and 2-gallon measure-containers, as defined in the "Measure Container Code of National Bureau of Standards Handbook 44," 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 1⁄2 pint and 1⁄2 gallon, respectively.

(ii) The foods named in subdivision (1) of this subparagraph, when measured by and packaged in 1-liquid pint, 1-liquid quart, and 1⁄2-gallon measurecontainers, as defined in the "Measure Container Code of National Bureau of Standards Handbook 44," are exempt from the dual net-contents declaration requirement of § 1.8b(j).

(iii) The foods named in subdivision (1) of this subparagraph, when measured by and packaged in 2-liquid pint, 1-liquid pint, 1-liquid quart, 1⁄2-gallon, and 1-gallon measure-containers, as defined in the "Measure Container Code of National Bureau of Standards Handbook 44," are exempt from the requirement of § 1.8b (f) that the declaration of net contents be located within the bottom 30 percent of the principal display panel.

(7) (1) Milk, cream, light cream, coffee or table cream, whipping cream, light whipping cream, heavy or heavy whipping cream, sour or cultured sour cream, half-and-half, sour or cultured half-andhalf, reconstituted or recombined milk and milk products, concentrated milk and milk products, skim or skimmed milk, vitamin D milk and milk products, fortified milk and milk products, homogenized milk, flavored milk and milk products, buttermilk, cultured buttermilk, cultured milk or cultured whole buttermilk, lowfat milk (0.5 to 2.0 percent butterfat), and acidified milk and milk products, when packaged in containers of 8- and 64-fluid-ounce 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 1⁄2 pint and 2 gallon, respectively.

(ii) The products listed in subdivision (i) of this subparagraph, when packaged in glass or plastic containers of 2-pint,

1-pint, 1-quart, 1⁄2-gallon, and 1-gallon capacities are exempt from the placemen. 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 (i), 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 F.R. 10206, July 17, 1968; 33 F.R. 10391, July 20, 1968; 33 F.R. 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, or other savings representations.

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

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

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

66

(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