Effective 28 Aug 1959

416.440. Rebates, discounts, allowances or gifts by processor or distributor — exceptions — evidence. — 1. No milk processor or distributor shall, with the intent or with the effect of unfairly diverting trade from a competitor, or of otherwise injuring a competitor, or of destroying competition, or of creating a monopoly, give or offer to give any milk product purchaser any rebate, discount, free service or services, advertising allowance, pay for advertising space used jointly, donation, free merchandise, rent on space used by the retailer for storing or displaying the milk processor's or distributor's merchandise, financial aid, free equipment, or any other thing of value; except the bona fide return by a cooperative association to its members on a patronage basis of the savings realized on products sold and distributed to the members or patrons.

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

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

4. Proof of the acceptance of any thing of value by any milk product purchaser is prima facie evidence of the violation of this section.

5. This section does not prevent a processor or distributor from furnishing point-of-sale advertising material to a retailer without cost for the promotion of the sale of the processor's or distributor's products.

6. This section does not prevent a discount of two percent or 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.

(l964) 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.