Exclusion

Table of Contents

“Exclusion” can occur in whole or in part and means a practice by an industry member - whether direct, indirect, or through an affiliate - that places (or has the potential to place) retailer independence at risk by means of a tie or link between an industry member and a retailer or by any other means of industry member control over the retailer. This practice by an industry member then results in the retailer purchasing less than it would have of a competing industry member’s product.

The following are indications that a particular practice places retailer independence at risk:

  1. The practice restricts or hampers the free economic choice of a retailer to decide which products to purchase or the quantity in which to purchase them for sale to consumers.
  2. The industry member obligates the retailer to participate in a promotion to obtain the industry member’s product.
  3. The retailer has a continuing obligation to purchase or otherwise prompt the industry member’s product.
  4. The retailer has a commitment not to terminate its relationship with the industry member with respect to purchase of the industry member’s products.
  5. The practice involves the industry member in the day-to-day operations of the retailer. For example, the industry member controls the retailer’s decisions on which brand of products to purchase, the pricing of products, or the manner in which the products will be displayed on the retailer’s premises.
  6. The practice is discriminatory in that it is not offered to all retailers in the local market on the same terms without business reasons present to justify the difference in treatment.

An industry member is prohibited from using product displays, advertising, display, or distribution services, or sponsorships to cause a retailer to engage in exclusion.

Iowa Administrative Code rr. 701—1003.1, 1003.2(1), 1003.12(1), 1003.14