16 CFR §240.2
Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
- (a)The substantive provisions of section 2(d) and (e) apply only under certain circumstances. Section 2(d) applies only to:
- (1)A seller of products
- (2)Engaged in interstate commerce
- (3)That either directly or through an intermediary
- (4)Pays a customer for promotional services or facilities provided by the customer
- (5)In connection with the resale (not the initial sale between the seller and the customer) of the seller's products
- (6)Where the customer is in competition with one or more of the seller's other customers also engaged in the resale of the seller's products of like grade and quality.
- (b)Section 2(e) applies only to:
- (1)A seller of products
- (2)Engaged in interstate commerce
- (3)That either directly or through an intermediary
- (4)Furnishes promotional services or facilities to a customer
- (5)In connection with the resale (not the initial sale between the seller and the customer) of the seller's products
- (6)Where the customer is in competition with one or more of the seller's other customers also engaged in the resale of the seller's products of like grade and quality.
- (c)Additionally, section 5 of the FTC Act may apply to buyers of products for resale or to third parties. See § 240.13 of these Guides.