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ices and includes rent, commissions, dues, ernments, and government agencies or fees, margins, rates, charges, tariffs, instrumentalities which carry on those fares, or premiums, regardless of form. activities, and a person who provides

"Price increase” means an increase in professional services; and, whenever the the unit price of a property or service or Price Commission considers it approa decrease in the quality of substantially priate, also including any service orgathe same property or services.

nization subsidiary, division, affiliate, or "Product” means an item of tangible similar entity that is part of, or is dipersonal property offered for sale to an- rectly or indirectly controlled by, another other person.

person. "Product line" means an aggregation “Transaction" means an arms-length of products of the same manufacturer transaction between unrelated persons or different manufacturers, substantially which are not members of a controlled similar as to intended function, usage, group, and is considered to occur at the and structure, which are offered for sale time and place a binding contract is ensimultaneously, or within the same com- tered into between the parties. mercial season, by a person.

“United States” means the several “Profit margin" means the ratio that States and the District of Columbia. operating in me (net sales less cost of “Unrelated person" means a person sales and less normal and generally re- other than a person described in section curring costs of business operations, 267(b) of title 26, United States Code. determined before non-operating items, “Wholesaler" means a person who carextraordinary items, and income taxes) ries on the trade or business of purchasbears to net sales as reported on the per- ing property and, without substantially son's financial statement prepared in changing the form of that property, accordance with generally accepted ac- reselling it to retailers for resale or to counting principles consistently applied. industrial, commercial, institutional, or

"Reporting firm” means a firm subject professional business users. It also into $ 101.13 of Part 101 of this title. cludes, whenever the Price Commission

“Rent” means any price for the use of considers it appropriate, any wholesalpersonal property of any description, in- ing subsidiary, division, affiliate, or simicluding any charge no matter how lar entity that is a part of, or is directly identified in a lease or other agreement, or indirectly controlled by, another for the use of any property or for any person. service in connection with the use of

136 F.R. 23975, Dec. 16, 1971, as amended at leased property.

36 F.R. 25386, Dec. 30, 1971; 37 F.R. 3914, "Retailer" means a person who carries Feb. 24, 1972] on the trade or business of purchasing

$ 300.11 General rule. property and, without substantially changing the form of that property, re

(a) No person may charge a price with selling it to ultimate consumers, and,

respect to any sale or lease of an item whenever the Price Commission con

of property or a service after Novemsiders it appropriate, includes any retail

ber 13, 1971, which exceeds the base price ing subsidiary, division, affiliate, or simi- (or other price authorized under this lar entity that is a part of, or is directly

part) for that item of property or that or indirectly controlled by, another service. person.

(b) No person may knowingly pay a "Sale" includes exchange, transfer, or

price with respect to any sale or lease other disposition.

of an item of property or a service for “Service" includes any service per

use in his trade or business which exformed by a person for another person,

ceeds the base price (or other price au

thorized under this part) for that item other than in an employment relation

of property or that service. However, this ship, and also includes professional serv- paragraph (b) does not apply to the sale ices of any kind and services performed or lease of an item of property or a servby membership organizations for which ice to any person under circumstances dues are charged, and the leasing or li- of economic or other coercion in which censing of property to another person. the buyer or lessee, because of his need

“Service organization" means a per- for that property or service, had no reason who carries on the trade or business sonable alternative but to pay the illegal of selling or making available services, price, and he reports the sale or lease including nonprofit organizations, gov- to the Internal Revenue Service for in

vestigation as soon as is reasonably possible after it occurs. (37 F.R. 3828, Feb. 23, 1972] § 300.12 Manufacturers.

A manufacturer may charge a price in excess of the base price only to reflect increases in allowable costs that it incurred since the last price increase in the item concerned, or that it incurred after January 1, 1971, whichever was later, and that it is continuing to incur, reduced to reflect productivity gains, and only to the extent that the increased price does not result in an increase in its profit margin over that which prevailed during the base period. [37 F.R. 775, Jan. 19, 1972] § 300.13 Retailers and wholesalers.

(a) General. A retailer or wholesaler may charge a price in excess of the base price whenever

(1) Its customary initial percentage markup after November 13, 1971, with respect to the property sold is equal to or less than its last customary initial percentage markup before November 14, 1971, or, at its option, its customary initial percentage markup during its last fiscal year ending before August 15, 1971.

(2) The aggregate effect of all of its price changes is not to increase its profit margin over that which prevailed during the base period.

(b) Posting requirements—(1) General. Before January 2, 1972, each retailer shall display prominently in its place of sale, base prices with respect to

(i) All of its food products; and

(ii) Those 40 items in each department which had the highest dollar sales volume during its last fiscal year, or those items which accounted for at least 50 percent of its total dollar sales in each department during that fiscal year, whichever is less.

(2) Posting guidelines—(i) Retail food stores. The base prices which a retail food store is required to post under subparagraph (1) of this paragraph are considered to be displayed prominently if they are available for inspection at a convenient central location in the re, to which the public has access without having to obtain the permission or assistance of a store employee, and if a sign is prominently posted in each department clearly indicating the location of the central base price list.

(ii) Sellers of prescription drugs. The base prices of drugs which are sold by a

retailer only upon the presentation of a prescription or other authorization, and which are required to be posted under subparagraph (1) of this paragraph, are considered to be displayed prominently if the retailer has available, in a convenient location in the retail drug section of his store to which the public has access without having to obtain the permission or assistance of a store employee, a standard compilation of wholesale prescription drug prices plus its professional fee or customary initial percentage markup on the drug product or product line, and a sign (minimum size 22" x 28'') indicating the location of that information.

(iii) Other retail stores. In the case of any other retail store, base prices which are required to be posted under subparagraph (1) of this paragraph must be prominently posted within the department in which they are sold. However, a retail food store or seller of prescriptiontype drugs may use the procedure set forth in this subdivision in place of the procedure in subdivision (i) or (ii) of this subparagraph.

(c) Base price information. After January 1, 1972, each retailer shall use the following procedure with respect to base prices not posted under paragraph (b) of this section:

(1) Post on each floor of its establishment at least one sign (minimum of 22'' x 28''), as specified below, announcing availability of base price information:

BASE PRICE INFORMATION Information regarding the lawful base price for any item sold by this store not posted may be obtained by filling in a Base Price Information Request Form available at (specify location) and by handing it to (fill in). You will receive a prompt answer by mail.

(2) Make available in at least one location on each selling floor of its establishment, Base Price Information Request Forms, as follows:

BASE PRICE INFORMATION REQUEST FORMS

Please furnish me with your base price for the following item sold in your store: Item

(Describe)
Retail price-----
Style No.
Department where sold..
Name
Address

Zip

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(Owner or company officer) (e) Small retailersSpecial rule. Paragraphs (b) and (c) of this section do not apply to retailers with revenues of less than $200,000 annually (determined without regard to the number of retailing outlets operated by the retailer) who do not operate as retailers on the premises of, or in conjunction with, a retailer with annual revenues of $200,000 or more. However, retailers not subject to paragraphs (b) and (c) of this section must post on each floor of their establishments at least one sign (mini

um 22' x 28''), ecified below, announcing availability of base price information and adhere to paragraph (d) of this section:

BASE PRICE INFORMATION Information regarding the lawful base price for any item sold by this store may be obtained by submitting a written request to the owner, manager, or operator of this store. You will receive a prompt answer by mail. (36 F.R. 23976, Dec. 16, 1971, as amended at 37 F.R. 285, Jan. 8, 1972; 37 F.R. 775, Jan. 19, 1972; 37 F.R. 1244, Jan. 27, 1972; 37 F.R. 2842, Feb. 8, 1972] § 300.13a Retail catalogue sales; price

posting requirements. (a) General. Each retailer who is engaged in the sale of products through a catalogue printed after April 5, 1972, shall comply, at its option, with either paragraph (b) or paragraph (c) of this section. For the purposes of this section, "catalogue” includes any catalogue, circular, or other printed material, containing at least 50 pages, offering products for sale through a mail order, telephone, or similar system, including sales through facilities involving direct customer contact, such as catalogue sales offices or catalogue desks.

(b) First option. Each retailer shall include in each of its catalogues at least one separate page providing the following base price information:

(1) A description of how its prices are controlled under the Price Stabilization Program

(2) A statement as to how information regarding the lawful base price for any product in the catalogue may be obtained from the retailer.

(3) Conspicuous identification of each price that is in excess of the base price for the product concerned. The retailer shall comply with $ 300.13 (d) with respect to each request for base price information that it receives pursuant to subparagraph (2) of this paragraph.

(c) Second option. Each retailer shall include in each of its catalogues the following information:

(1) The base prices of those 40 items which accounted for the greatest catalogue dollar sales volume in each catalogue department, in the previous fiscal year, or the base prices of those items which accounted for at least 50 percent of its total catalogue dollar sales in each catalogue department during that year, whichever is less.

(2) A description of how its prices are controlled under the Price Stabilization Program.

(3) A statement as to how information regarding the lawful base price for any product in the catalogue may be obtained. The retailer shall comply with $ 300.13 (d) with respect to each request for base price information that it receives pursuant to subparagraph (3) of this paragraph. [37 F.R. 3828, Feb. 23, 1972] § 300.14 Service organizations, other

than providers of health services and

insurers. (a) A service organization may charge a price in excess of the base price only to reflect increases in allowable costs that it incurred since the last price increase in the item concerned, or that it incurred after January 1, 1971, whichever was later, and that it is continuing to incur, reduced to reflect productivity gains, and only to the extent that the increased price does no result in an increase in its profit margin over that which prevailed during the base period.

(b) This section does not apply to which are not exempted under the proproviders of health services covered by posal. In any case in which a proposal $$ 300.18 and 300.19 or to insurers Cov- or modification thereof has not been apered by g 300.20.

proved by the Price Commission, each [37 F.R. 426, Jan. 11, 1972, as amended at price increase or proposed price increase 37 F.R. 775, Jan. 19, 1972]

by a public utility that is a prenotification

firm which occurs after April 18, 1972, § 300.16 Public utilities.

shall be reported to the Price Commis(a) Definitions. The following defini- sion as provided in paragraphs (c) tions apply in this section:

through (1) of this section. “Public utility” means a person that (2) Unregulated public utilities. The furnishes utility services to the public or reporting requirements of this section a recognized segment of the public apply to each price increase by an unincluding

regulated public utility that is a pre(1) A person that furnishes utility notification firm which, when cumulated services subject to the jurisdiction of a with previous price increases which the regulatory agency, including those utility public utility has made (including those service operations of the person that are for which it has applications pending) not subject to the jurisdiction of a regula- during its current fiscal year, would intory agency;

crease its aggregate annual revenues by (2) A government agency or instru- more than 212 percent. mentality that furnishes utility services (c) Price increases to which reporting that would be subject to the jurisdiction and certification requirements do not of a regulatory agency if furnished by a apply. The reporting and certification reperson other than a government agency quirements of this section do not apply or instrumentality; and

to any price increase resulting from the (3) A cooperative that furnishes utility pass-through of specific allowable costs, services.

including taxes (except income taxes) “Regulatory agency” means any com- and fuel costs, but not including labor mission, board, or other legal body that costs, if the increase is not objected to has jurisdiction to order increases or re- by the appropriate regulatory agency and ductions, or both, of the prices charged is authorized by statute, regulation, or by a public utility.

order of the appropriate regulatory “Utility service” means any commodity agency, or by an approved tariff proor service affected with a public interest, vision. including gas, electricity, telephone, tele- (d) General. A public utility may graph, public transportation by vehicle or charge a price in excess of a final price pipeline, water, and sewage disposal, but (a price which is not subject to accountnot including water or sewage disposal ing and refund) in effect on January 16, services furnished by a government 1972, only if, within the appropriate peagency or instrumentality.

riod specified in this section for review (b) Scope of reporting requirements by the Price Commission, the Commis(1) Regulated public utilities. Before sion does not make a negative finding on April 18, 1972, the reporting requirements any of the following: of this section apply to each price in- (1) The increase is cost-based and crease by a regulated public utility that does not, unless specifically provided is a prenotification firm which would otherwise by the Price Commission, reincrease that public utility's aggregate flect future inflationary expectations; annual revenues by more than 1 percent. (2) The increase is the minimum reHowever, if a regulatory agency fur- quired to assure continued, adequate, nishes to the Price Commission

and safe service or to provide for neces(1) A proposal describing the types of sary expansion to meet future requireprice increases subject to its jurisdiction ments; which it believes should not be reported (3) The increase will achieve the under this section because their inflation- minimum rate of return or profit marary impact would not be significant; and gin needed to attract capital at reason

(ii) A statement of its reasons with able costs and not to impair the credit respect to each type; and the Price Com- of the public utility; mission approves the proposal as sub- (4) The public utility has obtained a mitted or as modified by it, then there- certificate in accordance with paragraph after the reporting requirements of this (e) of this section, or, in a case to which section will apply only to price increases paragraph (f) of this section applies, it

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has self-certified as required by that paragraph; and

(5) In the opinion of the Price Commission, the increase is consistent with the Commission's overall goal of holding average price increases across the economy to a rate of not more than 212 percent a year.

(e) Regulatory agency certification. With respect to each price increase it approves, each regulatory agency shall certify in the order granting the increase or in a separate document the following:

(1) The former price, the new price, and the percentage increase;

(2) The dollar amount of increased revenue which the increase is expected to provide;

(3) The amount by which the increase will increase the utility's profits as a percentage of its total sales:

(4) The amount by which the increase will increase the utility's overall rate of return on capital:

(5) That sufficient evidence was taken in the course of its proceedings to determine whether the criteria set forth in paragraph (d) (1) through (4) of this section are or are not met by the price increase; and

(6) That the price increase does or does not meet those criteria or meets them only to a particular extent, with a statement of reasons why the price increase does or does not meet the criteria or meets them only to a particular extent.

(f) Self-certification. Whenever a public utility cannot obtain a certification in accordance with paragraph (e) of this section because the public utility is not subject to the jurisdiction of a regulatory agency or for any other reason not in conflict with this section, the public utility may put the increase into effect only after its chief executive officer, under penalty of perjury, certifies to the following:

(1) Why certification under paragraph (e) of this section was not obtained.

(2) A statement, with full explanation, that paragraph (d) (1) through (3) of this section has been complied with. Each public utility that makes a certification under this paragraph must keep the certification available for inspection upon the reasonable request of any person.

(g) Rate bureaus and conferences. Whenever a price increase is proposed by a ratemaking association (rate-bureau, conference, or similar organization) authorized by law to act on behalf of its members, the regulatory agency or association may base its certification that the proposed increase conforms to paragraph (d) (1) through (3) of this section upon cost or other data compiled on the basis of association or industry averages. However, in such a case, the Price Commission may also require any public utility member of the association to submit any information that the Price Commission considers relevant.

(h) Regulated public utilities-report a request for price increase. Within 5 days after filing a request for a price increase with a regulatory agency, each regulated public utility to which the reporting requirements of this section apply shall report that request to the Price Commission, on a form prescribed by the Commission.

(i) Regulated public utilities-interim report on increases put into effect subject to accounting and refund. (1) At least 15 days before the effective date of a price increase allowed to go into effect by a regulatory agency subject to accounting and refund or by operation of law, each regulated public utility to which the reporting requirements of this section apply shall make an interim report on the increase to the Price Commission, on a form prescribed by the Commission. The report shall include a certification as required by paragraph (f) of this section. The Commission may take any action provided in paragraph (1) of this section until the expiration of 10 days after receiving the report required by paragraph (j) of this section.

(2) However, a public utility is not required to comply with subparagraph (1) of this paragraph if the regulatory agency has furnished a certification in the form required by paragraph (e) of this section, except for subparagraph (5) thereof. The regulatory agency shall furnish such a certification unless it informs the Price Commission that, with respect to the particular price increase, or a class of price increases that includes the particular price increase, the furnishing of such a certification is not feasible because the agency does not have sufficient information, or for other reasons satisfactory to the Price Commission.

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