[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR981.41]

[Page 520-521]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 981_ALMONDS GROWN IN CALIFORNIA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 981.41  Research and development.

    (a) General. The Board, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
production research, marketing research and development projects, and 
marketing promotion including paid advertising, designed to assist, 
improve, or promote the marketing, distribution, consumption or 
efficient production of almonds. The Board may also provide for 
crediting the pro rata expense assessment obligations of a handler with 
such portion of his direct expenditure for such marketing promotion 
including paid advertising as may be authorized. The expenses of such 
projects shall be paid from funds collected pursuant to Sec. 981.81(a) 
or credited pursuant to paragraph (c) of this section.
    (b) Authorization. If, on the basis of a Control Board 
recommendation pursuant to Sec. 981.40(e) with respect to projects 
pursuant to this section, and appertaining rules and regulations 
established by the Secretary on recommendation of the Board, and other 
available information, the Secretary concurs that such activities should 
be permitted, he shall authorize such activities.
    (c) Creditable expenditures. The Board, with the approval of the 
Secretary, may provide for crediting all or any portion of a handler's 
direct expenditures for marketing promotion including paid advertising, 
that promotes the sale of almonds, almond products or their uses. No 
handler shall receive credit for any allowable direct expenditures that 
would exceed the total of his assessment obligation which is 
attributable to that portion of his assessment designated for marketing 
promotion including paid advertising. Such expenditures may include, but 
are not limited to, money spent for advertising space or time in 
newspaper, magazines, radio, television, transit, and outdoor media, 
including the actual

[[Page 521]]

standard agency commission costs not to exceed 15 percent.
    (d) Promotion guidelines. All marketing promotion activity engaged 
in by the Board, including paid advertising, shall be subject to the 
following terms and conditions:
    (1) No marketing promotion, including paid advertising shall refer 
to any private brand, private trademark or private trade name;
    (2) No promotion or advertising shall disparage the quality, use, 
value, or sale of like or any other agricultural commodity or product, 
and no false or unwarranted claims shall be made in connection with the 
product;
    (3) No promotion or advertising shall be undertaken without reason 
to believe that returns to producers will be improved by such activity; 
and
    (4) Upon conclusion of each activity, but at least annually, the 
Board shall summarize and report the results of such activity to its 
members and to the Secretary.
    (e) Rules and regulations. Before any project involving marketing 
promotion, including paid advertising and the crediting of the pro rata 
expense assessment obligation of handlers is undertaken pursuant to this 
section, the Secretary, after recommendation by the Board, shall 
prescribe appropriate rules and regulations as are necessary to 
effectively regulate such activity.

[37 FR 3984, Feb. 25, 1972, as amended at 61 FR 32921, June 26, 1996]

                             Quality Control