---
kind: "section"
citation: "16 C.F.R. § 240.2"
title: "16"
number: "240.2"
heading: "Applicability of the law."
url: "https://uscodex.org/cfr/16/240.2"
---

# §240.2. Applicability of the law.

- (a) **The substantive provisions of section 2(d) and (e) apply only under certain circumstances.** [Section 2(d)](/cfr/16/2.md?p=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)](/cfr/16/2.md?p=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](/cfr/16/240.13.md) of these Guides.

## Notes

### Authority

Authority: Secs. 5, 6, 38 Stat. 719, as amended, 721; 15 U.S.C. 45, 46; 49 Stat. 1526; 15 U.S.C. 13, as amended.

### Source

Source: 79 FR 58252, Sept. 29, 2014, unless otherwise noted.