---
kind: "section"
citation: "16 C.F.R. § 240.4"
title: "16"
number: "240.4"
heading: "Definition of customer."
url: "https://uscodex.org/cfr/16/240.4"
---

# §240.4. Definition of customer.


A customer is any person who buys for resale directly from the seller, or the seller's agent or broker. In addition, a “customer” is any buyer of the seller's product for resale who purchases from or through a wholesaler or other intermediate reseller. The word “customer” which is used in section 2(d) of the Act includes “purchaser” which is used in [section 2(e)](/cfr/16/2.md?p=e).

Note: There may be some exceptions to this general definition of “customer.” For example, the purchaser of distress merchandise would not be considered a “customer” simply on the basis of such purchase. Similarly, a retailer purchasing solely from other retailers, or making sporadic purchases from the seller or one that does not regularly sell the seller's product, or that is a type of retail outlet not usually selling such products (e.g., a hardware store stocking a few isolated food items) will not be considered a “customer” of the seller unless the seller has been put on notice that such retailer is selling its product.


## 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.