A bill to amend the Federal Trade Commission Act (15 U.S.C. 44, 45) to provide that under certain circumstances exclusive territorial arrangements shall not be deemed unlawful.

Provides that nothing contained in the Federal Trade Commission Act, or in any of the antitrust Acts, shall render unlawful the inclusion and enforcement in any trademark licensing contract or agreement, pursuant to which the licensee engages in the distribution or sale of a trademarked private label food product, of provisions granting the licensee the sole and exclusive right to distribute or sell such product in a defined geographic area or limiting the licensee, directly or indirectly, to the distribution or sale of such product only for ultimate resale to consumers within a defined geographic area. Provides that the provisions of this Act shall apply only if in such defined geographic area: (1) such product is in substantial and effective competition with products of the same general class distributed or sold by others; (2) the licensee is in substantial and effective competition with vendors of other products of the same general class; and (3) the licensor retains control over the nature and quality of such product in accordance with the provisions of the Trademark Act of 1946, as amended.

Defines, for the purposes of this Act, the term "trademarked". Provides that private label food product means a food product that is both: (1) sold under a trademark owned by an organization that licenses such product for sale exclusively by either; (a) food wholesalers or food retailers who cooperatively own and control such organization; or (b) food wholesalers for resale to retail food stores that do business under a common trademark name owned by such organization; and (2) produced and packaged to specifications determined solely by the organization that owns the trademark.