A bill to amend the Federal Trade Commission Act 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 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 manufacture, distribution, and sale of a trademarked food product, of provisions granting the licensee the sole and exclusive right to manufacture, distribute, or sell such product in a defined geographic area. Provides that the provisions of this Act shall apply only if: (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.