Sections 8-10 of Chapter 310 of the Dairy Farm Preservation Act provides the Massachusetts Department of Agricultural Resources (MDAR) the authority to allow for the use of fluid milk coupons in promotional and marketing campaigns of milk and cream for consumer use and benefit under certain conditions. In addition, MDAR is to regulate the use of coupons of fluid milk to promote the increase in fluid milk consumption. MDAR must protect local producer dealers from predatory pricing. As such, MDAR is directed to annually study, analyze, and assess the economic impact of this program on dairy farmers, producers, processors, consumers, and the Commonwealth’s milk markets.
Massachusetts General Laws specify Certain Prohibited Transactions with milk in section 14 of Chapter 94A. Such prohibited transactions include the below cost sale of milk and price discrimination. Price discrimination occurs when different prices are charged by a milk dealer to consumers of milk beyond due consideration for transportation costs, quantities, and types of milk. A below cost sale of milk occurs when the price at which the milk is sold is below the cost of that milk. As such, the use of coupons shall not result in the sale of milk at a price that is below the cost of production, and shall not be predatory towards any Massachusetts dairy farmer who directly markets and sells their own fluid milk to consumers.
Any milk dealer looking to run a promotion involving fluid milk must complete the Campaign Notice and submit it for approval. This notice must be completed and submitted at least thirty days prior to start of the marketing or promotional campaign. For any questions please contact our office.