Antitrust Guide

ANTITRUST COMPLIANCE GUIDELINES

The Board of Directors of the Contract Packaging Association (CPA) has publicly stated its support for the policy of competition served by Federal and state antitrust laws, and its intent to comply strictly with these laws. In support of the Statement, the officers of the Contract Packaging Association make the following requests at this meeting:

1. Every attendee should be familiar with the provisions of the following CPA Antitrust Policy Statement and General Rules of Antitrust Compliance, copies of which are available upon request.
2. The agenda for this meeting shall be followed, and permission of the chair must be obtained before any other matters of business are introduced.
3. During this meeting, there shall be no discussion of pricing methods, costs, volume or conditions of production or sale, allocation of territories or customers, or any discussion which might be construed as limiting any person or business from free access to any market, customer, or source of supply.

ANTITRUST POLICY STATEMENT

The Contract Packaging Association is a not-for-profit society organized to serve and advance the contract packaging industry. Its purpose is to provide a common meeting ground where suppliers and users of contract packaging services can become informed of current industry developments and share professional interests. CPA is not intended to, and may not, play any role in the competitive decisions of its members or their employers, nor in any way restrict competition among users or suppliers in any of the industries it serves.

Through its activities, CPA brings together representatives of competitors in many areas. Although the subject matter of CPA activities is normally technical in nature, and although the purpose of these activities is principally educational and there is no attempt to restrain competition in any manner, nevertheless the Board of Directors recognizes the possibility that the CPA and its activities could be seen by some as an opportunity for anticompetitive conduct. For this reason, the Board takes the opportunity, through this Statement of Policy, to make clear its unequivocal support for the policy of competition served by the antitrust laws and its uncompromising intent to comply strictly in all respects with these laws.

In addition to the CPA's firm commitment to the principle of competition served by the antitrust laws, the penalties which may be imposed upon both the CPA and its individual and corporate members involved in any violation of the antitrust laws are so severe that good business judgment demands that every effort be made to avoid such violation. Certain crimes for which individuals may be imprisoned for up to three (3) years or fined up to $100,000, or both, and corporations can be fined up to $1 million for each offense. In addition, treble damage claims by private parties (including class actions) for antitrust violations are extremely expensive to litigate and can result in judgments of a magnitude which could destroy the Association and seriously affect the financial interest of its members.

It shall be the responsibility of every member of CPA to be guided by the Association's policy of strict compliance with the antitrust laws in all CPA activities. It shall be the special responsibility of meeting chairpersons to insure that this policy is known and adhered to in the course of activities pursued under their leadership.

To assist the CPA staff and all of its officers and directors in recognizing situations which may raise the appearance of an antitrust problem, the Board will as a matter of policy furnish to each such persons the General Rules and Antitrust Compliance. Should questions arise as to the manner in which the antitrust laws may apply to the activities of CPA or any committee thereof, such questions shall be directed to CPA headquarters.

Antitrust compliance is the responsibility of every CPA member. Any knowing violation of the CPA General Rules of Antitrust Compliance or this general policy by an CPA member will result in that person's suspension from membership in the Association, and removal from any office held.

GENERAL RULES OF ANTITRUST COMPLIANCE

The following rules are applicable to all CPA activities, and must be observed in all situations and under all circumstances without exception or qualification other than as noted below:

1. Neither the Contract Packaging Association nor any committee or activity of CPA shall be used for the purpose of bringing about or attempting to bring about any understanding or agreement, oral or written, formal or informal, expressed or implied, among competitors with regard to prices, terms or conditions of sale, distribution, volume of production, territories, or customers.
2. No CPA activity or communication shall include discussion for any purpose or in any fashion of pricing methods, production quotas or other limitations on the timing, costs or volume of production or sale, or allocations of territories or customers.
3. No CPA activity or communication shall include any discussion which might be construed as an attempt to prevent any person or business entity from gaining access to any market or customer for goods or services or to prevent any business entity from obtaining a supply of goods or otherwise purchasing goods or services freely in the market.
4. Neither CPA nor any committee shall make any effort to bring about the standardization of any product for the purpose or with the effect of preventing the manufacture or sale of any product not conforming to a specific standard.
5. No CPA activity or communication shall include any discussion of what might be construed as an agreement or understanding to refrain from purchasing any raw materials, equipment, services, or other supplies from a supplier.
6. In conducting CPA committee meetings, the chairperson shall prepare and follow a formal agenda. Minutes of the meeting shall be distributed to all committee members. Approval of the minutes shall be obtained for the committee at its next meeting. A copy of the minutes shall be sent promptly to the CPA Headquarters, attn. Executive Director.
7. Speakers at committee and other technical CPA meetings shall be informed of the need to comply with this antitrust policy in the preparation and presentation of their talks.
8. At informal discussions at the site of a CPA meeting, but beyond the control of its chairperson, all members are expected to observe the same standards of personal conduct as are required of the CPA in its compliance with these antitrust guidelines.

Address all questions concerning antitrust policy and guidelines to:

Executive Director
Contract Packaging Association
12930 Worldgate Drive, Suite 200
Herndon, VA 20170
(571) 287-6818