16 CFR § 240.5 - Definition of competing customers.

---
identifier: "/us/cfr/t16/s240.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "16 CFR § 240.5 - Definition of competing customers."
title_number: 16
title_name: "Commercial Practices"
section_number: "240.5"
section_name: "Definition of competing customers."
chapter_name: "FEDERAL TRADE COMMISSION"
subchapter_number: "B"
subchapter_name: "GUIDES AND TRADE PRACTICE RULES"
part_number: "240"
part_name: "GUIDES FOR ADVERTISING ALLOWANCES AND OTHER MERCHANDISING PAYMENTS AND SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
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."
regulatory_source: "79 FR 58252, Sept. 29, 2014, unless otherwise noted."
cfr_part: "240"
---


# 240.5 Definition of competing customers.

*Competing customers* are all businesses that compete in the resale of the seller's products of like grade and quality at the same functional level of distribution regardless of whether they purchase directly from the seller or through some intermediary.