CROP PROTECTION INSTITUTE OF CANADA INSTITUT POUR LA PROTECTION DES CULTURES MARKETING CODE OF STANDARDS

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1 OF CANADA INSTITUT POUR LA PROTECTION DES CULTURES MARKETING CODE OF STANDARDS February 1997

2 INDEX PAGE I Code of Ethics 2 II Introduction 3 III Philosophy & Principles 4 IV Guidelines for Maintaining Health, Safety and Protection of the Environment 5 V Standards for Industry Personnel 6 VI Guidelines on Handling Product Performance Inquiries 8 VII Guidelines for Advertising & Promotion 10 VIII Guidelines for the Management of Pest Resistance 15 IX Position Statement on Television Advertising 17 X Resolution of Disputes 18 ADDENDUM Competition Law Guidelines 21 Please Note: The Crop Protection Institute Marketing Code of Standards is national in scope. Member companies will investigate provincial regulations and legislation as it applies to marketing practices prior to the development of their programs. 1

3 I CODE OF ETHICS INDUSTRY COMMITMENT: Members are committed to the research, development and production of crop protection products that ensure the sustainability of the environment, while enhancing the production of food and fibre for the quality of life. Members will continually strive to develop new technologies to effectively manage and control vegetation, disease, insects and other pests which impact the production, processing and storage of food and fibre, as well as the standard of living Canadians enjoy. Members will comply with all laws and regulations governing the research, development, production distribution, storage, advertising, promotion, sale and use of crop protection products. Members will develop programs and professional standards of self-regulation to demonstrate responsible conduct and industry leadership. Members will work with users of the products to ensure safe handling, responsible land stewardship, and maximum production for the benefit of Canadian agriculture. Members will constantly seek ways to protect the environment through innovative packaging, management of waste and storage of products. Members are committed to the protection of employees, the public and the environment and will incorporate standards within their own companies to achieve this goal. 2

4 II INTRODUCTION Crop Protection products, including those for agricultural, forestry, horticultural, urban, public health, industrial and domestic use are essential tools for helping farmers and consumers control pests which threaten crops, lifestyles and public health in Canada. Crop protection products are necessary to increase the efficiency of production for a safe, abundant food supply, while helping to ensure the competitiveness of Canadian crops on world markets. 3

5 III PHILOSOPHY & PRINCIPLES Through fair competition and good corporate citizenship, members of the Crop Protection Institute and the industry will provide value to Canadian producers, consumers and society as a whole. Recognising these responsibilities the industry has established a Code of Ethics and supports the following principles in the marketing of products: (a) (b) (c) (d) (e) (f) Member companies will ensure adherence to all Canadian laws and regulations governing research, development, registration, advertising, promotion and sale of crop protection products either for Canadian use or for export. Member companies support the principles set out in the current International Code of Conduct on the Distribution and Use of Pesticides issued by the Food & Agriculture Organisation of the United Nations. Member companies will practice professionalism in all areas of the crop protection business. This will be reflected by people who are well trained, customer oriented and current in their field of endeavour resulting in quality products and services. Member companies will advertise, promote and sell only products which are duly registered and all such advertising and promotion shall not be misleading either literally or in the general impression conveyed. Member companies will market their products with due care and attention for the environment and society. Member companies shall strive to continuously limit risk, and improve on product safety. Member companies will strive to improve society's understanding of the benefits and safety of crop protection products. 4

6 IV GUIDELINES FOR MAINTAINING HEALTH, SAFETY AND PROTECTION OF THE ENVIRONMENT The Crop Protection Institute recognises the importance of continuously improving health and safety standards and protecting the environment. Members will market products with due care and attention for the environment and society. Specifically: (a) (b) (c) (d) (e) (f) Member companies will periodically reassess their products and use reasonable efforts to provide poison control centres and other medical practitioners with all appropriate information. Member companies will make every reasonable effort to develop formulations which enhance safety in use, introduce products in easy-touse packages, and develop safer and more efficient methods of application. Member companies will promote the use of containers that enhance safety in use, transport and handling, which facilitate return for reuse/recycling or are user-focused to facilitate safe disposal. Member companies will use clear, concise and user-focused labelling in compliance with applicable law. Member companies will further reduce potential hazards by ensuring adherence to Institute Warehousing and Manufacturing Standards. Member companies will maintain quality assurance procedures for the purpose of complying with the relevant standards of purity, performance, stability and safety. 5

7 V STANDARDS FOR INDUSTRY PERSONNEL Society views the crop protection industry personnel as representing both their company and the industry. Employees of member companies serve as sources of information relating to the crop protection products and their proper use. Therefore, employees will practise professionalism in all areas of the crop protection business. Employees will be well-trained, customer-oriented and up to date in their knowledge of the products and services. Specifically: (a) (b) Member companies will establish and maintain high standards of recruiting and selection to ensure the employment of well qualified individuals. Reasonable efforts will be made to have field personnel Community College or University trained in an agricultural or industry related discipline or have equivalent practical background. Member companies will ensure that all personnel, including those newly hired, fully understand: i) The Crop Protection Institute Code of Ethics; ii) iii) iv) the uses for the products which they represent, their proper application, and their safe handling; the importance of good customer relations and the effective use of interpersonal skills in conducting business; and their responsibilities as they relate to this Code and to the guidelines on handling Product Performance Enquiries. (Section VI) (c) Personnel will provide full and factual information on products, without misrepresentation or exaggeration. Statements made pertaining to competitive products will be accurate and not deceptive or misleading. Such statements must be supportable by reliable tests or data. 6

8 V STANDARDS FOR INDUSTRY PERSONNEL (cont'd) (d) (e) (f) The conduct and appearance of representatives will be professional and reflect a positive image. Personnel should be able to provide full and factual information in either official language where applicable. Employees will be encouraged to undertake all available government training and qualification programs where this is appropriate. (g) All communications, verbal and written must be consistent with the Guidelines for Advertising and Promotion 7

9 VI GUIDELINES ON HANDLING PRODUCT PERFORMANCE INQUIRIES The Crop Protection Institute and its member companies are committed to the highest standards of product performance and customer service. Recognising the best solution for performance inquiries is preventing their occurrence, member companies will be proactive in educating retailers, custom applicators and crop consultants in the correct use and application of industry products and in their role when handling product inquiries. Where designates handle performance inquiries on behalf of the member company, it shall be the member company s responsibility to ensure the designate is fully familiar and compliant with all aspects of the Marketing Code of Standards Recognising that crop protection products may, for a number of reasons, fail to provide effective pest control, the Crop Protection Institute has adopted a Code of Standards for the resolution of product performance inquiries. Growers can facilitate these efforts by raising the inquiry while evidence is still available, maintaining accurate records, and co-operating in the investigation. The Member company will promptly investigate and document all product performance inquiries. The inquiry will be acknowledged by the company representative within one working day of receipt. The inquiry will be investigated and all pertinent data collected and documented within 5 working days of its acknowledgement, and will normally begin within 48 hours. The customer will be promptly notified of any necessary delay beyond 48 hours. Every reasonable effort will be made to resolve the inquiry within one month of the company representative's first visit to the site. Involved parties will be kept informed of the progress of the investigation. VI GUIDELINES ON HANDLING PRODUCT PERFORMANCE INQUIRIES (cont'd) 8

10 The following information will be provided to the customer registering the inquiry: (a) (b) (c) the role of the company's representative in addressing the product performance inquiry; the necessity of completing all background data, and an estimate of the time needed to do this; and what is expected of the customer. The company representative will review the actions which will ensue and explain the expected time required to resolve the claim. Whenever it appears that the product performance inquiry cannot be resolved within one month of the first visit, the company will inform the customer and outline an appropriate course of action. The company and its representative will at all times maintain a positive, courteous, impartial and constructive approach to the resolution of a product performance inquiry. 9

11 VII GUIDELINES FOR ADVERTISING AND PROMOTION The member companies of the Crop Protection Institute recognise the important role of advertising and promotion as a means of communicating information to users on products, uses, and proper application. The member companies also strongly support the principle that advertising and promotion must provide an accurate and factual representation of the products. Therefore, member companies will advertise, promote and sell only products which are duly registered. All advertising and promotion will be accurate, responsible, and comply with applicable Canadian and provincial laws and regulations. Specifically: (a) (b) (c) Member companies will ensure advertising and promotional materials are technically accurate, and legally and ethically acceptable before any are released for use in the field. Member companies will advertise and promote crop protection products only for the use patterns which have been approved by the necessary regulatory bodies. Regarding the use of test results or research data in advertising or promotion: i) Testing must not be implied unless tests have actually been conducted. ii) iii) Test data must be generated using recognised and accepted research methods and under conditions which closely parallel those under which the referenced crop is grown in Canada. Where research data generated outside of Canada are shown, a reference to that effect must be included. Test results will not be extrapolated to draw performance conclusions beyond those achieved with rates and use patterns specifically tested and registered. Claims must be supported by adequate and proper tests. 10

12 VII GUIDELINES FOR ADVERTISING AND PROMOTION (cont'd) iv) Even though test results are valid, care must be taken to avoid deceptive use of the data or exaggerate a difference that is not meaningful to the consumer. The test should indicate that the result claimed is not mere chance or one-time effect. Specifically the following should be avoided: General superiority claims which are not valid over a comprehensive range of normal conditions of use. Use of non-standard products or non-representative sample in tests. The use of non-current data, or data which no longer reflects the positioning of the product or the competitive condition of the marketplace. Non-current data are data which would probably not be replicated under current conditions or data which are contradicted by more recently generated data. False or misleading references to the organisation making the tests. Graphs that exaggerate growth or decline by the use of incorrect data base lines, the omission of relevant data, or non-proportional diagrams. Ambiguities in representations of endorsements or testimonials. Non-disclosure of information Erroneous impressions resulting from illustrations Misleading price or savings claims. v) Sources of data should be quoted when possible. vi) Data should include only those pest problems which are included in the use pattern currently approved by Canadian regulatory authorities for the product(s) being tested. vii) Selected data will not be used in a manner which distorts the actual performance of an individual product or relative to the other products included in that test. 11

13 VII GUIDELINES FOR ADVERTISING AND PROMOTION (cont d) d) All member companies must be capable of substantiating all claims made in advertising and promotion and be prepared to produce the supporting information. (e) All advertising and promotion should depict safe product use including product handling and application practices and the appropriate protective garb. use of (f) the Reference to price in advertising will be accurate and reflective of use depicted. (g) Other product names may be mentioned, but information must be accurate and applicable to the Canadian market. (h) All written advertising must reference read label before using and should contain a standard statement "Member of the Crop Protection Institute". (i) Products which are legally restricted for use only by trained or registered operators should not be publicly advertised through journals or media other than those catering for such operations, unless the restricted availability is clearly and prominently shown. (j) Statements will not be made that compare the human or environmental safety of different products in a way that degrades the perception of other products or the industry. (k) Member companies will ensure that their advertising and promotion programs maintain and enhance the high ethical standards and image of ndustry and, whenever possible, have a positive impact on both target nd non-target audiences. 12

14 VII GUIDELINES FOR ADVERTISING AND PROMOTION (cont d) (l) Under the Pest Control Products Act 5. (1) No person shall sell in or import into Canada any control product unless the product [a] has been registered as prescribed; [b] conforms to prescribed standards; and [c] is packaged and labelled as prescribed While member companies are not allowed to promote or advertise unregistered products for sale, it is recognised by industry, agriculture and government, that there is a need to communicate information about products in development. Within the current legislation, the Institute has developed with PMRA an understanding of acceptable communication activities as they pertain to New Products in Development and Unregistered Use Extensions as outlined in the following chart. The intent of this communication must be to inform and to educate, not to sell, or promote non-registered use. 13

15 VII GUIDELINES FOR ADVERTISIN G AND PROMOTION (cont'd) REGISTRATION STATUS New product in development (Registration must have been applied for) Label extension in development. (Registration must have been applied for) Newly approved product or newly approved label extension prior to receipt of registration certificate. Registered product. DO'S All information must be technical in nature and must bear or contain the description "RESEARCH PRODUCT" in a bold and prominent fashion. Include research, environmental, crop and human safety information. All information must be technical in nature and must bear or contain the description "THIS PRODUCT NOT REGISTERED FOR THIS USE. IT IS A VIOLATION OF THE PEST CONTROL PRODUCTS ACT TO USE THIS PRODUCT IN A NON-REGISTERED APPLICATION" in a bold and prominent fashion. Include research, environmental, crop and human safety information. All forms of promotion as outlined in these standards are permitted. Label copies must indicate "DRAFT." All forms of promotion as outlined in the Marketing Code are permitted. DON'TS No advertising or promotion for selling purposes. No speculation on the registration approval or dates No selling prior to receipt of registration certificate. No reference to the specific content of the final label. No advertising or promotion for selling purposes. No rates or other information that would encourage unlabeled applications. No speculation on the registration approval or dates. No selling of product with new label prior to receipt of registration certificate. No reference to the specific content of the final label. No sale of product prior to receipt of registration certificate. Please note: The Crop Protection Institute Marketing Code of Standards is national in scope. Member companies will investigate provincial regulations and legislation as it applies to marketing practices prior to the development of their programs. 14

16 VIII GUIDELINES FOR THE MANAGEMENT OF PEST RESISTANCE It is known that within all species genetic variances exist which, when exposed to continuous use of a given type of chemistry for pest control, will allow for selection of naturally occurring material that will carry resistance to that chemistry. Cross resistance may also occur for products containing chemistry from similar families and with similar sites of action within the organism. Every member company markets products with the potential to be affected by resistance. It is therefore in the interest of all member companies to conduct themselves in the marketplace in such a manner so as to prevent or delay the occurrence of pest resistant species. It is in the interest of the industry's customers that pest resistance be minimised. Member companies should carry out their business in a manner which will reduce the occurrence of pest resistance, and strive to communicate this understanding to their customers and the public. Guiding Premises and Principles The following Premises and Principles are guidelines to marketing activities relating to pest resistance: PREMISES 1. The risk of resistance development varies between and within all crop protection product groups and varies among target pests. 2. Rotation, prepacks, and/or tank mixes of crop protection product groups (with different modes of action) is good agronomic practice. 3. The rotation cycle varies for different crop protection products. 15

17 VIII GUIDELINES FOR THE MANAGEMENT OF PEST RESISTANCE (cont'd) PRINCIPLES 1. All information relating to pest resistance should be focused on the best interests of the grower and consistent with the Institute Marketing Code of Standards. 2. All information by member companies should reflect the sound management of the resistance issue. 3. Should member companies choose to use resistance as a marketing tool, the promotion must not degrade the perception of other crop protection products, the industry or the customer. 4. Companies supplying crop protection products of similar chemistries or modes of action will cooperate to ensure resistance management recommendations are on their labels and literature. 5. Information on the development of resistance should include trade names of other products with similar chemistries or modes of action, and should specify target pests in question. 16

18 IX POSITION STATEMENT ON TELEVISION ADVERTISING It has been brought to the attention of the Crop Protection Institute that some farmer customers and dealers are concerned about the potential impact of crop protection advertising on non-farm audiences. The Institute values the inputs of our customers and the public, and recognises the need to ensure balanced information relative to the use of pesticide in food production. The Institute members believe that providing product information to customers is important, and that television advertising can be one of the means to accomplish that goal. It has also been shown that, in many situations, television provides one of the most cost-effective, means of communicating certain types of information. The Institute also recognises the need for, and value of, competitive marketing programs among its members to ensure the long term continual improvement in the quality, cost and effectiveness of the industry's products and services. The Crop Protection Institute believes that television advertising can be a valuable and cost effective method of communicating product information to customers. The Institute believes that members should have the flexibility to choose the media that best fit their communication needs. The Institute requires that member companies consider the impact that advertising crop protection products may have on non-target audiences. This is particularly true of television advertising where the non-target audience may be substantial. The Institute expects that members will ensure that all advertising strives to uphold and enhance the image of the crop protection industry, and that of their customers. 17

19 Marketing Code of Standards - Compliance Policy In 1990, the Crop Protection Institute developed a Code of Standards to guide its members with professional marketing practices in the sale of crop protection products, to promote fair competition and good corporate citizenship. With ongoing industry input, the Code has evolved over time to become a significant component of the industry s self-regulatory initiatives. It is the intent of the Institute that all member companies be in compliance with the Marketing Code of Standards. Should disagreement or dispute arise, member companies are encouraged to resolve the alleged violations between themselves. If this is not possible, the Institute will endeavour to facilitate resolution, with legal counsel. Failing this second step, a third and final option consists of parties submitting their case to an independent professional arbitrator, where fines are imposed and costs are borne by the party in non-compliance. PROCESS: Complaints brought forward by the public or a member company concerning the marketing practices of another member company of the Crop Protection Institute must be addressed in writing to the official representative of the company, and the President of the Institute. If the complaint emanates from a member of the public, it will be the responsibility of the President of the Institute and the member company involved to resolve the issue. If the complaint emanates from another member company, the steps in the process are as follows: STEP ONE: 1. Company heads endeavour to resolve the issue between themselves, using the Marketing Code as the standard of good practice. This is to be done within 10 working days of notification of the alleged violation. STEP TWO: 1. If still outstanding after a 10 working day period, the President of the Institute is to be advised that the complaint has not been resolved. The complainant must then submit all relevant information and documents to the President, and refer to specific provisions in the Code alleged 18

20 to have been violated. A cheque to the Institute for $ is to accompany the complainant s submission in order to demonstrate intent and mitigate frivolous investigations. 2. The President will convene a meeting to resolve the issue with the heads of the companies involved and independent legal counsel (legal counsel at the discretion of the President) within 15 working days from notice that complaint was not resolved in Step One. The costs of legal counsel will be shared equally by both parties. 3. If resolved at this meeting, a summary of the complaint and decision will be communicated to all member companies. STEP THREE: 1. If not resolved in Step Two, the complaint is to be submitted to an independent professional arbitrator. 2. The Institute President will provide a list of names from which both parties can choose an arbitrator, and facilitate an agreed selection. 3. The arbitration hearing is to be held within an additional 15 working days from the meeting date in step two, and a decision will be rendered within ten working days thereafter. The parties will have adequate opportunity to put their cases forward. 4. If found in non-compliance of the Marketing Code, a fine of $5,000 will be levied against the offending party, plus costs. In addition, corrective action may be ordered by the arbitrator. 5. Funds collected from fines will be deposited into CPIC general revenues. 6. If the alleged offending party is found to have been in compliance with the Marketing Code, administration and other related costs will be billed to the complainant. 7. Arbitration will be binding. No appeal will be permitted (except to court). 8. A summary of the complaint and decision will be communicated by the Institute to all member companies. 19

21 ADDENDUM: Competition Law Guidelines for Conforming to the Canadian Competition Act (R.S.C. 1985, c. C-34) Forward The Crop Protection Institute is a non profit trade association of the manufacturers, 20

22 Guidelines formulators, and distributors of crop protection products in Canada. The mission of the Institute is to foster the continued development of the industry and the quality of life in Canada, through excellence in crop protection solutions. Its members remain committed to the research, development, and safe manufacture of the industry's products, as well as to their responsible transportation, storage and field use. The Competition Act is an Act to provide for the general regulation of trade and commerce in respect of conspiracies, trade practices and mergers affecting competition [R.S.C. 1985, c. 19 (2nd Supp.), s. 18] The purpose of this Act is to maintain and encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian economy, in order to expand opportunities for Canadian participation in world markets while at the same time recognising the role of foreign competition in Canada, in order to ensure that small and medium-sized enterprises have an equitable opportunity to participate in the Canadian economy and in order to provide consumers with competitive prices and product choices. [R.S.C. 1985, c. 19 (2nd Supp.), s. 19] Competitors participating in trade associations must avoid activity which could violate Canadian or foreign competition laws or which could lead observers to suspect such violations. For example, agreements or understandings (regardless of how informal) related to prices, production, dealings with specific suppliers or customers and other restraints on freedom to act independently, may violate the Canadian Competition Act. The Institute itself, member firms and their employees are all potentially at risk if they participate in activities which violate competition laws. Where any doubt exists about the appropriateness of joint activity by competitors, legal advice should be obtained before discussions are undertaken. The Institute takes its obligations under Canadian and foreign competition laws seriously. However, the fact that a staff member or legal counsel is present at a meeting should not invite probing to determine how far a discussion can proceed before it becomes apparent that it is improper and should be terminated. It is the responsibility of each member in the first instance to avoid raising improper subjects for discussion. The do's and don'ts below provide only an overview of basic principles and the types of activities which might give rise to a violation of the law. Each participant should consult his or her own counsel in all cases involving specific situations, interpretations or advice. 21

23 DO: 1. Be thoroughly familiar with your company's guidelines and instructions regarding competition law. 2. Understand the purpose and authority of each committee or other Institute group in which you participate. 3. Adhere to prepared agendas for all meetings. 4. Ensure minutes are taken and object if meeting minutes do not accurately reflect the matters which were discussed. 5. Protest against any discussions or meeting activities which appear to violate the competition laws. Disassociate yourself from any such discussions or activities, and leave any meeting in which they continue. Make a written record of your action and give it to your counsel. 6. Consult with the Institute's counsel or your company counsel on any matter which might give rise to competition law questions. 22

24 DON'T: 1. In fact or appearance discuss or exchange information regarding: (a) Price or non-price competition between members of the Institute or with non-members. (b) Individual company prices, price changes, mark-ups, discounts or other terms of sale. (c) Industry pricing policies, price levels, price changes, differentials, etc. (d) Bids on particular contracts or procedures for responding to bid invitations. (e) Changes in industry production, capacity or inventories. (f) Individual company data related to sales, costs, profit margins, production, capacity, inventories or other competitively sensitive information. (g) Plans of individual companies concerning the production, distribution or marketing of particular products. (h) Agreements not to compete, including all allocations of territories or customers between companies. (i) Matters relating to individual suppliers, customers or competitors that might have the effect of excluding them from any market or of influencing the business conduct of Institute members towards them. (j) Restrictions on imports or exports. 2. Discuss or exchange information regarding the above matters during social gatherings incidental to any meetings, even in jest. 3. Say or write anything you would not want disclosed in court. Marketing Code Adopted & Approved by the Crop Protection Institute Board of Directors in November The Compliance section Adopted & Approved by the Board of Directors January

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