A bill to amend the Federal Trade Commission Act (15 U.S.C. 45) to provide that under certain circumstances exclusive territorial arrangements shall not be deemed unlawful.

Provides, under the Federal Trade Commission Act, that exclusive territorial arrangements in any franchise agreement, or any trademark licensing contract or agreement, for the manufacture, distribution, and sale of a trademarked soft drink product shall not be deemed unlawful, provided: (1) that 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.