(a) Advertising, Incentives and Sales Promotions. Any person engaging in any activity regulated by this section must define the benefit period of each sales or advertising campaign that is directly a cost of selling the involved dairy product (the “Defined Benefit Period”). For the purposes of calculating the cost of the involved dairy product, all advertising and sales costs must be allocated to each of the affected products over the applicable Defined Benefit Period. Actual or imputed costs for slotting allowances, exclusive agreements or other related agreements and activities shall be determined and allocated over the appropriate Defined Benefit Period.

(b) Sweepstakes, Drawings, Instant Prizes, and Other Such Sales Campaigns. Any person conducting any such activity shall estimate the approximate costs of the awards actually distributed to winners and allocate them over the Defined Benefit Period. The costs of actual redemption shall be determined, and estimated costs shall be adjusted to reflect actual costs incurred over the Defined Benefit Period.

(c) Coupons. Any person issuing a coupon shall estimate the value of the expected redemption of the coupon and allocate that value over a Defined Benefit Period. Estimated costs shall be adjusted to reflect actual coupon redemption during that Defined Benefit Period.

(d) Compliance with Section. If, upon determination of the actual costs of any activity regulated by this Section 1850, a handler, manufacturer, distributor, or wholesale customer experiences an actual redemption rate for that activity which results in an otherwise prohibited sale below cost, but that handler, manufacturer, distributor or wholesale customer can demonstrate that its estimates of the approximate cost of the redemption made according to the preceding provisions of this Section were made in good faith, and according to Generally Accepted Accounting Principles, and projected sales above its cost, that handler, manufacturer, distributor or wholesale customer shall be deemed to have complied with the Code and this Subchapter.