(a) The legislature hereby finds that the existence in the Commonwealth of Pennsylvania of the practice whereby employers sell or procure for sale to employes or other persons any merchandise, not of the employer's own production, not handled in the regular course of the employer's business, or not connected with or related to his or its trade or business, is detrimental to the convenience and general well-being of the public engaged in retail business in that such practice (1) interferes with and diverts the proper and normal flow of trade and commerce from persons engaged in retail business and (2) constitutes an unfair method of competition by such employers against others engaged in commerce as retail merchants.

(b) It is hereby declared to be the policy of this act through the exercise by the legislature of its police powers to correct and to eliminate the conditions referred to above, declaring certain sales to constitute unfair competition and prohibiting same.