Ariz. Admin. Code § 19-1-319

Current through Register Vol. 30, No. 50, December 13, 2024

Section R19-1-319 - Commercial Coercion or Bribery Prohibited

A. A distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler shall not directly or indirectly or through an affiliate engage in any of the following activities unless specifically authorized under A.R.S. Title 4 or this Chapter:

1. Furnishing, giving, renting, lending, or selling to a licensed retailer an article of primary utilitarian value in the conduct of the business;

2. Selling food or food products to a licensed retailer at less than the cost that the producer or wholesaler paid for the food or food products;

3. Selling non-alcoholic malt beverage, non-alcoholic wine, or other non-alcoholic beverage or cocktail mixer to a licensed retailer at less than the cost that the producer or wholesaler paid for the non-alcoholic malt beverage, non-alcoholic wine, or cocktail mixer.

4. Extending credit or furnishing financing to a licensed retailer through the licensed retailer's purchase of spirituous liquor or other products;

5. Providing a service to a licensed retailer, including stocking, resetting, or pricing merchandise;

6. Paying or crediting a licensed retailer for a promotion, advertising, display, public relations effort, or distribution service;

7. Sharing with a licensed retailer the cost of a promotion or advertising through any medium;

8. Guaranteeing a loan to or repayment of a financial obligation of a licensed retailer;

9. Providing financial assistance to a licensed retailer;

10. Engaging in a practice that requires a licensed retailer to take and dispose of a quota of spirituous liquor;

11. Offering or giving a meal, local ground transportation, or event ticket to a licensed retailer unless the item is deductible as a business entertainment expense under the Internal Revenue Code;

12. Offering a product to an on-sale licensee at a price not available to all on-sale licensees. A price based on the volume delivered within a 24-hour period is permitted if the volume-based price is available to all on-sale licensees; or

13. Offering a product to an off-sale licensee at a price not available to all off-sale licensees. A price based on the volume delivered within a 24-hour period is permitted if the volume-based price is available to all off-sale licensees.

B. A licensed retailer shall not require that a producer or wholesaler provide stocking or resetting services as a condition for being allocated shelf, cold box, or product display space.

C. A licensed retailer shall not solicit from a distiller, vintner, brewer, rectified, blender, or other producer or wholesaler any activity outlined in subsections (A)(1) through (A)(13) unless specifically authorized under A.R.S. Title 4 or this Chapter.

D. This Section is authorized by A.R.S. § 4-243(A).

Ariz. Admin. Code § R19-1-319

New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).