Current through Register Vol. XLI, No. 50, December 13, 2024
Section 175-1-5 - Manufacturer Prohibitions5.1. Improper inducements. -- Federal and state law prohibits a manufacturer from providing inducements, directly or indirectly, to any licensed retailer to purchase alcoholic liquors from the manufacturer to the exclusion, in whole or in part, of products sold or offered for sale by another manufacturer. Prohibited inducements include:5.1.a. Acquiring or holding any interest in any license with respect to the retail outlet or any other premises which is owned, occupied or used in any manner by the licensed retailer or his or her immediate family;5.1.b. Acquiring any interest in real or personal property which is owned, occupied, or in any manner used by the licensed retailer or his or her immediate family in the conduct of the retail outlet or any other of his or her businesses;5.1.c. Furnishing, giving, renting, lending, or selling to the licensed retailer or his or her immediate family any equipment, fixtures, exterior signs, supplies, money, services or other things of value, except that a manufacturer may furnish to a licensed retailer items of nominal value for in-store display or sales purposes for use only within the licensed retail outlet.5.1.d. Paying or crediting the licensed retailer or his or her immediate family for any advertising, display, or distribution services;5.1.e. Guaranteeing any loan for the repayment of any financial obligation of the licensed retailer or his or her immediate family; or5.1.f. Requiring the licensed retailer to take and dispose of a certain quota of any distilled spirits.5.2. Interest in the retail outlet. -- A manufacturer may not acquire or hold any interest in any license required to be obtained by the licensed retailer or his or her immediate family, with respect to the retail outlet or any other premises which are owned, occupied or in any manner used by the licensed retailer or his or her immediate family. This prohibition applies equally to: 5.2.a. The licensed retailer's officers, partners, employees, other representatives, and their immediate family;5.2.b. Any separate corporation in which the manufacturer or its officers, partners, employees or other representatives, and their immediate family hold any ownership interests or with which such persons are otherwise affiliated.5.3. Interest in real or personal property of the licensed retailer.5.3.a. A manufacturer may not acquire or hold any interest in real or personal property which is owned, occupied, or in any manner used by the licensed retailer or his or her immediate family in the conduct of the retail outlet or of other businesses of the licensee and his or her immediate family. This prohibition also applies to: 5.3.a.1. Any interest acquired by the manufacturer's corporate officials, partners and employees or other representatives, or their immediate family; and5.3.a.2. To any interest which is acquired by a separate corporation in which the manufacturer or its officers, partners, employees or other representatives, or their immediate family hold any ownership interest or in which they are otherwise affiliated.5.3.b. A manufacturer may not acquire a mortgage on a licensed retailer's real or personal property or on the real or personal property of the licensed retailer's immediate family.5.3.c. A manufacturer may not rent display space or shelf space at a retail outlet.5.4. Furnishing things of value. 5.4.a. A manufacturer may not furnish, give, rent, or lend to a licensed retailer or his or her immediate family any equipment, fixtures, exterior signs, supplies, money, services or other things of value. The prohibition does not apply to sales of goods by a manufacturer to a licensed retailer of goods that are to be resold to the general public and which are not alcoholic liquors so long as the licensed retailer pays the normal sales price for the goods.5.4.a.1. This prohibition also applies to any similar activity which occurs through a third party, such as a retailer association or display company, where the benefits resulting to the licensed retailer may be considered as providing the licensed retailer with a thing of value without the payment of an appropriate purchase price.5.4.a.2. This prohibition does not apply to signs and other display-related materials that are of negligible monetary value. As long as the manufacturer or retailer has prior written approval from the Commissioner.5.4.b. A manufacturer must sell any equipment, supplies or fixtures to a licensed retailer at the current market value and may not provide a special price advantage for purchasing from one manufacturer as opposed to another manufacturer.5.4.c. A manufacturer may not provide any assistance (financial, legal, administrative or influential) to a licensed retailer in acquiring the license required to operate a licensed retail outlet.5.4.d. A manufacturer may not furnish any exterior advertising signs, but may provide interior signs to the licensed retailer. The manufacturer may advertise by billboards which display alcoholic liquors, wine or nonintoxicating beer, but may not identify any licensed retailer in or on the advertisement.5.4.e. A manufacturer may not furnish things of value to the licensed retailer at less than the normal sale price, such as nonalcoholic mixers and pouring racks which the licensed retailer may market or sell in his or her business.5.5. Paying for advertising, display or distribution service. A manufacturer may not provide a licensed retailer with free advertisement, exterior display or distribution services, or any similar types of services.5.6. Quota sales. A licensed retailer may not be required to purchase any alcoholic liquors in order to purchase nonalcoholic liquors or other products from a manufacturer.5.7. Other. 5.7.a. A manufacturer may not touch, disturb or otherwise interfere with the product or displays of another manufacturer.5.7.b. No person except a licensed representative may contact a licensed retailer, or any employee thereof, or enter a retail outlet for the purpose of: 5.7.b.1. Selling or offering to sell;5.7.b.2. Soliciting, negotiating or promoting the sale of alcoholic liquor or distilled spirits; or5.7.b.3. Conducting a survey, study or similar activity pertaining to the sale, distribution or availability of alcoholic liquors or distilled spirits.