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 specif- ically 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 spiritu- ous liquor or other products;

5.        Providing a service to a licensed retailer, including stock- ing, 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 obliga- tion 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 licens- ees; 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 licens- ees.

B.       A licensed retailer shall not require that a producer or whole- saler 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).

Historical Note

New Section made by final rulemaking at 19 A.A.R.

1338, effective July 6, 2013 (Supp. 13-2).

Department of Liquor Licenses and Control