Current through September 24, 2024
(1) General. An
industry member or any representative thereof - e.g. third party marketing
entities may furnish a retailer equipment and supplies, signs, posters, place
cards, decorations, devices, statuettes, or geographic displays (printed,
painted, or electric) for point-of-sale advertising, and services or other
things of value in accordance with the exceptions provided in this part and may
install or set up such materials in the windows or elsewhere in the interior of
a retail establishment. The cost limitations imposed in this rule will be
deemed adjusted upon any modification in a similar rule made by the Trade and
Taxation Bureau of the United States Department of the Treasury.
(2) Product Displays.
(a) General. An industry member may furnish,
give, rent, loan, or sell product displays to a retailer, subject to the
limitations prescribed in subparagraph (b) of this paragraph.
(b) Conditions and Limitations.
1. The total value of all product displays
furnished by an industry member under subparagraph (a) of this paragraph may
not exceed three hundred dollars ($300) or current federal limits per brand in
use at any one time in any one retail establishment. The value of a product
display is the actual cost to the industry member who initially purchased it.
Transportation and installation costs are excluded for the purposes of this
calculation.
2. Industry members
may not pool or combine their dollar limitations in order to provide a retailer
a product display valued in excess of three hundred dollars ($300) or current
federal limits per brand.
3.
Product displays shall bear conspicuous and substantial advertising matter
about the product or the industry member which is permanently inscribed or
securely affixed.
4. The
furnishing, giving, renting, loaning, or selling of such product displays may
be conditioned upon the purchase of the products advertised on those displays
in a quantity necessary to initially stock such display.
(3) Interior Signs.
(a) General. An industry member or any
representative thereof - e.g. third party - marketing entities, may furnish,
give, rent, loan, or sell to a retailer inside signs which bear advertising
matter. Inside signs include such things as posters, placards, designs,
mechanical devices, and window decorations.
(b) Conditions and limitations. Industry
members or any representative thereof - e.g. third party marketing entities -
may furnish inside signs to retailers under the following limitations:
1. The inside sign shall have no secondary
value and be of value to the retailer only as advertising.
2. The inside sign shall be used only in the
windows or other interior portions of the retail establishment.
3. The industry member may not directly or
indirectly pay or credit the retailer for displaying the inside sign or for any
expense incidental to its operation.
(4) Advertising Service. An industry member
or any representative thereof - e.g. third party marketing entities - may list
in its advertisement the names and addresses of all retailers selling the
alcoholic beverage product(s) of the industry member within the geographic area
targeted by the advertisement, provided that:
(a) The advertisement does not also contain
the retail price of the product;
(b) The listing is the only reference to the
retailers in the advertisement and is relatively inconspicuous in relation to
the advertisement as a whole; and
(c) The advertisement does not refer only to
one retailer or only to retail premises controlled directly or indirectly by
the same licensed entity and refers to all retailers selling the alcoholic
beverage product(s) of the industry member within the geographic area targeted
by the advertisement.
(5)
Outside Signs.
(a) General. Subject to local
ordinances, an industry member or any representative thereof - e.g. third party
marketing entities - may furnish, give, rent, loan, or sell to a retailer
outside signs (electrical, mechanical, inflatable, or otherwise) which bear
advertising matter.
(b) Conditions
and limitations. Industry members, or any representative thereof - e.g. third
party marketing entities - may furnish outside signs to retailers under the
following limitations:
1. The sign must bear
conspicuous and substantial advertising matter about the product or the
industry member that is permanently inscribed or securely affixed.
2. The cost of the signs may not exceed four
hundred dollars ($400) per brand, which includes installation costs.
3. The outside sign must be located on the
wall or roof of a building adjacent to or occupied by the retailer, or in a
retailer's parking lot.
4. The name
and address of the retailer may appear on the outside sign.
5. The industry member, or any representative
thereof - e.g. third party marketing entities - may not directly or indirectly
pay or credit the retailer for displaying the sign or for any expense
incidental to its operation.
(6) Routine Business Entertainment. Nothing
in this chapter shall prohibit an industry member or any representative thereof
- e.g. third party marketing entities - from providing a retail licensee or its
employee routine business entertainment which is defined as follows:
(a) Meals or beverages;
(b) Concerts, theatre, and arts
entertainment;
(c) Sports
participation and entertainment;
(d) Entertainment at charitable
events;
(e) Private
parties;
(f) Transportation and
lodging costs associated with any of the forgoing listed under these
subparagraphs (a)-(e).
(7) Limitations on Routine Business
Entertainment. For the purposes of this section:
(a) Routine business entertainment shall be
provided only if such is provided without a corresponding obligation on the
part of the retail licensee or on-premise consumption licensee to purchase
alcoholic beverages or to provide any other benefit to such industry member or
to exclude from sale the products of any other industry member.
(b) There is no maximum dollar amount for
providing routine business entertainment designated under subparagraphs (b),
(c), or (d) of paragraph (6) of this rule, provided however that transportation
pursuant to subparagraph (f) of paragraph (6) or lodging to or for an event
under subparagraphs (b), (c), or (d) of paragraph (6) is subject to the three
hundred dollar ($300) limit of subparagraph (c) below.
(c) Routine business entertainment expenses
under subparagraphs (a), (e), or (f) of paragraph (6) shall not exceed a fair
market value of three hundred dollars ($300) per twenty-four (24) hour period
for an employee of any retail or on-premise consumption licensee including a
self-employed sole proprietor or, if the licensee is a partnership, any partner
or employee thereof, or if the licensee is a corporation, any corporate
officer, director or shareholder, or the guest of such, or to any third party
partnership, LLC, or corporation associated directly or indirectly with the
retail or on-premise consumption licensee designed to circumvent the intent of
this provision. Further, routine business entertainment expenses as stated
above may not exceed six (6) employees/per day from the same
licensee.
(d) No person enumerated
in subparagraph (c) of paragraph (7) above may be entertained by a wholesaler
more than four (4) times per calendar year. The wholesaler shall maintain
documentation of all expenditures under this section containing sufficient
information to fully document the expenditure.
(e) Routine business entertainment permitted
under paragraph (6) above must occur either within the state of Tennessee or,
if outside the state of Tennessee, within one hundred (100) miles of the
premises of the retail licensee receiving the routine business
entertainment.
(8)
Retailer Advertising Specialties - Point-of-Sale.
(a) General. An industry member or any
representative thereof - e.g. third party marketing entities - may furnish,
give, rent, loan, or sell point-of-sale advertising materials to a retailer if
such items bear advertising matter and are primarily valuable to the retailer
as point-of-sale advertising to attract consumer attention to the products of
the industry member who furnished them. Such items include, but are not limited
to: posters, placards, designs, inside signs (electric, mechanical, or
otherwise), window decorations, trays, coasters, mats, menu cards, meal checks,
paper napkins, napkin holders, foam scrapers, back bar mats, placemats, bar
utensil caddies, other bar utensils, and items (such as strainers, citrus
pressers, and stir rods), tap standards, shakers, stir sticks, ice molds and
ice trays, cups, glassware, pitchers, carafes, and similar containers made of
other materials, thermometers, clocks, lamps, calendars, alcoholic beverage
lists or menus, lighted displays, display mirrors, chalkboards, bulletin
boards, dart board backgrounds, table tents, menu and table tent holders, case
cards, candles and holders, check and credit card holders, empty flash and jump
drives, umbrellas, and apparel (such as shirts, hats, caps, and
visors).
(b) Consumer Advertising
Specialties. An industry member or any representative thereof - e.g. third
party marketing entities - may furnish, give, rent, loan, or sell to a
retailer, advertising specialties that are designed to be carried away by
consumers, including, without limitation, trading stamps, pouring racks,
non-alcoholic mixers, ash trays, bottle or can openers, cork screws, shopping
bags, matches, candles and holders, printed recipes (including drink recipes),
pamphlets, cards, leaflets, brochures, blotters, post cards, pencils, cups,
mugs, glassware, pens, plates, knives, bar utensil caddies, shakers, pitchers,
other bar utensils and items (such as strainers, citrus presses and stir rods),
apparel (such as shirts, hats, caps, and visors), pins, buttons, key chains,
check and credit card holders, empty flash and jump drives, and other branded
items of nominal value.
(c)
Conditions and Limitations.
1. All
point-of-sale advertising materials and consumer advertising specialties must
bear conspicuous and substantial advertising matter about the product or the
industry member which is permanently inscribed or securely affixed. The name
and address of the retailer may appear on the point-of-sale advertising
materials and on the consumer advertising specialties.
2. The industry member or any representative
thereof - e.g., third party marketing entities - may not directly or indirectly
pay or credit the retailer for using or distributing these materials or for any
expense incidental thereto.
(9) Wine Lists or Menus. An industry member
may furnish, give, rent, loan, or sell alcoholic beverage lists or menus to
retailers whether in hard copy, electronic (digital or analogue), or online
formats. Nothing in this paragraph (9) authorizes an industry member to provide
a retailer with electronic hardware, including iPads, tablets, laptops, or
other electronic devices used as menus.
(10) Samples. An industry member may furnish
or give a sample of branded distilled spirits, wine, or alcoholic beverages to
a retailer (including, without limitation, any of their managers, salespersons,
or bartenders) for the purposes of enhancing sales of its products at retail.
For each retail establishment, the industry member may give not more than 1.75
liters of any brand of distilled spirits or wine per sampling. If a particular
product is not available in a size within the quantity limitations of this
section, an industry member may furnish to a retailer the next largest size. An
industry member may only provide such a sampling of a specific brand once every
three months. An industry member who furnishes a container for sampling or
tasting purposes must conspicuously mark the container as "not for
resale."
(11) Combination
Packaging.
An industry member or trade buyer (other than a retailer which
sells for consumption on the premises or a retail food store) may package,
distribute, and sell wine or alcoholic beverages in combination with other
related items, other alcoholic beverages, or beer.
(12) Educational Seminars.
An industry member may give or sponsor educational seminars for
employees of retailers either at the industry member's premises or at the
retail establishment. Examples would be seminars dealing with use of a
retailer's equipment, training seminars for employees of retailers, or tours of
an industry member's plant premises. This section does not authorize an
industry member to pay a retailer's expense in conjunction with an educational
seminar. This paragraph (12) does not preclude providing nominal hospitality
during the event.
(13)
Stocking, Rotating, Pricing, and Other Services.
(a) A wholesaler, wholesale salesman, or
permitted representative thereof may, at a retail package store, with the
consent of the retailer, stock, rotate, and affix the price to distilled
spirits, wine, or other alcoholic beverages that they sell, provided products
purchased from other wholesalers are not altered or disturbed. Such wholesaler
may also set up a point-of-sale display, product display, logoed and
promotional items (including point-of sale advertising materials and consumer
advertising specialties), rearrange or reset that portion of a retail package
store as is necessary for the display or placement of its product. In providing
the services herein, a wholesaler, wholesale salesman or permitted
representative thereof may enter the private or non-public areas of the retail
package store.
(b) A wholesaler, a
manufacturer, importer, non-resident seller, non-manufacturer nonresident
seller, or any representative thereof - e.g. third party marketing entities -
may provide recommended shelf plans or shelf schematics for alcoholic
beverages, provided that such industry members may not provide anything of
value, and retailers may not accept anything of value, in exchange for
complying or otherwise using any recommended shelf plan or schematic.
(c) Notwithstanding the restrictions
contained herein, a manufacturer, importer, nonresident seller,
non-manufacturer non-resident seller, or representative thereof - e.g. third
party marketing entities - must deliver point-of-sale advertising materials
intended for retail use to a wholesaler's warehouse, and a manufacturer,
importer, non-resident seller, non-manufacturer non-resident seller, or
representative thereof - e.g. third party marketing entities - may provide and
set up such point-of-sale advertising materials at a retail package store
establishment only in consultation and by mutual agreement with the wholesaler
from which such point of sale or logoed materials were obtained as to the
intended use and recipient(s) thereof. In providing the services herein, a
manufacturer, importer, non-resident seller, non-manufacturer non-resident
seller or representative thereof - e.g. third party marketing entities - may
enter the private or non-public areas of the retail package store. As used in
this paragraph, "point-of-sale advertising materials" include point-of-sale
displays and refer to the advertising items described under paragraph (1) of
Rule
0100-03-.06
and paragraph (8) of this Rule. "Point of sale advertising materials" do not
include product displays (i.e. wine racks, bins, barrels, casks, shelving, and
the like from which distilled spirits, wine, and beverages are held, shelved,
displayed and sold).
(d) Nothing in
this paragraph (13) shall be construed to authorize any services or conduct
that is otherwise prohibited for retail food stores in T.C.A. §
57-3-815.
(14) Consumer Promotions - Direct Offerings.
A manufacturer, supplier, importer, non-resident seller, non-manufacturer
non-resident seller, distiller, winery, or any representative thereof e.g.
third party marketing entities, may offer coupons for refunds and contest
prizes, premium offers, and sweepstakes to consumers only on the following
basis:
(a) A refund coupon may be distributed
to a consumer only as an element of the industry member's advertising or
marketing program through newspapers or magazines, combination packaging, the
internet, any other social media platform, neck hangers (on or in caps, cap
liners, corks, containers, labels, cartons, cases, or other materials which
comes with a purchased alcohol beverage), other point-of-sale advertising
(e.g., tear pads that are part of shelf talkers, and case cards), flyers, and
by direct mail. Retailers for on-premise consumption may not participate in
such programs.
(b) Contest prizes,
premium offers, sweepstakes, and like items may be offered by industry members
or any representative thereof - e.g. third party marketing entities - directly
to consumers at point-of-sale, via neck hangers (on or in caps, cap liners,
corks, containers, labels, cartons, cases, or other materials which come with a
purchased alcohol beverage) and other point-of-sale advertising (e.g., tear
pads that are part of shelf talkers and case cards), through newspapers or
magazines, and through the internet, mobile/other electronic communication
devices and communications via social media, flyers, and by direct mail in
conjunction with combination packaging. Retailers for on-premise consumption
may participate in such programs.
(c) Officers, employees, and representatives
of wholesalers and retailers are excluded from participation. Nothing of value
may be supplied to a trade buyer by an industry member or any representative
thereof - e.g. third party marketing entities - to induce or reward
participation in any practice allowed hereunder. Industry members or any
representative thereof - e.g. third party marketing entities - are prohibited
from requiring any retailer to participate in any practice allowed hereunder
nor shall a particular retailer or group of retailers be specified by an
industry member or any representative thereof - e.g. third party marketing
entities - for participation in any practice allowed hereunder.
(d) Notwithstanding subparagraph (c), an
industry member or any representative thereof - e.g. third party marketing
entities - may award prizes to a retail employee as part of a nationwide or
statewide contest, such as a bartender's contest or drink recipe contest,
conducted by the industry member or such representative, in accordance with
applicable contest rules; provided, that the entry or award is not based upon
retail sales of the sponsor's product and the industry member has received
advance written approval of the contest by the TABC. Such contest shall be open
to all retail licensees of the same type - e.g., "on-premise or off-premise"
consumption licensees, or both.
(e)
No coupon shall be permitted for a refund by a retailer at the point-of-sale
("cents-off" coupons). Refund coupons may be utilized by a manufacturer,
supplier, importer, nonresident seller, non-manufacturer non-resident seller,
distiller, winery, or any representative thereof - e.g. third party marketing
entities -, that are redeemable by a consumer's mailing or transmitting
directly to such manufacturer, supplier, importer, non-resident seller,
non-manufacturer non-resident seller, distiller, winery, or an authorized
redemption agent.
(f) No coupon may
be redeemed by, or refund sent to any person who is under the age set by law to
purchase, possess, and consume alcoholic beverages in Tennessee. No contest or
sweepstakes prize shall be awarded to any person who is under the age set by
law to purchase, possess, and consume alcoholic beverages in Tennessee. No
premium offer shall be sent to any person who is under the age set by law to
purchase, possess, and consume alcoholic beverages in Tennessee.
(15) Equipment and Supplies. An
industry member may sell equipment or supplies to a retailer.
(a) Equipment or supplies may be sold at a
price not less than the cost to the industry member who initially purchased
them and the price must be collected within ten (10) days of the date of sale
or rent.
(b) An industry member may
install dispensing accessories at the retailer's establishment as long as the
retailer pays the cost of initial installation.
(c) An industry member may furnish, give, or
sell coil cleaning services to a retailer.
(16) Withdrawals for Special Occasion
Licensees.
(a) A licensee may deplete
inventories for purposes of contributing to any qualified entity that has
applied or will apply for a special occasion license issued by the Commission
and may transport such inventories directly to the qualified entity. The
donating licensee shall retain records of all such withdrawals showing the
amount of inventory withdrawn, the purpose of withdrawal, and the employee
responsible for such withdrawal in accordance with Rule
0100-03-.14(1).
(b) In addition to product withdrawals for
special occasion licensees, an industry member may further provide such items
as promotional items, equipment, fixtures, posters, supplies, sponsorships,
etc. to special occasion licensees without being subject to the limitations and
restrictions found in Rules
0100-06-.02
and 0100-06-.03. However, any such physical promotional items provided to the
special occasion licensee for an event must be returned to the industry member
at the conclusion of the event and may not be given to or left for the use of a
Tennessee-licensed retailer.
(c)
Further, notwithstanding Rule 0100-06-.03(8), industry members may give branded
or non-branded advertising specialty items that are designed to be carried away
by consumers and that are of nominal value directly to the consumer and/or
attendee at a special occasion licensed event. At the conclusion of the event,
any remaining branded advertising items must be returned to the industry
member.
(17) Retail and
Industry Association Activities. An industry member may participate in the
following retailer and industry association activities:
(a) Displaying its products at a convention
or trade show;
(b) Renting display
booth space if the rental fee is the same as paid by all exhibitors at the
event;
(c) Providing its own
hospitality, which is independent from association sponsored
activities;
(d) Purchasing tickets
to functions and paying registration fees if the payments or fees are the same
paid by all attendees, participants, or exhibitors at the event; and
(e) Making payments for advertisements,
programs, or brochures issued by retail associations at a convention or trade
show if the total payments made by the member and its representatives do not
exceed three hundred dollars ($300) per year.
Authority: T.C.A. §§
57-1-201,
57-1-209,
57-3-104,
57-3-202,
57-3-404,
57-4-201,
and Chapter 147, Public Acts of 2017.
