This rule reflects the policy and intent of the commission to
maintain effective control over the sale and distribution of alcoholic
beverages and to prevent abuses caused by the disorderly and unregulated sale
of such products. Alcoholic beverages are a unique product that require strict
regulation to promote temperance by preventing consumption by underage persons
and by discouraging abusive consumption by adults, promote orderly markets by
requiring transparent, accountable and stable distribution and the prevention
of unfair competition and facilitate the collection of taxes related to the
sale and consumption of such products.
(A)
(1) No
retail permit holder shall acquire by purchase, either directly or indirectly,
or by any means whatsoever, any signs, fixtures, furniture, or other equipment
used in connection with the conduct of the retail business from any
manufacturer or wholesale distributor of alcoholic beverages at a cost less
than the full cost to the manufacturer or wholesale distributor. No
manufacturer or wholesale distributor of alcoholic beverages shall sell or
furnish, either directly or indirectly, or by any means whatsoever, any signs,
fixtures, furniture, or other equipment used in connection with the operation
of a retail permit holder's business at a cost less than the full cost to the
manufacturer or wholesale distributor, except as otherwise provided in sections
4301.22 and
4301.24 of the Revised Code,
rule
4301:1-1-44 of the
Administrative Code, and this rule.
(2) No retail or wholesale permit holder
shall accept any premiums, gifts, discounts based on quantity of sales or any
other reason, cash discount sales, rebates, or kickbacks, either in money,
merchandise, or thing of value, from any manufacturer or wholesale distributor
of alcoholic beverages. No manufacturer or wholesale distributor of alcoholic
beverages shall offer or give to any retail or wholesale permit holder any
premiums, gifts, discounts based on quantity of sales or any other reason, cash
discount sales, rebates, or kickbacks, either in money, merchandise, or thing
of value.
(3) A sales or incentive
program may be conducted by the owner of the brand name or trademark, or an
authorized supplier of alcoholic beverages, on an interstate, national, or
statewide basis, so long as that program includes an award, payment, or
reduction of price on future purchases to a wholesale permit holder or their
employee, and may be based on the sales of the product.
(4) No retail permit holder shall solicit,
for their own benefit, donations of money, merchandise, thing of value, or
credit from any wholesale distributor or manufacturer of alcoholic beverages.
No retail permit holder shall sell, for their own benefit, tickets to parties,
picnics, entertainment, or similar events to any wholesale distributor or
manufacturer of alcoholic beverages. No retail permit holder shall become a
member of or pay dues to any organization of manufacturers or wholesale
distributors.
(5) No wholesale
distributor or manufacturer of alcoholic beverages shall solicit, for their own
benefit, donations of money, merchandise, or thing of value from, or give
credit to, any retail permit holder. No wholesale distributor or manufacturer
of alcoholic beverages shall sell, for their own benefit, tickets to parties,
picnics, entertainment, or similar events to any retail permit holder.
(a) No wholesale distributor of alcoholic
beverages shall become a member of or pay dues to any organization of retail
permit holders.
(b) A manufacturer
may become a member of or pay dues to any statewide or national organization of
retail permit holders.
(c) A
manufacturer or supplier may participate in retail permit holder association
conventions, retail trade shows, and meetings. A manufacturer or supplier may:
(i) Display its products at a convention or
trade show;
(ii) Rent display booth
space if the rental fee is not excessive and is the same as that paid by all
exhibitors;
(iii) Provide its own
hospitality, which is independent from association- sponsored
activities;
(iv) Purchase tickets
to functions and pay registration fees if the payments or fees are not
excessive and are the same as those paid by all exhibitors; and
(v) Make payments for advertisements in
programs and brochures issued by retail permit holder associations at a
convention or trade show if the payments are not excessive and are the same as
those paid by all exhibitors.
(B) No manufacturer or wholesale distributor
of alcoholic beverages shall furnish advertising specialties or utilitarian
specialties to any retail permit holder at less than their full cost, including
glassware or other containers intended for the serving of alcohol beverages,
except that:
(1) Bottle or can openers, key
chains, beads, bottle or can holders, buttons, novelty hats, lapel pins,
calendars, and other similar items intended for use by consumers and pouring
spouts, wine lists, and shelf stickers which bear a brand name or logo for any
type of alcoholic beverage, may be furnished by the manufacturer, supplier, or
wholesale distributor free of charge to any retail permit holder. The cost of
each item shall not exceed
three
ten dollars per item.
(2) Trays, bar caddys, bar mats, matches,
crumbers, stir sticks, menu cards, paper coasters, foam scrapers, olive picks,
back bar display pieces, lighters, cigar cutters, T-shirts, hats, wine bottle
seals, buckets, glassware or other containers intended for the serving of
alcohol beverages, and other similar items, which bear a brand name or logo for
any type of alcoholic beverage, may be furnished by the manufacturer or
supplier free of charge to any retail permit holder. The cost of each item
shall not exceed twenty-five dollars per item and at no cost to the wholesale
permit holder. However, no manufacturer or supplier
shall furnish to an individual retail permit holder more than twenty-five
dollars worth of glassware or other containers intended for the serving of
alcohol beverages at one time, and shall not furnish glassware to an individual
retail permit holder more than twice per year.
(3) Temporary display racks, clocks, and
price boards of any type may be furnished directly by the manufacturer or
supplier, without expense to the wholesale distributor, free of charge to any
retail permit holder if they bear a brand name and the cost of any such item
furnished does not exceed three hundred dollars per item. Said clocks and price
boards shall not be considered to be electric or neon signs under paragraph (G)
of rule
4301:1-1-44 of the
Administrative Code, provided that they are not displayed in the show windows
of a retail permit premises.
(4)
Signs, banners, posters, placards, designs, mirrors, devices, including
illuminated devices, decorations, graphic displays, or other similar items
bearing advertising and for use in the windows or elsewhere in the interior of
a retail establishment, may be furnished free of charge to a retail permit
holder by a manufacturer, supplier, importer, or wholesale distributor,
provided that the manufacturer, supplier, importer, or wholesale distributor
shall not directly or indirectly pay or credit the retail permit holder for
displaying such items or for any expense incidental to their operation. Such
items may also include the brand name, price, and the retail permit holder's
name, address, slogan, marking, or other logo.
(5) A manufacturer or wholesale distributor
may render to a retailer such incidental services as are mutually beneficial to
the merchandising of their product, and are not otherwise prohibited by law.
(a) The rearranging or resetting of all or
part of a retail permit premises by an individual manufacturer, supplier, or
wholesale distributor is not hereby authorized.
(b)
(i) The
manufacturer, wholesale distributor, or retail permit holder initiating a set
must give written notice of the date and time of the set and the name of their
contact person to all A or B permit holders supplying product to the retail
permit holder at least twenty-four hours prior to a scheduled set of the
premises.
(ii) The manufacturer,
wholesale distributor, or retail permit holder initiating a reset must give
written notice of the date and time of the reset, and the name of their contact
person to all A or B permit holders supplying product to the retail permit
holder at least five days, not including Saturday or Sunday, prior to a
scheduled reset of the premises.
(iii) The written notice may be delivered in
person, via mail, or via facsimile. No notice is required when a set or reset
involves alcoholic beverages supplied by only a single A or B permit
holder.
(c) During a set
or reset, an A or B permit holder is prohibited from arranging any brands of
alcoholic beverages other than their own brands, or affixing price stickers or
any other markers to individual containers.
(d) Set of a retail permit holder's premises
or a display in a retail permit holder's premises.
(i) For purposes of this rule, the word "set"
means the creation of a display area for alcoholic beverages within a retail
permit premises. A set occurs either when a new location is established by a
retail permit holder or a new display is established by an A or B permit holder
in a retail permit holder's premises.
(ii) During a set, A or B permit holders may:
design their own outpost, end cap, bulk aisle display, or other similar
display, in the space assigned to them by the retail permit holder; place price
signs on a display they create; or remove alcoholic beverages from the retail
permit holder's storage area to the display area to be used in the creation of
the display.
(e) Reset
of a retail permit holder's premises or a display in a retail permit holder's
premises.
(i) For purposes of this rule, the
word "reset" means the rearrangement of alcoholic beverages in a display area
within a retail permit premises. A reset may be initiated by a retail permit
holder or an A or B permit holder that supplies alcoholic beverages to the
retail permit holder.
(ii) During a
reset, an A or B permit holder is prohibited from accepting for return or
exchange from the retail permit holder, or returning to the retail permit
holder's storage area, any alcoholic beverages that will not fit in the area
assigned by the retail permit holder for the reset.
(f) For purposes of this rule, "stocking" of
alcoholic beverages mean the refilling or replenishment of empty or partially
empty shelves or displays. A and B permit holders are prohibited from stocking
alcoholic beverages in any retail permit premises, except as provided for in
paragraph (B)(2)(d)(ii) of this rule.
(g) For purposes of this rule, "rotation" of
or "rotating" alcoholic beverages means the rearrangement of alcoholic
beverages within a pre-assigned space, moving the older containers to the front
and the newer containers to the back, to ensure that the older containers sell
first. A and B permit holders may rotate alcoholic beverages that they supplied
to a retail permit holder within shelves, end caps, display areas, or storage
rooms. A and B permit holders are prohibited from moving alcoholic beverages
from one area to another, i.e. from storage room to end cap. Where end caps or
other displays are used, A and B permit holders are permitted to move alcoholic
beverages from within an area, such as from one sales area to another sales
area, i.e. from end cap to shelf, but only to ensure that the older containers
on the sales floor sell first.
(6) The division of liquor control may allow
packaging of spirituous liquor with nonalcoholic items without increasing the
price of the spirituous liquor.
(7)
A manufacturer or supplier may give their own logo- or brand-identified items,
which have a cost of less than twenty-five dollars per item, directly to
consumers on a retail permit premises.
(8) Utilitarian display enhancers, whether
brand identified or not, which cost two hundred dollars or less, may be
provided free of charge by manufacturers or suppliers to retail permit holders
for use in alcoholic beverage displays on the retail permit premises. All
utilitarian display enhancers must be returned to the manufacturer, supplier,
or their agent, that furnished them when the display is taken down.
(C) No manufacturer or wholesale
distributor of alcoholic beverages shall sell or deliver to any retail permit
premises any alcoholic beverages that the retail permit holder is not
authorized to resell by law.
(D)
(1) No wholesale distributor of alcoholic
beverages may sell or deliver to another wholesale distributor of alcoholic
beverages any alcoholic beverages that the wholesale distributor, to whom said
alcoholic beverages are sold or delivered, is not authorized to resell by law
and by written agreement with the manufacturer, the supplier authorized by the
manufacturer to import such alcoholic beverages into Ohio, or pursuant to
section 4301.241 of the Revised
Code.
(2) When alcoholic beverages
are imported from without the state of Ohio, the wholesale distributor
receiving said alcoholic beverages, including B-2 permit holders receiving
alcoholic beverages from B-5 permit holders, must have authorization from the
manufacturer of the product or from the supplier that the manufacturer has
authorized to import such product in Ohio.
(3) The division shall not grant consent to
import for, or approve the registration of, any brand of beer or intoxicating
liquor until the supplier files the appropriate forms with the division. Such
filing shall consist of the filing of the applications for supplier and label
registration and territory designation forms with the division by the supplier.
In addition, the division of liquor control shall not grant consent to import
or approve the registration of any brand of beer or intoxicating liquor to any
party if consent to import or registration for such brand has already been
granted to any other party and is currently in effect. The division shall not
grant consent to import, or approve the registration or accept a territory
designation form if it would allow any A or B permit holder to distribute the
same brand or brands of beer or intoxicating liquor within the same sales area
or territory assigned to another A or B permit holder by the manufacturer or
the supplier authorized by the manufacturer to import such products in Ohio.
(a) Upon the appointment or change of
appointment of the supplier by a manufacturer, the supplier shall immediately
provide the division of liquor control with evidence of written authorization
from the manufacturer that it represents that brand or those brands of beer or
intoxicating liquor in Ohio.
(b)
Failure on the part of any supplier to provide the division with evidence of
the manufacturer's authorization, or to discontinue shipping upon termination
of any authorization, shall be cause for the division to cite the supplier
before the commission for suspension or revocation of that supplier's
registration in Ohio.
(4) No wholesale distributor shall handle or
deliver any brand of alcoholic beverage that has been introduced for sale or
otherwise acquired for sale in the state of Ohio after November 1, 1985, in any
sales area or territory that has not been assigned by the manufacturer or the
supplier authorized by such manufacturer to import the brand or brands into
Ohio. The manufacturer or supplier shall file with the division a description
of the designated sales area or territory, with a copy sent to the affected
wholesale distributor.
(E) No manufacturer, supplier, or wholesale
distributor of alcoholic beverages shall accept the return of or repurchase any
alcoholic beverages from any retail permit holder, and no manufacturer or
supplier shall accept the return of or repurchase any alcoholic beverages from
any wholesale distributor, except as follows:
(1) The manufacturer, supplier, or wholesale
distributor may, but shall not be required to, repurchase from a retail permit
holder any alcoholic beverages when the retail permit holder's permit has been
revoked, not renewed, or the right to sell the alcoholic beverages has been
canceled in any manner by law or by action of the manufacturer or supplier,
provided that the alcoholic beverages are sealed and intact.
(2)
(a) The
manufacturer, supplier, or wholesale distributor may, but shall not be required
to, replace with the same or similar alcoholic beverages any alcoholic
beverages when the container or labels have deteriorated or become damaged, or
when a package or product is discontinued by a manufacturer. Any alcoholic
beverages that are being replaced shall be replaced with a package or product
of comparable price.
(b) When any
alcoholic beverages, in the opinion of the person supplying said beverages, are
unpalatable or are about to become unpalatable, such person may replace said
beverages with the same or similar alcoholic beverages.
(c) When any alcoholic beverages are
delivered in error, the manufacturer, supplier, or wholesale distributor may
pick up the alcoholic beverages within seven days, not including Saturday or
Sunday, from the original date of delivery.
(d) Except for unpalatable alcoholic
beverages, it is further provided that no manufacturer or wholesale distributor
shall repurchase or replace any alcoholic beverages in the possession of a
retail permit holder unless the contents are sealed and intact, and were
originally sold by the manufacturer or wholesale distributor, or their
immediate predecessor.
(F) No provision of this rule shall be
construed to affect or modify the provisions of section
4301.22 or
4301.24 of the Revised Code or
rule
4301:1-1-44 of the
Administrative Code. Violations of this rule shall be grounds for revoking or
suspending any permit or permits, and in the event the person violating said
rule is a manufacturer or supplier located outside of Ohio, the violation of
this rule shall subject such manufacturer or supplier to a suspension or
revocation of the consent to import into this state.
(G) No A or B permit holder may accept a cash
deposit or any form of prepayment from a retail permit holder, which cash
deposit or prepayment is to be credited against future deliveries of alcoholic
beverages, except where said cash payment is in the exact amount of a specific
order to be shipped upon receipt of payment. No retail permit holder shall
offer a cash deposit or prepayment except as provided herein.
(H)
(1) No
manufacturer, supplier, or their employees who are currently registered
solicitors pursuant to Chapters 4301. and 4303. of the Revised Code and rule
4301-3-01 of the Administrative
Code, shall sell or offer for sale to any wholesale distributor, and no
wholesale distributor shall purchase or receive from any manufacturer or
supplier, or their employees who are currently registered solicitors pursuant
to Chapters 4301. and 4303. of the Revised Code and rule
4301-3-01 of the Administrative
Code, any alcoholic beverages except for cash upon receipt of such alcoholic
beverages in saleable condition and upon receipt of the sales invoice. The
determination of saleable condition by the wholesale distributor must occur
within five days, not including Saturday or Sunday, of receipt of the alcoholic
beverages.
(2) No wholesale
distributor shall sell or offer to sell to any retail permit holder, and no
retail permit holder shall purchase or receive from any wholesale distributor,
any alcoholic beverage except for cash upon receipt of such alcoholic
beverage.
(I) Any permit
holder who pays the application processing fee, permit fee, or renewal permit
fee to the division, or who pays for alcoholic beverages from a manufacturer,
supplier, or wholesale distributor, with a check that is not honored for
payment by the permit holder's financial institution, shall be subject to
rejection of its application, or suspension or revocation of its permit by the
commission, or administrative citation by the division.
(J)
(1) No
wholesale permit holder shall sell any brand of alcoholic beverages to any
retail permit holder, for resale at retail, if the retail permit premises are
located outside the wholesale permit holder's exclusive sales area or
territory, without first receiving consent from the division of liquor control
and the manufacturer or supplier of such alcoholic beverages.
(2) No retail permit holder shall purchase
any brand of alcoholic beverages from any wholesale permit holder, for resale
at retail, if the retail permit premises are located outside the wholesale
permit holder's exclusive sales area or territory, except as provided for in
this rule.
(K) Depletion
allowance programs are prohibited.
(L) Wholesale distributors may furnish
temporary draft equipment to any retail permit holder, who is authorized to
sell beer for on-premises consumption, for a period not to exceed seven days
and not more than once per month per retail permit holder if a fair market
rental is paid by the retail permit holder.