Exceptions To General Prohibitions

(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. INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 (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 INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 (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. INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 (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. INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 (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. INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 (b) A wholesaler, a manufacturer, importer, non-resident seller, non-manufacturer non- resident 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, non- resident 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 INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 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, non- resident 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 INTRA-INDUSTRY CONDUCT AND REGULATIONS CHAPTER 0100-06 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.