GUARANTEEING LOANS § 6.61 Guaranteeing loans. An industry member is prohibited from inducing the purchases of a retailer by guaranteeing any loan or the repayment of any financial obligation of a retailer. EXTENSION OF CREDIT § 6.65 General. Industry members are prohibited from inducing the purchases of a retailer by the extension of credit to the retailer for a period of time in excess of 30 days from the date of delivery. § 6.66 Calculation of period. For the purpose of this part, the period of credit is calculated as the time elapsing between the date of delivery of the product and the date of full legal discharge of the retailer, through the payment of cash or its equivalent, from all indebtedness arising from the transaction. § 6.67 Sales to retailer whose account is in arrears. [Reserved] QUOTA SALES § 6.71 Quota sales. An industry member is prohibited from inducing the purchases of a retailer by requiring a retailer to take and dispose of any quota of distilled spirits, wine, or malt beverages. § 6.72 "Tie-in" sales. A requirement that a retailer purchase one product in order to purchase another is prohibited. This includes combination sales if one or more products may be purchased only in combination with other products and not individually. However, an industry member is not prohibited from selling at a special combination price, two or more kinds or brands of products to a retailer, provided (a) the retailer has the option of purchasing either product at the usual price, and (b) the retailer is not required to purchase any product he or she does not want. Subpart D-Exceptio § 6.81 General. (a) Application. An industry may furnish a retailer ed inside signs, supplies, services thing of value, under the c and within the limitations p by this subpart. The furni these items or services may no ditioned on the purchase of spirits, wine or malt beverages (b) Recordkeeping requirem dustry members shall keep ar tain records on the permit p for a three year period, of a furnished to retailers under 6.85, 6.88, 6.89, 6.90, 6.91, 6.96 6.100. Commerical records or may be used to satisfy this reco ing requirement if all require mation is shown. These recor show: (1) The name and address of tailer receiving the item; (2) The date furnished; (4) The industry member's the item furnished (determi manufacturer's invoice price); a (5) Charges to the retailer item. (Approved by the Office of Man and Budget under control numb 0392) [T.D. ATF-74, 45 FR 63251, Sept. 45 FR 74919, Nov. 13, 1980; T.D. A 49 FR 14941, Apr. 16, 1984] § 6.82 Cost adjustment factor. (a) General. A "cost adju factor" will be used to peri update the dollar limitation scribed in this subpart. The D Bureau of Alcohol, Tobacco an arms, shall establish the a dollar limitation on an annua beginning in January 1981. (b) Definition. "Cost adju factor" is a percentage equal change in the Bureau of Labor tics consumer price index. § 6.83 Product displays. (a) General. An industry m may furnish, give, rent, loan, product displays to a retailer, to the limitations prescribed in paragraph (c) of this section. (b) Definition. Product display means any wine racks, bins, barrels, casks, shelving, and the like from which distilled spirits, wine, or malt beverages are displayed and sold. (c) Conditions and limitations. (1) The total value of all product displays furnished by an industry member under paragraph (a) of this section may not exceed $100 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. (2) Industry members may not pool or combine their dollar limitations in order to provide a retailer a product display valued in excess of $100 per brand. (3) Product displays shall bear conspicuous and substantial advertising matter. § 6.84 Inside signs. (a) General. An industry member 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 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. § 6.85 Retailer advertising specialties. (a) General. An industry member may furnish, give, rent, loan, or sell retailer advertising specialties to a retailer if these items bear advertising matter and are primarily valuable to the retailer as point of sale advertising. These items include such things as trays, coasters, mats, menu cards, meal checks, paper napkins, foam scrapers, back bar mats, thermometers, clocks, and calendars. An industry member may add the name or name and address of the retailer to the retailer advertising specialty. (b) Limitations. (1) The total value of all retailer advertising specialties furnished by an industry member to a retailer may not exceed $50 per brand in any one calendar year per retail establishment. The value of a retailer advertising specialty is the actual cost of that item to the industry member who initially purchased it. Transportation and installation costs are excluded. (2) Industry members may not pool or combine their dollar limitations in order to provide a retailer with retailer advertising specialties valued in excess of $50 per brand. An industry member may sell glassware to a retailer if the glassware is sold at a price not less than the cost to the industry member who initially purchased it, and if the price is collected within 30 days of the date of sale. § 6.89 Tapping accessories. Tapping accessories, such as standards, faucets, rods, vents, taps, tap standards, hoses, washers, couplings, gas gauges, vent tongues, shanks, and check valves, may be sold to a retailer and installed in the retailer's estab lishment if the tapping accessories are sold at a price not less than the cost to the industry member who initially purchased them, and if the price is collected within 30 days of the date of sale. § 6.90 Supplies. Carbon dioxide gas or ice may be sold to a retailer, if sold in accordance with the reasonable open market price in the locality where sold, and if the price is collected within 30 days of the date of sale. § 6.91 Samples. An industry member may furnish or give a sample of distilled spirits, wine, or malt beverages to a retailer who has not previously purchased the brand from that industry member. For each retail establishment, the industry member may give not more than 3 gallons of any brand of malt beverage, not more than 500 milliliters of any brand of distilled spirits, and not more than 3 liters of any brand of wine. If the retailer is an agency of a State or a political subdivision of a State, the industry member may furnish not more than 2 liters of any brand of distilled spirits. 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. § 6.92 Newspaper cuts. Newspaper cuts, mats, or engraved blocks for use in retailers' advertisements may be furnished, given, rented, loaned, or sold by an industry member to a retailer selling the industry member's products. § 6.93 Combination packaging. An industry member may package and distribute distilled spirits, wine, or malt beverages in combination with other items provided that: (a) The items have no value or benefit to the retailer other than that of having the potential of attracting purchasers and thereby promoting sales; (b) The package (product plus nonalcoholic item) is designed to be delivered intact to the consumer; and (c) Any additional cost in creating the combination p passed on to the retailer. § 6.94 Educational seminars. An industry member may sponsor educational seminars ployees of retailers either at t try member's premises or at establishment. Examples W seminars dealing with use of er's equipment, training sem employees of retailers, or tou dustry member's plant premis section does not authorize an member to pay a retailer's ex conjunction with an education nar. § 6.95 Consumer tasting or sam retail establishments. An industry member may tasting or sampling activitie retail establishment. The i member may purchase the pro be used from the retailer, but n purchase them from the reta more than the ordinary retail p § 6.96 Consumer promotions. (a) Coupons. An industry r may furnish to consumers, C which are redeemable at a retai lishment under the following tions: (1) The coupons may not sp particular retailer or group of r where such coupons can be red (2) An industry member ma burse a retailer for the face v all coupons redeemed, and pa tailer a usual and customary h fee for the redemption of coupo (3) Payments for the redemp coupons shall be made directly retail entity to reduce the sales. An industry member m pay officers, employees or repr tives of retailers or wholesalers redemption of coupons. (b) Direct offerings. Contest premium offers, refunds, an items may be offered by in members directly to consumer cers, employees and representa wholesalers or retailers are ex from particiption. § 6.97 Coil cleaning service. Coil cleaning service may be furnished, given or sold to a retailer of wine or malt beverages. § 6.98 Advertising service. The names and addresses of retailers selling the products of an industry member may be listed in an advertisement of that industry member, if: (a) The advertisement does not also contain the retail price of the product, and (b) The listing is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Picture or illustrations of retail establishments and laudatory references to retailers in industry member advertisements are not hereby authorized. § 6.99 Stocking, rotation and pricing service. Industry members may, at a retail establishment, stock, rotate and affix the price to distilled spirits, wine, or malt beverages which they sell, provided products purchased from other industry members are not altered or disturbed. The rearranging or resetting of all or part of a store or liquor department is not hereby authorized. § 6.100 Participation in retailer association activities. An industry member may participate in retailer association activities. An industry member may: (a) Display its products at a convention or trade show, (b) Rent display booth space if the rental fee is not excessive and is the same as paid by all exhibitors, (a) General. An industry member. who is also engaged in business as a bona fide vendor of other merchandise (for example, groceries or drugs) may sell that merchandise to a retailer if: (1) The merchandise is sold at its fair market value, (2) The merchandise is not sold in combination with distilled spirits, wines, or malt beverages, and (3) The merchandise is itemized separately on the industry member's invoices and other records. (b) Things of value covered in other sections of this part. Equipment, fixtures, signs, glassware, supplies, services, and advertising specialties may be furnished to retailers only as provided in other sections within this part. [T.D. ATF-74, 45 FR 63251, Sept. 23, 1980; 45 FR 66007, Oct. 6, 1980] (c) Provide its own hospitality which is independent from association spon sored activities, (d) Purchase tickets to functions and pay registration fees if the payments or fees are not excessive and are the same as paid by all exhibitors, and (e) Make payments for advertisements in programs or brochures issued by retailer associations at a convention or trade show if the total payments made by an industry member for all such advertisements do not exceed General requirements. 7.29 Prohibited practices. Subpart D-Requirements for Withdrawal of Imported Malt Beverages From Customs Custody 7.30 Application. 7.31 Label approval and release. Sec. Subpart E-Requirements for Approval of Labels of Malt Beverages Domestically Bottled or Packed 7.40 Application. 7.41 Certificates of label approval. 7.42 Exhibiting certificates to Government officials. Subpart F-Advertising of Malt Beverages 7.50 Application. 7.51 Definitions. 7.52 Mandatory statements. 7.53 Legibility of mandatory information. 7.54 Prohibited practices. 7.55 Comparative advertising. Subpart G-General Provisions 7.60 Exports. AUTHORITY: 27 U.S.C. 205. SOURCE: T.D. 6521, 25 FR 13859, Dec. 29, 1960, unless otherwise noted. EDITORIAL NOTE: For a document affecting Part 7, see the editorial note appearing at the beginning of this chapter. Subpart A-Scope § 7.1 General. The regulations in this part relate to the labeling and advertising of malt beverages. § 7.2 Territorial extent. This part applies to the several States of the United States, the District of Columbia and the Commonwealth of Puerto Rico. § 7.3 Forms prescribed. (a) The Director is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. (b) "Public Use Forms" (ATF Publication 1322.1) is a numerical listing of forms issued or used by the Bureau of Alcohol, Tobacco and Firearms. This publication is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. (c) Requests for forms mailed to the ATF Center, 7943 Angus Court, Virginia 22153. [T.D. ATF-92, 46 FR 46912, S as amended by T.D. ATF-249, Feb. 27, 1987] § 7.4 Related regulations. Regulations relating to th listed below: 27 CFR Part 1-Basic F quirements Under the Feder Administration Act. 27 CFR Part 4-Labeling a tising of Wine. 27 CFR Part 5-Labeling a tising of Distilled Spirits. 27 CFR Part 25-Beer. 27 CFR Part 200-Rules o in Permit Proceedings. 27 CFR Part 250-Liquors cles from Puerto Rico and t Islands. 27 CFR Part 251-Impor Distilled Spirits, Wines and B [T.D. ATF-224, 51 FR 7673, Mar. Subpart B-Definition § 7.10 Meaning of terms. As used in this part, unless text otherwise requires, ter have the meaning ascribed in part. Act. The Federal Alcohol tration Act. Advertisement. See § 7.10 f ing of term as used in Subp this part. Brand label. The label car the usual distinctive design, t name of the malt beverage. Bottler. Any person who pl beverages in containers of a of one gallon or less. Container. Any can, bottl keg, or other closed recepta spective of size or of the mate which made, for use for th malt beverages at retail. Director. The Director, B Alcohol, Tobacco and Firea Department of the Treasur ington, D.C. Gallon. A U.S. gallon of inches of malt beverages at 3 |