(g) By requiring the retailer to take and dispose of a certain quota of any such products.

INTEREST IN RETAIL LICENSE

§ 6.25 General.

Industry members are prohibited from inducing the purchases of a retailer by acquiring or holding any interest in any license (State, county or municipal) with respect to the premises of a retailer.

§ 6.26 Indirect interest.

Industry member interest in retail licenses includes any interest acquired by corporate officials, partners, employees or other representatives of the industry member. Any interest in a retail license acquired by a separate corporation in which the industry member or its officials, hold ownership or are otherwise affiliated, is an interest in a retail license.

§ 6.27 Proprietary interest.

(a) Complete ownership. Outright ownership of a retail business by an industry member is not prohibited.

(b) Partial ownership. Less than complete ownership of a retail business by an industry member constitutes an interest in a retail license within the meaning of the Act.

INTEREST IN RETAIL LICENSE

§ 6.31 General.

Industry members are prohibited from inducing the purchases of retailers by acquiring an interest in real or personal property owned, occupied, or used by the retailer in the conduct of the business.

§ 6.32 Indirect interest.

Industry member interest in retail property includes any interest acquired by corporate officials, partners, employees or other representatives of the industry member. Ary interest in retail property acquired by a separate corporation in which the industry member or its officials, hold ownership or are otherwise affiliated, is an interest in retail property.

§ 6.33 Proprietary interest.

(a) Complete ownership. Outright ownership of a retail business by an industry member is not prohibited.

(b) Partial ownership. Less than complete ownership of a retail business by an industry member constitutes an interest in retail property within the meaning of the Act.

§ 6.34 Mortgages.

The acquisition of a mortgage on a retailer's real or personal property by an industry member constitutes an interest in the retailer's property within the meaning of the Act.

§ 6.35 Renting display space.

The renting of display space by an industry member at a retail establishment constitutes an interest in the retailer's property within the meaning of the Act.

FURNISHING THINGS OF VALUE

§ 6.41 General.

Subject to the exceptions listed in Subpart D, industry members are prohibited from inducing the purchases of a retailer by furnishing, giving, renting, lending or selling to the retailer any equipment, fixtures, signs, supplies, money, services or other thing of value.

§ 6.42 Indirect inducement through third party arrangements.

The furnishing, giving, renting, lending or selling of equipment, fixtures, signs, supplies, money, services, or other thing of value by an industry member to a third party, such as a retailer association or display company where the benefits resulting from such thing of value flow to individual retailers, is the indirect furnishing of a thing of value within the meaning of the Act. This section does not prohibit third parties from furnishing, giving, renting, lending, or selling equipment, fixtures, signs, supplies, money, services, or things of value to retailers which industry members may lawfully provide to retailers under Subpart D of this part.

§ 6.43 Sale of equipment.

A transaction in which equipment is sold to a retailer by an industry member, except as provided in §§ 6.88 and 6.89, is the selling of equipment within the meaning of the Act regardless of how sold. Further, the negotiation by an industry member of a special price to a retailer for equipment from an equipment company is the furnishing of a thing of value within the meaning of the Act.

§ 6.44 Free warehousing.

The furnishing of free warehousing by delaying delivery of distilled spirits, wine, or malt beverages beyond the time that payment for the product is received, or if a retailer is purchasing on credit, delaying final delivery of products beyond the close of the period of time for which credit is lawfully extended, is the furnishing of a service or thing of value within the meaning of the Act.

§ 6.45 Assistance in acquiring license.

Any assistance (financial, legal, administrative or influential) given the retailer by an industry member in the retailer's acquisition of the retailer's license is the furnishing of a service or thing of value within the meaning of the Act.

§ 6.46 Outside signs.

(a) Furnished to retailers. The furnishing of outside signs to retailers by an industry member is the furnishing of a thing of value within the meaning of the Act.

(b) Benefiting a retailer. The placement by an industry member of a "billboard" or "spectacular” sign, advertising distilled spirits, wine, or malt beverages, on the wall or roof of a building adjacent to or occupied by a retailer is the furnishing of a thing of value within the meaning of the Act if (1) the sign contains a panel identifying the retailer, or (2) the retailer is compensated, directly or indirectly (through a sign company), in conjunction with the placement of the sign.

§ 6.47 Item intended for consumers.

Except as provided in §§ 6.87 and 6.93, the furnishing of things of value

such as trading stamps, coupons, nonalcoholic mixers, pouring racks, and the like to retailers is the furnishing of a thing of value within the meaning of the Act regardless of whether the industry member intends for the items to be distributed free of charge to consumers.

PAYING FOR ADVERTISING, DISPLAY OR DISTRIBUTION SERVICE

§ 6.51 General.

Industry members are prohibited from inducing the purchases of a retailer by paying or crediting the retailer for any advertising, display or distribution service, whether or not the advertising, display or distribution service received is commensurate with the amount paid by the retailer.

§ 6.52 Cooperative advertising.

An arrangement in which an industry member participates with a retailer in paying for an advertisement placed by the retailer constitutes paying the retailer for advertising within the meaning of the Act.

§ 6.53 Advertising in ballparks, racetracks, and stadiums.

The purchase, by an industry member, of advertising on signs, scoreboards, programs, scorecards, and the like at ballparks, racetracks or stadiums, from the retail concessionaire constitutes paying the retailer for an advertising service within the meaning of the Act.

§ 6.54 Advertising in retailer publications. The purchase, by an industry member, of advertising in a retailer publication for distribution to consumers or the general public constitutes paying the retailer for advertising within the meaning of the Act.

§ 6.55 Display service.

Industry member reimbursements to retailers for setting up product or other displays constitutes paying the retailer for rendering a display service within the meaning of the Act.

§ 6.56 Renting display space.

A promotion whereby an industry member rents display space at a retail establishment constitutes paying the retailer for rendering a display service within the meaning of the Act.

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 re

tailer 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-Exceptions

§ 6.81 General.

(a) Application. An industry member may furnish a retailer equipment, inside signs, supplies, services, or other thing of value, under the conditions and within the limitations prescribed by this subpart. The furnishing of these items or services may not be conditioned on the purchase of distilled spirits, wine or malt beverages.

(b) Recordkeeping requirements. Industry members shall keep and maintain records on the permit premises, for a three year period, of all items furnished to retailers under §§ 6.83, 6.85, 6.88, 6.89, 6.90, 6.91, 6.96(a), and 6.100. Commerical records or invoices may be used to satisfy this recordkeeping requirement if all required information is shown. These records shall show:

(1) The name and address of the retailer receiving the item;

(2) The date furnished; (3) The item furnished;

(4) The industry member's cost of the item furnished (determined by manufacturer's invoice price); and

(5) Charges to the retailer for any item.

(Approved by the Office of Management and Budget under control number 15120392)

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980; 45 FR 74919, Nov. 13, 1980; T.D. ATF-172, 49 FR 14941, Apr. 16, 1984]

§ 6.82 Cost adjustment factor.

(a) General. A "cost adjustment factor" will be used to periodically update the dollar limitations prescribed in this subpart. The Director, Bureau of Alcohol, Tobacco and Firearms, shall establish the adjusted dollar limitation on an annual basis beginning in January 1981.

(b) Definition. "Cost adjustment factor" is a percentage equal to the change in the Bureau of Labor Statistics consumer price index.

§ 6.83 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 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 retail

er 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.

standards, hoses, washers, couplings, gas gauges, vent tongues, shanks, and check valves, may be sold to a retailer and installed in the retailer's establishment 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 incurred in creating the combination package is passed on to the retailer.

§ 6.94 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 industry member's plant premises. This section does not authorize an industry member to pay a retailer's expense in conjunction with an educational semi

nar.

§ 6.95 Consumer tasting or sampling at retail establishments.

An industry member may conduct tasting or sampling activities at a retail establishment. The industry member may purchase the products to be used from the retailer, but may not purchase them from the retailer for more than the ordinary retail price.

§ 6.96 Consumer promotions.

(a) Coupons. An industry member may furnish to consumers, coupons which are redeemable at a retail establishment under the following conditions:

(1) The coupons may not specify a particular retailer or group of retailers where such coupons can be redeemed.

(2) An industry member may reimburse a retailer for the face value of all coupons redeemed, and pay a retailer a usual and customary handling fee for the redemption of coupons.

(3) Payments for the redemption of coupons shall be made directly to the retail entity to reduce the cost of sales. An industry member may not pay officers, employees or representatives of retailers or wholesalers for the redemption of coupons.

(b) Direct offerings. Contest prizes, premium offers, refunds, and like items may be offered by industry members directly to consumers. Officers, employees and representatives of