14B NCAC 15C .0709      PROHIBITED TRADE PRACTICES

(a)  General. An alcoholic beverage industry member for malt beverages, wine, or spirituous liquor, licensed in this state or not, or any officer, director, employee, or affiliate, shall not lend, give, furnish, or offer, either directly or through a third party, to a retail permittee, a retailer's employee, or to the owner of the premises where the business of a retailer is conducted, or for a retail permittee, employee, or owner to demand, require, or accept from an industry member, money, services, furniture, fixture, equipment, sign, glasses, barware, supplies, or thing of value, except as provided in this Rule.

(b)  Prohibited Services. The following services shall not be furnished, given, provided, or made available to a retail permittee by an industry member, even if the retailer is charged or billed for the services for their market value:

(1)           installing, repairing, or maintaining equipment, outdoor signs, or other fixtures;

(2)           promoting a retailer in advertising;

(3)           reconciling inventory for a retailer;

(4)           providing labor or employees to assist a retailer in the retailer's promotional events unless otherwise allowed in the rules of the Commission;

(5)           loaning or renting aerial displays or outdoor inflatables to a retailer for use, whether on or off the retailer's licensed premises;

(6)           pricing or repricing a product without the retailer's consent;

(7)           warehousing, by:

(A)          making refrigerated vehicles available to the retailer; or

(B)          delaying delivery from a manufacturer, importer, nonresident vendor, or warehouse for the retailer's advantage;

(8)           affixing special retailer stamps or stickers to beer or wine packaging. A wholesaler may affix signs, stickers, stamps, or tags indicating the product's price to a container, shelf, or display of the wholesaler's products;

(9)           entering delivery data on a retailer's in-store computer;

(10)         providing data processing services;

(11)         sponsoring sports leagues also sponsored by a retailer or that use the facilities of a retailer for sporting events;

(12)         guaranteeing the loan of a retailer;

(13)         extending credit to a retailer;

(14)         failing to require a deposit equal to that charged by the supplier on kegs and returnable bottles; or

(15)         negotiating special prices for or financing of equipment.

(c)  Prohibited Things of Value. The following things of value shall not be furnished, given, loaned, rented, or sold to a retail permittee by an industry member:

(1)           aerial displays or tethered inflatables;

(2)           parties for retailers or groups of retailers' employees, unless otherwise allowed by the rules of the Commission;

(3)           prizes at retailer conventions;

(4)           advertising in a retailer periodical or advertising in a retailer publication designed for distribution to consumers;

(5)           outside signs;

(6)           cooperative advertising, including:

(A)          providing or assisting retailer promotions, whether on or off the retailer's premises;

(B)          participation with a retailer in the advertising of alcoholic beverages, the retailer's business, or special events unless specifically approved by the Commission in the case of fundraisers for non-profit charitable organizations after consideration of the factors listed in G.S. 18B-1116(b);

(C)          underwriting the cost of T-markers, scorecards, or scoreboards by the purchase of advertising from a third party; or

(D)          customizing point-of-sale advertising materials, novelties, glassware, consumer specialties, or product displays by printing or having printed the retailer's name, slogan or logo on the item, unless otherwise specifically allowed in the rules of the Commission;

(7)           making discounts, rebates, or refunds to a retailer on the condition the retailer use the discount, rebate, or refund to pay off a loan;

(8)           equipment, fixtures, or furnishings; or

(9)           clothing, except as provided in 14B NCAC 15C .0711.

History Note:        Authority G.S. 18B-100; 18B-207;

Eff. July 1, 1992;

Amended Eff. April 1, 2011;

Transferred and Recodified from 04 NCAC 02T .0711 Eff. August 1, 2015;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. August 19, 2017;

Readopted Eff. May 1, 2026.