235 ILCS 5/6-5
2021 Illinois Compiled Statutes|Chapter 235 - LIQUOR|235 ILCS 5/ - Liquor Control Act of 1934.|Article VI - General Provisions

 (from Ch. 43, par. 122)(Text of Section from P.A. 102-8)Sec. 6-5.   Except as otherwise provided in this Section, it is unlawful  for any person having a retailer's license or  any officer, associate, member, representative or agent of such licensee  to accept, receive or borrow money, or anything else of value, or accept  or receive credit (other than merchandising credit in the ordinary  course of business for a period not to exceed 30 days) directly or  indirectly from any manufacturer, importing distributor or distributor  of alcoholic liquor, or from any person connected with or in any way  representing, or from any member of the family of, such manufacturer,  importing distributor, distributor or wholesaler, or from any  stockholders in any corporation engaged in manufacturing, distributing  or wholesaling of such liquor, or from any officer, manager, agent or  representative of said manufacturer. Except as provided below, it is  unlawful for any manufacturer  or distributor or importing distributor to give or lend money or  anything of value, or otherwise loan or extend credit (except such  merchandising credit) directly or indirectly to any retail licensee or  to the manager, representative, agent, officer or director of such  licensee. A manufacturer, distributor or importing distributor may furnish  free advertising, posters,  signs, brochures, hand-outs, or other promotional devices or materials to  any unit of government owning or operating any auditorium, exhibition hall,  recreation facility or other similar facility holding a retailer's license,  provided that the primary purpose of such promotional devices or materials  is to promote public events being held at such facility.  A unit of government  owning or operating such a facility holding a retailer's license may accept  such promotional devices or materials designed primarily to promote public  events held at the facility.  No retail licensee delinquent beyond the  30 day period specified in this Section shall  solicit, accept or receive credit, purchase or acquire alcoholic  liquors, directly or indirectly from any other licensee, and no  manufacturer, distributor or importing distributor shall knowingly grant  or extend credit, sell, furnish or supply alcoholic liquors to any such  delinquent retail licensee; provided that the purchase price of all beer  sold to a retail licensee shall be paid by the retail licensee in cash  on or before delivery of the beer, and unless the purchase price payable  by a retail licensee for beer sold to him in returnable bottles shall  expressly include a charge for the bottles and cases, the retail  licensee shall, on or before delivery of such beer, pay the seller in  cash a deposit in an amount not less than the deposit required to be  paid by the distributor to the brewer; but where the brewer sells direct  to the retailer, the deposit shall be an amount no less than that  required by the brewer from his own distributors; and provided further,  that in no instance shall this deposit be less than 50 cents for each  case of beer in pint or smaller bottles and 60 cents for each case of  beer in quart or half-gallon bottles; and provided further, that the  purchase price of all beer sold to an importing distributor or  distributor shall be paid by such importing distributor or distributor  in cash on or before the 15th day (Sundays and holidays excepted) after  delivery of such beer to such purchaser; and unless the purchase price  payable by such importing distributor or distributor for beer sold in  returnable bottles and cases shall expressly include a charge for the  bottles and cases, such importing distributor or distributor shall, on  or before the 15th day (Sundays and holidays excepted) after delivery of  such beer to such purchaser, pay the seller in cash a required amount as  a deposit to assure the return of such bottles and cases. Nothing herein  contained shall prohibit any licensee from crediting or refunding to a  purchaser the actual amount of money paid for bottles, cases, kegs or  barrels returned by the purchaser to the seller or paid by the purchaser  as a deposit on bottles, cases, kegs or barrels, when such containers or  packages are returned to the seller. Nothing herein contained shall  prohibit any manufacturer, importing distributor or distributor from  extending usual and customary credit for alcoholic liquor sold to  customers or purchasers who live in or maintain places of business  outside of this State when such alcoholic liquor is actually transported  and delivered to such points outside of this State.A manufacturer, distributor, or importing distributor may furnish free social media advertising to a retail licensee if the social media advertisement does not contain the retail price of any alcoholic liquor and the social media advertisement complies with any applicable rules or regulations issued by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury. A manufacturer, distributor, or importing distributor may list the names of one or more unaffiliated retailers in the advertisement of alcoholic liquor through social media.  Nothing in this Section shall prohibit a retailer from communicating with a manufacturer, distributor, or importing distributor on social media or sharing media on the social media of a manufacturer, distributor, or importing distributor.  A retailer may request free social media advertising from a manufacturer, distributor, or importing distributor. Nothing in this Section shall prohibit a manufacturer, distributor, or importing distributor from sharing, reposting, or otherwise forwarding a social media post by a retail licensee, so long as the sharing, reposting, or forwarding of the social media post does not contain the retail price of any alcoholic liquor.   No manufacturer, distributor, or importing distributor shall pay or reimburse a retailer, directly or indirectly, for any social media advertising services, except as specifically permitted in this Act. No retailer shall accept any payment or reimbursement, directly or indirectly, for any social media advertising services offered by a manufacturer, distributor, or importing distributor, except as specifically permitted in this Act. For the purposes of this Section, "social media" means a service, platform, or site where users communicate with one another and share media, such as pictures, videos, music, and blogs, with other users free of charge.No right of action shall exist for the collection of any claim based  upon credit extended to a distributor, importing distributor or retail  licensee contrary to the provisions of this Section.Every manufacturer, importing distributor and distributor shall  submit or cause to be submitted, to the State Commission, in triplicate,  not later than Thursday of each calendar week, a verified written list  of the names and respective addresses of each retail licensee purchasing  spirits or wine from such manufacturer, importing distributor or  distributor who, on the first business day of that calendar week, was  delinquent beyond the above mentioned permissible merchandising credit  period of 30 days; or, if such is the fact, a verified written statement  that no retail licensee purchasing spirits or wine was then delinquent  beyond such permissible merchandising credit period of 30 days.Every manufacturer, importing distributor and distributor shall  submit or cause to be submitted, to the State Commission, in triplicate,  a verified written list of the names and respective addresses of each  previously reported delinquent retail licensee who has cured such  delinquency by payment, which list shall be submitted not later than the  close of the second full business day following the day such delinquency  was so cured.Such written verified reports required to be submitted by this  Section shall be posted by the State Commission in each of its offices  in places available for public inspection not later than the day  following receipt thereof by the Commission. The reports so posted shall  constitute notice to every manufacturer, importing distributor and  distributor of the information contained therein. Actual notice to  manufacturers, importing distributors and distributors of the  information contained in any such posted reports, however received,  shall also constitute notice of such information.The 30 day merchandising credit period allowed by this Section shall  commence with the day immediately following the date of invoice and  shall include all successive days including Sundays and holidays to and  including the 30th successive day.In addition to other methods allowed by law, payment by check or credit card during  the period for which merchandising credit may be extended under the  provisions of this Section shall be considered payment. All checks  received in payment for alcoholic liquor shall be promptly deposited for  collection. A post dated check or a check dishonored on presentation for  payment shall not be deemed payment.A credit card payment in dispute by a retailer shall not be deemed payment, and the debt uncured for merchandising credit shall be reported as delinquent.  Nothing in this Section shall prevent a distributor, self-distributing manufacturer, or importing distributor from assessing a usual and customary transaction fee representative of the actual finance charges incurred for processing a credit card payment.  This transaction fee shall be disclosed on the invoice.  It shall be considered unlawful for a distributor, importing distributor, or self-distributing manufacturer to waive finance charges for retailers.A retail licensee shall not be deemed to be delinquent in payment for  any alleged sale to him of alcoholic liquor when there exists a bona fide  dispute between such retailer and a manufacturer, importing distributor  or distributor with respect to the amount of indebtedness existing  because of such alleged sale. A retail licensee shall not be deemed to be delinquent under this provision and 11 Ill. Adm. Code 100.90 until 30 days after the date on which the region in which the retail licensee is located enters Phase 4 of the Governor's Restore Illinois Plan as issued on May 5, 2020.A delinquent retail licensee who engages in the retail liquor  business at 2 or more locations shall be deemed to be delinquent with  respect to each such location.The license of any person who violates any provision of this Section  shall be subject to suspension or revocation in the manner provided by  this Act.If any part or provision of this Article or the application thereof  to any person or circumstances shall be adjudged invalid by a court of  competent jurisdiction, such judgment shall be confined by its operation  to the controversy in which it was mentioned and shall not affect or  invalidate the remainder of this Article or the application thereof to  any other person or circumstance and to this and the provisions of this  Article are declared severable.  (Source: P.A. 101-631, eff. 6-2-20; 102-8, eff. 6-2-21.)(Text of Section from P.A. 102-442)Sec. 6-5.   Except as otherwise provided in this Section, it is unlawful  for any person having a retailer's license or  any officer, associate, member, representative or agent of such licensee  to accept, receive or borrow money, or anything else of value, or accept  or receive credit (other than merchandising credit in the ordinary  course of business for a period not to exceed 30 days) directly or  indirectly from any manufacturer, importing distributor or distributor  of alcoholic liquor, or from any person connected with or in any way  representing, or from any member of the family of, such manufacturer,  importing distributor, distributor or wholesaler, or from any  stockholders in any corporation engaged in manufacturing, distributing  or wholesaling of such liquor, or from any officer, manager, agent or  representative of said manufacturer. Except as provided below, it is  unlawful for any manufacturer  or distributor or importing distributor to give or lend money or  anything of value, or otherwise loan or extend credit (except such  merchandising credit) directly or indirectly to any retail licensee or  to the manager, representative, agent, officer or director of such  licensee. A manufacturer, distributor or importing distributor may furnish  free advertising, posters,  signs, brochures, hand-outs, or other promotional devices or materials to  any unit of government owning or operating any auditorium, exhibition hall,  recreation facility or other similar facility holding a retailer's license,  provided that the primary purpose of such promotional devices or materials  is to promote public events being held at such facility.  A unit of government  owning or operating such a facility holding a retailer's license may accept  such promotional devices or materials designed primarily to promote public  events held at the facility.  No retail licensee delinquent beyond the  30 day period specified in this Section shall  solicit, accept or receive credit, purchase or acquire alcoholic  liquors, directly or indirectly from any other licensee, and no  manufacturer, distributor or importing distributor shall knowingly grant  or extend credit, sell, furnish or supply alcoholic liquors to any such  delinquent retail licensee; provided that the purchase price of all beer  sold to a retail licensee shall be paid by the retail licensee in cash  on or before delivery of the beer, and unless the purchase price payable  by a retail licensee for beer sold to him in returnable bottles shall  expressly include a charge for the bottles and cases, the retail  licensee shall, on or before delivery of such beer, pay the seller in  cash a deposit in an amount not less than the deposit required to be  paid by the distributor to the brewer; but where the brewer sells direct  to the retailer, the deposit shall be an amount no less than that  required by the brewer from his own distributors; and provided further,  that in no instance shall this deposit be less than 50 cents for each  case of beer in pint or smaller bottles and 60 cents for each case of  beer in quart or half-gallon bottles; and provided further, that the  purchase price of all beer sold to an importing distributor or  distributor shall be paid by such importing distributor or distributor  in cash on or before the 15th day (Sundays and holidays excepted) after  delivery of such beer to such purchaser; and unless the purchase price  payable by such importing distributor or distributor for beer sold in  returnable bottles and cases shall expressly include a charge for the  bottles and cases, such importing distributor or distributor shall, on  or before the 15th day (Sundays and holidays excepted) after delivery of  such beer to such purchaser, pay the seller in cash a required amount as  a deposit to assure the return of such bottles and cases. Nothing herein  contained shall prohibit any licensee from crediting or refunding to a  purchaser the actual amount of money paid for bottles, cases, kegs or  barrels returned by the purchaser to the seller or paid by the purchaser  as a deposit on bottles, cases, kegs or barrels, when such containers or  packages are returned to the seller. Nothing herein contained shall  prohibit any manufacturer, importing distributor or distributor from  extending usual and customary credit for alcoholic liquor sold to  customers or purchasers who live in or maintain places of business  outside of this State when such alcoholic liquor is actually transported  and delivered to such points outside of this State.A manufacturer, distributor, or importing distributor may furnish free social media advertising to a retail licensee if the social media advertisement does not contain the retail price of any alcoholic liquor and the social media advertisement complies with any applicable rules or regulations issued by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury. A manufacturer, distributor, or importing distributor may list the names of one or more unaffiliated retailers in the advertisement of alcoholic liquor through social media.  Nothing in this Section shall prohibit a retailer from communicating with a manufacturer, distributor, or importing distributor on social media or sharing media on the social media of a manufacturer, distributor, or importing distributor.  A retailer may request free social media advertising from a manufacturer, distributor, or importing distributor. Nothing in this Section shall prohibit a manufacturer, distributor, or importing distributor from sharing, reposting, or otherwise forwarding a social media post by a retail licensee, so long as the sharing, reposting, or forwarding of the social media post does not contain the retail price of any alcoholic liquor.   No manufacturer, distributor, or importing distributor shall pay or reimburse a retailer, directly or indirectly, for any social media advertising services, except as specifically permitted in this Act. No retailer shall accept any payment or reimbursement, directly or indirectly, for any social media advertising services offered by a manufacturer, distributor, or importing distributor, except as specifically permitted in this Act. For the purposes of this Section, "social media" means a service, platform, or site where users communicate with one another and share media, such as pictures, videos, music, and blogs, with other users free of charge.No right of action shall exist for the collection of any claim based  upon credit extended to a distributor, importing distributor or retail  licensee contrary to the provisions of this Section.Every manufacturer, importing distributor and distributor shall  submit or cause to be submitted, to the State Commission, in triplicate,  not later than Thursday of each calendar week, a verified written list  of the names and respective addresses of each retail licensee purchasing  spirits or wine from such manufacturer, importing distributor or  distributor who, on the first business day of that calendar week, was  delinquent beyond the above mentioned permissible merchandising credit  period of 30 days; or, if such is the fact, a verified written statement  that no retail licensee purchasing spirits or wine was then delinquent  beyond such permissible merchandising credit period of 30 days.Every manufacturer, importing distributor and distributor shall  submit or cause to be submitted, to the State Commission, in triplicate,  a verified written list of the names and respective addresses of each  previously reported delinquent retail licensee who has cured such  delinquency by payment, which list shall be submitted not later than the  close of the second full business day following the day such delinquency  was so cured.The written list of delinquent retail licensees shall be developed, administered, and maintained only by the State Commission. The State Commission shall notify each retail licensee that it has been placed on the delinquency list. Determinations of delinquency or nondelinquency shall be made only by the State Commission.Such written verified reports required to be submitted by this  Section shall be posted by the State Commission in each of its offices  in places available for public inspection not later than the day  following receipt thereof by the State Commission. The reports so posted shall  constitute notice to every manufacturer, importing distributor and  distributor of the information contained therein. Actual notice to  manufacturers, importing distributors and distributors of the  information contained in any such posted reports, however received,  shall also constitute notice of such information.The 30 day merchandising credit period allowed by this Section shall  commence with the day immediately following the date of invoice and  shall include all successive days including Sundays and holidays to and  including the 30th successive day.In addition to other methods allowed by law, payment by check during  the period for which merchandising credit may be extended under the  provisions of this Section shall be considered payment. All checks  received in payment for alcoholic liquor shall be promptly deposited for  collection. A post dated check or a check dishonored on presentation for  payment shall not be deemed payment.A retail licensee shall not be deemed to be delinquent in payment for  any alleged sale to him of alcoholic liquor when there exists a bona fide  dispute between such retailer and a manufacturer, importing distributor  or distributor with respect to the amount of indebtedness existing  because of such alleged sale. A retail licensee shall not be deemed to be delinquent under this provision and 11 Ill. Adm. Code 100.90 until 30 days after the date on which the region in which the retail licensee is located enters Phase 4 of the Governor's Restore Illinois Plan as issued on May 5, 2020.A delinquent retail licensee who engages in the retail liquor  business at 2 or more locations shall be deemed to be delinquent with  respect to each such location.The license of any person who violates any provision of this Section  shall be subject to suspension or revocation in the manner provided by  this Act.If any part or provision of this Article or the application thereof  to any person or circumstances shall be adjudged invalid by a court of  competent jurisdiction, such judgment shall be confined by its operation  to the controversy in which it was mentioned and shall not affect or  invalidate the remainder of this Article or the application thereof to  any other person or circumstance and to this and the provisions of this  Article are declared severable.  (Source: P.A. 101-631, eff. 6-2-20; 102-442, eff. 1-1-22.)