Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 100 - THE ILLINOIS LIQUOR CONTROL COMMISSION › Section 100.500 - "Of Value" Provisions - General Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as allowed by the Act, it shall be
			 unlawful for any licensed manufacturer, non-resident dealer, distributor,
			 importing distributor, foreign importer, any of their officers, managers,
			 partners, owners, employees, agents, or affiliates, or any member of the family
			 of such manufacturer, non-resident dealer, distributor, importing distributor,
			 or foreign importer (collectively referred to as an "industry member") to
			 furnish, give or lend money or anything of value, or otherwise loan extend
			 credit (other than merchandising credit in the ordinary course of business for
			 a period not to exceed 30 days, as permitted by Section 6-5 of the Act, and
			 Section
			 100.90
			 of this Part), directly or indirectly to a licensed retailer or any officer,
			 associate, member, representative, agent or employee of that licensee
			 ("retailer"). It is likewise unlawful for any retailer, as defined in this
			 subsection, to accept or receive money or any item of value from an industry
			 member. A retailer does not include a special event retailer as defined in
			 Section 1-3.17.1 of the Act.
b)
			 Third-Party Arrangements. The furnishing, giving, renting, lending or selling
			 of equipment, fixtures, signs, supplies, money, services or other thing of
			 value, not specifically allowed by this Section, by an industry member to a
			 third party, when the benefits resulting from the things of value flow to a
			 retailer, is an indirect furnishing of a thing of value within the meaning of
			 Sections 6-5 and 6-6 of the Act. Indirect furnishing of a thing of value
			 includes, but is not limited to, making payments for advertising to a retailer
			 association or a display company when the resulting benefits flow to an
			 individual retailer. An indirect furnishing of a thing of value does not arise
			 when the industry member did not intend that the thing of value would be
			 furnished to a retailer by a third party, or the industry member did not
			 reasonably foresee that the thing of value would have been furnished to the
			 retailer.
c) Violations of the "Of
			 Value" Provisions of Sections 6-5 and 6-6. Performance of the following
			 activities or provision of the following items violates the provisions on
			 giving anything "of value" under Sections 6-5 and 6-6 of the Act:
1) Shelf Space Payments, Display Service and
			 Slotting Fees Prohibition. An industry member shall not directly or indirectly
			 offer or give anything "of value" to a retailer, and a retailer shall not
			 directly or indirectly request or accept anything "of value" from an industry
			 member, in exchange for offering for sale or displaying an industry member's
			 product on a retailer's shelf, on a tap handle, at any other desired location
			 within the retail establishment, or on a retailer's website.
2) Credit to Retailers. An industry member
			 shall not provide credit to retailers unless permitted by Section 6-5 of the
			 Act as implemented by Section
			 100.90
			 of this Part. The statute provides the following parameters for extending
			 credit to retailers:
A) No credit extensions
			 are allowed on the purchase of beer by retailers. The full invoice cost of beer
			 must be paid in cash as defined in Section
			 100.90(j)
			 by the retailer on or before the delivery date.
B) An industry member selling wine or spirits
			 to a retailer may extend a merchandising credit in the ordinary course of
			 business not to exceed 30 days.
3) Security Interest. An industry member's
			 acquisition of a mortgage on any of the real or personal property a retailer
			 uses in its alcoholic beverage business is a prohibited interest in the
			 retailer's property, except to the extent a lien or other security interest is
			 acquired only in the industry member's products sold to the retailer in order
			 to secure payment of goods sold on credit, if that credit is permissible under
			 Section 6-5 of the Act.
4)
			 Guaranteeing Loans. An industry member is prohibited from guaranteeing any loan
			 or repayment of any financial obligation owed by a retailer, and a retailer is
			 prohibited from guaranteeing any loan or repayment of any financial obligation
			 owed by an industry member.
5)
			 Industry Member Advertising. An industry member shall not give, and a retailer
			 shall not accept, anything of value in exchange for any advertising service,
			 including but not limited to:
A) Display space
			 advertising or placement of ads in a retailer's publications, including a
			 retailer's website; or
B) Payments
			 to a third party for advertisements in which the primary purpose of the
			 advertisement promotes a retailer's business or aspects of the retailer's
			 business.