California Code of Regulations › Title 4 - Business Regulations › Division 1 - Department of Alcoholic Beverage Control › Article 15 - Prices › Section 105.2 - Authorized Rebates to Wholesalers for Participation in Price Promotion

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) To be a
				lawful price promotion program between a manufacturer or importer and a
				wholesaler allowing for a manufacturer or importer to reimburse the wholesaler
				for a reduction in price to retailers over a specific time period, all of the
				following must be adhered to:
(1) When
				creating a price promotion program that wholesalers may choose to participate
				in, a manufacturer or importer shall establish either a lowest suggested price
				at which participating wholesalers may post prices to retailers or a specific
				maximum amount or percentage by which participating wholesalers may reduce
				their posted price at which the beer is offered for sale to
				retailers;
(2) When creating a
				price promotion program that wholesalers may choose to participate in, a
				manufacturer or importer shall state the amount of its reimbursement to
				participating wholesalers as either a specific percentage of the amount by
				which the wholesaler reduces its posted price to retailers or a specific
				monetary amount per sale;
(i) If the
				reimbursement is based upon a percentage, the manufacturer or importer may also
				establish a maximum amount that will be reimbursed per sale;
(3) Any price promotion program
				offered by a manufacturer or importer shall be available on the same terms to
				all wholesalers in the county or trading area in which the manufacturer offers
				the promotion;
(i) No price promotion shall
				be offered, implemented, or conducted in a manner that affords preferential
				treatment to any retailer or retailers;
(4) The manufacturer or importer shall
				indicate in a designated field within the online price posting system that a
				specific item is part of a manufacturer's price promotion program and provide
				notice to all wholesalers to which they sell beer in the county or trading area
				in which a price promotion is offered of the specific terms of the price
				promotion program required under this section. This notice shall be provided to
				wholesalers at the same time, at least one day prior to the start of a price
				promotion program. Merely posting the notice to a website, or indicating a
				price promotion for a line item within the online price posting system, shall
				not be sufficient for notice required pursuant to this subsection;
(5) A price promotion program notice shall
				specify the product name, product size, container type, and package
				configuration to which the price promotion program applies;
(i) A price promotion program notice may
				include multiple product names, product sizes, or package configurations.
				However, only one price promotion for any specific combination of product name,
				product size, and package configuration shall occur during the specified period
				in which the price promotion program is offered;
(6) If a wholesaler accepts participation in
				a manufacturer's or importer's price promotion program, it shall adjust its
				posted prices to retailers in accordance with the terms of the price promotion
				program in the county or trading area of where the price promotion programs is
				occurring;
(7) When changing its
				posted price due to an offered price promotion pursuant to this section, a
				wholesaler shall indicate in the designated field within the online price
				posting system that the posted price for the specific line item has been
				changed pursuant to a price promotion program;
(8) A participating wholesaler shall request
				reimbursement no later than 30 calendar days following the last date of the
				price promotion program, and this request shall be documented in records
				required by section
				105.2(a)(10) of
				this Article;
(i) If the manufacturer or
				importer verifies participation based on sales data and automated inventory
				systems, that shall be deemed as a request for reimbursement under this
				subsection;
(9) The
				manufacturer or importer shall pay a participating wholesaler the amount to be
				reimbursed no later than 30 calendar days following the wholesaler's request
				for reimbursement;
(10) Valid
				records of compliance with all requirements of California Code of Regulations,
				title 4, section
				105.2 must be retained by both the
				manufacturer or importer and the wholesaler for at least three years following
				the completion of a transaction. The department may request or inspect these
				records at any time pursuant to Business and Professions Code section
				25753;
				and
(11) If a wholesaler in good
				faith relies upon a price promotion program offered by a manufacturer or
				importer and changes its posted price in anticipation of a reimbursement, and
				otherwise complies with all requirements of wholesalers in this section and
				under law, any violation of this section by the manufacturer or importer does
				not remove a manufacturer's or importer's civil liability for agreed upon
				reimbursement funds pursuant to the price promotion
				program.