Ohio Administrative Code › Title 4301:1 - Liquor Control Commission › Chapter 4301:1-1 - General Provisions › Section 4301:1-1-43 - Furnishing signs, fixtures, equipment, advertising materials, and advertising specialties, return of merchandise: limitations thereon: prohibited practices and prohibition of cash deposit or prepayment

Current through all regulations passed and filed through July 1, 2024
This rule reflects the policy and intent of the commission to
				maintain effective control over the sale and distribution of alcoholic
				beverages and to prevent abuses caused by the disorderly and unregulated sale
				of such products. Alcoholic beverages are a unique product that require strict
				regulation to promote temperance by preventing consumption by underage persons
				and by discouraging abusive consumption by adults, promote orderly markets by
				requiring transparent, accountable and stable distribution and the prevention
				of unfair competition and facilitate the collection of taxes related to the
				sale and consumption of such products.
(A)
(1) No
			 retail permit holder shall acquire by purchase, either directly or indirectly,
			 or by any means whatsoever, any signs, fixtures, furniture, or other equipment
			 used in connection with the conduct of the retail business from any
			 manufacturer or wholesale distributor of alcoholic beverages at a cost less
			 than the full cost to the manufacturer or wholesale distributor. No
			 manufacturer or wholesale distributor of alcoholic beverages shall sell or
			 furnish, either directly or indirectly, or by any means whatsoever, any signs,
			 fixtures, furniture, or other equipment used in connection with the operation
			 of a retail permit holder's business at a cost less than the full cost to the
			 manufacturer or wholesale distributor, except as otherwise provided in sections
			 4301.22 and
			 4301.24 of the Revised Code,
			 rule 4301:1-1-44 of the
			 Administrative Code, and this rule.
(2) No retail or wholesale permit holder
			 shall accept any premiums, gifts, discounts based on quantity of sales or any
			 other reason, cash discount sales, rebates, or kickbacks, either in money,
			 merchandise, or thing of value, from any manufacturer or wholesale distributor
			 of alcoholic beverages. No manufacturer or wholesale distributor of alcoholic
			 beverages shall offer or give to any retail or wholesale permit holder any
			 premiums, gifts, discounts based on quantity of sales or any other reason, cash
			 discount sales, rebates, or kickbacks, either in money, merchandise, or thing
			 of value.
(3) A sales or incentive
			 program may be conducted by the owner of the brand name or trademark, or an
			 authorized supplier of alcoholic beverages, on an interstate, national, or
			 statewide basis, so long as that program includes an award, payment, or
			 reduction of price on future purchases to a wholesale permit holder or their
			 employee, and may be based on the sales of the product.
(4) No retail permit holder shall solicit,
			 for their own benefit, donations of money, merchandise, thing of value, or
			 credit from any wholesale distributor or manufacturer of alcoholic beverages.
			 No retail permit holder shall sell, for their own benefit, tickets to parties,
			 picnics, entertainment, or similar events to any wholesale distributor or
			 manufacturer of alcoholic beverages. No retail permit holder shall become a
			 member of or pay dues to any organization of manufacturers or wholesale
			 distributors.
(5) No wholesale
			 distributor or manufacturer of alcoholic beverages shall solicit, for their own
			 benefit, donations of money, merchandise, or thing of value from, or give
			 credit to, any retail permit holder. No wholesale distributor or manufacturer
			 of alcoholic beverages shall sell, for their own benefit, tickets to parties,
			 picnics, entertainment, or similar events to any retail permit holder.
(a) No wholesale distributor of alcoholic
			 beverages shall become a member of or pay dues to any organization of retail
			 permit holders.
(b) A manufacturer
			 may become a member of or pay dues to any statewide or national organization of
			 retail permit holders.
(c) A
			 manufacturer or supplier may participate in retail permit holder association
			 conventions, retail trade shows, and meetings. A manufacturer or supplier may:
(i) Display its products at a convention or
			 trade show;
(ii) Rent display booth
			 space if the rental fee is not excessive and is the same as that paid by all
			 exhibitors;
(iii) Provide its own
			 hospitality, which is independent from association- sponsored
			 activities;
(iv) Purchase tickets
			 to functions and pay registration fees if the payments or fees are not
			 excessive and are the same as those paid by all exhibitors; and
(v) Make payments for advertisements in
			 programs and brochures issued by retail permit holder associations at a
			 convention or trade show if the payments are not excessive and are the same as
			 those paid by all exhibitors.