04 NCAC 02S .1020. REFUND OFFERS

(a)  General.  Refund offers may be used to advertise spirituous liquor.

(b)  Conditions.  A refund offer is an offer to a consumer for a rebate of money or merchandise from a liquor industry member, obtained by mailing a form.  A refund offer is allowed under the following conditions:

(1)           A refund may be offered only by a manufacturer, importer, distiller, rectifier or bottler of spirituous liquor.

(2)           A refund may be offered only to purchasers of the manufacturer's original unopened container of liquor that is purchased from a local ABC store.

(3)           A refund may be offered only when the redemption form is a part of or attached to the package or container,  or when the forms are available on tear‑off pads displayed in the store.  Any offer that is a part of or attached to the package or container shall be placed there by the industry member who offers the refund.

(4)           A refund offer shall apply throughout the state.

(5)           A refund offer shall include an expiration date.

(6)           A refund offer shall include a statement explaining the redemption procedure including the expiration date and length of time before the refund is sent to the purchaser.  Refund offers shall be redeemed by mailing the redemption form to the industry member who offers the refund or its designated redemption agent.  Such an agent shall not be a retail or wholesale permittee in the state.

(7)           An industry member shall notify the commission at least 10 days before it offers a refund on liquor.  The notice shall state the proposed amount of the refund, its expiration date, to whom redemption forms must be mailed and the name, address and phone number of the redemption agent. The notice shall also include a sample of the redemption form.

(8)           An ABC board member or employee shall not receive refunds on offers obtained from liquor packages or containers before sale at retail.

(c)  Commercial Bribery; Cooperative Advertising.  No local ABC board member, board employee, retailer or retailer employee shall accept and no industry member shall pay any fee for the display or use of refund offers.  The name of a retail business or retail permittee shall not appear on any refund offer.

(d)  Advertising Refund Offers.  Refund offers may be advertised by newspapers, magazines or direct mail but no redemption form may appear in such advertisement.  No refund offer for liquor may be advertised on the premises of any retail permittee.

 

History Note:        Authority G.S. 18B‑105(b);

Eff. June 1, 1987;

Amended Eff. July 1, 1992.