1. (a) Persons holding valid Arkansas wholesale alcoholic beverage permits, their agents, servants or employees, manufacturers’ agents, importers, and brokers may price, stock, and rotate merchandise at retail premises only to the following extent:

   1. (1)

      1. (A) Wholesale dealers in spirituous and vinous beverages and malt beverages of more than five percent (5%) alcohol by weight may build stock displays of their product on the premises of retail dealers.
      2. (B) Displays may in no way be part of the dealer’s regular shelving.
      3. (C) Wholesaler dealers may restock displays for a maximum period of one (1) month after the initial display has been installed.
      4. (D) They may not price the displays and are prohibited from pricing and stocking shelves on the premises of retail dealers and from affixing security tags.
      5. (E) Industry members are granted authority to maintain the quality of their product on retail shelves, provided, that products purchased from other industry members are not altered or disturbed.
      6. (F) The act of picking up alcoholic beverages in excess of five percent (5%) alcohol by weight for credit or exchange from a retail dealer by a wholesale dealer is considered a consignment sale and is therefore specifically prohibited;

   2. (2)

      1. (A) No wholesale dealer of spirituous and vinous beverages and malt beverages that are more than five percent (5%) alcohol by weight shall handle or move any alcoholic beverages delivered to the premises of a retail dealer by a competing wholesale dealer, nor shall a wholesale dealer reset all or any part of the alcoholic beverages situated on the premises of a retail dealer.
      2. (B) A wholesale dealer may engage in the initial setting of products into a new store, previous to the new store opening for business;

   3. (3)

      1. (A) A wholesale dealer whose products are situated on the premises of a retail dealer must be given the opportunity to participate in any movement or reset of those products and no retail dealer shall, under any circumstances, exclude a wholesale dealer from such participation.
      2. (B) The reset of all or any part of the alcoholic beverages situated on the premises of a retail dealer may not occur more than twice during any calendar year.
      3. (C) The stocking of cold boxes by a wholesale dealer in a retail dealer’s premises is permitted;

   4. (4)

      1. (A) The stocking of shelves by a wholesale dealer of spirituous and vinous beverages in a retail dealer’s premises is prohibited.
      2. (B) The act of manually entering delivery or invoice information into the retail dealer’s computer system at the time of delivery is prohibited; and
   5. (5) Except as authorized herein, employees of a wholesale dealer shall not, in connection with the sale or delivery of alcoholic beverages to a retail dealer, provide any services whatsoever to a retail dealer.

2. (b) The Director of the Alcohol Beverage Control Division may suspend or revoke the permit or permits of a violator and may impose such other penalties or administrative remedies as are prescribed by law for violations of the alcoholic beverage control law, as provided below:

   1. (1) Slotting allowance prohibited. Slotting allowances, defined as allowances paid by a manufacturer to a grocery store for making room for a product on the grocery store’s shelves, are prohibited;
   2. (2) Inducements prohibited. That the manufacturer or wholesaler gave any inducement for sale to any person holding a permit to sell controlled beverages at retail, including but not limited to secret discounts, rebates, gifts, or fictitious sales;

   3. (3)

      1. (A) Samples prohibited.
      2. (B) That the manufacturer or wholesaler gave samples to any person, said samples being either in unbroken packages, partial packages, or by the drink, except that a manufacturer or wholesaler may give a sample of distilled spirits, wine, or malt beverages to a retailer who has not previously purchased the brand from that manufacturer or wholesaler.
      3. (C) No manufacturer or wholesaler may give to any retail outlet more than:

3. (i) Three gallons (3 gals.) of any brand of malt beverage;

   1. (ii) Seven hundred fifty milliliters (750 ml) of any brand of distilled spirits; or

      1. (iii) Three (3) liters of any brand of wine.
      2. (D) Further, a wholesaler may provide retail package store owners or employees with a small sample of any brand of wine or liquor not previously purchased by such retail package store, with such sample not to exceed one ounce (1 oz.) per owner or employee.
      3. (E) Such samples shall be poured from bottles owned by such wholesaler, brought into the retail package store by such wholesaler or its employees, and removed from the retail package store premises immediately after the conclusion of any such sampling activity.
      4. (F) Any sampling conducted by a wholesaler in accordance with this section shall not violate any other law or rule prohibiting possession of an open container on the premises of a retail package store or violate any other law or rule prohibiting an employee of a retail package store from drinking while on duty.
      5. (G) Sampling parties may not be given to retailers, consumers, or prospective customers by manufacturers, distillers, importers, producers, distributors, retailers, or wholesalers, except as permitted herein.
      6. (H) Manufacturers, distillers, importers, producers, distributors, wholesalers, and retailers may donate intoxicating liquor to charitable or nonprofit organizations for on-premises consumption only at nonprofit functions where such organization receiving the intoxicating liquor does not hold a permit to dispense intoxicating liquors.
      7. (I) The donation of intoxicating liquor by manufacturers, distillers, importers, producers, distributors, retailers, or wholesalers may occur on a permitted premises of an on-premises permittee of this division.
      8. (J) Manufacturers, wholesalers, distillers, importers, producers, distributors, and retailers may provide keg-tapping equipment and hook-up service to a charitable or nonprofit organization at a function.
      9. (K) However, a wholesaler or manufacturing representative may conduct on behalf of or assist the retailer with the tasting event;
   2. (4) Employment of Unpermitted Sales Agents Prohibited [repealed];
   3. (5) Sale, taking of orders, or solicitation of business by wholesale liquor dealers from private clubs. No holder of any wholesale liquor permit shall sell to, take any order, or solicit any business, directly or indirectly, from a private club permittee;
   4. (6) Effect of violation of rules or law. That the manufacturer or wholesaler violated any of these rules or any alcoholic beverage control law of the State of Arkansas;

   5. (7)

      1. (A) Wholesalers furnishing outside signs to retailers governed by federal regulations.
      2. (B) Notwithstanding the provisions of 3 CAR § 2-301(4), the federal regulations governing the furnishing of outside signs to retailers by wholesalers are hereby adopted by reference and incorporated herein.
      3. (C) Further, any outdoor sign provided by an industry member shall only contain information regarding products sold to the retail outlet by the industry member.
      4. (D) The retail outlets agree, as consideration for receiving the advertising banner, that said outlets will not customize or otherwise edit, add to, or delete from the sign furnished by the industry member.
      5. (E) All employees or agents of the industry member providing the signs are prohibited from erecting any temporary signs for the retail outlet.
      6. (F) It shall not be considered a violation for the industry member to provide a sign to a retail outlet containing the name of the outlet and “Grand Opening” so long as it is not displayed at the outlet for more than twenty-one (21) days;

   6. (8)

      1. (A) Manufacturers not to engage in price fixing.
      2. (B) No liquor manufacturer or supplier shall take or fail to take any action that would cause any type of fixing of wholesale or retail prices in the state.
      3. (C) This shall include engaging in the industry practice known as “reach-back pricing”.
      4. (D) Suggestion of wholesale or retail prices will not be considered to be a violation of the permit.
      5. (E) Further, alcoholic beverage manufacturers or suppliers shall not require any alcoholic beverage wholesaler to contribute to any local or national advertising, marketing, or brand development fund, either directly or indirectly;

   7. (9)

      1. (A) Wholesalers may pay for advertising devices in certain retail outlets.
      2. (B) Wholesale beer permittees shall be allowed to pay for certain advertising devices used at government-owned facilities which are issued a large attendance facility permit as long as the permitted facility is located in a county which has a population of more than one hundred fifty-five thousand (155,000) people according to the 2000 federal decennial census.
      3. (C) Such advertising devices shall include items such as inside or outside signs, scoreboards, programs, scorecards, and the like.
      4. (D) However, payment for the advertising devices cannot result in the formation or existence of an exclusive buying arrangement between the large attendance facility permittee and the wholesaler who furnishes such advertising items;

   8. (10)

      1. (A) Advertising and promotion materials — Exception for racing facilities and nonprofit entities holding a large attendance facility permit, and casino licensees.
      2. (B) As an exception to 3 CAR § 2-301(4), any manufacturer or wholesaler may pay for the display or other presentation of advertising and promotion materials on or about the premises of the holder of a franchise or casino license issued by the Arkansas Racing Commission.
      3. (C) In addition, any manufacturer may provide sponsorship of or payment for the display or other presentation of advertising and promotional material on or about the premises of the holder of a large attendance facility permit, as defined by Arkansas Code § 3-9-202(10), owned by a qualifying charitable nonprofit organization that has received tax exempt status under 26 U.S.C. § 501(c)(3);

   9. (11)

      1. (A) Arkansas licensed beer wholesalers to offer keg identification labels for sale.
      2. (B) Arkansas licensed beer wholesalers shall maintain and offer for sale to retail dealers any keg identification labels or tags required by Acts 2005, No. 2320.
      3. (C) The identification labels or tags, as described by Acts 2005, No. 2320, shall be sold at a price of the cost of manufacturing and maintaining the keg tags or labels.
      4. (D) Any Arkansas native brewery or microbrewery-restaurant that sells kegs for off-premises consumption at their location or which engages in sales to retailers for resale shall also be required to furnish said identification labels or tags as required by law;

   10. (12)

       1. (A) Professional sports teams allowed sponsorship.
       2. (B) A large attendance facility permitted establishment owned or operated by an owner of a professional sports team franchised by the Minor League Baseball within a county that has a population of more than one hundred fifty-five thousand (155,000), according to the 2000 federal decennial census, may accept sponsorship funds, advertising items, or promotional items from licensed beer wholesalers.
       3. (C) The furnishing of the sponsorship funds, advertising, or promotional items may not result in the formation or existence of an exclusive buying arrangement between the large attendance facility permittee and the wholesaler who furnishes the sponsorship funds, advertising items, or promotional items; and

   11. (13)

       1. (A) Unlawful pricing by brewers and manufacturers.
       2. (B) Pursuant to Acts 2009, No. 783, it is unlawful for a brewer or manufacturer of malt beverage products to engage in unlawful pricing practices as between the manufacturer or brewer and their respective Arkansas wholesalers.
       3. (C) Any violation of this section, or any violation of Acts 2009, No. 783, shall subject the Arkansas native brewery permit or nonresident beer seller’s permit issued to such party or their designee (suppliers) to the full range of penalties as provided by Arkansas Code § 3-2-212 and may also subject said permits to the imposition of a fine as authorized by Arkansas Code § 3-4-401 et seq.

       4. (D) The following rules are hereby adopted to supplement Acts 2009, No. 783:

          1. (i) A supplier shall offer all Arkansas wholesalers to whom it offers product the same:
4. (a) (a) Price;

5. (b) (b) Allowance;

   1. (c) (c) Rebate;

      1. (d) (d) Refund;
6. (e) (e) Commission; or

7. (f) (f) Discount;

   1. (ii) Suppliers shall act in “good faith” as defined in Arkansas Code § 3-5-1102(a)(6), toward wholesalers with regard to all matters including, but not limited to:
8. (a) (a) Transport costs;

9. (b) (b) Fees;

   1. (c) (c) Charges;

      1. (d) (d) Product support;
10. (e) (e) Rebates;
11. (f) (f) Commissions;
12. (g) (g) Refunds; and

13. (h) (h) Product availability;

    1. (iii) No supplier may take any retaliatory action as defined in Arkansas Code § 3-5-1102(a)(8) against a wholesaler;

       1. (iv) If a wholesaler believes a supplier has not acted in good faith or has taken retaliatory action against it, a hearing before the director may be requested;

          1. (v)
14. (a) (a) Suppliers with wholesalers that have state-wide distribution rights on or after the effective date of this section may provide those wholesalers quantity discounts.

15. (b) (b) Any wholesaler that obtains state-wide product distribution rights as of the effective date of this section due to the consolidation of one (1) or more wholesalers or suppliers shall not be entitled to quantity discounts from the supplier;

    1. (vi) A supplier shall post the following information with the director in its most current form, FOB-Source for all products offered in Arkansas, and all allowances, rebates, refunds, commissions, or discounts it offers;

       1. (vii)
16. (a) (a) All price information shall be provided by the supplier to the director via email.

17. (b) (b) It shall be submitted fourteen (14) days prior to any increase and two (2) days prior to any decrease; and

    1. (viii) All information provided to the director by the supplier is proprietary in nature and not subject to freedom of information requests pursuant to the Freedom of Information Act of 1967, Arkansas Code § 25-19-101 et seq.

Codification Notes: Subdivision (b)(1) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 9-20-17)" Subdivision (b)(3) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-21-13)" Prior to codification into the Code of Arkansas Rules, subdivision (b)(4) contained the following: "Repealed 8-21-13" Subdivision (b)(7) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-16-11)" Subdivision (b)(8) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-19-09)" Subdivision (b)(9) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-15-07)" Subdivision (b)(10) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 12-18-19)" Subdivision (b)(11) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-17-05)" Subdivision (b)(12) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-15-07)" "FOB" means free on board.