1. (a)

   1. (1) Except as provided in subsections (b) and (c) of this section, no person holding any permit to sell any controlled beverages, nor any manufacturer, importer, or distributor of such controlled beverages, shall:

      1. (A) Advertise, by any means, that such controlled beverages are available for purchase in conjunction with a monetary rebate or cash discount; or
      2. (B) Give the impression that upon purchase of a controlled beverage the consumer will be entitled to a monetary refund or direct cash rebate upon purchase.
   2. (2) Further, no such person named above shall distribute or offer any coupon or other inducement to purchase alcoholic beverages to the consumer unless specifically authorized to do so by this part.

2. (b) Advertising or providing refunds or rebates or other inducement by Arkansas wholesalers and retailers.

   1. (1)

      1. (A) No person holding any permit to sell any controlled beverages at retail or wholesale shall:

3. (i) Advertise that such controlled beverages are available for purchase in conjunction with a monetary rebate; or

   1. (ii) Give the impression that upon purchase of a controlled beverage the consumer will be entitled to a monetary refund, cash rebate, or merchandising discount from said retailer or wholesaler.

      1. (B) Likewise, no such person shall allow or give any such refund, rebate, or merchandise discount to any consumer in conjunction with the purchase of any alcoholic beverages.
      2. (C) Further, no such person named above shall distribute or offer any coupon or other inducement to purchase alcoholic beverages to the consumer.

   2. (2) Exceptions to these provisions are as set forth in subsection (c) of this section.

      1. (c) Consumer promotion offers allowed by manufacturers or importers.

   3. (1)

      1. (A) A manufacturer or importer of beer, wine, or distilled spirits products may offer certain consumer promotional programs that are tied to the purchase of an alcoholic beverage.
      2. (B) However, no manufacturer or importer of alcoholic beverages shall offer any coupon or other promotion incentive which entitles the consumer, in conjunction with the purchase of an alcoholic beverage, to any type of cash discount, rebate, or merchandise redemption from an Arkansas wholesaler or retailer.

   4. (2) A manufacturer or importer or their agent, not to include any Arkansas wholesaler or retailer, shall be allowed to offer the following types of consumer programs:

      1. (A) A manufacturer or importer of wine or distilled spirits may offer a form, conditioned upon the purchase of an alcoholic beverage, which entitles the consumer to a monetary rebate from said:

         1. (i) Manufacturer;
         2. (ii) Importer; or
         3. (iii) Designated third party;

      2. (B)

         1. (i) A manufacturer or importer may offer merchandise programs to consumers with the merchandise price being discounted upon proof of purchase.
         2. (ii) Provided, that no discount program may be offered based upon multiple purchases by the consumer;

      3. (C) A manufacturer or importer may offer merchandise to a consumer that is:

         1. (i) Part of a combination package; or
         2. (ii) Sealed inside or contained within an alcoholic beverage carton; and

      4. (D)

         1. (i) A manufacturer or importer may offer consumers the ability to enter sweepstakes events based upon proof of purchase of an alcoholic beverage.
         2. (ii) Provided, if a manufacturer or importer offers a sweepstakes event based upon proof of purchase of an alcoholic beverage, they will also be required to offer an alternative means of entry by way of freestanding point-of-sale items that are not attached to or packaged with the alcoholic beverage product.

   5. (3) The cost of any such authorized rebate program, merchandise program, or sweepstakes shall:

      1. (A) Be an expense to the manufacturer or importer offering such promotional programs; and
      2. (B) Not be recouped in whole or part from any Arkansas wholesaler or retailer.

   6. (4) Any such authorized promotional offerings or rebates must be made to Arkansas consumers through the following means of distribution:

      1. (A) In any printed media of statewide circulation;
      2. (B) In the original package arrangement produced and shipped by the manufacturer; or

      3. (C)

         1. (i) Manufacturers or suppliers may provide brand-specific mail-in rebate forms to Arkansas wholesalers for distribution to Arkansas retailers.
         2. (ii) Arkansas wholesalers may distribute brand-specific mail-in rebate forms to Arkansas retailers provided that the brand-specific rebate forms are made available to any Arkansas retailer offering the brand for sale to an Arkansas consumer.

   7. (5) Licensed wholesalers, retailers, and their employees shall be ineligible to participate in consumer promotional programs authorized by this part.

      1. (d) Retailer loyalty programs.
   8. (1) For the purposes of this subsection, “loyalty program” means a marketing program that offers certain incentives to encourage customer retention.
   9. (2) The holder of a manufacturer or wholesale tier license or permit cannot directly or indirectly reimburse a retailer for any costs associated with a loyalty program.

   10. (3) A retailer may offer a loyalty program subject to the following conditions:

       1. (A) The loyalty program may give consumers discounts on the purchase of:

          1. (i) Alcoholic beverages; and
          2. (ii) Nonalcoholic products or items;

       2. (B)

          1. (i) The loyalty program may have a point accrual and redemption component in addition to discounts.
          2. (ii) Accrued points may be redeemed on alcoholic beverage or nonalcoholic beverage products or items; and

       3. (C)

          1. (i) Loyalty program point accrual and redemption components shall only be offered on the final sale of alcoholic beverage or nonalcoholic beverage products.
          2. (ii) Increased loyalty program awards or point values for the purchase of specific alcoholic beverage or nonalcoholic product brands is strictly prohibited.

Codification Notes: Subsection (a) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(Amended 9-16-15)” Subsection (b) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 7-19-95)" Subdivision (c)(2)(B) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 9-8-97)" Subdivision (c)(4) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 9-16-15)" Subdivision (c)(4)(C) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 9-16-15)" Subsection (d) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 9-20-17)"