1. (1) Manufacturer's premiums may be attached to cigarette packs or cartons without being considered in violation of minimum pricing under the following conditions:

   1. (a) the department is notified of the promotion at least two weeks in advance of the beginning date of the promotion; and

   2. (b) the premiums are packaged along with each carton or package of cigarettes, or specifically identified as associated with the sale of a particular cigarette or carton of cigarettes. For example, a promotional display may designate a free item will be provided with each purchase of a carton of a specific brand of cigarettes. The item may be physically a part of the promotional display;

      1. (i) manufacturer's representatives may attach premiums at the retail locations;
      2. (ii) there is a written contract between the manufacturer and the wholesaler, subjobber or independent jobber directing the attachment of premiums.
2. (2) Contractual arrangements and payment for premium attachment services must be documented in a manner consistent with standard business practices and may not be netted against invoices for cigarettes.

Authorizing statute(s): 16-10-104, MCA

Implementing statute(s): 16-10-301, MCA

History: NEW, 1992 MAR p. 668, Eff. 3/27/92.