Section 0100-06-.02 - GENERAL PROHIBITIONS(1) Except as provided in Rule 0100-03-.16, industry members are prohibited from acquiring or holding any interest, directly or indirectly, in any license (state, county, or municipal) with respect to the premises of a retailer.(2) Except as provided in Rule 0100-03-.16, industry members are prohibited from acquiring any interest, directly or indirectly, in real or personal property owned, occupied, or used by a retailer in the conduct of the business.(3) Subject to the exceptions listed herein, industry members, or any representative thereof, are prohibited from furnishing, giving, renting, lending, or selling to the retailer, and the retailer is prohibited from accepting any equipment, fixtures, signs, supplies, money, services, or other thing of value. The furnishing of free warehousing by delaying delivery of distilled spirits, wine, or alcoholic beverages or by storing such for a retailer by an industry member is prohibited.(4) Industry members, or any representative thereof, are prohibited from paying or crediting the retailer, and the retailer is prohibited from accepting any advertising, display, or distribution service, whether or not the advertising, display or distribution service received is commensurate with the amount paid by the retailer.(5) An industry member or any representative thereof is prohibited from requiring a trade buyer to take and dispose of any quota of distilled spirits, wine, or malt beverages.(6) A requirement that a retailer purchase one product in order to purchase another is prohibited. This includes combination sales if one (1) or more products may be purchased only in combination with other products and not individually. However, an industry member is not prohibited from selling at a special combination price, two (2) or more kinds of brands of products to a retailer, provided that: (a) The retailer has the option of purchasing either product at the usual price; and(b) The retailer is not required to purchase any product he or she does not want.(7) No retailer shall obtain alcoholic beverages from any source not designated to sell that brand under the brand registration statute, T.C.A. § 57-3-301.(8) No manufacturer, importer, non-resident seller, non-manufacturing non-resident seller or any representative thereof - e.g. third party marketing entities - shall solicit orders in any manner for alcoholic beverages from anyone in this state except those holding wholesale licenses. The marketing, advertising, or promoting, or the encouraging of the public to purchase the manufacturer's, non-resident seller's, or non-manufacturer non-resident seller's product, does not constitute soliciting an order and does not require a permit.(9) It is unlawful for one (1) industry member to sell, offer for sale, or contract to sell to any trade buyer, or for any such trade buyer to purchase, or contract to purchase any products: (b) Under conditional sale; or(c) With the privilege of return; or(d) On any basis other than a bona fide sale; or(e) If any part of the sale involves, directly or indirectly, the acquisition by such person of other products from the trade buyer or the agreement to acquire other products from the trade buyer. Transactions involving the bona fide return of products for ordinary and usual commercial reasons arising after the product has been sold are not prohibited.(10)(a) Tied Sales Prohibited. A sale in which any part of the sale involves, directly or indirectly, the acquisition by the industry members from the trade buyer, or the agreement, as a condition to present or future sales, to accept other products from the trade buyer is prohibited.(b) Exchange. The exchange of one product for another is prohibited as a sales transaction conditioned on the acquisition of other products. However, the exchange of a product for equal quantities (case for case) of the same type and brand of product, in containers of another size is not considered an acquisition of "other" products and is not prohibited if there was no direct or implied privilege of return extended when the product was originally sold. Industry members may make price adjustments on products eligible for exchange under this paragraph.(c) Exclusion. An industry member, or any representative thereof - e.g. third party marketing entities - shall not require, nor may a retailer request, offer, and/or accept an exclusive arrangement wherein the retailer agrees, in exchange for money, services, or any other thing of value from the industry member, to offer for sale the industry member's product to the exclusion of other related products.Tenn. Comp. R. & Regs. 0100-06-.02
Original rule filed September 9, 1983; effective October 11, 1983. Amendment repealing and replacing the rule was filed March 10, 2010; effective June 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date 6/24/2019.Authority: T.C.A. §§ 57-1-201, 57-1-209, 57-3-104, 57-3-202, 57-3-210, 57-3-405, 57-3-604, 57-4-201, and Chapter 371, Public Acts of 2017.