27 C.F.R. Subpart E—Exclusion
Title 27 - Alcohol, Tobacco Products and Firearms
Source: T.D. ATF–364, 60 FR 20424, Apr. 26, 1995, unless otherwise noted.
(a) Exclusion, in whole or in part occurs: (1) When a practice by an industry member, whether direct, indirect, or through an affiliate, places (or has the potential to place) retailer independence at risk by means of a tie or link between the industry member and retailer or by any other means of industry member control over the retailer; and (2) Such practice results in the retailer purchasing less than it would have of a competitor's product. (b) Section 6.152 lists practices that create a tie or link that places retailer independence at risk. Section 6.153 lists the criteria used for determining whether other practices can put retailer independence at risk. The practices specified in this section put retailer independence at risk. The practices specified here are examples and do not constitute a complete list of those practices that put retailer independence at risk. (a) The act by an industry member of resetting stock on a retailer's premises (other than stock offered for sale by the industry member). (b) The act by an industry member of purchasing or renting display, shelf, storage or warehouse space (i.e. slotting allowance). (c) Ownership by an industry member of less than a 100 percent interest in a retailer, where such ownership is used to influence the purchases of the retailer. (d) The act by an industry member of requiring a retailer to purchase one alcoholic beverage product in order to be allowed to purchase another alcoholic beverage product at the same time. The criteria specified in this section are indications that a particular practice, other than those in §6.152, places retailer independence at risk. A practice need not meet all of the criteria specified in this section in order to place retailer independence at risk. (a) The practice restricts or hampers the free economic choice of a retailer to decide which products to purchase or the quantity in which to purchase them for sale to consumers. (b) The industry member obligates the retailer to participate in the promotion to obtain the industry member's product. (c) The retailer has a continuing obligation to purchase or otherwise promote the industry member's product. (d) The retailer has a commitment not to terminate its relationship with the industry member with respect to purchase of the industry member's products. (e) The practice involves the industry member in the day-to-day operations of the retailer. For example, the industry member controls the retailer's decisions on which brand of products to purchase, the pricing of products, or the manner in which the products will be displayed on the retailer's premises. (f) The practice is discriminatory in that it is not offered to all retailers in the local market on the same terms without business reasons present to justify the difference in treatment.
Title 27: Alcohol, Tobacco and Firearms
PART 6—“TIED-HOUSE”
Subpart E—Exclusion
§ 6.151 Exclusion, in general.
§ 6.152 Practices which put retailer independence at risk.
§ 6.153 Criteria for determining retailer independence.
