Tenn. Comp. R. & Regs. 0100-03-.11 - SOLICITATION OF BUSINESS, SERVICES RESTRICTED

Current through March 20, 2022

(1) Manufacturers and Importers Limited to Wholesale Solicitation.
(a) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall solicit orders in any manner for alcoholic beverages from anyone in the 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.
(b) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall perform or provide any service whatsoever for a retail on-premise or off-premise licensee or his employee in the state, and no on-premise or off-premise licensee shall accept any service whatsoever, whether on or away from the retail premises-except as specifically authorized under Rules 0100-03-.06 and 0100-06-.03.
(c) No manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or any representative thereof shall give anything of value whatsoever, including but not limited to alcoholic beverages and money, to any Tennessee retail on-premise or off-premise licensee or his employee, and no on-premise or off-premise licensee shall accept anything of value whether on or away from the retail premises except as specifically authorized under Rules 0100-03-.06 and 0100-06-.03.
(d) A manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative thereof may enter the premises of a retail licensee for the purpose of promoting the products manufactured, imported, or represented by the manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative, surveying or examining the retail and marketing operations of such on-premise or off-premise retail licensee or examining the advertising displays within the premises of such on-premise or off-premise retail licensee. Such manufacturer, importer, nonresident seller, non-manufacturer non-resident seller, or representative may also provide, orally or in writing, information related to such products to any licensee or employee of such licensee on the on-premise or off-premise retail licensee's premises as well as customers of the retail package store licensee in relation to tastings held under T.C.A. § 57-3-404(h)(2).
(e) A manufacturer, importer, non-resident seller, non-manufacturer non-resident seller, or representative thereof may, with the consent of the retail package store, "face up" or dress a display of those products (and only those products) manufactured, imported, or represented by such person which displays are already established at such retail licensee premises and may arrange or rearrange those products manufactured, imported, or represented by such person which have been placed on display on the retail premises but is limited to "pulling forward" inventory already in the showroom and no restocking may occur from any area off the showroom floor. While providing such service, such person may not move, disturb, relocate, or re-shelve any product other than the products manufactured, imported, or represented by such person. No services of this kind may be provided to any retail food store licensee on or off their premises.
(2) Wholesale Sales Limited to Retailers.
(a) No wholesaler, salesman, or employee thereof shall solicit orders in any manner for alcoholic beverages from anyone in this state except those holding retail licenses.
(b) No wholesaler, salesman, or employee thereof shall provide any service whatsoever for a retail licensee or his employee whether within or away from the retail premises with the following exceptions:
1. Delivering alcoholic beverages or any item permitted under Chapter 0100-06 to the licensed premises.
2. Arranging stock delivered by his company in retail package stores.
3. Setting up advertising signs or displays at retail package stores as set forth in Rules 0100-03-.05 and 0100-03-.06.
4. Assisting in the conduct of any retailer sponsored consumer educational seminar held in accordance with Rule 0100-03-.11(5).
5. Providing the services to retail food store licensees authorized by Chapter 443 of the Public Acts of 2017.
(c) No wholesaler, his salesman, or employee shall give anything of value whatsoever including, but not limited to, money and alcoholic beverages to any retail licensee or his employee except as otherwise permitted in these rules. No Tennessee retail licensee or his employee shall accept any alcoholic beverages, money, or other things of value except as allowed or provided for by the applicable regulations as set forth at Chapter 0100-06.
(d) Wholesalers are prohibited from accepting an order for alcoholic beverages from one retailer and delivering and invoicing part of the order to one retailer and the remainder of the order to another licensee. Retailers are prohibited from placing an order for one licensee, and having part of the order delivered to another licensee.
(e) Notwithstanding the limitations contained herein, a wholesaler, its salesman or its employees may solicit orders from any entity that has submitted to the Commission an application for license under T.C.A. §§ 57-3-204 or 57-4-101, but the wholesaler may not deliver any alcoholic beverages until the Commission has approved and issued such license.
(3) Complimentary Alcohol from Retailers. No retail package store licensee or his employee shall give any consumer any complimentary alcohol except as provided in T.C.A. § 57-3-404 or this rule.
(4) Tax Laws Unaffected. No provision of this rule is intended to restrict or otherwise affect the deductions available to manufacturers, importers, wholesalers or retailers for purposes of calculating taxes due to the United States.
(5) Retail Package Store Sponsored Consumer Educational Seminars. A retail package store licensed under T.C.A. § 57-3-204 may conduct consumer educational seminars, which may include providing alcoholic beverages and wine directly to consumers for tasting purposes. A retailer must provide to the Commission written notification on forms prescribed by the Commission if the licensee or its representative or employee is present to discuss the product being sampled, if the licensee is sponsoring or co-sponsoring the event, if the licensee has provided the product to be sampled, and/or if the licensee is soliciting orders at the event.
(a) No consumer educational seminar which includes the consumption of alcoholic beverages or wine by a consumer may occur at a premises licensed by the Tennessee Alcoholic Beverage Commission pursuant to T.C.A. § 57-3-204. (See T.C.A. § 57-3-406(f)). Further, consumer educational seminars must occur within the boundaries of a political subdivision wherein the sale of alcoholic beverages at retail has been approved pursuant to T.C.A. §§ 57-3-106 and 57-4-103.
(b) Any retailer desiring to conduct a consumer educational seminar which involves the consumption of alcoholic beverages must provide written notification to the Commission disclosing the following information:
1. The date, time, and exact location of the consumer educational seminar;
2. The sponsors of such consumer educational seminar and any supplier or wholesaler involved, either directly or indirectly, with such consumer educational seminar;
3. Whether any fee or cost is assessed to the attendees in order to attend the consumer educational seminar, and if so, the amount of such fee; and
4. Any other relevant information as may be required by the Commission.
(c) Written or electronic notifications must be submitted to the Commission not less than two (2) calendar days prior to the date of the consumer educational seminar. Proof of such written notification shall be available for inspection at the event.
(d) No manufacturer, non-resident seller, or non-manufacturer non-resident seller may directly supply any product to a retailer for use at a consumer educational seminar. Nothing herein shall prohibit a wholesaler licensed pursuant to T.C.A. § 57-3-203 from providing product to the retailer for use at a consumer educational seminar, nor shall this provision preclude a manufacturer or nonresident seller from providing product to a wholesaler with the intent that such product be used at a consumer educational seminar. A wholesaler who provides such product for an event should make a reasonable effort to provide a sufficient quantity of alcohol, but not in excess of the amount needed to conduct the consumer educational seminar. Any unopened salable product remaining at the conclusion of the seminar shall be returned to the wholesaler who provided the product if the product was donated for the event, pursuant to T.C.A. § 57-3-403 and Rules 0100-03-.14(1) and 0100-03-.10(5).
(e) Any consumer educational seminar conducted under this rule shall be conducted in accordance with the hour limitations set forth at T.C.A. § 57-4-203(d)(1).
(f) A manufacturer, non-resident seller, non-manufacturer non-resident seller, retailer, wholesaler, or representative thereof whose products are to be tasted may advertise, in accordance with all other applicable regulations of the Commission, the date, time, location, sponsors, speakers, products to be tasted, food to be served, charge for attendance, and such other information as may be appropriate to inform the consumers of the consumer educational seminar. A retail location of a consumer educational seminar included in an industry member advertisement shall be relatively inconspicuous in relation to the advertisement as a whole.
(g) A manufacturer, non-resident seller, non-manufacturer non-resident seller, wholesaler, or representative thereof whose products are to be tasted may furnish consumer advertising specialties permitted under the rules directly to consumers, or to a retailer for distribution to consumers, at the consumer educational seminar.
(h) A consumer educational seminar conducted under this rule may be conducted at any premises licensed pursuant to T.C.A. § 57-4-101. If so, a retailer may impose a reasonable charge for attendance at the consumer educational seminar may solicit orders from consumers at the seminars, provided that final sales of wines and alcoholic beverages must be completed within the licensed premises of the retail package store or delivered pursuant to Rule 100-03-.10(5)(a).
(i) Individuals holding any permit issued by the Commission or certified clerks employed by retail package stores may serve or dispense alcoholic beverages. Nothing in this paragraph authorizes an on-premise consumption licensee to purchase and resell alcoholic beverages from any entity other than a licensed wholesaler. In addition, an individual listed as licensee or manager on the license application or in the records of the Commission may serve or dispense alcoholic beverages at such educational seminar.
(j) If a consumer educational seminar is to be conducted at a premises not licensed pursuant to T.C.A. § 57-4-101, the following additional conditions shall apply:
1. No food, goods or services may be purchased or sold and no solicitation of orders may occur.
2. No person may attend such consumer educational seminar unless such person has received a written invitation, addressed to the invitee.
3. No charge may be imposed upon such invitee for attendance or for any food or product consumed.
(k) The retail licensee shall be responsible for compliance with all statutes, rules, and regulations, including but not limited to the prohibitions of selling to a minor or to an intoxicated individual. Violations of any statutes, rules, or regulations may result in disciplinary action against the appropriate licensee.

Notes

Tenn. Comp. R. & Regs. 0100-03-.11
Original rule certified June 7, 1974; Amendment filed August 3, 1979, Disapproved by G.O.C. December 13, 1974. Amendment filed December 4, 1979; Disapproval hearing notice filed March 13, 1980; approved by G.O.C. April 8, 1980. Amendment filed September 9, 1983; effective October 11, 1983. Amendment filed August 18, 1998; effective December 29, 1998. Repeal and new rules 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. §§ 57-1-209, 57-3-104, 57-3-202, 57-3-203, 57-3-210, 57-3-404, 57-3-405, 57-3-604, 57-3-815, and 57-818.

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