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PART 6-INDUCEMENTS FURNISHED TO RETAILERS

Sec.

Sec. 6.1 Definitions.

6.3 Exceptions. 6.2 Application.

Section 6.1 Definitions. As used in this part

(a) The term “retailer” means any person engaged in the sale of distilled spirits, wine or malt beverages to consumers.

(b) The term "retail establishment” means any premises where distilled spirits, wine or malt beverages are sold or offered for sale to consumers, whether for consumption on or off the premises where sold.

(c) The term “industry member" means any person engaged in business as a distiller, brewer, rectifier, blender, or other producer, or as an importer or wholesaler, of distilled spirits, wine or malt beverages, or as a bottler, or warehouseman and bottler, of distilled spirits, but shall not include an agency of a State or political subdivision thereof, or an officer or employee of such agency.

(d) The term "product” means distilled spirits, wine or malt beverages, as defined in the Federal Alcohol Administration Act.

(e) Any other term defined in the Federal Alcohol Administration Act and used herein shall have the meaning assigned to it by such Act.**

*88 6.1 to 6.3 inclusive, issued under the authority contained in sec. 2 (d), 49 Stat. 977; 27 U.S.C., Sup. I, 202 (d): interpret sec. 5 (b) (3), 49 Stat. 981; 27 U.S.C., Sup., 205 (b) (3).

† In $$ 6.1 to 6.3, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Regs. 6, Fed. Alc. Adm., Mar. 9, 1936.

6.2 Application. Except as provided in this part it is unlawful for any industry member to induce, by furnishing, giving, renting, lending, or selling any equipment, fixtures, signs, supplies, money, services, or other thing of value, directly or indirectly or through an affiliate, any retailer to purchase any products from such industry member to the exclusion in whole or in part of such products sold or offered for sale by other industry members in interstate or foreign commerce, if such inducement is made in the course of interstate or foreign commerce, or if such industry member engages in the practice of using such means to such an extent as substantially to restrain or prevent transactions in interstate or foreign commerce in any such products, or if the direct effect of such inducement is to prevent, deter, hinder, or restrict other industry members from selling or offering for sale any such products to such retailer in interstate or foreign commerce : Provided, That in the case of malt beverages, this part shall apply to transactions between a retailer in any State and a brewer, importer, or wholesaler of malt beverages outside such State only to the extent that the law of such State imposes requirements similar to the requirements of section 5 (b) of the Federal Alcohol Administration Act (49 Stat. 981; 27 U.S.C., Sup., 205 (b)) with respect to similar transactions between a retailer in such State and a brewer, importer, or wholesaler of malt beverages in such State, as the case may be: Provided further,

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That this part shall not operate to exempt any person from the requirements of any State law or regulation.** (First proviso interprets next to last paragraph in sec. 5 (f), 49 Stat. 985; 27 U.S.C., Sup., 205 (f))

6.3 Exceptions. An industry member may furnish to a retailer, under the conditions and within the limitations prescribed, the equipment, signs, supplies, services, or other things of value specified herein: Provided, That such furnishing is not conditioned directly or indirectly on the purchase of distilled spirits, wine, or malt beverages.

(a) Equipment. Tapping accessories, such as rods, vents, taps, hoses, washers, couplings, vent tongues, and check valves may be sold to a retailer and installed in his establishment if such tapping accessories are sold at a price not less than the cost thereof to the industry member selling the same, and if the price thereof is collected within 30 days of the date of sale.

(b) Signs. Signs, posters, placards, designs, devices, decorations or graphic displays, bearing advertising matter and for use inside a retail establishment, may be furnished, given, rented, loaned, or sold to a retailer if they have no value to the retailer except as advertisements and if the total value of all such materials furnished by any industry member and in use at any one time in any retail establishment does not exceed $10: Provided, That the industry member shall not directly or indirectly pay or credit the retailer for displaying such materials or for any expense incidental to their operation. The value of such materials shall include all expenses incurred directly or indirectly by any industry member in connection with the purchase, manufacture, transportation, assembly, and installation of such materials and of accessories thereto.

(c) Supplies. Carbonic acid gas or ice may be sold to a retailer, if sold in accordance with the reasonable open market price thereof in the locality where sold, and if the price thereof is collected within 30 days of the date of salé.

(d) Services. (1) Coil cleaning service may be furnished, given, or sold to a retailer of malt beverages.

(2) The names and addresses of retailers selling the products of any industry member may be listed in an advertisement of such industry member, if such listing is the only reference to any retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole.

(e) Other things of value—(1) Consumer advertising specialties. Consumer advertising specialties, such as ash trays, bottle or can openers, corkscrews, paper shopping bags, matches, printed recipes, wine lists, leaflets, blotters, post cards, and pencils, which bear advertising matter, may be furnished, given, or sold to a retailer for unconditional distribution by him to the general public, if the retailer is not paid or credited in any manner directly or indirectly for such distribution service.

(2) Retailer advertising specialties. Retailer advertising specialties, such as trays, coasters, beer mats, menu cards, meal checks,

**For statutory and source citations, see note to 8 6.1.

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paper napkins, foam scrapers, back bar mats, tap markers, thermometers, clocks, and calendars, which bear advertising matter, and which are primarily valuable to the retailer as point of sale advertising medía, may be furnished, given, or sold to a retailer if the aggregate cost to any industry member of such retailer advertising specialties furnished, given, or sold in connection with any one retail establishment in any one calendar year does not exceed $10.

(3) Samples. Not more than 2 gallons of any brand of malt beverages, and not more than 1 pint of any brand of distilled spirits or wine, may be furnished or given as a sample to a retailer who has not previously purchased that particular product: Provided, That 2 quarts of any brand of distilled spirits or wine, may be furnished or given as a sample to any agency of a State or political subdivision thereof which has not purchased that particular product.

(4) Newspaper cuts. Newspaper cuts, mats, or engraved blocks for use in retailers' advertisements, may be furnished, given, rented, loaned, or sold by an industry member to a retailer selling his products.

(5) Merchandise. Merchandise, such as groceries and drugs, may be sold to a retailer, without limit as to quantity or value, by an industry member who is also engaged in business as a bona fide vendor of such merchandise, if such merchandise is sold in accordance with the reasonable open market price thereof in the locality where sold, and if such merchandise is not sold in combination with distilled spirits, wine, or malt beverages and is itemized separately on the industry members' invoices and other records: Provided, That equipment, fixtures, signs, supplies, and consumer and retailer advertising specialties may be furnished only as provided elsewhere in this part.**

PART 7-LABELING AND ADVERTISING OF MALT

BEVERAGES

Sec.
7.1 Definitions.

Labeling Requirements for Malt

Beverages
7.20 General.
7.21 Misbranding.
7.22 Mandatory label information.
7.23 Brand names.
7.24 Class and type.
7.25 Name and address.
7.26 Alcoholic content.
7.27 Net contents.
7.28 General requirements.
7.29 Prohibited practices.

Requirements for Withdrawal of
Imported Malt Beverages from

Customs Custody
7.30 Application.
7.31 Label approval and release.

Sec.

Requirements for Approval of
Labels of Malt Beverages Do-

mestically Bottled or Packed
7.40 Application.
7.41 Certificates of label approval.
7.42 Exhibiting certificates to Govern-

ment officials.

Advertising of Malt Beverages
7.50 Application.
7.51 Definitions.
7.52 Mandatory statements.
7.53 Legibility of requirements.
7.54 Prohibited statements.

General Provisions
7.60 Exports.
7.61 Effective date.

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**For statutory and source citations, see note to 8 6.1.

CROSS REFERENCES

Regulations relating to the labeling and advertising of wine: See Part 4. Regulations relating to the labeling and advertising of distilled spirits: See

Part 5. Bureau of Customs regulations concerning forfeiture and disposal of alcoholic

liquors: See 'Customs Duties, 19 CFR 21.7. Bureau of Customs regulations concerning marking and stamping of spirits,

wines, malt liquors, and alcoholic fruit juices in casks and similar containers :

See Customs Duties, 19 CFR 9.7. Bureau of Customs regulations with respect to exemption accorded returning

residents relating to the importation of wine, distilled spirits, malt liquors : See Customs Duties, 19 CFR 8.20. Section 7.1 Definitions. As used in this part(a) The term “Act” means the Federal Alcohol Administration Act.

b) The term "Administration" means the Federal Alcohol Administration.

(c) The term “Administrator” means the head of the Federal Alcohol Administration.

(d) The term “malt beverage” means a beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption.

(e) The term "container" means any can, bottle, barrel, keg, or other closed receptacle, irrespective of size or of the material from which made, for use for the sale of malt beverages at retail. The term “bottler” means any person who places malt beverages in containers of a capacity of 1 gallon or less, and the term “packer” means any person who places malt beverages in containers of a capacity in excess of 1 gallon.

(f) The term "gallon" means United States gallon of 231 cubic inches of malt beverages at 39.2° F. (4° C.). All other liquid measures used are subdivisions of the gallon as so defined.

(g) The term “brand label” means the label carrying, in the usual distinctive design, the brand name of the malt beverage.

(h) The term “United States” means the several States and Territories and the District of Columbia; the term “State” includes a Territory and the District of Columbia; and the term “Territory” means Alaska, Hawaii, and Puerto Rico.

(i) The term “interstate or foreign commerce” means commerce between any State and any place outside thereof, or commerce within any Territory or the District of Columbia, or between points within the same State but through any place outside thereof.

(j) The term “person” means any individual, partnership, joint-stock company, business trust, association, corporation, or other form of business enterprise, including a receiver, trustee, or liquidating agent, and including an officer or employee of any agency of a State or political subdivision thereof.

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(k) Any other term defined in the Federal Alcohol Administration Act and used herein shall have the same meaning assigned to it by such Act.26 (Sec. 2 (d), 49 Stat. 977; 27 U.S.C., Sup. I, 202 (d): interprets sec. 17 (a), 49 Stat. 989; 27 U.S.C., Sup., 211* (a)) [Art. I, sec. 1, Regs. 7, Fed. Alc. Adm., Nov. 19, 1936]

LABELING REQUIREMENTS FOR MALT BEVERAGES

7.20 General—(a) Application. Sections 7.20–7.29 shall apply to malt beverages sold or shipped or delivered for shipment, or otherwise introduced into or received in any State from any place outside thereof, only to the extent that the law of such State imposes similar requirements with respect to the labeling of malt beverages not sold or shipped or delivered for shipment or otherwise introduced into or received in such State from any place outside thereof.

(b) Marking, branding, and labeling. No person engaged in business as a brewer, wholesaler, or importer of malt beverages, directly or indirectly, or through an affiliate, shall sell or ship, or deliver for sale or shipment, or otherwise introduce in interstate or foreign commerce, or receive therein, or remove from customs custody any malt beverages in containers unless such malt beverages are packaged, and such packages are marked, branded, and labeled in conformity with $8_7.20–7.29. Malt beverages domestically bottled or packed prior to December 15, 1936, and imported malt beverages entered in customs bond in containers prior to that date shall be regarded as being packaged, marked, branded, and labeled in accordance with $$ 7.20–7.29, if the labels on such malt beverages (1) bear all the mandatory label information required by $ 7.22, even though such information is not set forth in the manner and form as required by $ 7.22 and other sections of this part referred to therein, and (2) bear no statements, designs, or devices which are false or misleading.

(c) Alteration of labels. (1) It shall be unlawful for any person to alter, mutilate, destroy, obliterate, or remove any mark, brand, or label upon malt beverages held for sale in interstate or foreign commerce or after shipment therein, except as authorized by Federal law: Provided, That the Administrator may, upon written application, permit additional labeling or relabeling of malt beverages in containers if, in his judgment, the facts show that such additional labeling or relabeling is for the purpose of compliance with the requirements of 88 7.20–7.29 or of State law.

(2) Application for permission to relabel shall be accompanied by two complete sets of the old labels and two complete sets of any proposed labels, together with a statement of the reasons for relabel

26 The Administration from time to time has issued circulars construing or applying the various provisions of this part. In view of the fact that these circulars do not have the effect of amending or modifying the regulations, they are only cited where they may be of unusual interest. Copies of these circulars may be obtained from the Administration on request.

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