In this chapter, the following words have the meanings indicated. Terms Defined. “Advertising sign” means a printed board, poster, placard, or similar material provided by a supplier or licensed wholesaler to promote a particular alcoholic beverage product or supplier. “Alcoholic beverage list” means a list or other advertising piece which is provided to a specific licensed retailer or group of licensed retailers and includes: Captain's books, table tents, and similar items; and A list for wine, spirits, and beer. Brand Identifiable Advertising Material. “Brand identifiable advertising material” means a distinctive or generic name, trademark, logo, or symbol, identifying the product of a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery. “Brand identifiable advertising material” includes proprietary or contracted logos and symbols. “Brand identifiable advertising material” does not include logos, symbols, or other depictions that are not brand related. “Brand owner” means a person or entity, including but not limited to a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery, who has: Documented title for a specific brand of alcoholic beverages; and If applicable, obtained label approval from the Alcohol and Tobacco Tax and Trade Bureau. “Bureau” means the Alcohol and Tobacco Tax Bureau of the Comptroller of the Treasury. “Charity or nonprofit group” means an organization which qualifies for an exemption from federal income taxes under Internal Revenue laws and regulations. “Commission” means the Alcohol, Tobacco, and Cannabis Commission. “Comptroller” means the Comptroller of Maryland or the Comptroller’s designee. “Consumer” means an individual of legal age who buys, possesses, keeps, or transports lawfully acquired alcoholic beverages for personal use only and not for sale. “Contest” means a competition which is rated or scored by independent judges to determine a winner and when the winner is chosen by some skill, ability, or knowledge. “Coupon” means: A rebate offer by which a consumer, upon purchase of an alcoholic beverage product, is reimbursed monetarily by the supplier or independent clearinghouse representing the supplier; or An offer by which a consumer, with or without consideration, may obtain merchandise, other than alcoholic beverage products, through a supplier or independent clearinghouse. Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee. “General advertising” means a printed, spoken, or visual public announcement paid for by a supplier or wholesaler to promote a particular alcoholic beverage product or supplier and does not identify or benefit a particular retailer or group of retailers. Licensed Retailer. “Licensed retailer” means the alcoholic beverage premises as described by the alcoholic beverage retail license as issued by the respective county or city license issuing authority. For the purpose of an arena class alcoholic beverage license, each separate vendor or business entity handling alcoholic beverages is considered a separate licensed retailer. “Nonresident dealer” means a person or entity that holds a nonresident dealer permit issued pursuant to Alcoholic Beverages Article, Annotated Code of Maryland. “On-premises advertising” means point-of-sale material in the form of a sign, placard, display, or other item provided by a supplier or licensed wholesaler placed on a licensed retailer's premises and intended to promote a particular product or supplier of alcoholic beverages. “On-premises promotion” means an activity: Intended to promote a brand owner or brand owner's product which is sponsored by a supplier, licensed wholesaler or retailer, or a nonlicensee, including but not limited to a charity, radio station, or third-party promotional agency; and Held on the premises of an alcoholic beverage licensed retailer. Personalized Material. “Personalized material” means any advertising sign, wording, or information which is unique to a retailer or group of retailers. “Personalized material” includes but is not limited to: The name of the retailer; Product size, packaging, or pricing; Menus; or Information promoting a retailer's event or activity. “Representative” means an individual who is employed by or acts as an agent of a brand owner, nonresident dealer permittee, supplier, or licensed wholesaler and includes the holder of a solicitor's permit. “Retailer” means a person or entity that holds an alcoholic beverage retail license pursuant to Alcoholic Beverage Article, Annotated Code of Maryland. Supplier. “Supplier” means a person or entity that sells alcoholic beverages to a licensed wholesaler in Maryland. “Supplier” includes a brand owner, nonresident dealer permittee, agent of the brand owner or nonresident dealer permittee, and the holder of a Maryland manufacturer's license. “Sweepstakes” means a drawing where the winner is chosen by lottery, matching game pieces, or a game of chance, or similar type of event which does not require any skill, ability, or knowledge in order to be selected. “Third party” means an independent advertising or promotional agency, or any other person who is contracted by a supplier or a licensed wholesaler to conduct promotional activities on the premises of an alcoholic beverage licensed retailer. Wholesaler. “Wholesaler” means a person or entity that holds an alcoholic beverage wholesale license pursuant to Alcoholic Beverages Article, Annotated Code of Maryland. “Wholesaler” includes a nonresident winery permit holder. A representative may not engage in an activity that is impermissible on the part of the brand owner, nonresident dealer, supplier, or licensed wholesaler. If the representative is found to be acting contrary to this chapter, the representative's license or permit may be subject to suspension or revocation, and the license or permit of the representative's employer may be subject to suspension or revocation. Trade practice restrictions upon a brand owner, supplier, or licensed wholesaler, which apply to alcoholic beverage products, advertising, or promotions, apply equally to nonalcoholic products if the activity or service could be construed as providing something of value to a licensed retailer or as relieving the licensed retailer of an ordinary business expense. If a licensee or permittee is deemed to be acting contrary to one or more specific provisions of this chapter, in whole or in part, in addition to other available administrative remedies, including suspension or revocation of a license or permit, the licensee's or permittee's authority to engage in that particular trade practice activity may be temporarily or permanently terminated, without affecting the other aspects of the licensee's or permittee's operation or authority. This chapter is applicable to all alcoholic beverage trade practice regulations. If there is a specific conflict with previously issued administrative notices or bulletins, these regulations prevail. Otherwise, any prior notice or bulletin on the subject of trade practices remains in effect. If a general statement conflicts with an exception or qualification applicable to persons or sets of circumstances, the regulation as stated in the exceptions or qualifications prevails over the general provisions insofar as there is any conflict or inconsistency between the two. In General. A coupon may only be provided to the consumer: At the point of purchase; Through direct mail; Through the print media; or Via a portable data file that is accessible from the Internet. A licensed wholesaler and retailer and their employees and immediate families may not participate in supplier-sponsored coupon promotions. A licensed wholesaler and retailer may provide application forms and coupon books to be displayed on retail premises. A licensed retailer may promote supplier-sponsored coupons in its advertising. A coupon offer shall have a definite expiration date printed on the coupon certificate. Multiple coupon offers are permitted. Coupons shall have wording stating that only individuals 21 years old or older may redeem coupons. Redemption shall require a proof of purchase. A monetary coupon offer may not exceed the supplier-to-wholesaler price during the period the coupon offer is in effect. A coupon offer shall be submitted to the Executive Director upon request. A coupon offer which the supplier considers questionable shall be submitted to the Executive Director for review before its use in Maryland. Supplier Coupon Records. Records Availability. A supplier who maintains an office in Maryland shall maintain records available for inspection by the Executive Director. A supplier located out-of-State shall make records available to the Executive Director upon request within 48 hours. Record Requirements. Documentation shall include: The method used to distribute the coupon offer; The mailing list used to issue the coupon offer; The date the coupon went into effect; and The date the coupon expires. Records shall be preserved for 2 years after the date the coupon expires. Records Designation. A supplier shall: Designate in writing where the records will be maintained; Designate in writing the person responsible for maintaining the records; and Inform the Executive Director when the location or person responsible for the records changes. In General. Except as provided in this regulation, a supplier, licensed wholesaler, or person connected with a supplier or licensed wholesaler may not furnish, procure, or otherwise prepare an alcoholic beverage list for a licensed retailer. A licensed retailer may prepare and provide the retailer's own alcoholic beverage list if there is not an exclusive arrangement with consideration given by a supplier or licensed wholesaler to the licensed retailer. A supplier may procure alcoholic beverage lists for a licensed retailer. The supplier shall charge the licensed retailer fair market value or higher. A list sold to a licensed retailer is not limited on the quantity and type of products listed. A licensed retailer and licensed wholesaler shall maintain documentation on their respective premises for a period of 2 years for lists sold to a licensed retailer. Table Tents. Alcoholic Beverages table tents may be personalized if the personalized portion is not more than 1/2 of the overall table tent. Except as provided in this chapter or Alcoholic Beverages Article, Annotated Code of Maryland, a supplier or licensed wholesaler may not sponsor or participate in an alcoholic beverage tasting on licensed retail premises. An alcoholic beverage tasting may be given by a supplier or licensed wholesaler only to bona fide members and guests of a: Charitable organization; Nonprofit group or association; Trade association; or Group of retailers by invitation. An alcoholic beverage tasting may be held only: On the licensed premises of a licensed wholesaler or supplier; On nonlicensed premises; or In a private room, not open to the public, which is located on licensed retail premises. Alcoholic beverages provided for a tasting shall be obtained through the licensed wholesaler's sample account and shown on the wholesaler's monthly tax return if held on: The premises of a licensed wholesaler or supplier; or Nonlicensed premises. A tasting may be held on licensed retail premises only if: The product is provided by the licensed retailer; Representatives of wine and distilled spirits suppliers or licensed wholesalers have a valid solicitor's permit for: Guest speakers, Experts, or Anyone operating under contractual or other agreements with the supplier or licensed wholesaler; and Details on the proposed tasting are submitted to the Executive Director as provided by Regulation .12 of this chapter. “Winemaker” dinners or similar dinners including beer or distilled spirits are permitted on a limited basis when held on licensed retailer's premises and involving participation of a brand owner's, supplier's, or licensed wholesaler's representative pursuant to Regulation .10 of this chapter. Consumer Tastings. A consumer tasting may be held: For the purpose of market survey or analysis: On nonlicensed premises, By an independent research agency, and If the Executive Director has advance notice and has given approval 14 days before conducting the survey; By a supplier or licensed wholesaler for nonalcoholic beverage products on licensed retail premises, if the tasting is: Spontaneous, and Not announced in advance to the licensed retailer or public at large. Tastings sponsored by a supplier or licensed wholesaler may not be designed or used as an inducement to a licensed retailer. A supplier and licensed wholesaler who conduct tastings shall retain a file available for inspection on each event for 2 years. The file shall contain: Full particulars of each tasting; and A list of all persons who attended. In General. A consumer's source of supply is a licensed retailer. A representative or agent of a supplier or licensed wholesaler may provide to consumers in trivial quantities: Nominal advertising items such as matches, pencils, buttons, can openers, recipes, pamphlets, and similar items; and Nonapparel items as part of a nonstructured promotional campaign during a spontaneous and isolated visit to licensed retail premises. A licensed wholesaler or supplier may furnish samples for use by any bona fide religious, fraternal, civic, veterans, hospital, or charitable organization if it is a nonprofit organization which does not hold an alcoholic beverage retail license. A supplier or licensed wholesaler representative may have contact with consumers as permitted by Regulation .12 of this chapter. Solicitation of Consumers. Only an employee of a licensed retailer may directly solicit an order for alcoholic beverages from a consumer. A promotion or contact for an order that entails personal solicitation of a consumer away from licensed retailer's premises is prohibited. A supplier or licensed wholesaler representative may have casual conversations with consumers away from the licensed retail premises concerning the merits of products if the conversations or discussions are not for the purpose of selling or offering for sale alcoholic beverages to the consumers. A solicitor or salesperson may buy a consumer a drink at licensed, on-sale retail premises if: The action is spontaneous and without prior notice to either the licensed retailer or consumer; The alcoholic beverages are purchased from the licensed retailer at full price; and The licensee or competitor licensee is not at the premises conducting a pre-announced or pre-planned promotional activity at the time of the visit (see Regulation .12B(6) of this chapter). A supplier or licensed wholesaler may have mailings of advertising materials to consumers as permitted by this chapter. In General. A third party, acting on behalf of a licensed supplier or licensed wholesaler, may not engage in a promotional activity that would not be approved if it were submitted by the licensed supplier or wholesaler. A supplier, licensed wholesaler, or third party may not use a charitable or nonprofit organization, a person or entity affiliated with or related to a licensee, or another third party, as a surrogate to circumvent the alcoholic beverage statutes or regulations. A charitable group may engage in independent fund-raising activities on licensed retail premises. A charitable group may receive a legitimate, non-product donation from a supplier or licensed wholesaler when the charitable group does not possess a retail license. A representative of a third party who engages in an approved alcoholic beverage promotional activity on behalf of a supplier or licensed wholesaler shall obtain a Maryland solicitor's permit in accordance with COMAR 14.23.01.07. Requests for Approval. Information pertaining to promotional activities involving the direct or indirect involvement of a supplier or licensed wholesaler shall be submitted in accordance with Regulation .12 of this chapter. When a third party is used to submit a proposal on behalf of the licensee, the proposal shall be accompanied by a letter signed by the licensee or, in the case of a corporation, by a corporate officer of the licensee indicating the licensee's: Designation of the relationship of the third party; and Acceptance of full responsibility for all activities of the third party while acting on behalf of the licensee. In General. Proposals for conducting a sweepstakes or contest in the State shall be submitted to the Executive Director in time to be approved 14 days before the start of the contest or sweepstakes. A supplier or licensed wholesaler may sponsor a sweepstakes or contest in accordance with this chapter. A third-party promotional agency may sponsor a sweepstakes or contest if it complies with Regulation .07 of this chapter. A sweepstakes or contest may be advertised on radio, in newspapers, or in magazines if the licensed retailers are only referred to in general and not by name. A sweepstakes or contest held by a supplier or licensed wholesaler is not limited to a specific licensed retailer or group of licensed retailers. Instant winner vouchers shall be randomly placed in alcohol product packages if the licensed retailer has no knowledge of the placement and a record is kept of all parties who redeem a voucher. A licensed retailer may not participate in a sweepstakes or contest sponsored by a supplier or licensed wholesaler, or a third party representing a supplier or licensed wholesaler, except to display point-of-sale materials and provide entry blanks. A means of entry may be provided on neck hangers, or on or in caps, cap liners, corks, containers, label cartons, cases, or other material obtained by purchasing alcoholic beverages, if an alternative means of entry that does not require a purchase of alcoholic beverages is provided. General Sweepstakes and Contest Rules. Sweepstakes and contest participants shall be of legal drinking age. A supplier, licensed wholesaler or retailer, or their families or employees are not eligible to participate or receive prizes. A purchase of alcoholic beverages is not required to enter a sweepstakes or contest. Contest rules shall state: The beginning date and deadline for entry; Prizes; Chances of winning; How winners are chosen; and Any other general rules. In General. Advertising when paid for by the supplier or licensed wholesaler may not identify a particular licensed retailer, the retailer's employees, or the retailer's licensed premises. A licensed retailer or group of licensed retailers may not benefit, directly or indirectly, more than licensed retailers in general for advertisements when they are paid for by the supplier or licensed wholesaler. Cost of Advertising. A licensed wholesaler or retailer may not participate, directly or indirectly, in the cost of promoting or advertising wine or distilled spirit products unless the licensed wholesaler or retailer is the brand owner. A supplier or brand owner may not undertake any plan or design which directly or indirectly results in the purchase of wine or distilled spirits advertising materials, supplies, or services by a licensed wholesaler or retailer. Advertising Categories. Radio and Television Advertising. Advertising of alcoholic beverages on radio or television is permitted if the advertising meets the requirements of the Alcohol and Tobacco Tax and Trade Bureau and the Federal Communications Commission. A supplier, nonresident dealer permittee, and licensed wholesaler may not directly or indirectly provide, pay, or credit a licensed retailer with radio or television advertisements. A licensed retailer may not use advertising credits or “free spots” that have been accrued by a supplier or licensed wholesaler based upon other contractual agreements. A licensed retailer shall pay for radio and television advertising for the purpose of promoting the licensee's general business, location, or any special promotions independently conducted by the licensed retailer. Print Advertising. General newspaper, magazine, and periodical advertisements of alcoholic beverages are permissible if they comply with the provisions of COMAR 14.23.01.05. Restrictions on advertising related to radio and television as stated in this regulation also apply to print advertising. Billboards. A supplier or licensed beer wholesaler may advertise on a billboard when the advertising is brand-identifiable and of benefit only to licensed retailers in general. A licensed retailer may advertise on billboards if the cost is paid by the licensed retailer and the advertising does not promote a particular wine or distilled spirit product. Giant Inflatable Balloons, Bottles, Cans, and Mobile Displays. A display may be used in parades and other functions if it is not brought to permanent rest in front of a licensed retailer's premises. A display is permitted on or near licensed retail premises if it is intended to promote an authorized event being held or sponsored by a supplier, licensed wholesaler, nonprofit organization, or trade association, and is not intended to promote a particular licensed retailer. In General. A neon or other sign, poster, placard, device, or graphic display bearing advertising matter, or any other form of advertising, for use in windows or elsewhere on the licensed premises, may be given by a supplier or licensed wholesaler to licensed retailer if: The utilitarian value is secondary and only incidental to the value as an advertisement; The total value of any single advertising item furnished for use in a licensed retail establishment at any time does not exceed $150 except, however, that a malt beverage sign manufactured by a beer wholesaler and provided to a retailer may not exceed $50; and The cost of installation of an item does not exceed that which is usual and customary in that particular locality. Generally, the total cost of advertising items for products produced by a given brand owner on the premises of a given licensed retailer may not exceed $600 by a brand owner of wine or distilled spirits. Advertising or promotional materials, such as paper cups, matches, brochures, leaflets, circulars, napkins, placemats, calendars, or similar items, may be furnished to licensed retailers if the: Advertising is general in nature; Advertising does not identify a particular licensed retailer or licensed premises; Promotional item is provided in trivial quantities; and Promotional item does not relieve the licensed retailer of an ordinary business expense. Advertising items, displays, and other promotional materials for nonalcoholic beverage products shall meet the same criteria and be subject to the same limitations as alcohol products if provided by a supplier or licensed wholesaler. To do otherwise could be construed as providing the licensed retailer with something of value contrary to applicable provisions of Alcoholic Beverages Article, Annotated Code of Maryland. An alcoholic beverage advertising sign, display, or item on a licensed retailer's premises is subject to confiscation if it is contrary to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland, or any regulation under this subtitle. Advertising items may be furnished to licensed retailers in connection with a bona fide promotion as permitted by this regulation. Distilled Spirits and Wine Advertising. An advertisement may not be personalized for a particular licensed retailer or a licensee's retail promotion. Advertising material for an activity common to all licensed retailers that is mass produced and contains prominent and permanent material is permissible if: A licensed retailer is not identified; and The utilitarian value is secondary and only incidental to the value as an advertisement. Beer Advertising. A manufacturer, malt beverage supplier, nonresident dealer permittee, or a licensed wholesaler may not provide newspaper, radio, or television advertisement to a licensed retailer directly or indirectly. A sign, display, or other form of advertising shall contain brand identifiable advertising material that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item. An advertising sign, poster, or point-of-sale material may contain personalized material for a particular licensed retailer if the personalized material is not more than 50 percent of the total dimension of the sign, poster, placard, or other material. An advertising sign, poster, or other point-of-sale material which contains personalized material shall contain brand identification which is equal to or greater than the personalized portion of the advertising sign, but in no case shall brand identification constitute less than 1/3 of the total area of the advertising sign. If an advertising sign, poster, or other point-of-sale material has no personalized material, the limits and restrictions set forth in §C(3) and (4) of this regulation do not apply. Retailer and Consumer Advertising Specialties. Nonpersonalized items, such as trays, coasters, mats, paper napkins, cups, and similar items that advertise a supplier's brand, are permitted to be given to a licensed retailer in trivial quantities. Specialty items may not be provided with a licensed retailer's name or logo placed on the item. Retailer advertising specialties do not relieve the licensed retailer of an ordinary business expense. Nonpersonalized items in excess of trivial quantities shall be sold to the licensed retailer at fair market value or higher if documentation of the sale is maintained. Hats, towels, t-shirts, glassware, and similar items that have manufacturer or supplier advertising shall be sold to licensed retailers at fair market value. Product Displays. A product display includes wine racks, bins, barrels, casks, shelving, and similar items, the primary function of which is to hold, shelve, or display product. A product display may not exceed the dollar limitations as described in Alcoholic Beverages Article, §§2-216 and 2-315, Annotated Code of Maryland. A display may not contain merchandise contained in a consumer offer program. A representative of licensed wine and liquor suppliers or wholesalers may not build displays on a licensed retailer's floor in excess of 15 cases. A display may be built anywhere on the licensed premises but may not be built onto a part of the existing shelving system at the retailer's establishment. A wine and liquor salesperson or merchandiser, or both, may build displays in excess of 15 cases but must make the appropriate charge back to the supplier. A beer salesperson may build displays and is not limited as to quantity if the advertising value of the display exceeds any secondary service provided to the licensed retailer. A supplier and wholesaler representative may not use a licensed retailer's fixtures or equipment to build or maintain displays. Except as provided in §E(10) of this regulation, when a display has been built, a salesperson or merchandiser may not rebuild the display, and a licensed retailer may not require a salesperson or merchandiser to move the display from one area of the licensed premises to another. A salesperson or merchandiser may not use licensed retailer-supplied equipment, supplies, computers, etc. to make or prepare product or other signs at a licensed retail establishment. It is permissible for a supplier or wholesaler representative to place “bottle neckers” on their products if no licensed retailer-supplied equipment or materials are used. An advertising item permitted by this regulation used in the display shall have brand identification that is conspicuous and permanent. An advertising item with a utilitarian value shall be altered or disabled in a manner as to render it not usable for its normal purpose. When a beer or malt beverage product display has been built, a salesperson, merchandiser, or driver may replenish or rebuild the display for purposes of product rotation at the time of a regularly scheduled delivery, merchandisers call, or sales call, subject to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland. Umbrellas. A brand owner may furnish for display and use by a licensed retailer up to a total of 12 umbrellas advertising alcoholic beverages or nonalcoholic beer products, if: The total cost of umbrellas does not exceed $600; and No single brand is represented by more than six umbrellas. Umbrellas permitted under this section shall be displayed on the licensed retailer's premises. Umbrellas removed from the licensed retailer's premises may be returned to the brand owner. Approvals of On-Premises Advertising. It is not necessary to submit to the Executive Director for approval point-of-sale advertising items that are used consistent with this chapter. The burden of proof that all on-premises advertising items meet the requirements of this chapter rests with the supplier or nonresident dealer permit holders. A supplier shall submit for approval to the Executive Director advertising items of a questionable nature to assure they are operating within the provisions of this chapter. Approval of Advertising and Promotional Contracts. Before an alcoholic beverages supplier or malt beverage wholesaler enters into a contract for advertising and promotional services that will occur on the premises of a retail licensee in exchange for a sponsorship fee or other consideration, a copy of the contract, with supporting documentation, shall be submitted to the Executive Director for review. A supplier or wholesaler shall receive approval from the Executive Director prior to entering into a contract under §A(1) of this regulation. In General. Except as provided in COMAR 14.23.01 or this chapter, a brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide something of value to a licensed retailer as prohibited by provisions of Alcoholic Beverages Article, Annotated Code of Maryland A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide a service or item of utilitarian value which would relieve a licensed retailer of an ordinary business expense. A supplier or licensed wholesaler may not move, stock, rotate, dust, or otherwise alter or disturb a competitor's products on a licensed retailer's premises. Shelf Management. A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may discuss in general and specific terms with a licensed retailer shelf-management concepts and programs which benefit the licensed retailer in marketing all of the licensed retailer's alcoholic beverage products. A supplier or licensed wholesaler may provide, publish, and generally make available data on market sales and analysis. A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may provide and suggest shelf-management plans or schematics which are personalized for a specific licensed retailer or group of licensed retailers. Implementation of a suggested shelf-management plan shall be done solely by the licensed retailer. A supplier or licensed wholesaler representative may not participate in stocking or rearranging shelves in connection with a shelf-management plan. Shelf Stocking and Product Rotation. A supplier or licensed wholesaler may not stock shelves, price items, or arrange any products including its own, for a licensed retailer except as provided in this chapter. A supplier or licensed wholesaler may rotate products, when rotation is performed to ensure product freshness and to take advantage of limited shelf life products. Limited rotation does not include any of the following activities: Opening of cases; Placement of individual bottles on shelves or in coolers; Movement of products from one shelf location to another location; Rearrangement of alcoholic beverages in a storage or sales area in less than case lots; or Shelf management. Beer, malt beverage products, wine coolers, and spirit coolers differ somewhat from other alcoholic beverages due to limited shelf life. A driver or salesperson may rotate a licensed wholesaler's own product that is meant to be accessible by the consumer so that the current delivery is placed in the position of being “first in, first out”. A supplier or licensed wholesaler that distributes nonalcoholic beverage products, for example, sodas, teas, bottled water, juices, and other items, may stock shelves at a retail licensed premises with those products. This shelf stocking of nonalcoholic beverage products may not include nonalcohol beer or nonalcohol wine products. A supplier or licensed wholesaler may dust alcoholic beverage products, but the dusting may not be used as a subterfuge for shelf stocking or impermissible rotation. A supplier or licensed wholesaler may not enter into an agreement, financial or otherwise, with a licensed retailer to assure a certain allocation or positioning of shelf space, including a slotting allowance, for the licensed wholesaler's or supplier's product. A supplier or licensed wholesaler representative may set up advertising displays on a licensed retailer's premises consistent with the provision of Regulation .10 of this chapter. Draft Equipment. A licensed wholesaler may furnish at no charge to a licensed retailer minimum services to beer or wine draft systems, such as cleaning lines and minor repairs and parts such as washers, nuts, or clamps, and may provide the necessary equipment to take beer from the keg to the stanchion station if the parts and equipment are minimal in cost. A licensed wholesaler may provide items such as: Nitrogen, CO2, spigots, faucets, coil cooler boxes, drip trays, and similar items for beer draft systems at cost or above; and Nitrogen, pumps, mounts, gauges, regulators, standards, and similar items for wine draft systems at cost or above. A licensed wholesaler may not give any refrigeration or draft equipment to a licensed retailer. A licensed wholesaler may rent or lease refrigeration or draft equipment to a licensed retailer at fair market value or higher. A licensed wholesaler may perform the labor service part of draft system installation or alterations and may repair equipment such as refrigerators or compressors if the licensed wholesaler charges at least fair market value, or higher, for labor and parts. A licensed wholesaler representative may be present at a special event where alcoholic beverages are dispensed from rented refrigerated trucks, but may not dispense or provide other assistance before, during, or after the event except to: Ensure protection of the licensed wholesaler's equipment; and Set up tapes and train licensed retailer's representatives in their use. Inventories and Deliveries. A salesperson may take inventory of the salesperson's company's products for purposes of recommending a purchase order. Orders may not be taken for products not in the licensed wholesaler's inventory. A salesperson may not place a licensed retailer's inventory in or on a licensed retailer's computer or other records of the licensed retailer, and a salesperson may not develop a customized product or price list for a particular licensed retailer or group of licensed retailers but may provide a generic diskette which shall be made available to any licensed retailer who requests a generic diskette. Locations of Deliveries. Except as provided in §H(3)(b) and (c) of this regulation, deliveries of alcoholic beverages shall be made to a central point at a licensed retailer's establishment whether the central point is in the sales area or a particular area designated for storage. Deliveries of beer and malt beverage products may be made to multiple locations within the licensed retail establishment. Deliveries of alcoholic beverage products may be made to multiple locations within the arena and stadium licensed premises. Deliveries shall be made on the invoice date or the next delivery date to that area. If the delivery is not made, the order shall be canceled and a new order prepared with the appropriate price and conditions of sale for the date of the most recent order. Description. An on-premises promotion is an activity to promote a brand owner's product that includes: Brand owner promotions; Charity promotions; Radio station promotions; or Licensed retailer promotions. An on-premises promotion includes tastings: That are open to the public and held in conjunction with a reception or dinner; and At which a representative of a supplier or licensed wholesaler: Is present; Discusses the characteristics and merits of a particular brand or type of alcoholic beverage; Interacts with the attendees; and May pour the representative's own products. Brand Owner Promotional Activities. A brand owner or supplier, third party, or wholesaler acting as a brand owner's agent may sponsor, organize, or participate in up to 24 promotional activities in a calendar year on behalf of the same licensed retailer. The limit is per brand owner or supplier and not per brand. An event conducted by or on behalf of a licensed off-premises retailer at a licensed on-premises retail account may not be construed as one of the licensed on-premises retailer's promotions if the licensed on-premises retailer's sole involvement is to cater the event and provide the alcoholic beverages. In these instances, it shall be considered one of the events allotted to the licensed off-premises retailer. A brand owner may provide brand identifiable prizes or give-away items to be used at approved on-premises promotions if: The total number of cumulative items or prizes for any given promotion does not exceed 50 percent of the maximum capacity of the licensed retailer's premises as determined by the Fire Marshal; The unit cost of any one item or prize does not exceed $10; A brand owner or agent does not expend more than $150 in incidental expenses for any given promotion; All prizes and other incidentals not used in connection with an approved promotional event are removed from the retail licensed premises at the conclusion of the event; and Documentation on the expenses is maintained for each event and is available for inspection. A brand owner, supplier, or licensed wholesaler may not provide alcoholic beverage products at no cost to a licensed retailer. All products shall be provided and paid for through the normal distribution channels. A representative of a brand owner, supplier, or licensed wholesaler may attend and participate in an approved on-premises promotional activity and may spend up to $200 for the purchase of alcoholic beverage products at a licensed retail establishment at the regular price charged by the licensed retailer, including a reasonable and customary tip directed to service staff who are not owners, officers, partners, or named as license holders of the retailer. In addition to pre-planned and pre-announced promotions that are permitted, a supplier or licensed wholesaler may make short, spontaneous, and unannounced visits to a licensed retailer's premises for the purpose of promoting a brand owner's product. Brand identifiable items or prizes provided during these visits shall be of nominal value and distributed in trivial quantities. See Regulation .06B(4) of this chapter. Charity Promotions. A charity or nonprofit group which holds a temporary alcoholic beverage license is considered a licensed retailer and is generally subject to all the restrictions and responsibilities of any other licensed retailer regarding trade practices. A charity group which does not hold a retail license may receive legitimate donations from suppliers or licensed wholesalers when engaging in legitimate fund raising or other activities. Holders of a charity wine auction permit may receive alcohol from other sources as provided in Alcoholic Beverages Article, Annotated Code of Maryland. Radio Station Promotions. Radio stations are considered third parties and are subject to Regulation .07 of this chapter. When acting as a third-party agent for a supplier or licensed wholesaler, radio stations may not engage in any promotion on a licensed retailer's premises on behalf of a supplier or licensed wholesaler unless the supplier or licensed wholesaler is authorized by the Executive Director to conduct the promotion. Retail Promotions. A licensed retailer may sponsor promotional activities on the retailer's own premises. All expenses related to the promotion which include, but are not limited to, prizes, entertainment, support materials, staff, media advertising, and alcoholic beverages, shall be paid by the licensed retailer. Except as otherwise permitted in this chapter, a supplier or licensed wholesaler may not participate at a licensed retailer-sponsored promotion. Supplier and licensed wholesaler personnel may be on the premises of a licensed retailer-sponsored promotion for observation purposes only. A licensed retailer may not participate in the cost of advertising or promoting a wine or distilled spirits product. A licensed retailer may use advertising items including “bar kits” which are purchased from a brand owner or licensed wholesaler as authorized by Regulation .10 of this chapter. A supplier or licensed wholesaler may rent to a licensed retailer promotional materials approved by the Executive Director to be used at a licensed retailer-sponsored event if: The daily cost of the rental is at least 5 percent of the original value of the materials; A minimum daily charge is $20; and Both parties to the rental agreement maintain documentation which is available for review by the Executive Director. Approvals. A person or entity who engages in on-premises promotional activities as authorized by §B of this regulation shall file a report on forms provided by the Executive Director. A wholesaler or third party may file a promotional activity form on behalf of a brand owner only if they have written authorization to act as a representative of the brand owner and the authorization is provided to the Executive Director. The report filed with the Executive Director shall list all proposed events and shall be filed not later than the 20th day of the month preceding the month in which the proposed event will be conducted. Regular monthly reports are not acknowledged by the Executive Director. A brand owner or supplier, as well as any wholesaler or third party acting as an agent of the brand owner, is responsible for complying with all provisions of this chapter including limitations on the number of events conducted. Amended Report. An amended report: May be accepted up to 5 days before the planned promotional activity if unusual circumstances warrant; and Shall be approved by the Executive Director. If an accurate and timely report is not submitted: Each promotion shall be submitted to the Executive Director for approval; and An acknowledgment must be received from the Executive Director before conducting the event. Alcoholic Beverages Article, §§1-201, 1-302, 1-311, 1-312, 1-313, 1-318, 1-319, 1-401, 1-408, 1-409, 2-214, 2-216, 2-217, 2-218, 2-313, 2-315, 2-316, 2-317, 3-501, 3-507, 6-202, 6-311, 6-319, 6-327, and 6-328, Annotated Code of Maryland Effective date: Transferred from COMAR 03.02.05 to COMAR 14.23.04 effective December 26, 2022 (49:26 Md. R. 1080) Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328) Regulation .10A, F amended effective April 13, 2026 (53:7 Md. R. 328) Regulation .12B amended effective April 13, 2026 (53:7 Md. R. 328)