Are distributors allowed to give consumers glassware without charging the retailer? i.e. “Keep the Pint.”

Keep the pint glass promotion is okay provided that the glass is a basic screen printed glass (which is considered a consumer specialty item) – anything beyond a screen print would not be a consumer specialty.  On the invoice for the glasses it should include the date of the promotion and that the total value of the glasses are valued under $100.  These items are considered not of material value and are similar to other consumer specialty items (i.e. koozies, key chains, screen printed hats, screen printed glass, t-shirts, etc.).  Following the promotion, the retailer must return the unused glasses after the promotion.

Glasses with etching, or non-basic shapes causes the value to go up and are not allowed to be given but can be sold to the retailer. 

Grills, coolers, etc. must be raffled off and given directly to the consumer.  If the consumer is not present at the time of the giveaway, the distributor may not leave the item with the retailer.  The distributor must take the item back to the distributorship where the consumer can pick it up there.  Draw more than one name in the event the consumer does not pick up the item. On sight to give it away is different.  The above only applies if the item is dropped off.

Matt Tanaka

Matt Tanaka is a digital marketer who lives in Chicago with his beautiful wife Laura and their incredibly lazy French Bulldog, Bento. He is an experienced writer, obsessive planner and firm believer in the ability of digital tools to connect brands with their audiences.