Can a distributor fix draught problems at a retail account?  If the “fix” requires parts, who is responsible for payment of the parts?  Must there be a charge for the labor to fix problems?

Servicing equipment is not a subsidy; however, retailers are responsible for the payment of the parts.  Coil cleaning is a subsidy.  Basic maintenance okay beyond that no.  Distributor can fix and charge but not pay for a third party to fix.  All parts must be charged for except Tap markers because they are considered an indoor permanent sign. RULE 210

Distributors may not give free labor on new installations.  Both labor and parts must be charged and paid by the retailer.

Retailer must pay within 30 days.

NOTE: Distributors who install draught systems free of charge or pay a third party to install a draught system for a retailer is prohibited under Illinois law.  If it is determined after investigation that a distributor has directly or indirectly given a draught system to a retailer both the distributor and the retailer will be subject to disciplinary action.  The ILCC has determined that the distributor and retailer will be fined $20,000 for each installation and will be suspended for a period not less than 5 business days.

Can a retailer be fined multiple times for the same infraction?

Example: Retailer was fined for having beer tubes without an invoice in 2016, the retailer refuses to get rid of them. Can the retailer and distributor be fined again?

The distributor and the retailer will receive a citation if the beer tube (or any other draught equipment) is not paid by the retailer.  If the beer tube remains and the retailer has not paid for the tube and the distributor has not given additional tubes the distributors will not be cited but the retailer will.

Without clarification, Commission legal staff said the ‘pick the pros’ was illegal last year...

a.    With football season around the corner, is it permissible to do ‘pick the pros’ at on-premise accounts where we give away hats/t-shirts/sweatshirts for winners?

Pick the pros is a contest where consumers pick a winning team for each football game that week.  The consumer with the most correct picks wins a consumer specialty item.  To determine whether this is gambling you must consider two things:

1) Is there a monetary condition to enter the contest?

2) Is it a game of chance?  Game of skill is illegal. 

Picking the correct winning team is a game of chance.  If there is no condition (no entry fee) for entry then the above practices would be allowed.  Raffles are okay if the licensee has a local raffle license. 

How long must retailers keep receipts for items purchased from distributors and third parties? Is the retailer/distributor assumed to be guilty until they can show proof?

(Extreme example- do they need a receipt for the draft system a draft installer put in 30 years ago?)

  1. Retailers must keep their receipts for 3 years and that distributors should carry the paid invoice for the same period. The same practice is recommended for third parties.
  2. The burden is on the distributor and the retailer to show proof of ownership.  Golden Rule is both the retailer and the distributor should keep the receipt and the paid invoice as long as the retailer purchased the item

Can a distributor give away free beer to a 4A or 4B licensee that has dram shop insurance?  Does the distributor need to have Dram Shop insurance if the retailer carries it?

Distributors are not allowed to give away alcohol – period.  Best way is to write a check and have the retail licensee purchase the alcohol. The retailer will be required to carry the Dram Shop liability insurance.  Distributors are not required to carry Dram Shop Insurance.

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.

Can a Special Use Retailer return unused, untapped beer after an event?

There are two classifications of events:  1) those sponsored by a not-for-profit organization (special event licensee) and, 2) those sponsored by a licensed retailer (special use).  The Commission has no objection if a distributor accepts a return of product for credit if the product is sold to a Special Event license holder OR a Special Use license holder.   In order to accept a return, the product must have been originally invoiced to the Special Event or Special Use license numbers.  These license numbers begin with the designation of “4A”, “4B” or “4C”.  The product cannot be returned if invoiced to a Retailer license number designated “1A”.  Special Event and Special Use retail licenses are issued to temporary and limited events and thus are considered “Seasonal Dealers” for the purposes of permitting returns.    

For clarification purposes this would include but is not limited to the following types of events:

Community festivals put on by groups such as the Jaycees

Music festivals

Church socials

Motorcycle Club Festivals, etc.

The Commission has determined that the return of product for special events/special use events (retailer sponsored events) does not constitute a consignment sale and is not in violation of the Cash Beer Law found in Section 6-5 of the Liquor Control Act. 

For events such as a wedding, graduation party, neighborhood block party, etc. where purchases of alcoholic liquor are made from a licensed retailer (“1A” licensee) credit may not be given to a retailer for the unused, untapped products.  The only time a distributor may give credit for these types of events is if the retailer holds a Caterer’s license and the purchase was originally invoiced to the Caterer.  A caterer’s license number begins with the designation of “1B.”  Again, at no time may a distributor credit a retailer “1A” for unused, untapped products.
 

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