23-1325. FINANCIAL INTEREST IN OR AID TO RETAILERS PROHIBITED — CERTAIN AID PERMITTED. (1) It shall be unlawful for any importer, distributor, vintner or winery, directly or indirectly, or through an affiliate, subsidiary, officer, director, agent or employee:
(a) To have any financial interest in any licensed retailer’s business, or to own or control any real property upon which a licensed retailer conducts his business, except that this subsection (1)(a) shall not apply to any winery, as defined in section 23-1303, Idaho Code, or to property that has been owned or controlled continuously for more than one (1) year prior to July 1, 1975; or
(b) To aid or assist any licensed retailer by giving such retailer, or any employee thereof, any discounts, premiums or rebates in connection with any sale of wine; or
(c) To aid or assist any retailer by furnishing, giving, renting, lending or selling any equipment, signs, supplies, wine menus or wine lists, services, or other thing of value which may be used in conducting the retailer’s retail wine business, except as expressly permitted by this chapter; or
(d) To enter into any lease or other agreement with any retail licensee to control the product or products sold by such retailer; or
(e) To provide for any rental or other charge to be paid to or by the retailer for product display or advertising display space.
(2) An importer, distributor, vintner or winery as an incident to merchandising in the ordinary course of business, and if available to all licensed retailers without discrimination, may sell to a retailer equipment, supplies or clothing which may be used in conducting the retailer’s retail wine business. A winery, vintner, importer or distributor may not sell such equipment or supplies at a price, or under terms, intended or designed to encourage or induce the retailer to use products of the seller to the exclusion of the products of other wineries, vintners, importers or distributors. In no event shall the sales price of such equipment or supplies be less than the reasonable value of such equipment or supplies.
(3) Notwithstanding the provisions of subsection (2) of this section, a vintner, winery, importer or distributor, as an incident to merchandising in the ordinary course of business, and if available to all retailers without discrimination, may lend, give, furnish or sell to a retailer, the following items:
(a) Those services, equipment, brochures and recipes authorized under the provisions of sections 23-1325A and 23-1325B, Idaho Code;
(b) Signs, posters, placards, designs, devices, decorations or graphic displays bearing advertising matter and for use in windows or elsewhere in the interior of a retail establishment. The importer, distributor, vintner or winery shall not directly or indirectly pay or credit the retailer for displaying such materials or for any expense incidental to their operation;
(c) Newspaper cuts, mats or engraved blocks for use in retailer’s advertisements;
(d) Items such as sport schedules, posters, calendars, informational pamphlets, decals and other similar materials for display at the point of sale which bear brand advertising for wine prominently displayed thereon, and which items are intended for use by the retailer’s customers off the licensed premises and which items are made available to the retailer’s customers for such purpose;
(e) Temporary signs or banners displaying a vintner’s, winery’s or distributor’s name, trademark or label, which signs may be permitted to be temporarily displayed on the exterior portion of the retailer premises in connection with a special event, in accordance with such rules relating thereto as may be established by the director.
(4) A distributor may perform services incident to or in connection with the stocking, rotation and restocking of wine sold and delivered to such licensed retailer on or in such licensed retailer’s storeroom, salesroom shelves or refrigerating units, including the marking or remarking of containers of such wine to indicate the selling price as established by the retailer and to the arranging, rearranging, or relocating of advertising displays referred to in this section. A distributor may, with the permission of the retailer and in accordance with space allocations directed by the retailer, set, remove, replace, reset or relocate all wine upon shelves of the retailer. Labor performed or schematics prepared by the distributor relating to conduct authorized pursuant to the provisions of this subsection (4) shall not constitute prohibited conduct.
(5) An importer, distributor, vintner or winery may furnish or give to a retailer authorized to sell wine for consumption on the licensed premises, for sampling purposes only, a container of wine, containing not more than sixty-four (64) ounces, not currently being sold by the retailer, and which container is clearly marked "NOT FOR SALE–FOR SAMPLING PURPOSES ONLY."
(6) A licensed winery may aid or assist a licensed retail wine outlet which retails exclusively the wine product of that winery and which outlet is wholly owned and operated by that winery. Two (2) or more wineries may use the same location for their respective retail wine outlets provided each outlet holds a separate retail wine license or wine by the drink license.
(7) Every violation of the provisions of this section by an importer, distributor, vintner or winery in which a licensed retailer shall have actively participated shall constitute a violation on the part of such licensed retailer.
History:
[23-1325, as added by 1975, ch. 151, sec. 5, p. 383; am. 1976, ch. 34, sec. 2, p. 73; am. 1984, ch. 221, sec. 10, p. 536; am. 1991, ch. 159, sec. 2, p. 382; am. 1994, ch. 361, sec. 2, p. 1133; am. 2007, ch. 289, sec. 2, p. 822; am. 2008, ch. 180, sec. 1, p. 544.]