804 KAR 1:120. Rebates and gift certificates.


      RELATES TO: KRS 244.050, 244.130, 244.240, 244.500


      NECESSITY, FUNCTION, AND CONFORMITY: Under the provisions of KRS 244.130, the Alcoholic Beverage Control Board has the authority to regulate alcoholic beverage advertising. KRS 244.050 requires sales of alcoholic beverages to be for "full monetary consideration." Rebates and gift certificates are common tools of modern marketing. This administrative regulation is adopted to allow the industry to use these marketing practices and also insure that the statutory provisions requiring beverages be sold for full monetary consideration are met.


      Section 1. Manufacturers and importers of distilled spirits and wine may advertise and promote, by specific brand name and bottle size, distilled spirits and wine for off premises consumption by use of rebates or mail-in- certificates wherein the consumer receives a cash refund from the manufacturer or importer, or clearing house acting for the manufacturer or importer, for this purpose, upon submission by the consumer by mail of the requisite proof of purchase.


      Section 2. The participation of retail package liquor licensees in the rebate/mail-in-certificate advertising promotion as set forth in Section 1 of this administrative regulation shall be limited to making the necessary rebate coupon or mail-in-certificate available for the consumer, if desired. The retail package liquor licensee may also advertise the availability of such a rebate or mail-in-coupon by means of media conforming with the advertising laws and administrative regulations governing alcoholic beverage advertising. In no manner shall the retail package liquor licensee be reimbursed or credited for such advertising by the manufacturer, importer or clearinghouse.


      Section 3. The use of gift certificates in the retail sale of alcoholic beverages for off-premises consumption is permitted provided that no gift certificate redeemable for alcoholic beverages is sold to or redeemed by anyone under twenty-one (21) years of age.


      Section 4. Rebates or mail-in-certificates on malt beverages are prohibited. (11 Ky.R. 910; eff. 1-7-85.)