Statement of Authority, Basis, Purpose, and Fiscal Impact
of Proposed Amended Regulations
1 CCR 203-2
2008
Regulation 47-316. Furnishing of Advertising Materials
Statutory Authority:
12-47-202(2)(a)(I), C.R.S.
12-47-202(1)(b), C.R.S.
12-47-308(1), (3), (5), (7), C.R.S.
12-47-701, C.R.S.
12-48-102, C.R.S.
Basis and Purpose:
To amend the entire existing regulation for the following reasons:
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The current rule only addresses advertising materials. The
amendment addresses advertising materials and practices
most common to the alcohol beverage industry today. The
title has also been amended to reflect the expanded nature
of the regulation.
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The amendment defines, and clarifies differences between,
terms relevant to the regulation of the alcohol beverage
advertising environment: Consumer Advertising Novelties,
Point-of-Sale Advertising, Consumer Rebates, and Instant
Redeemable Coupons.

The current rule states that a licensed supplier may provide
advertising materials of negligible value to a licensed
retailer, free of charge. However, the items allowed to be
given free of charge have expanded beyond the allowance
of 12-47-308, which was that only items of negligible value
be permitted (e.g. lamps and clocks). The amendment
between consumer advertising novelties and point-of-sale
advertising items; the former is meant to be taken by the
consumer, whereas the latter is intended to remain with the
retailer. The amendment provides an illustrative list of
both types of advertising materials that may be provided to
a retailer free of charge, and reaffirms that the permitted
items must be negligible in value and primarily advertise
the supplier or its products. The amended lists of permitted
items is, therefore, not likely to be used by a supplier as a
means to influence a retailer’s product selection, which is
prohibited by 12-47-308. All other items not listed, must be
sold to a retailer.
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Fiscal Impact:
The current rule is silent on the practice of consumer
coupons and rebates. The amendment discusses the intent
of these practices, which is to give a discount directly to the
consumer to motivate them to purchase a particular
product, it defines both practices, and it clarifies the
difference between the two. So as not become a subterfuge
for unlawful financial assistance, the rule restricts a
supplier from giving instant redeemable coupons directly to
a retailer, by implementing a restricted channel of
redemption. These restrictions ensure that the consumer
receives, and benefits from, a supplier’s promotional
coupon. Otherwise, suppliers would be permitted to
provide an unlimited amount of coupons to a retailer as a
means of influencing their product selection.
The current rule has not kept pace with new methods and
equipment utilized by industry in media advertising. The
amendment recognizes these new methods, any potential
abuses, and any applicable restrictions in their use.
The amendment creates an exception from the restrictions
for non-profit or charitable organizations when conducting
events pursuant to article 48 of title 12, which is consistent
with Regulation 47-1010.
This revision has no fiscal impact
Regulation 47-320. Exterior Signs and Interior Displays
Statutory Authority:
12-47-202(2)(a)(I), C.R.S.
12-47-308(1), (3), (5), (7), C.R.S.
12-47-701, C.R.S.
12-48-102, C.R.S.
Basis and Purpose:
To amend the entire existing regulation for the following reasons:

The current rule only addresses signs intended to be seen
from the exterior of the premises, and the language is
cumbersome for the regulated industry to understand and
implement. The amendment addresses all signage, displays,
and related practices most common to the alcohol beverage
industry today. The title has also been amended to reflect
the expanded nature of the regulation.

The amendment defines and clarifies what constitutes signs
and interior displays that may be provided by a supplier,
free of charge, to a licensed retailer. The overall
restrictions related to each have been simplified: as long as
signs and interior displays have no other utilitarian value
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Fiscal Impact:
and primarily advertise the supplier or its products, they
may be provided free of charge. Limited information about
a retailer and their location is allowed.
The amendment removes a supplier’s ability to loan other
equipment or materials to enhance an interior display. To
be provided to a retailer, they must now be sold. Often
referred to as “dealer loaders” by industry members, the
gratuitous nature of these materials tends to create an
environment of undue influence in product selection, as
prohibited by 12-47-308.
The amendment creates an exception from the restrictions
for non-profit or charitable organizations when conducting
events pursuant to article 48 of title 12, which is consistent
with Regulation 47-1010.
This revision has no fiscal impact
Regulation 47-322. Unfair Trade Practices and Competition
Statutory Authority:
12-47-202(2)(a)(I), C.R.S.
12-47-202(2)(a)(II), C.R.S.
12-47-308(1), (3), (5), (7), C.R.S.
12-47-701, C.R.S.
12-48-102, C.R.S.
Basis and Purpose:
To amend the existing regulation for the following reasons:

The preamble in the current rule was updated and clarified.
Users often became confused as to what was meant by the
term “supplier.” The definition of “supplier” as stated in
Regulation 47-100(e) is restated here for that reason. The
amendment also identifies what a retailer may not solicit or
accept: financial assistance.

The amendment creates an exception from the restrictions
for non-profit or charitable organizations when conducting
events pursuant to article 48 of title 12, which is consistent
with Regulation 47-1010.

The title of paragraph A has been amended to reflect the
regulatory scope of sales of product between supplier and
retailer. However, the amendments in this paragraph do not
factually, or implicitly, authorize the state licensing
authority “the power to fix prices,” as prohibited by 12-47202(2)(a)(II), C.R.S.

The amendments recognize and permit a supplier’s longstanding practice of discounting the price of alcohol
beverage products to licensed retailers. The amendment
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Fiscal Impact:
defines the term product discount, and describes the lawful
manner in which discounts may be used to encourage sales
without unduly influencing a retailer’s product selection.
Rebates, or the practice of rewarding or compensating
retailers for purchasing a particular alcohol beverage
product, through cash, account credit, or free goods is, by
its nature, a practice that unduly influences a retailers
product selection, as contemplated in 12-47-308. The
amendment prohibits that specific practice.
The amendment clarifies the permitted practices at on-site
products sales promotions, and makes them consistent with
the changes in 47-316, in that, during an onsite promotion,
a supplier may not provide a retailer with goods having a
monetary value of $15.00 or less.
The amendment now recognizes a long-standing supplier
practice of conducting consumer sampling of its products
on retail premises. The amendment also specifies the
manner in which the practice is to be conducted.
Other language was amended because user’s found it
cumbersome or difficult to understand.
This revision has no fiscal impact