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March 20.2009

Marketing Through Private Parties: News in CA and IL

by Susan Cagann

In California and Illinois, agencies are rulemaking through bulletins and advisory opinions.

California's new law allows suppliers to market  beer, wine and spirits at private events with a cost.  With passage of Business and Professions Code section 25600.5, these events can not take place at licensed retail establishments.  California ABC published two recent advisories that clarify how these new rules work and that other previously permitted practices are no longer acceptable.  ABC has clarified that suppliers may not pay for any entertainment at a retail licensed establishment from the occasional mariachi band to bagpipes to rock bands.  Private events can be held at unlicensed locations and suppliers can pay for entertainment and provide their guests with all they can eat and drink.

http://www.abc.ca.gov/trade/Advisory-Bar%20Night%20Promotions%202009.pdf

http://www.abc.ca.gov/trade/Supplier%20Entertaninment%20of%20Consumers.pdf

Apparently in Illinois, rulemaking is allowed through bulletins.  The ILCC's Winter Bulletin sets forth rules for what constitutes a private party.The following acts make an event public:  any form of media advertising of the event, collection of any type of admission fee, any prepayment to attend the event, and any promotion of a specific brand of alcohol.  The conditions contain a reminder that regardless of whether a party is public or private a licensed distributor or manufacturers or their agent cannot give away free alcoholic liquor unless statutory sampling guidelines are followed.

http://www.state.il.us/LCC/newsletters.asp

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