SLA Accepting Comments on: Advisory 2016-9: Sealed, pre-wrapped combination packages

The Members of the Authority are currently considering proposed changes to [the current] Advisory 2016-9 - “Sealed, pre-wrapped combination packages.” The proposed changes would increase the number of cases that can be combined from one to three.  They are accepting comments on the changes until June 22, 2018 at 2:00 pm.

Keven Danow of Empire Merchants and Buckman Law Firm on behalf of Southern spoke at the SLA Board Meeting on May 30^th when the proposal was considered by the Board.  He is opposed to allowing 3 because it is inconsistent with section 101(b).  His arguments are:

• The statute says there should be 1 price for each item and they need to be priced and posted separately
• The SLA made an exception with supplier-made pre-wrapped packages which was considered 1 item
• The SLA expanded that to say 1 case can be offered to retailers as long as it is offered to any retailer.  If a case is not available, a case must be put together.  Keven felt this was consistent with statute because it is intended to allow retailers to try different products
• However, allowing 3 cases means loose bottles and moves from an exception for the introduction of products for stores to try, to family planning

Keven asked who decides if three cases should be provided; the wholesaler or the retailer, and the answer was the wholesaler.  The wholesaler has the option to offer 0, 1, 2 ,or 3 cases, as long as the same number is used for any retailer (see paragraph 17 below).  Read for clarification.

Here are the proposed changes:

16) For those items assembled and packaged by the supplier and not by its distributor and intended to be disassembled by the licensed retailer for resale. If the distributor's inventory of such items has been depleted, the distributor shall, at the request of any licensed retailer seeking to purchase such item, assemble and package [one} [up to three of any] such item for such retailer. Any such licensed retailer must meet the criteria set forth in the distributor's method of allocation submitted to the Authority and the distributor may not refuse to sell one such item to any such licensed retailer who agrees to pay for [it] [said merchandise] in cash or credit upon terms which conform to the statute and are satisfactory to the distributor.

17) For those items assembled and packaged by the supplier's distributor pursuant to paragraph 7(c) above, no more than [one] [three] of each [such] item may be offered to any licensed retailer in any month, and the distributor may not refuse to sell [the item] [such merchandise] to any licensed retailer who agrees to pay for it in cash or credit upon terms which conform to the statute and are satisfactory to the distributor.