AB-42 – Amendments to Trade Practice Regulations
What businesses need to know about updated rules for promotions, advertising, and retailer interactions
Maryland updated its alcohol trade practice regulations, making changes to definitions, advertising rules, promotional limits, and services provided to retailers, and this guidance explains the key updates and how they affect compliance.
What you need to know
- Trade practice regulations have been updated across multiple areas
- Promotional limits and cost allowances have increased
- Advertising and service rules have been revised
- Changes take effect May 1, 2005
Who This Applies To
This guidance applies to:
- Non-resident dealers
- Wholesalers
- Manufacturers
- Retail licensees
Effective Date
- Changes take effect: May 1, 2005
Updated Definitions
Changes include:
- Expanded definition of licensed retailer to include arena licenses
- Each vendor operating under an arena license is treated as a separate retailer
- Expanded definition of brand advertising materials to include logos and symbols
Advertising Rule Changes
- Previous requirement for certain advertising displays to be at least 300 feet from retailers has been removed
This allows:
- Greater flexibility in advertising placement
Services to Retailers
Updates include:
- Wholesalers may provide schematics that describe their own products in detail
- Competing products must still be shown in general terms
Product handling:
- Sales staff may rotate their own products if accessible to consumers
Promotional Activity Updates
Several limits have been increased:
- Promotional events per retailer:
- Increased from 8 to 12 per year
- Giveaway item value:
- Increased from $5 to $10 per item
- Incidental expenses:
- Increased from $100 to $150 per event
What This Means for Businesses
Businesses should:
- Review updated promotional limits and adjust practices
- Update advertising strategies to reflect new flexibility
- Ensure compliance with revised service and schematic rules
- Train staff on updated requirements
Important Notes
- These updates affect multiple areas of trade practice compliance
- Some restrictions have been relaxed, but rules still apply
- Businesses should review the full regulations for details
Need Help?
For questions about trade practice updates, contact the ATCC: 410-260-7314 ext. 2 or [email protected]