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Bill & Hold, Pernicious Practices (stuff that will get folks in trouble!)

November 07, 2018

We are seeing regulatory attacks on allegedly unlawful promotions to the trade and to consumers, illegal consignment sales and other allegedly unlawful distribution and business practices involving retailers and suppliers engaging in what would be normal commercial practices for any industry other than alcohol ... The regulators for their part are not helping because (at least with the California ABC) there is no ability to obtain reliable pre-enforcement rulings on any specific practice or program ... Bill & Hold is exactly the sort of practice that could (and should) be addressed (up or down) by a declaratory ruling statute. Some are now engaging in this practice, but effective compliance counseling requires an ABC that understands how business works, and that will adopt consistent policies that can be relied upon.