[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR10.54]

[Page 296]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 10_COMMERCIAL BRIBERY--Table of Contents
 
                           Subpart D_Exclusion
 
Sec.  10.54  Criteria for determining trade buyer independence.

    The criteria specified in this section are indications that a 
particular practice between an industry member and an officer, employee, 
or representative of a trade buyer, other than those in Sec.  10.52, 
places trade buyer independence at risk. A practice need not meet all of 
the criteria specified in this section in order to place trade buyer 
independence at risk.
    (a) The practice restricts or hampers the free economic choice of a 
trade buyer to decide which products to purchase or the quantity in 
which to purchase them for sale to retailers and consumers.
    (b) The industry member obligates the trade buyer to participate in 
the promotion to obtain the industry member's product.
    (c) The trade buyer has a continuing obligation to purchase or 
otherwise promote the industry member's product.
    (d) The trade buyer has a commitment not to terminate its 
relationship with the industry member with respect to purchase of the 
industry member's products.
    (e) The practice involves the industry member in the day-to-day 
operations of the trade buyer. For example, the industry member controls 
the trade buyer's decisions on which brand of products to purchase, the 
pricing of products, or the manner in which the products will be 
displayed on the trade buyer's premises.
    (f) The practice is discriminatory in that it is not offered to all 
trade buyers in the local market on the same terms without business 
reasons present to justify the difference in treatment.