Advanced Notice of Proposed Rulemaking

The Alcoholic Beverage Control Act regulates interactions between the various tiers of the alcoholic beverage industry and certain promotional practices related to the marketing and sale of alcoholic beverages (see, generally, Business and Professions Code, Chapter 15). One of the key regulations in respect to trade practices is Rule 106 (title 4, Cal. Code of Regs., section 106). This rule is intended to promote a fair and equitable marketplace, as well as to ensure that reasonable limits are established to prevent overly aggressive marketing practices.

Over the years many questions have been presented that challenge the clarity, intent, and interpretation of various provisions in the current Rule 106. This has led to inconsistent application, lack of clear guidance, and misinterpretation of the intent of the rule, which was initially adopted in 1986 with few amendments since. As such, the Department is contemplating amendments to Rule 106 to update terminology, clarify certain provisions, remove unnecessary language, and address various modern business practices.

The purpose of this Advanced Notice of Proposed Rulemaking is to invite input from the affected alcoholic beverage industry and other interested parties. If you have any thoughts about how the Department might update Rule 106 to provide better guidance on the limits of regulated activities or to more clearly articulate the parameters of permitted (or prohibited) conduct or marketing practices, please let us know. Note that these comments will be published on the Department’s website as they are received and can be made anonymously if desired.

Written Comment Period

If you wish to provide input, please send a letter or email by August 26, 2024, to:

Law and Policy Unit
Department of Alcoholic Beverage Control
3927 Lennane Drive, Suite 100
Sacramento, CA 95834

Comments may also be submitted by email to rpu@abc.ca.gov, please include please “Rule 106” in the subject line of your email.

The Department values your time and engagement in this process.