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(1) Manufacturer's premiums may be attached to cigarette packs or cartons without being considered in violation of minimum pricing under the following conditions:

(a) the department is notified of the promotion at least two weeks in advance of the beginning date of the promotion; and

(b) the premiums are packaged along with each carton or package of cigarettes, or specifically identified as associated with the sale of a particular cigarette or carton of cigarettes. For example, a promotional display may designate a free item will be provided with each purchase of a carton of a specific brand of cigarettes. The item may be physically a part of the promotional display;

(i) manufacturer's representatives may attach premiums at the retail locations;

(ii) there is a written contract between the manufacturer and the wholesaler, subjobber or independent jobber directing the attachment of premiums.

(2) Contractual arrangements and payment for premium attachment services must be documented in a manner consistent with standard business practices and may not be netted against invoices for cigarettes.

History: 16-10-104, MCA; IMP, 16-10-301, MCA; NEW, 1992 MAR p. 668, Eff. 3/27/92.

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