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New Jersey Fines Top Wholesalers, Retailers Over Rebate Programs

September 1, 2020

Leading New Jersey wholesalers Allied Beverage and Fedway Associates will each pay $4 million in fines related to a Division of Alcoholic Beverage Control (ABC) investigation into rebate programs in the state. In addition, 20 retailers statewide will pay a total of $2.3 million for their part in the programs.

A two-year investigation found that Allied and Fedway “unfairly favored 20 of the state’s largest wine and spirits retailers and put smaller retailers at a competitive disadvantage by manipulating the retailer incentive program (RIP), granting credit extensions and interest-free loans, and engaging in other discriminatory practices,” the ABC said.

The agency added that the wholesalers gave “chosen retailers a financial advantage by issuing rebates more often and in greater amounts than allowed. They also failed to wait the required 30 days before issuing rebates, thus allowing those retailers to use that money to pay for the orders for which the rebates were issued,” against ABC regulations. Among the retailers paying fines to settle with the ABC are Vingo, Gary’s, Bayway, and Joe Canal’s.—Daniel Marsteller

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