Code of the District of Columbia

Subchapter IV. Sale on Credit, Gifts, and Loans.


§ 25–731. Credit and delinquency.

(a) For the purposes of this section, the term “payment” means the delivery to the manufacturer or wholesaler of cash or a check, draft, or other order for payment; provided, that the check, draft, or other order of payment is drawn only on the bank account of the retailer or manufacturer.

(b) No alcoholic beverage shall be sold by a manufacturer or wholesaler to a retailer or manufacturer, or purchased by a retailer or manufacturer, except on the following terms: (1) full payment in cash on delivery, or (2) full payment in cash before the 16th day of the month following the month of purchase or delivery.

(c) A retailer or manufacturer who fails to make payment in full in accordance with the terms of purchase shall not, during the period of delinquency, make any further purchases except for cash on delivery, and, during the period of delinquency, a manufacturer or wholesaler who has knowledge of such delinquency shall not sell any alcoholic beverages to the retailer or manufacturer except for cash on delivery.

(d) Subsections (b) and (c) of this section shall constitute a reasonable extension of credit and no enlargement or extension of such terms, whether cash or credit, shall be granted by the manufacturer or wholesaler or accepted by the retailer or manufacturer.

(e) Repealed.

(f) Repealed.

(g) Repealed.


(May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Mar. 25, 2009, D.C. Law 17-361, § 2(c)(2), 56 DCR 1204; May 2, 2015, D.C. Law 20-270, § 2(e)(6), 62 DCR 1866.)

Section References

This section is referenced in § 25-733.

Effect of Amendments

D.C. Law 17-361 repealed subsecs. (e), (f), and (g), which had read as follows:

“(e) The failure of a retailer who contracts to purchase an alcoholic beverage for full payment in cash on delivery to make full payment upon delivery shall constitute a violation of this chapter.

“(f) A retailer shall not satisfy the obligation to pay for an alcoholic beverage unless the payment is dated on or before the date payment is due and is, upon presentation, promptly honored by the bank on which it is drawn.

“(g) The failure of a manufacturer or wholesaler to deposit the payment in the manufacturer’s or wholesaler’s bank for credit or collection, or present the payment to the bank on which it is drawn, within 5 days from the receipt of a payment shall constitute a violation of this chapter. Each day that the failure continues shall constitute a separate violation.”

The 2015 amendment by D.C. Law 20-270 substituted “retailer or manufacturer' For “retailer” throughout the section.


§ 25–732. Payment plan for use in extenuating circumstances. [Repealed]

Repealed.


(May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Mar. 25, 2009, D.C. Law 17-361, § 2(c)(3), 56 DCR 1204.)


§ 25–733. Delivery and payment records and reports.

(a) A delivery of an alcoholic beverage to a licensee shall be accompanied by an invoice of sale or delivery which shall bear the date of delivery of the alcoholic beverages.

(b) Before the 26th day of each month, each manufacturer and wholesaler shall file with each other manufacturer or wholesaler within the District, on a form prescribed by the Board, a statement under penalties of perjury showing the following:

(1) The name, including trade name, and address of each retailer who has been required to make payment in cash for alcoholic beverages under § 25-731(c);

(2) All delinquent accounts; and

(3) All checks, drafts, or other orders for payment received from any retailer, which, since the previous report, were dishonored when presented for payment, when such dishonored checks, drafts, or other orders for payment exceed $15,000.

(c) A manufacturer or wholesaler who, after receiving notification of delinquency by a retailer under § 25-731(c), extends credit to any retailer, shall be deemed to have violated § 25-731(b).

(d) Repealed.

(e) Repealed.

(f) Repealed.


(May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Mar. 25, 2009, D.C. Law 17-361, § 2(c)(4), 56 DCR 1204.)

Effect of Amendments

D.C. Law 17-361, in subsec. (b)(3), substituted “presented for payment, when such dishonored checks, drafts, or other orders for payment exceed $15,000” for “presented for payment”; and repealed subsecs. (d), (e), and (f), which had read as follows:

“(d) Before March 2, June 2, September 2, and January 2 of each year, each manufacturer and wholesaler shall submit to the Board, on a form prescribed by the Board, a list of the following:

“(1) All retailers that have been required to make payment in cash for alcoholic beverages under 25-731(c), during the preceding 90 days; and

“(2) All accounts that have been delinquent during the preceding 90 days, including the amount of the delinquency.

“(e) Each manufacturer and wholesaler shall, within 24 hours of receipt from the bank or other depository of notice of dishonor of a check, draft, or other order for payment which the manufacturer or wholesaler received from a retailer, notify in writing the Board of the notice of dishonor.

“(f) Failure to file timely a report required by this section shall constitute a violation of this chapter.”


§ 25–734. Sale by retailer of beverages on credit prohibited.

(a) A licensee under a retailer’s license shall not sell on credit any alcoholic beverages except as provided in this section.

(b) For purposes of this section, the extension of credit by the licensee under an off-premises retailer’s license in connection with the sale of an alcoholic beverage through a document, device, or plan intended or adapted for the purpose of establishing credit, except through the use of a credit card, shall be considered a sale on credit.

(c) This section shall not prohibit a club from extending credit to its members or the guests of members or a hotel from extending credit to its registered guests.

(d) This section shall not prohibit the licensee under an on-premises retailer’s license from accepting payment by credit card for sales of alcoholic beverages to customers.


(Jan. 24, 1934, 48 Stat. 336, ch. 4, § 35; Dec. 8, 1970, 84 Stat. 1394, Pub. L. 91-535, § 6; Sept. 29, 1982, D.C. Law 4-157, § 14, 29 DCR 3617; Mar. 7, 1987, D.C. Law 6-217, § 15, 34 DCR 907; May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959.)

Prior Codifications

1981 Ed., § 25-734.

1973 Ed., § 25-133.


§ 25–735. Gifts and loans from manufacturer prohibited.

(a) A manufacturer, whether or not licensed under this title, shall not engage in the following transactions with a wholesale or retail licensee:

(1) Loan or give money;

(2) Sell, rent, loan, or give equipment, furniture, fixtures, or property; or

(3) Give or sell a service.

(b) A retail licensee shall not engage in the following transactions with a manufacturer, whether or not licensed under this title:

(1) Receive or accept a loan or gift of money;

(2) Purchase from, rent from, borrow, or receive by gift equipment, furniture, fixtures, or property; or

(3) Accept or receive a service.

(c) Notwithstanding subsections (a) and (b) of this section, with the prior approval of the Board, a manufacturer may sell, give, rent, or loan to a retail licensee any service or article of property costing the manufacturer not more than $500 and a retail licensee may purchase from, rent from, borrow, or receive by gift from a manufacturer any service or article of property costing the manufacturer not more than $500.

(d) Notwithstanding subsections (a), (b), and (c) of this section, with the prior approval of the Board, a manufacturer may sell, give, rent, or loan to a retail licensee computer equipment for the purpose of tracking the sale or delivery of alcoholic beverages.

(e) Notwithstanding subsections (a), (b), and (c) of this section, employees or agents of a manufacturer, whether licensed by this title or not, may work or serve alcoholic beverages at a licensed establishment during an event promoting alcoholic beverages manufactured by the manufacturer without Board approval.

(f) Notwithstanding subsections (a), (b), and (c) of this section, a manufacturer, whether licensed by this title or not, may donate alcoholic beverages to the holder of a temporary license or a festival license or a nonprofit organization that does not hold a retailer’s license without Board approval.


(Jan. 24, 1934, 48 Stat. 330, ch. 4, § 18; Aug. 27, 1935, 49 Stat. 902, ch. 756, § 15; Sept. 29, 1982, D.C. Law 4-157, §§ 10, 15, 29 DCR 3617; Mar. 8, 1984, D.C. Law 5-51, § 2(b)(6), 30 DCR 5927; May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Sept. 30, 2004, D.C. Law 15-187, § 101(aa), 51 DCR 6525; Mar. 9, 2016, D.C. Law 21-84, § 2(e)(2), 63 DCR 781.)

Prior Codifications

1981 Ed., § 25-735.

1973 Ed., § 25-119.

Effect of Amendments

D.C. Law 15-187, in subsecs. (b) and (c), deleted “wholesale or” preceding “retail licensee”; and added subsec. (d).

The 2016 amendment by D.C. Law 21-84 added (e) and (f).


§ 25–736. Gifts and loans from wholesaler prohibited.

(a) A licensed wholesaler of alcoholic beverages, whether or not licensed under this title, shall not engage in the following transactions with a retail licensee:

(1) Lend or give any money;

(2) Sell equipment, furniture, fixtures, or property, except merchandise sold at the fair market value ;

(3) Rent, loan, or give any equipment, furniture, fixtures, or property; or

(4) Give or sell any service.

(b) A retail licensee shall not engage in the following transactions with a wholesaler:

(1) Receive or accept any loan or gift of money;

(2) Purchase equipment, furniture, fixtures, or property, except merchandise purchased at the fair market value for resale;

(3) Rent from, borrow, or receive by gift equipment, furniture, fixtures, or property; or

(4) Receive any service.

(c) Notwithstanding subsections (a) and (b) of this section, with the prior approval of the Board, a wholesaler may sell, give, rent, or loan to a retail licensee any service or article of property costing the wholesaler not more than $500 and a retail licensee may purchase from, rent from, borrow, or receive by gift from a wholesaler any service or article of property costing the wholesaler not more than $500.

(d) Notwithstanding subsections (a), (b), and (c) of this section, with the prior approval of the Board, a wholesaler may sell, rent, give, loan to a retail licensee computer equipment for the purpose of tracking the sale or delivery of alcoholic beverages.

(e) Notwithstanding subsections (a), (b), and (c) of this section, employees or agents of a wholesaler, whether licensed by this title or not, may work or serve alcoholic beverages at a licensed establishment during an event promoting alcoholic beverages sold by the wholesaler without Board approval.

(f) Notwithstanding subsections (a), (b), and (c) of this section, a wholesaler, whether licensed by this title or not, may donate alcoholic beverages to the holder of a temporary license or a festival license or a nonprofit organization that does not hold a retailers license without Board approval.


(Jan. 24, 1934, 48 Stat. 331, ch. 4, § 19; Aug. 27, 1935, 49 Stat. 903, ch. 756, § 16; Sept. 29, 1982, D.C. Law 4-157, §§ 11, 15, 29 DCR 3617; Mar. 8, 1984, D.C. Law 5-51, § 2(b)(7), 30 DCR 5927; May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Sept. 30, 2004, D.C. Law 15-187, § 101(bb), 51 DCR 6525; Mar. 9, 2016, D.C. Law 21-84, § 2(e)(3), 63 DCR 781; Apr. 7, 2017, D.C. Law 21-260, § 2(f)(4), 64 DCR 2079.)

Prior Codifications

1981 Ed., § 25-736.

1973 Ed., § 25-120.

Effect of Amendments

D.C. Law 15-187 added subsec. (d).

The 2016 amendment by D.C. Law 21-84 added (e) and (f).


§ 25–737. Gift bags and gift wrapping.

Holders of a manufacturer's license or an off-premises license, or licenses holding a brew pub permit, wine pub permit, or a distillery pub permit shall be authorized to sell gift bags, gift boxes, and wrapping for alcoholic beverages, and to wrap the alcoholic beverages at the licensed establishment for off-premises consumption.


(Oct. 30, 2018, D.C. Law 22-165, § 2(f)(6), 65 DCR 9366.)