Unfair competition and unlawful practices

(a) In general It shall be unlawful for any person engaged in business as a manufacturer or wholesaler of hemp-derived beverages to directly or indirectly— (1) require, by agreement or otherwise, that any retailer of hemp-derived beverages purchase such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if— (A) such requirement is made or such person engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such requirement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such retailer, (2) induce any retailer of hemp-derived beverages to purchase any such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if— (A) such inducement is made or such person engages such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such inducement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such retailer by— (i) acquiring or holding (after the expiration of any existing permit) any interest in any permit with respect to the premises of the retailer, (ii) acquiring any interest in real or personal property owned, occupied, or used by the retailer in the conduct of the retailer’s business, (iii) furnishing, giving, renting, lending, or selling to the retailer, any equipment, fixtures, signs, supplies, money, services, or other thing of value, subject to such exceptions as the Secretary shall by regulation prescribe, having due regard for public health, the quantity and value of articles involved, established trade customs not contrary to the public interest and the purposes of this subsection, (iv) paying or crediting the retailer for any advertising, display, or distribution service, (v) guaranteeing any loan or the repayment of any financial obligation of the retailer, (vi) extending to the retailer credit for a period in excess of the credit period usual and customary to the industry for the particular class of transactions, as the Secretary shall by regulation prescribe, or (vii) requiring the retailer to take and dispose of a certain quota of any of such beverages, (3) induce any trade buyer engaged in the sale of hemp-derived beverages to purchase such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if— (A) such inducement is made or such person engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such inducement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such trade buyer by— (i) commercial bribery, or (ii) offering or giving any disproportionate bonus, premium, or compensation to any officer, employee, or representative of the trade buyer, or (4) sell, offer for sale, or contract to sell to any trade buyer engaged in the sale of hemp-derived beverages, or for any such trade buyer to purchase, offer to purchase, or contract to purchase, any such beverages on consignment or under conditional sale or with the privilege of return or on any basis other than a bona fide sale, or where any part of such transaction involves, directly or indirectly, the acquisition by such person from the trade buyer or such person’s agreement to acquire from the trade buyer other hemp-derived beverages if— (A) such person or trade buyer engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such sale, purchase, offer, or contract is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such trade buyer. (b) Application to bona fide return of merchandise Subsection (a) shall not apply to any transaction involving solely the bona fide return of merchandise for ordinary and usual commercial reasons arising after the merchandise has been sold. (c) Application to State and local agencies Paragraphs (1), (2), and (3) of subsection (a) shall not apply to any agency of a State or any political subdivision thereof, or to any officer or employee of such an agency. (d) Penalties Any person who violates a requirement of subsection (a) shall be guilty of a misdemeanor, and upon conviction, be subject to a fine of not more than $1,000 and the seizure and forfeiture of all hemp-derived beverages involved in such violation. (e) Secretary defined For purposes of this section, the term Secretary means the Secretary of the Treasury (or the Secretary’s delegate). (f) Other definitions Any term used in this section which is also used in chapter 56 of the Internal Revenue Code of 1986 (as added by this Act) shall have the same meaning for purposes of this section as when used in such chapter.