Fifteen national suppliers of wine and liquor have paid $2.3 million to settle an investigation into the use of rebates and gifts to influence the marketing of their products by retailers and restaurants, New York Attorney General Eliot Spitzer said Monday.

Mr. Spitzer said the incentives can result in higher prices and limit choices for consumers.

Under the agreement, some of the largest suppliers operating in New York agreed to ban the use of preferential discounts, rebates, allowances, cash, and gifts to buy favor for their products, according to Mr. Spitzer. The incentives, which Mr. Spitzer said totaled $9 million from 2003 through 2005,went to some of the biggest retailers to boost sales.

The settlement involves Bacardi USA Inc., Banfi Products Corp., Brown-Forman Corp., Constellation Brands Inc., Diageo North American Inc., E &J Gallo Winery, Future Brands LLC, Absolut Spirits Co. Inc., Jim Beam Brands Co., Kobran Corp., Moet Hennessy USA Inc., Pernod Ricard USA LLC, Remy Cointreau USA Inc., Sidney Frank Importing Co. Inc., and Skyy Spirits LLC.

“As a result of these supplier and wholesaler agreements, the illegal schemes that benefited a favored few have ended,” Mr Spitzer said. “The result is that thousands of smaller stores, bars and restaurants will now be able to compete on a level playing field.”

The incentives violate provisions of the state Alcohol Beverage and Control Law aimed at making sure such inducements don’t affect marketing decisions.

“We have fully cooperated with the New York State attorney general’s investigation,” Banfi Products said in a prepared statement. “Banfi is pleased the business environment has changed in accordance with the law, and that all industry members will conduct their efforts on a level playing field.”

“We are confident that it encourages fair industry sales practices and a balanced trade environment,” the Diageo spokesman, Gary Galanis said of the settlement.

Other suppliers contacted Monday didn’t immediately respond to requests for comment.

To skirt the law, retailers set up display and advertising companies to accept payments from suppliers and wholesalers, Mr. Spitzer said.

In the settlement, suppliers agreed that they wouldn’t subsidize illegal marketing schemes orchestrated by wholesalers.

In August, the state’s eight largest wine and liquor wholesalers agreed to pay $1.6 million and adopt a series of reforms to end Mr. Spitzer’s investigation of illegal marketing practices in the industry. That settlement prohibited wholesalers from favoring select retailers with gifts and discounts not available to thousands of smaller stores, and restaurants.