Our mission is to protect the public welfare and interest by regulating the alcoholic beverage industry through licensing, education and the enforcement of alcohol laws and regulations, as well as combating youth access to alcoholic beverages and
tobacco products in the Commonwealth.
With the holidays at hand...
it is natural to want to offer a little extra in the way of discounts and specials to show your customers some extra appreciation. It is important for retailers to remember that is illegal for any “retail licensee to give away alcoholic beverage in any quantity or deliver it in any quantity for less than full monetary consideration,” per KRS 244.050. This same statute also prohibits a licensee from offering or advertising a coupon or its equivalent (such as Groupon or Social Living) for free or discounted alcoholic beverages. An alcohol purchase cannot be used to accumulate points on a loyalty or rewards card, nor may a loyalty or rewards card be used to obtain a free or discounted alcoholic beverage.
A related FAQ is “Can we give out a Loyalty Card discount for Alcoholic Beverages?” The Department does not permit loyalty cards to be used to obtain discounts on alcoholic beverage purchases as being an electronic rebate coupon. Rebate coupons by all retailers (drink and package sales) are prohibited as only producers are permitted to advertise by use of rebate coupons for off-premise consumption (package sales), per KRS 244.461(1), 804 KAR 1:120, Section 4.
Additionally, a “coupon” is a certificate that entitles the holder to a discount on a purchase upon presentment to the seller. If a seller scans a loyalty card upon presentment by a consumer, it simply an electronic retailer coupon if the consumer receives a discount on the purchase price of alcoholic beverages, it results in violation of KRS 244.461. Any advertising of such promotions violates 804 KAR 1:100, Section 8.