Coupons for Booze?

Maybe you’ve discovered Groupon or maybe you’re still scratching your head and wondering whether this is a typo from the word Coupon. A lot of people discover it by following a pop-up ad on facebook or on the side of an email or a search engine page. Once you sign up (or they grab you, more likely) you begin to receive regular coupons from their group, therefore, Groupon.

You might get an opportunity to get a facial and a massage for half the usual price at a salon you’ve never heard of somewhere in your city. You might get an opportunity to take a few classes at a gym or dine for 50% off in a restaurant somewhere. They can be pretty enticing.

The question that came before the New York State Liquor Authority (NYSLA) concerned whether there was any violation involved with having the Groupon offer 50% off of alcoholic beverages at particular locations. Groupon is set to go for its initial public offering, and so this was a subject that needed to be clarified.

Can a third party provider sell coupons on its website to be redeemed for discounted food and beverage alcohol at bars and restaurants?

After careful consideration, the NYSLA ruled that there were no violations. The Groupon is simply an advertiser being paid to send out the ads on behalf of the bar or restaurant and not a place that will receive a significant percentage of the retail licensee’s income from beverage alcohol. The advertiser has no part of the ownership or management and therefore does not need to be licensed as they are not actually participating in the serving of the alcohol.

Secondly, the NYSLA said that since customers received no more than 50% discount off of the retailers’ drink prices, it did not constitute a violation of the “unlimited drinks offering” prohibition.

So, basically, there can be coupons out there that encourage people to go and eat and drink at a place that already has the legal right to serve them. If people stop at one drink or at least don’t plan to drive home, maybe there’s no problem here.

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