If a manufacturer offers an electronic coupon (ex/ penny offer) to one retailer at a certain amount (ex/$4), and that amount is more than the general market coupon (ex/$1), is that legal? (c) Are retailers permitted to sell alcohol below cost?
- Penny offers are considered giving free alcohol to a consumer and are therefore not allowed. Coupons that offer non-alcohol items at a penny are allowed (i.e. Buy Brand X Beer get a bag of charcoal for 1¢). Buy 2 cases get one free discounts are not allowed. This encourages over indulgence and is not permitted.
Instant Redeemable Coupons (IRC) that are readily available at the retail premises are not permitted (tear offs, neckers, coupons stuck to the case, etc.). A consumer that receives an IRC in the mail, or cut out of a newspaper advertisement or print from a web page is permitted. The ILCC will monitor these types of IRCs for retail fraud.
- All manufacturer/distributor coupons must be accepted and/or allowed at all similarly situated retailers.
- Retailers are not permitted to sell alcohol below invoiced cost.
