It’s natural for consumers to expect to apply their deal vouchers across both food and drinks in restaurant deals.  But, for now, it’s perhaps more prudent to proceed with caution with including alcohol in deals, and focus on the use of deals with food items only.

A recent story reported in Boston.com highlights a new Fine Print issue in Daily Deals.  It appears that the Massachusetts Alcoholic Beverages Control Commission has weighed in and challenged Daily Deals that offer drinks, as a violation of the state’s “happy hour” regulation, that essentially prohibits selling drinks to anyone below the prices available to the general public.

From Boston.com

In a February letter to Groupon, the commission said that a $100 Groupon coupon that a consumer could redeem at a Massachusetts restaurant with a liquor license appears to be an “example of discounting activity that fails to comply with all laws of the Commonwealth and the regulations of the Alcoholic Beverages Control Commission.”

Like many Fine Print issues in this new space, state level regulations appear to have been thoroughly vetted, and vendors tend to be begging forgiveness instead of thoroughly researching and getting permission prior to selling a small business on Daily Deals. this point was put much more eloquently by the legal counsel for the Commission!

I am hopeful that the long-established, clear, bright lines of the boundaries of legality have not vanished in the rear-view mirror of entrepreneurism driven by unbridled and imprudent, if not reckless, enthusiasm.

The business will likely be viewed as being “on the hook” for the violation, it’s probably best when designing a deal that could involve drinks to receive formal confirmation from your deal provider that this is a non-issue in your state.

Alternatively, simply show restraint and design your offers to be dry until the dust settles!

Comments

  • lynoralargent

    I would like to add… Please use caution when promoting a deal for a provider who charges insurance full price for the same service. I know every state is different so it is best just to stay away from this practice…for example; boutiques offering eye glass frames and prescription lenses have the option to charge the health insurance for the prescription lenses. If you run a deal for one of these retail stores, be careful to offer the deal on the frames only. If the merchant discounts the total purchase they could get in trouble with the insurance police. Another one is Chiropractic services. Be careful the way you work the initial visit and be sure to say "consultation" and not "analysis" because they charge insurance for an initial analysis. It is best to stay out of this gray area all together and promote only those practitioners who offer massage or other services that are not charged on health insurance.
    Businesses will jump in to get the exposure without considering these facts. I believe it is the responsibility of the deal program to be mindful of the laws

  • I think before publishing this post you have to also mention pros and cons regarding the daily deal site. But idea you give regarding daily deals is awesome.

  • Groupon is now a days its marketing were increasing,google to trying to get groupon for local business

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