+
hotoynoodle | Jan 23, 201712:28 PM     64

Shared via email:

January 18, 2017
ABCC Decision - Selling Alcohol Below
Cost Can Lead to Severe Penalties

FROM THE DESK OF THE EXECUTIVE DIRECTOR - Frank Anzalotti

Dear Member,
I'm sending you this Member Alert to make you aware of the penalties that can be imposed by violating any Massachusetts Liquor Laws. On December 7th, 2016 the commission held a hearing to review alleged illegal retail pricing Total Wine & More in Natick and Everett. Regulation 204 CMR 2.04(1) states the following "No holder of a license issued under MGL c. 138, sec. 15 shall sell or offer to sell any alcoholic beverages at a price less than invoiced cost. Cost is defined as net cost appearing on the invoice for said alcoholic beverages." The testimony at the hearing lead to the decision that was handed down on January 18, 2017 that the licensee was advertising the sale of products based upon discounts yet to be given to them. General laws and ABCC regulations indicate that this cannot be done. The licensee in question received two notices of suspension for their Natick store and one notice of suspension for their Everett store. The suspensions included either two or three day closings along with 8 additional days held in abeyance for two years. The licensee has three options: 1.) Close these operations for two or three days as prescribed in the notices. 2.) Pay a fine for each suspension as a compromise in lieu of the closings. 3.) Appeal these decisions to Superior Court. An appeal to Superior Court waves the licensees rights to paying the fines. If they should lose in a court, they will have no other choice but to serve the suspensions. It is important that you understand how the ABCC defines invoice cost as quoted in the above bold sentence. All of you should be extremely careful of how you price sale items in your store.

Sincerely,

Frank Anzalotti, Executive Director

Want to stay up to date with this post? Sign Up Now ›

More from Chowhound

Composting 101: Everything You Need to Know About Preventing Food Waste
Guides

Composting 101: Everything You Need to Know About Preventing Food Waste

by Maryse Chevriere | Food is a major part of my life. I’m more on top of dining and restaurant news than world news. My...

Products to Help Reduce Food Waste
Shop

Products to Help Reduce Food Waste

by Emily Murawski | According to the NRDC, Americans waste nearly 40 percent of the food they buy—does this ring true...

Follow These Easy Tips to Reduce Food Waste
Guides

Follow These Easy Tips to Reduce Food Waste

by Emily Murawski | When we waste food, we waste both our own money (an average of $1,800 per year for a family of four...

Celebrate Spring with These Seasonal Cocktails
Recipe Round-Ups

Celebrate Spring with These Seasonal Cocktails

by Brittany Loggins | There’s no better way to shed your winter layers and ease into spring than with a delicious cocktail...

See what's new!

View latest discussions ›

Get fresh food news delivered to your inbox

Sign up for our newsletter to receive the latest tips, tricks, recipes and more, sent twice a week.