WHAT KIND OF PENALTIES ARE IMPOSED FOR OFFERING DRINK SPECIALS?

It is well established in Massachusetts that restaurants and bars are prohibited from selling alcoholic beverages for a discounted price pursuant to 204 CMR 4.03(1).  Selling discounted drinks runs afoul of Massachusetts so-called “Happy Hour” regulations that attempt to deter the negligent and sometimes criminal behavior associated with the excessive consumption of alcohol.

Violation of these laws can draw stiff penalties from the local municipality’s licensing board and the Massachusetts Alcoholic Beverage Control Commission.  For instance, in a recent ABCC decision against a Boston restaurant establishment, an ABCC investigator had gone into a bar and was charged $5.00 for a glass of Bud Light Draft Beer.  The investigator then went to the bathroom, poured out the drink and hid the glass.  Later that night, the ABCC investigator returned to the establishment and informed the host that he was there to attend a private party.  After being provided a special wristband to signify that he was indeed with the private party, the investigator purchased a second glass of Bud Light Draft Beer, but this time for $3.00.  Once again, the ABCC investigator went to the bathroom and poured out the drink.  He then compared it to the glass he had hidden earlier in the night and found the two glasses were the same 12 ounce size.  The restaurant was determined to be in violation of the “Happy Hour” regulations and received a 14 day suspension of its liquor license for this single incident.

Even though the restaurant had contracted with a private promotions company to run the private party and did not, itself, set the price for the Bud Light Draft Beer within that party, the restaurant was still determined to be at fault.  Not only was the restaurant required to serve 6 days of its liquor license suspension while 8 days were held in abeyance for two years, but the ABCC further prohibited the licensed establishment from paying a fine in lieu of the suspension.

 

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