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Malkin Law Receives Favorable Declaratory Ruling on Third Party Marketing Practices in New York

by | Jun 4, 2020 | alcohol beverage law, Craft Spirits, Litigation, Three Tier System, Trade Practice

A Declaratory Ruling request submitted to the New York State Liquor Authority by Malkin Law in June of 2019 has been approved in writing by the Authority. The request detailed the specific unlicensed third party marketing practices of an  independent television network through which alcoholic beverage suppliers could promote their products at on-premise accounts.

In particular, the marketing company sought guidance as to whether its proposal to loan their devices to on-premise retailers violates the “Gifts and Services Law” or the regulations promulgated by the Authority with respect to that law.

The Authority found that the media devices were not intended to influence retailers to buy the products of a particular manufacturer or wholesaler due to the exception for interior signs advertising alcoholic beverages, provided that the signs have no secondary value and are of value to the retailer only as advertising, and so long as no manufacturer or wholesaler pays the retailer directly or indirectly in return for displaying the inside sign at the retailer’s licensed premises. Here, the Authority found that there was no violation of the Gifts and Services Law since TrueSync did not propose to pay retailers anything in exchange for the opportunity to place their devices in retail accounts utilizing retailer’s pre-existing television screens and merely proposed to loan the devices to retailers while allowing them to design their own advertisements for use in their own licensed premises.

The full Declaratory Ruling can be read here: https://sla.ny.gov/system/files/documents/2020/06/2019-01977-truesync-media-third-party-media-display-devices_0.pdf

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The foregoing was prepared as general information. It is not meant to provide legal advice granting any specific matter and should not be acted upon without professional counsel. If you have questions or require additional information regarding these or other related matters, please contact Malkin Law, P.A. This material may be considered attorney advertising under certain rules of professional conduct.