For some thoughts on how brands can support the trade during COVID-19, see Malkin Law’s latest article for Beverage Master by clicking here.    

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    

On Tuesday, October 22nd, the New York State Liquor Authority held a meeting for attorneys and representatives of alcohol beverage licensees to discuss internal changes, the addition of staff, increased application processing times, and common application mistakes that result in application deficiencies. Highlights of the meeting included:   Increased Application Processing Times: Application processing times have increased from 21 weeks to 26 weeks, but the filing receipt time has decreased to 2 1/2-3 weeks. Self certified applications process about 30 days sooner than non-certified applications. Brand label application processing times are up to 30 days from receipt of application.   Ways in which licensees and their representatives can avoid unnecessary delays: Licensing receives about 300 emails per day. When possible, avoid sending emails to the general licensing inbox. If you have a question regarding wholesale trade practice matters, brand label registrations, or price posting, you should email the wholesale bureau at Wholesale.Bureau@sla.ny.gov. If you have questions specific to craft licenses, you should email craftbev@sla.ny.gov. The SLA is seeing many deficiencies in applications for mistakes that can easily be avoided. For example, diagrams should be basic and easy to understand. Do not use architectural drawings as this will slow down the time it takes to review your application and may result in a deficiency. Floors of buildings should be clearly labeled and it is recommended that each floor within a licensed premises have its own diagram for clarity. All leases provided to the SLA should include a default clause. Be sure that bank statements provided to the SLA…