Pennsylvania Coupon Law in Conflict with TTB Rules

Pennsylvania’s Act 39, passed in 2016, allowed food and convenience stores to obtain Wine Expanded Permits (WEPs) to sell wine to go. However, the new law did not allow these WEPs to utilize coupons, despite the fact that Pennsylvania Liquor Control Board (PLCB) stores have long honored instant redeemable coupons and mail-in rebates. Wine Institute solicited an opinion from TTB’s Trade Investigations Division on this discrepancy in August 2017. It was TTB’s opinion that winery compliance with current Pennsylvania state law, which allows coupon use in PLCB stores while prohibiting them for use at WEPs, creates a situation where things of value are provided only to certain retailers. Retailers face no potential consequences, but wineries face a potential risk to federal basic permits for continuing to support it.

Wine Institute met with PLCB Members last winter to notify them of this dilemma. PLCB has no administrative discretion to allow coupon use at WEPs and believes a law change would be required for that solution. It has drafted legislation to enable WEP use of coupons and provided it to the Senate Liquor Committee Chair, however, no further action is currently scheduled. Wine Institute advises its members who use coupons in the PA market to discuss the programs with their legal counsels. Wine Institute’s State Relations team remains involved in discussions of coupon use in Pennsylvania.