The Tennessee ABC closed the loop on a policy that previously allowed bar owners
and marketers to "buy" drinks for patrons, a marketing strategy that avoided the
prohibition against giving away drinks. Beginning today, February 8, 2012, ABC
agents have been asked to first warn and then cite bars and restaurants that
allow individuals to buy drinks for marketing.
Tennessee state law has a
long-standing prohibition against giving away liquor at bars and restaurants. No
free samples, no "this one is on me" from bartenders, and no free drink happy
hours. The rule does not apply to beer.
Some clever owners and marketers
exploited a loophole in the prohibition against free drinks and bought rounds of
drinks at regular cost from the bar, and then handed them out to strangers. The
bar was not giving away drinks - it was an individual. Of course, the ABC
suspected that the bar or marketing company ended up paying the individual back
for the round.
The practice has grown in popularity and promoters have
started sending "shooter girls" into popular watering holes to buy free samples
of shots marketed to young binge drinkers.
The ABC declared that the
practice constitutes dispensing alcohol without a license, which is a crime in
Tennessee punishable by real jail time. We recommend that folks stop the
practice immediately.
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