February 14, 2000 |
2000-R-0175 | |
AN ANALYSIS OF ALCOHOLIC BEVERAGE PRICE-POSTING LAWS IN LICENSE STATES | ||
By: Gregory Joiner, Research Fellow |
You asked for a list of states requiring alcoholic beverage wholesalers to post their prices to retailers and an analysis of applicable laws.
SUMMARY
Twelve of the 38 license states, or almost one-third, require wholesalers to post alcoholic beverage prices to retailers. These are: Connecticut, Delaware, Georgia, Indiana, Maryland, Massachusetts, Missouri, New Jersey, New York, Oklahoma, South Dakota, and West Virginia.
Five states—Connecticut, Delaware, Missouri, New Jersey, and New York—require wholesalers to post their prices monthly. In six states, they must be filed by the fifteenth day of the month preceding the month prices take effect. Post-off provisions (a price reduction not tied to the quantity of alcohol purchased by retailers) are permitted in Delaware, Missouri, New Jersey, New York, and West Virginia. The following nine states allow wholesalers to change prices at various times in the month preceding the month changes are to occur: Connecticut, Delaware, Georgia, Indiana, Missouri, New York, Oklahoma, South Dakota, and West Virginia. Five states—Connecticut, Delaware, Massachusetts, Oklahoma, and West Virginia—require price dissemination by either direct mail or publication in an applicable trade journal.
Table 1 (attached) provides a breakdown of applicable alcoholic beverage price-posting laws in the twelve states requiring such procedures.
PRICE-POSTING
Five states—Connecticut, Delaware, Missouri, New Jersey, and New York—require wholesalers to post their prices monthly. Three—Georgia, Indiana, and South Dakota—require them to continuously update price-posting schedules as changes occur. Wholesalers in Massachusetts and Oklahoma file price-posting schedules bi-monthly. In West Virginia, schedules are filed quarterly. In Maryland, the price-posting filing schedule is at the state comptroller's discretion.
PRICE-POSTING FILING SCHEDULES
Terms of price-posting filing schedules vary among the states. In six states, they must be filed by the fifteenth day of the month preceding the month prices take effect. But, Georgia, Indiana, Maryland, and West Virginia do not specify an exact day lists must be submitted. Delaware and South Dakota permit the filing of price-posting schedules during the second half of the month preceding the month prices take effect.
POST-OFF PROVISIONS
Post-off provisions (a price reduction not tied to quantity of alcohol purchased by the individual retailers) are permitted in Delaware, Missouri, New Jersey, New York, and West Virginia. They are not permitted in Georgia, Massachusetts, Oklahoma, and South Dakota. Connecticut, Indiana, and Maryland's laws do not address post-off provisions.
PRICE CHANGES
The following nine states allow wholesalers to change prices at various times in the month preceding the month changes are to occur: Connecticut, Delaware, Georgia, Indiana, Missouri, New York, Oklahoma, South Dakota, and West Virginia. In Maryland and Massachusetts, price changes are allowed at the discretion of the state's alcoholic beverage governing agency. New Jersey does not permit price changes.
PRICE DISSEMINATION
Five states—Connecticut, Delaware, Massachusetts, Oklahoma, and West Virginia—require price dissemination by either direct mail or publication in an applicable trade journal. Georgia, Indiana, Maryland, Missouri, and New York do not address price dissemination. New Jersey and South Dakota do not require price dissemination, but wholesalers in both states typically follow the practice voluntarily.
The 38 license states are: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, South Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, West Virginia, Wisconsin, and Wyoming.
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Attachment
Price-posting filing schedule |
Terms of price-posting filing schedule |
Post-off provisions (a price reduction not tied to quantity purchased) |
Opportunity to change prices |
Price dissemination | |
Connecticut |
Monthly |
By the 12th day of each month. Prices take effect on the first day of the month following filing. |
Not specified |
Yes. Must be filed before 3 p.m. of the fourth business day after the last day for posting prices. |
Yes by direct mail and advertising in trade journal. |
Delaware |
Monthly |
Not less than five business days prior to the end of the month preceding price change. |
Permitted |
Yes. Price changes may be made at any time, but notification must be made via hard copy or electronically and recorded on an “800” number. |
Yes by direct mail and advertising in trade journal. |
Georgia |
Continuous |
Not specified |
Not permitted |
Yes, but not within a period of less than 180 days from the date of the previous posting. |
Not specified |
Indiana |
Continuous |
Not specified |
Not specified |
Yes, but must be disseminated in such a manner and for such a period of time as is calculated to insure retailers are afforded reasonable opportunity to secure the advantage of the price change. |
Not specified |
Maryland |
Comptroller's discretion |
Comptroller's discretion |
Comptroller's discretion |
Comptroller's discretion |
Not specified |
Massachusetts |
Bi-monthly |
By the 10th day of the month preceding the next scheduling period. |
Not Permitted |
Commission's discretion |
Yes, by direct mail. |
Missouri |
Monthly |
On or before the 10th calendar day of each month, unless otherwise ordered. |
Permitted |
Yes, within three days of filing monthly report. |
Not specified |
New Jersey |
Monthly |
By the 15th day of each month. |
Permitted |
Not permitted |
Not required |
New York |
Monthly |
On or before the fifth day of each month. |
Permitted |
Permitted. Prices must be changed within three days of authorities release of report. |
Not specified |
Oklahoma |
Bi-monthly |
On or before 15th day of month preceding period. |
Not permitted |
Yes. Must be filed by 25th day of month preceding period. |
Required by direct mail or trade journal. |
South Dakota |
Continuous. New products and price changes. |
10 days prior to sale. |
Not permitted |
Permitted. Not less than 10 days after filing unless reduction is in response to a competitor's price change. |
Not required |
West Virginia |
Quarterly |
February, May, August and November. No specific day. |
Permitted |
Permitted. Must be filed 60 days before price change. |
Required in trade journal. |