AB-16 – Trade Practice Violations and Penalties
Examples of violations and penalties issued under Maryland alcohol laws
Maryland has taken enforcement action against multiple licensees for violations of alcohol laws, including illegal shipments, improper incentives, and trade practice violations, and this summary highlights common violations and the financial penalties imposed to reinforce compliance expectations.
What you need to know
- Violations have resulted in fines up to $15,000
- Common issues include illegal shipments and improper incentives
- Both suppliers and wholesalers have been penalized
- Enforcement applies across all tiers of the industry
Who This Applies To
This guidance applies to:
- Manufacturers
- Wholesalers
- Non-resident dealers
- Importers
- Retail licensees
Types of Violations Identified
Enforcement actions have involved violations such as:
- Direct shipment of alcohol to Maryland consumers
- Providing items of value to retail licensees
- Improper promotional or marketing practices
- Failure to comply with trade practice laws
These violations are prohibited under Maryland law.
Examples of Enforcement Actions
Licensees have paid fines in lieu of license suspension or revocation.
Examples include:
- $15,000 fine for illegal direct shipment to consumers
- $10,000 fine related to improper inducements
- $3,000 fines for trade practice violations
- $1,000 fine for improper provision of equipment or services
These actions demonstrate the range of penalties for non-compliance.
Key Compliance Risks
Businesses should be aware of risks such as:
- Shipping alcohol directly to consumers without authorization
- Offering free products, services, or incentives
- Failing to follow trade practice regulations
- Being held responsible for actions of partners or affiliates
Responsibility and Accountability
Responsibility applies to:
- The licensed business
- Employees and agents
- Importers acting on behalf of foreign suppliers
Businesses may be held accountable for indirect violations or actions taken on their behalf.
What This Means for Businesses
Businesses should:
- Review all sales, marketing, and distribution practices
- Avoid any activity that could be considered an inducement
- Ensure all shipments comply with Maryland law
- Monitor third-party and partner activity
Important Notes
- Enforcement actions may include fines instead of license suspension
- Violations may involve multiple parties across the supply chain
- ATCC continues to actively enforce compliance
Need Help?
For questions about enforcement actions, contact the ATCC Field Enforcement Division: 443-300-6990