AB-55 – Price Posting and Quantity Discounts Declared Unlawful
What businesses need to know after a court ruling made certain alcohol pricing rules unenforceable
A federal court ruling found that Maryland’s alcohol price posting requirements and the ban on quantity discounts violate federal law.
As a result, these requirements are no longer enforceable.
This page explains what changed and what businesses need to do now.
What you need to know
- Price posting requirements are no longer enforceable
- The ban on quantity discounts is no longer enforceable
- Businesses are no longer required to submit price filings
- Some pricing laws and regulations still apply
Who This Applies To
This guidance applies to:
- Wholesalers
- Manufacturers
- Non-resident dealers
- Non-resident wineries
- County dispensaries
What Changed
A federal court ruled that:
- Price posting requirements for wine and distilled spirits are unlawful
- The prohibition on quantity discounts is also unlawful
The court issued an injunction preventing enforcement of these rules.
What Is No Longer Required
As a result of this ruling:
- Businesses are no longer required to submit price filings
- Price posting requirements are suspended
- Quantity discounts are no longer prohibited
What This Means for Businesses
Businesses may:
- Stop submitting price filings
- Adjust pricing practices in accordance with the ruling
However, businesses should:
- Continue to follow all other applicable alcohol laws
What Still Applies
The ruling does not eliminate all pricing regulations.
The following still apply:
- Price discrimination laws
- Other provisions under Maryland alcohol law (Article 2B and COMAR)
Additional guidance may be issued as the state reviews the decision.
Important Notes
- This change is based on a court ruling and may be subject to further legal action
- The Comptroller and Attorney General are reviewing next steps
- Additional updates may be published
Need Help?
For questions about this update, contact the ATCC: 410-260-7314 ext. 2 or [email protected]