AB-56 – Appeal of Price Filing Decision and Discount Guidance
What businesses need to know about pricing rules while a court decision is under appeal
Following a court decision that made certain pricing rules unenforceable, the State has filed an appeal.
While the appeal is pending, some pricing restrictions remain in effect under Maryland law.
This page explains what is still enforceable and how to stay compliant.
What you need to know
- The court decision on price filings and discounts is under appeal
- Some pricing rules are still enforceable
- Price discrimination is still prohibited
- Discounts must be structured carefully to comply with the law
Who This Applies To
This guidance applies to:
- Wholesalers
- Manufacturers
- Non-resident dealers
- Non-resident wineries
- County dispensaries
- Retailers
What Changed
After a court ruling made certain pricing rules unenforceable:
- The State filed an appeal with the U.S. Court of Appeals
Further updates will be provided once a decision is issued.
What Still Applies
Even while the appeal is pending, the following laws remain enforceable:
Price Discrimination
Suppliers and wholesalers may not:
- Offer different prices or discounts to different buyers
- Provide unequal terms between:
- Wholesalers
- Retailers
- County dispensaries
Providing Items of Value
Suppliers and wholesalers may not:
- Provide free alcohol or anything of value to retailers
This includes promotions that effectively give away product.
How to Structure Discounts Correctly
Discounts must be applied so that:
- Every unit is sold at a stated price
- No product is provided for free
Example:
Not allowed:
- “Buy 5 cases, get 1 free”
Allowed:
- Discounted price applied evenly across all cases
This ensures compliance with Maryland law.
What This Means for Businesses
Businesses should:
- Review discount and pricing practices
- Avoid offering free goods or unequal pricing
- Ensure all pricing complies with anti-discrimination laws
Important Notes
- The appeal may change how pricing rules are enforced in the future
- Additional guidance will be issued after the court decision
- Businesses must continue to follow all enforceable laws
Need Help?
For questions about pricing rules, contact the ATCC: 410-260-7314 ext. 2 or [email protected]