AB-9 – Trade Practices Overview
What licensees need to know about prohibited practices and enforcement under Maryland alcohol law
Maryland enforces strict alcohol trade practice laws that prohibit certain business activities such as illegal discounts, inducements, or gratuities, and this guidance explains how these rules apply and the consequences for violations across all tiers of the industry.
What you need to know
- Certain discounts, deals, or incentives may be illegal
- The most restrictive rule (state or federal) applies
- Businesses are responsible for employee actions
- Violations may result in serious penalties
Who This Applies To
This guidance applies to:
- Manufacturers
- Wholesalers
- Non-resident dealers
- Solicitor permit holders
What Are Trade Practices
Trade practices are rules that govern:
- How alcohol businesses interact across the three-tier system
- What types of incentives or agreements are allowed
Maryland law works alongside federal law to regulate these activities.
General Rule
When both federal and state laws apply:
- You must follow the more restrictive requirement
Prohibited Activities
Licensees may not:
- Offer illegal discounts or pricing arrangements
- Provide gratuities or incentives to retailers
- Circumvent trade practice rules through indirect arrangements
These actions violate Maryland alcohol laws.
Responsibility of Licensees
Licensees are responsible for:
- Their own actions
- The actions of employees, agents, and supervisors
This applies even if:
- The licensee was not directly aware of the violation
Enforcement and Penalties
Violations may result in:
- License suspension
- License revocation
- Monetary fines
Solicitor permits may also be suspended or revoked.
Suppliers and non-resident dealers involved in violations are also subject to enforcement action.
ATCC Enforcement Role
The agency will:
- Investigate potential violations
- Conduct inspections
- Take enforcement action when necessary
The goal is to ensure compliance with trade practice laws.
What This Means for Businesses
Businesses should:
- Review trade practice rules regularly
- Train employees on compliance requirements
- Avoid offering or accepting improper incentives
- Contact ATCC if unsure about a specific activity
Important Notes
- Trade practice rules apply across all tiers of the industry
- Violations may occur through direct or indirect actions
- Compliance requires ongoing awareness and oversight
Need Help?
For questions about trade practices, contact the ATCC: 410-260-7314 ext. 2 or [email protected]