Rational for new Regulations
On 2 September 2019, Minister for Health, Simon Harris TD, notified the European Commission of his plans to introduce regulations to control promotions that incentivise alcohol consumption. These will be known as the Public Health (Alcohol) Act 2018 (Sale and Supply of Alcohol Products) Regulations 2019.
The notification was made under the EU Technical Standards Directive process. This gives Member States and the European Commission a period of three months to assess the compatibility of proposed regulations with EU law and internal market principles. As no detailed opinion was received on the proposed regulations, the Minister can now proceed to introduce them.
The legislative basis for the new regulations is section 23 of the Public Health (Alcohol) Act 2018. This gives the Minister authority to make regulations relating to the sale and supply of alcohol products.
Section 23 was drafted in recognition of the fact that alcohol is not an ordinary grocery product, given the associated risks to health. The aim of the proposed regulations is to achieve the stated objectives of the Act, which are to:
- Reduce the per capita alcohol consumption in Ireland to the OECD average of 9.1 litres, some two litres below the estimated Irish level;
- Delay the initiation of alcohol consumption among children and young people;
- Reduce harm caused by misuse of alcohol; and
- Regulate the supply and price of alcohol with a view to minimising the possibility and incidence of alcohol related harm.
The Regulations
Once commenced, the proposed regulations will prohibit:
- Awarding loyalty card points or similar benefits on the purchase of an alcohol product;
- Using loyalty card points or similar benefits to purchase an alcohol product;
- Selling alcohol products at a reduced price or free of charge on the purchase of another product (including other alcohol products) or on the supply of a service; and
- Short-term price promotions (3 days or less) on alcohol products.
Prohibited commercial/marketing practices
If the proposed regulations become law, the following practices would be prohibited:
- Allowing customers to earn supermarket loyalty card points when purchasing alcohol products;
- Allowing customers to redeem previously earned supermarket loyalty card points against alcohol products;
- Offering a complimentary glass of alcohol with a beauty treatment;
- Offering "buy one get one half price" or "buy one get one free" on alcohol products; and
- Special offers on alcohol products valid only for the duration of a Bank Holiday weekend.
Penalties for breaching the regulations
Failure to comply with the proposed regulations will be an offence. Anyone convicted of a summary offence under the regulations could face a fine of up to €5,000, or imprisonment for a term not exceeding six months, or both. Anyone convicted on indictment of an offence under the regulations (i.e. where the breach is considered a more serious breach) could face a fine of up to €250,000, or imprisonment for a term not exceeding three years, or both.
Where the offence is committed by a licence holder, the court can also order the temporary closure of the licensed premises.
Next steps
The Minister has said that he intends to provide for a one-year lead in period before the regulations come into effect. This would mean than the regulations won't come into effect until January 2021, at the earliest. We will provide further information on when these new regulations will come into effect, as and when there is more certainty about that.
