Drink price advice risks putting sellers on wrong side of law, says expert

Fears that guidance to retailers on website may be illegal

A licensing expert has warned that guidance endorsed by the Scottish Government on minimum unit pricing could leave tens of thousands of well-meaning retailers at risk of being prosecuted.

Janet Hood, a Law Society of Scotland accredited specialist for more than 20 years, believes information provided by the Scottish Wholesale Association which was paid for by the Scottish Government, could be wrong in law.

The guidance is still accessible via a link on the government’s website and appears to suggest some retailers can use “dual pricing” to sell alcohol below the minimum price as long as it is being bought by the customer for use in their trade.

Tayside-based Ms Hood believes the information is at odds with the law that came into force this week and makes no mention of dual pricing exemptions.

She said having no such distinction between classes of purchasers leaves wholesalers at risk of prosecution.

The licensing expert added that the lack of a proper definition for “trade” in the legislation means interpreting the law in this way would “drive a horse and cart” through minimum unit pricing (MUP) policy and leave it open to exploitation.

Ms Hood said: “The situation is a complete fiasco. There is absolutely nothing in the legislation that permits dual pricing.

“If there was, it would be a gift of supreme proportions to all those supermarkets, corner shops and convenience stores whose operators have been required to register under the Alcohol Wholesalers Registration Scheme.

“In my view, the legislation means that if a business only sells goods including alcohol to trade, they will not be subject to the act.

“Interestingly, the term ‘trade’ is not defined so presumably it could mean anything from the ‘licensed’ trade to any professional or business person who can obtain a card at the local cash and carry.”

Ms Hood said she highlighted her concerns to the government’s own legal department and MUP team numerous times and was told just because they paid for the guidance “doesn’t mean we endorse it”. But critics have claimed the legislation itself is so poorly written it will need to be reviewed so that it can be more easily understood.

The Scottish Wholesale Association said it stands by its own interpretation of the law but added all information provided is “caveated with the fact that it is guidance and parties should seek their own independent legal advice”.

A spokeswoman said: “Given our position on the law, we believe that wholesalers who hold premises licences can operate a dual pricing system as laid out in our guidance. We understand that wholesalers who wish to operate a dual pricing system have put in place systems relating to due diligence and have examined their membership schemes to accommodate customer verification procedures.”

A Scottish Government spokesman said: “There is nothing about MUP in itself that needs to apply to trade-only sales. We have been in discussion with wholesalers and are currently considering what steps we can take to help resolve this issue.”

The situation is a complete fiasco. There is absolutely nothing in the legislation that permits dual pricing. JANET HOOD

Picture: Dougie Nicolson. Minimum unit pricing for alcohol purchases became the law in Scotland from the start of this month.