§ 6-40

(This Section may contain text from a Public Act with a delayed effective date ) Sec. 6-40. Consumer loyalty and reward programs. (a) In this Section: "Loyalty program" means a structured program used by a brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges licensed under this Act to encourage participants to continue to shop at the brew pub licensee's, class 1 brewer licensee's, class 2 brewer licensee's, class 3 brewer licensee's, or manufacturer licensee with retail privileges' business by allowing participants access to special pricing on products by virtue of being a member of a bona fide loyalty program. "Mug club" means a group that is organized by a brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges licensed under this Act whose members are entitled to discounted malt, brewed, or distilled beverages and that is designed to allow a consumer to access rewards for purchases made on the brew pub licensee's, class 1 brewer licensee's, class 2 brewer licensee's, class 3 brewer licensee's, or manufacturer licensee with retail privileges' premises. "Mug club" includes, but is not limited to, point accumulation programs, the purchase and use of specialty glassware, and the purchase and use of non-alcoholic beverage products. "Rewards program" means a structured program used by a brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges licensed under this Act to encourage participants to continue to shop at the brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges licensed business by allowing participants to accrue program benefits, in the form of points or other accrual-based methods of reward, through the purchase of products, to be redeemed in the form of a discount upon a subsequent transaction on alcoholic or non-alcoholic products. (b) A brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges may do any of the following: (1) operate a loyalty program, reward program, or mug club for alcoholic beverages that the brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges is licensed to sell; (2) offer incentives to consumers for participation in a rewards program, loyalty program, or mug club; (3) offer consumers discounts on its products as part of a rewards program, loyalty program, or mug club; (4) offer benefits to members or participants of a rewards program, loyalty program, or mug club that are not offered to other consumers; (5) offer specialty glassware or other non-alcoholic products for sale to members or participants in a rewards program, loyalty program, or mug club and offer a price discount to the owner of that glassware on additional purchases using the glassware; or (6) require members or participants in a rewards program, loyalty program, or mug club to pay an annual fee as well as a renewal fee to join or maintain membership or continue participation in a rewards program, loyalty program, or mug club. (c) Membership in a mug club shall be by written application, and the licensee that organized the mug club must maintain a written list of active members as part of its records. (d) This Section applies only to a brew pub licensee, class 1 brewer licensee, class 2 brewer licensee, class 3 brewer licensee, or manufacturer licensee with retail privileges. Nothing in this Section applies to an off-premises or on-premise retail licensee or be construed to regulate, limit, or prohibit any discount program, rewards program, loyalty program, mug club, or any other similar program, however defined or structured, that is created, administered, or offered by an off-premises or on-premises retail licensee.

Legislative History

(Source: P.A. 104-451, eff. 7-1-26.)