Drinks discount cards legal in Scotland

Drinks discount cards in Scotland are legal, a judge has ruled in a test case on irresponsible promotions in Scotland.

Dundee's Sheriff Court ruled in favour of Mitchells & Butlers (M&B) "Yellow Card" student discount card used at its Scream pub the Nether Inn in Dundee.

M&B, which has since sold the pub to Stonegate, appealed against a warning issued by licensing chiefs that the discount card breached new licensing laws on irresponsible promotions.

It is believed to be the first appeal of the new rules on drinks promotions that came into force with the Licensing Act's introduction in September 2009.

Dundee City Council's Licensing Committee argued that the cards contravened the irresponsible promotions ban under the 2005 Licensing Act because different prices are offered to a distinct group of people — in this case students. Deals available include 35p off all pints and spirits.

However, Sheriff Robert Dunlop QC said the act ruled that drinks discounts had to be in place for 72 hours but did not outlaw different prices for different groups of people.

Dundee City Council has been ordered to pay M&B's legal costs.

Welcome clarity​

"We took expert legal advice as part of our assessment for implementing revised procedures in order to comply with the requirements of the new Licensing Act," said Andrew Nicholls, head of licensing and security at M&B.

"The Yellow Card scheme only applied to a small number of our student pubs but we were satisfied that the scheme was perfectly legal and we are therefore naturally pleased that the Sheriff Principal has accepted our arguments.

"The judgment brings very welcome clarity to a troublesome area of the law that has created uncertainty for a number of operators for more than a year." 

Scottish Licensed Trade Association boss Paul Waterson welcomed the decision but warned the battle on interpretation of the Licensing Act was "not over by a long chalk".

He said: "I think it highlights one of the major problems in the act — that different licensing boards take different interpretations. As a trade body that makes it incredibly difficult to advise members.

"And its not just on promotions but a whole range of issues.

"Is it a definitive ruling? I fear not as different boards will undoubtedly take different views on it. There is no consistency and that is a big problem."