Legal ruling due on pub discount cards

A legal test case is set to rule on the legality of drinks discount cards in Scotland — and could provide clarity on other promotions.

Mitchells & Butlers (M&B) has appealed against a warning issued by licensing chiefs against the "yellow card" student discount card used at its Scream pub the Nether Inn in Dundee.

Dundee City Council's Licensing Committee argues that the cards contravene 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.

The appeal hearing has been heard at Dundee's Sheriff Court and the Morning Advertiser​ understands that the ruling could be given as early as next week.

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.

"This will clarify the position on discount cards and may go further to clarify other sorts of promotional activity," said Scottish Beer and Pub Association chief executive Patrick Browne.

Any action on discount cards by authorities is expected to be put on hold until after the judgement.

Browne said it would be "premature" for licensing chiefs to act before the ruling.

"My understanding is that some operators in Edinburgh have been spoken to by licensing standards officers and as a result have withdrawn their discount cards. Others haven't, and they could be subject to action.

"The SBPA members are being advised that for every promotion they run they should seek legal opinion as part of a due diligence defence. Our guys are taking a very cautious approach."

Meanwhile, it was revealed this week that Edinburgh City Council has launched investigations into 65 venues for allegedly running "irresponsible promotions" since last September.