Rebates vs discounts on alcohol

If you're a brand and you want to fund an offer on your own product, the *shape* of that offer matters more than the amount. This page explains why, and what we'll ask you for.

The one rule underneath all of it

Money from a brand must never reach a retailer.

Federal tied-house law (27 USC 205(b), 27 CFR Part 6) stops a producer, importer or distributor giving a retailer anything of value. It's one of the oldest rules in US alcohol, it's the one regulators actually enforce, and it's why the three-tier system exists at all.

An offer can break that rule without anyone intending to. Which is what separates the two instruments below.

Instant discount at the register — usually not available

An instant redeemable coupon knocks money off at the till, and the brand reimburses the shop. The customer sees a lower price; the retailer is made whole by you.

That last part is the problem: value moved from a brand to a retailer. Several states restrict or prohibit supplier-funded instant coupons for exactly this reason, and the rules differ by drink category — a state may allow it on wine and ban it on beer.

Mail-in / digital rebate — usually available

A rebate works differently. The customer pays full price at the shop, and you pay the customer back directly. The retailer is never involved in the money.

Same saving for the drinker, no value transferred to the retailer, and it's the more widely permitted instrument as a result.

This is why rebates are our default for brand-funded offers. It isn't caution for its own sake — it's the structure that keeps the offer clean.

What we'll ask you for

• Who funds it — you, not the retailer, and not us.
• Which product and which states. Rules vary by state *and* by category, so a rebate live in one state may not be live next door.
• A cap and an end date. Several states require the rebate not exceed the purchase price.
• Who redeems it. It must be you or your agent — never the retailer.

What we handle

• Blocking the offer in states where it isn't permitted, from the same per-state rule set that governs your advertising.
• Keeping brand money away from retailers by construction — a sponsored post can't display a retailer's prices, and a brand can't choose which shops appear in "available near you".
• The FTC #ad disclosure and the advertiser name and class, added automatically to any paid post.

Still worth knowing

State rules here change, and the differences are fiddly — instant vs mail-in, beer vs wine vs spirits, caps, who may redeem. If you're planning a large campaign, tell us the states early and we'll confirm what's available before you build around it.