The Alcohol Regulation and Licensing Authority (ARLA) has ordered a 48-hour suspension of off-licences for 32 New World supermarkets across the South Island. This decision comes as a result of breaches in online alcohol advertising regulations.
The violations relate to the online advertising of DB Export Gold and Ultra Low Carb products on January 9, which were promoted at a discount of 26.1% for customers using the supermarket’s loyalty card, Clubcard.
According to Section 237 1B of the Sale and Supply of Alcohol Act, promoting discounts on alcoholic products exceeding 25% is not allowed unless it occurs on licensed premises.
In February, Inspector Ian Paulin, the police’s national head of alcohol harm reduction, filed applications to suspend the liquor licences of 39 New World supermarkets in the South Island that were allegedly breaching alcohol promotion regulations.
The Alcohol Regulatory and Licensing Authority (ARLA) held a hearing in Christchurch last month to address Paulin’s applications. Changes in store ownership had reduced the number of affected stores to 35 by the time of the hearing.
During the hearing, ARLA noted that all supermarkets had been advised that starting December 1, operators were required to remove any online alcohol discounts of 25% or more. Shortly after the hearing, police discovered several breaches on New World’s website, prompting them to issue warnings.
The warning stated that any further breaches would result in an application to suspend or cancel the off-licences.
This resulted in the police discovering the breach that occurred on January 9.
Counsel representing the stores contended that the promotions were not publicised with percentage discounts but the use of a New World Clubcard.
However, ARLA pointed out that although the percentage discount was not explicitly stated, it could be derived from the two available prices.
The supermarkets would have their off-licence suspended from 7 a.m. on October 8. Some of the affected stores are located in Ashburton, Balclutha, Blenheim Christchurch, Alexandra, Cromwell, Kaikoura, Dunedin, Oamaru, Wānaka, Westport, and Queenstown.
