Current Events in BC Wine Law - Sylvia Lee
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  • Some recommendations that will affect wineriesSimplify regulatory requirementsWork with ALC to coordinate rulesNo endorsement requirements for low risk tasting venues (e.g. picnic areas)Allow secondary tasting roomsAllow farmers’ market sales/samplingInclude off-site products for sales (e.g. winery may be able to sell beer)Improved marketing for BC products . . .
  • BC liquor manufacturers can offer products for sample and sale at temporary off-site retail locations (farmers’ markets), provided the management of the location allowsAllow patrons to buy bottles of liquor to take home that are showcased at festivals or competitions – amend SOL or allow BC Liquor or LRS to operate a temporary store on site?allow small transfers of liquor between licensee chains and permit licensees to store liquor in secure, off-site locationOther changes: happy hours, Ubrew/Uvin at SOL events
  • Manufacturers should be able to establish low-risk tasting venues such as picnic areas without applying for specific endorsement – Government should work with local governments to increase flexibility for tasting options for manufacturersAllow manufacturers to offer patrons liquor that was not produced on site (i.e. winery can sell beer to a visitor)No timeline yet for secondary tasting rooms, wholesale pricing model or liquor in grocery stores
  • “Store-within-a-store” model will allow private liquor licences to be transferred into or sold to a “grocery” store and allow an LDB store to be transferred into a grocery store / Allows for sales of beer, wine and spirits through separate cashiersVQA license model will allow existing VQA licences (as well as a limited number of new licences) sell VQA wine directly from designated shelves within grocery stores – the purchase will be made at designated tills
  • One of the strictest, most aggressive anti-spam laws in the world (vis-à-vis opt-ins)
  • Each winery should be doing an audit of their e-mail lists and get fresh consent before the legislation takes effect – here is why . . .
  • One of the strictest, most aggressive anti-spam laws in the world (vis-à-vis opt-ins)What does that mean for wineries? If you e-mail, text message or use social media to message people in Canada, you must have their express permission to do so and any communications must be in a prescribed formatEach winery should be doing an audit of their e-mail lists and get fresh consent before the legislation takes effect – here is why . . .
  • Before you tune out, CASL is enforced by the CRTC. CRTC has the ability to impose administrative monetary penalties for violations of the CASL of up to $10M per violation if you are a corporation. if you are an individual you could be fined $1M.The CASL also includes a private rights of action, which allows any person affected by a violation of CASL to sue for actual and/or statutory damages. Statuory damages allows receivers of e-mails to sue you for $200 for each individual transgression – likely through a process administered through the CASL website.
  • CASL applies to any message where the intent is to encourage the recipient to participate in a commercial activityThis includes e-mail accounts, telephone accounts, instant messaging accounts or any other similar account (live and recorded voice as well as faxes are excluded)
  • EXPRESS CONSENT:Clear notice was provided to the recipient that they were giving consentThat notice described the purpose of the messages the recipient will receiveThe sender provided the PRESCRIBED CASL information- The name (or business name) of the winery- The mailing address, and either a telephone number or e-mail address / web address of the wineryA statement that the person can withdraw consentThe consent should require the person to actively check a box or type their e-mail address – no consent by inactivityExamples of Implied ConsentThe recipient has conspicuously publicly displayed electronic information or disclosed his/her electronic information to the sender and didn’t ask not to receive messaging, and the message is related to the recipient’s business or official capacity (eg. Contacting someone about product/supply from contact info on their website, contacting a government official etc.)OR an existing business relationship is in place incl. volunteer relationshipExemption: An existing business relationship where the sender and recipient have engaged in certain specified types of business together in the two years preceding the CEM (Purchase transaction, business opportunity, bartering, written agreement)or where the recipient of the CEM has made inquiry to the sender in the previous 6 monthsIn addition to other specific exemptions, there are also general exemptions for:An existing non-business relationship exists where an individual is a member of certain clubs, associations or voluntary organizationsWhere a recipient has disclosed his or her e-mail address to the winery without indicating that the recipient does not wish to receive unsolicited CEMs and the CEM is relevant to the person’s business, role, functions or duties in a business or official capacity
  • Can I provide a quote or estimate for supply of product? Yes, if it was requested by the recipientCan I e-mail someone to complete a transaction or get more information from the purchaser or follow up on an online purchase? Yes, if the recipient previously agreed to enter into that transaction.Can I continue to e-mail members of my wine club? Yes, generally.What about people who have created accounts on my website? You will still need to obtain consent unless they have purchased something in the last 2 years.What else will I need to change about how I send out my e-mails?In addition to the consent requirement, CASL requires that each CEM must:Identify the senderProvide prescribed contact information for the senderSet out an “unsubscribe” mediumThe unsubscribe mechanism must enable the recipient to indicate (at no cost) that they no longer wish to receive CEMs from the sender – effect to be given without delay and in any event no more than 10 business days
  • While there are transition provisions, they are very narrow and are limitedDevelop and implement a compliance plan which includes tracking and documenting implied and express consents – render fully operational unsubscribe mechanisms – train employeesLoss of ability to obtain fresh consent using electronic messaging – requests for consent should be sent out before July 1, 2014Collect info needed to rely on exceptions to consentRecapture as much of your existing database as you can with express consent BEFORE July 1, 2014Make sure all your e-mail collection from now on is expressed consent with opt-inPut in place processes to remove illegal e-mails from your database when you cannot get express consent or when time limit runs outPut in place an audit process that shows you are complying with CASL in case CRTC comes knocking at your door
  • Interprovincial Sales – assuming 100% Canadian ProductBC and Manitoba – Yes, for personal consumptionAlberta –Yes through legislation, but the AGLC has made comments about “in person transport”Ontario –Maybe - legislation is open to interpretation but LCBO has issued a policy statement that limits it to “in person transport”PEI – Yes through legislation but the PEI lqiuor board states for “in person transport”Quebec – NO – must purchase through QU liquor boardNew Brunswick and Newfoundland – NO Nova Scotia – Maybe – current laws say no, but NS gov says it will copy BC’s approach
  • Take advantage of Export Opportunities – Wine to China – set up channels – order wine here and deliver thereDiscussions with Farmer’s MarketsDiscussions with arenas/theatres / caterersBegin discussions with other wineries re: secondary tasting rooms – will it be sharingCreate strategic relationships with craft breweries and distilleries to cross-sell products

Transcript

  • 1. M A R C H 1 8 , 2 0 1 4 CURRENT EVENTS IN BC WINE LAW
  • 2. 2013 LIQUOR POLICY REVIEW
  • 3. 73 “COMMON SENSE” RECOMMENDATIONS January 31, 2014 – Liquor Policy Review Final Report, with full support of government March 6, 2014 – Draft amendments from BC Liquor Policy Review recommendations
  • 4. WILL ANY OF THIS REALLY AFFECT ME?
  • 5. IMPLEMENTATION A complete re-write of the Liquor Control and Licensing Act is planned for Spring of 2015
  • 6. CHANGES IN SPRING/SUMMER 2014
  • 7. CHANGES IN FALL 2014
  • 8. “ S T O R E - W I T H I N - A - S T O R E M O D E L ” V S . V Q A L I C E N S E LIQUOR IN GROCERY STORES And coming some time in the future . . .
  • 9. T H A T W I L L C H A N G E T H E W A Y Y O U D O B U S I N E S S OTHER CHANGES IN LEGISLATION
  • 10. A R E Y O U R E A D Y ? CANADIAN ANTI-SPAM LEGISLATION (CASL)
  • 11. CASL TAKES EFFECT JULY 1, 2014 If you e-mail, text message or use social media to message people in Canada, you must have their express permission to do so and any communications must be in a prescribed format
  • 12. WHY SHOULD I CARE?
  • 13. DOES CASL APPLY? Is this message commercial? Is this message sent to an electronic address?
  • 14. EXPRESS VS. IMPLIED CONSENT
  • 15. WHAT AM I ALLOWED TO DO?
  • 16. WHAT SHOULD I DO NOW?
  • 17. SELLING WINE ONLINE Interprovincial Shipping Challenges
  • 18. HOW CAN I SELL MORE WINE DTC?
  • 19. QUANTUM LAW Changing the Way You Think About Lawyers Sylvia Lee, B.A. LLB 250-859-6020 www.quantumlaw.ca slee@quantumlaw.ca