People Ex Rel. Department of Alcoholic Beverage Control v. Miller Brewing Co.

The Department of Alcoholic Beverage Control (the Department) appeals from the superior court’s order denying the Department’s request for a preliminary injunction to enjoin Miller Brewing Company (Miller) from giving consumers cash rebates on the purchase of beer when the consumers buy certain nonalcoholic products.

According to the Department, Miller’s promotional campaign, which the Department refers to as a “contingent rebate” scheme, violates Business and Professions Code section 25600 (hereafter section 25600) and California Code of Regulations, title 4, section 106 (hereafter rule 106). We disagree.

As we will explain, almost 20 years ago section 25600 was construed by this court to allow cash rebates on the purchase of alcoholic beverages. Since then, the Legislature has amended section 25600 without altering that construction of the statute, thus acquiescing in the court’s interpretation of legislative intent. Nothing in the language of section 25600 supports the Department’s position that the Legislature’s intent to allow direct cash rebates on the purchase of alcoholic beverages does not extend to cash rebates contingent upon the purchase of nonalcoholic…