Groupon is getting in trouble with state liquor laws. At least it is with Massachusetts’
Alcohol Beverage Control Board, citing violations of various liquor laws in the state, but mostly regarding discounted drinks. However, Groupon appears to be the only one of its kind under scrutiny, as competitors like KGB Deals continue to promote coupons applicable to food and drink specials.
In some others states, at least, Groupon appears to be somewhat in the clear. In New York, for instance, it appears to be [permissible] to discount drinks as much as 50% – but no more – while in California, anything is game as long as Groupon never uses the word ‘free’ around an offer where alcohol is involved, according to officials in those states I spoke with Friday. Of course there are 47 other states, approximately one-third of which are similarly strict as Massachusetts around the sale of alcohol. It’s a good bet Groupon will face more booze troubles.
One commenter at Forbes writes, since Groupon’s policy change in response to the purported violations, “How are we going to eat $50 worth of $2 tacos???” Naturally, this leads me to question a few things: If Groupon (and implicitly the bar or restaurant in question) is not allowed to offer coupon discounts, does this apply to discounted restaurant gift certificates from venues like Restaurant.com? Are coupons and gift certificates treated as one in the same legally, or does this differ from state to state? Does it matter if a third-party is offering the discount on a coupon or a gift certificate? I assume that, if you purchase a gift certificate from a restaurant (or even get the restaurant gift card from Costco or a grocery store), it is treated as cash at said restaurant, and is therefore applicable to both food and alcohol. I’d like to know if that’s not the case in some states.
I fail to see a distinction between Groupon’s and Restaurant.com’s wares: both are pre-paid deals. Whether I pay $10 for $25 worth of food and drink at an establishment with a Groupon or pay $10 (sometimes $2 or $3 if you have a promo code) for $25 worth of food or drink at an establishment with a Restaurant.com gift certificate would seem irrelevant. Then perhaps Restaurant.com’s “gift certificate” is a misnomer as it is a discount with restrictions like Groupon. And yet, it appears that you can continue to buy both food and drink with a regular restaurant gift card/certificate. If a restaurant compensates you for a bad experience with a gift certificate, is it in violation if you use the gift certificate for “free” drinks? Is it in violation if it compensates you 100% for said bad experience immediately and your order included alcohol? What about if you win a certain amount off your tab during a restaurant-hosted trivia contest and the like?
And finally, I’m disappointed with the Internet’s offering of state liquor laws compilations. There’s Wikipedia’s reference, but it seems incomplete on restrictions. I suppose I was expecting a ranking with up-to-date descriptions, because I’m not entirely clear what each state comprehensively allows or restricts in 2011. Perhaps a project to pursue later, unless y’all have a better reference.
So I’ve come out of hibernation… that’s the best excuse I could come up with for my extended absence. And with that, I’ve got some findings to share:
Negative externalities: DC students are noisy, must reduce nighttime volume to sound equivalent of a typewriter
Paradox of efficiency: Swedes increase average CO2 emissions with green car sales
How long does it take a roughly 33 ft. tsunami to wash away building structures? About 5 minutes.
Dogs training people: dog owners exercise more than before, and more on average than people without dogs. “A 2008 study in Western Australia… followed 773 adults who didn’t have dogs. After a year, 92 people, or 12 percent of the group, had acquired a dog. Getting a dog increased average walking by about 30 minutes a week, compared with those who didn’t own dogs.” Studies promoting the benefits of puppies and coffee? Could life get better? I submit that it cannot!
Amusing sentences: President Chávez “…made it clear that breast augmentation did not square well with his revolutionary priorities.”

K-State's Operating Reactor courtesy K-State.
Awesome animated INFOGRAPHIC: How a Reactor Shuts Down and What Happens in a Meltdown. FYI, Kansas State University houses a mini nuclear reactor that’s open annually for visitors during the K-State Open House. During the tour, the guide will demonstrate how pure the water (H2O with no contaminants or dissolved ions does not conduct electricity; don’t try this at home, kids) is by sticking a running hair dryer into the water that cools the reactor. It’s pretty cool.
On that note, supplies of potassium iodide, a preventive against radiation poisoning of the thyroid gland, are running low in the US: one firm was “getting about three orders a minute for $10 packages of its Iosat pills, up from as few as three a week normally.” Sure, you can get it without prescription, but can I use my HSA dollars for it? How ‘bout it, IRS?!
Also, here are some thoughts and suggestions on donating for disaster relief in Japan. Tyler Cowen offers a few counterpoints to Felix Salmon’s case against donation. Alex Tabarrok agrees with Givewell’s suggestion of donating to Doctors Without Borders.
Now some airports are opting out of the screening. According to the TSA, currently there are 16 airports with private security screening, and I imagine an uptick in the number of private contract applications in the future. However, private screeners still must follow all the same standards that the TSA deems necessary, which likely include the implementation of the nudie body scanners and the junk-groping enhanced pat-downs.
As I’d mentioned in a previous post, not even the Israeli airport security is using these procedures. I think we could learn from them. They place a higher priority on behavior over the contents a person is carrying.
And this is another reason why we’re engaging in “security theatre” rather than actual increased safety:
…the agency was working under what Freeman calls “an unachievable mandate.” Congress demanded an agency that eliminated risk. But the risks are always changing, as terrorists devise new methods and government parries. That has led to an agency that is always in crisis mode, constantly adding new policies designed to respond to the last terror plot.
An internal TSA report reveals that screeners missed the fake bombs 60% of the time during their tests in 2006 at Los Angeles and Chicago airports.
Some people think it’s ok and maybe it’ll reduce airport congestion. Others are submitting their “break up” letters to their frequented airlines. If current procedures don’t change, I anticipate a major drop off in airline activity around the end of January and February, because people likely encountering the new security procedures now will find alternative modes of transportation for their next trips. Or they will sign up for a program that allows them to bypass the current procedures. Until then, we’ll probably see more interesting and creative exchanges between the public and the TSA.
Ah, the good old days.
Props to anyone who gets the picture reference without peeking at the link.