Alcohol Issues in Licensed Premises

Alcohol Issues in Licensed Premises

Guidelines 3/2017

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Valvira P.O.Box 210, FI-00281 Helsinki, Finland Telephone + 358 295 209 111 www.valvira.fi National Supervisory Authority for Welfare and Health Mannerheimintie 103b, FI-00280 Helsinki Fax + 358 295 209 700 [email protected] Koskenranta 3, FI-96100 Rovaniemi, Finland

Contents Introduction ........................................................................................................................ 4 1. Serving of alcoholic beverages on the premises ......................................................... 5

1.1 Alcoholic beverages .................................................................................................... 5 1.2 Procuring beverages for serving.................................................................................. 5 1.3 Alcohol book-keeping and alcohol stores .................................................................... 6 1.4 Discontinuing licensed business activities ................................................................... 6 1.5 Serving hours .............................................................................................................. 7 1.6 Extended serving hours .............................................................................................. 8 1.7 Staff ............................................................................................................................ 9 1.8 Responsible manager ............................................................................................... 10 1.9 Order on licensed premises ...................................................................................... 12 1.10 Alcohol portions ...................................................................................................... 14 1.11 Serving for credit and giving a receipt ..................................................................... 16 1.12 Serving area and changing it ................................................................................... 17

1.12.1 The plan regarding the marking of the serving area .......................................... 17 1.12.2 Changing the serving area ................................................................................ 18

1.13 Kitchen alcohol ........................................................................................................ 20 1.14 Measuring instruments for serving .......................................................................... 20 1.15 Commercial import of alcohol for serving ................................................................ 22 1.16 Collecting information and the duty to report ........................................................... 22

2. Advertising alcoholic beverages in restaurants ......................................................... 23 2.1 General principles ..................................................................................................... 23 2.2 Pricing and price announcements of alcoholic beverages ......................................... 24

2.2.1 Pricing ................................................................................................................ 24 2.2.2 Advertising special prices for alcoholic beverages .............................................. 25

2.3 Inappropriate sales promotion ................................................................................... 26 2.4 Lotteries and open competitions ............................................................................... 27 2.5. Freebies and combined offers .................................................................................. 27 2.6 Events for the regulars .............................................................................................. 28 2.7 Product presentations ............................................................................................... 29 2.8 Advertising of strong alcoholic beverages ................................................................. 29 2.9 Advertising of alcoholic beverages in public places ................................................... 31 2.10 Using content produced by consumers and delivering advertising for distribution by consumers in online services .......................................................................................... 31

3. Supervision and sanctions .......................................................................................... 32 3.1 Self-supervision ........................................................................................................ 32 3.2 Authority supervision ................................................................................................. 33 3.3 Sanctions for breaking the serving regulations .......................................................... 34 3.4 Sanctions for violations of the advertising provisions in the Alcohol Act .................... 35

4. Granting a serving licence ........................................................................................... 36 4.1 Fixed term serving licence......................................................................................... 36 4.2 Temporary serving licence ........................................................................................ 37 4.3 Applying for a serving licence .................................................................................... 38 4.4 Companies or other communities under formation .................................................... 39 4.5 Licence for serving fermented alcoholic beverages whose percentage by volume does not exceed 4.7 ................................................................................................................ 39 4.6 Licence for alcoholic beverages whose percentage by volume exceeds 4.7 ............. 39 4.7 The grounds for granting a serving licence ................................................................ 40 4.8 The requirements for the applicant ............................................................................ 41 4.9 Withdrawing an application ....................................................................................... 42 4.10 Changes to the company's ownership or authority relations .................................... 42 4.11 Name changes ........................................................................................................ 42

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4.12 Changes to the location of the premises or ownership ............................................ 42 4.13 Processing time ...................................................................................................... 43

5. Licence and supervision fees ...................................................................................... 43

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Introduction These guidelines discuss, as the name states, the essential issues in serving of alcoholic beverages in restaurants and introduce the legislation and other guidelines concerning it. The guidelines are meant for licence appliers, licence holders, personnel, students as well as others interested in the subject. According to the Alcohol Act (1143/1994), section 41 and Government Decree on Alcoholic Beverages and Spirits (1344/1994; Alcohol Decree), section 1 a, it is Valvira’s responsibility as a central authority to guide and develop licence administration and supervision of the Regional State Administrative Agencies, to produce IT and communication services for the alcohol administration and to supervise serving, retail sale, advertising and sales promotion of alcoholic beverages in the whole country. The overall aim of these guidelines is to improve the implementation of the general aims of the Alcohol Act. The guidelines especially emphasize the importance of self-supervision on licensed premises in the prevention of misconduct and disturbances. When updating the guidelines, the chapter about alcohol quantities has been revised to correspond to arrangements approved by Valvira, including the use containers for serving drinks intended to be shared. A number of technical updates and revisions have also been made. The Åland Parliament has enacted exceptions to certain regulations concerning the serving of alcoholic beverages in Åland. Therefore, these guidelines are not fully applicable in Åland. There is more information on serving of alcohol beverages and guidelines on the topic on the website of Valvira (www.valvira.fi) and the Regional State Administrative Agencies (www.avi.fi).

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1. Serving of alcoholic beverages on the premises

1.1 Alcoholic beverages An alcoholic beverage, serving of which is subject to licence, is defined as a consumable beverage which contains more than 2.8 but a maximum of 80 percent by volume ethyl alcohol. A mild alcoholic beverage refers to an alcoholic beverage which contains a maximum of 22 percent by volume ethyl alcohol and a strong alcoholic beverage to an alcoholic beverage which contains more than 22 percent by volume ethyl alcohol (Alcohol Act, § 3). Alcoholic beverages, which have been produced through fermentation and whose alcohol percentage by volume does not exceed 4.7, include so called medium strength beer, cider, long drinks and light wine.

1.2 Procuring beverages for serving Only legally procured alcoholic beverages can be served and consumed in licensed premises. Alcoholic beverages can be legally procured from the State Alcohol Monopoly, licensed producers or wholesalers of alcoholic beverages. According to the Alcohol Act, section 8, a licence holder can also import alcoholic beverages for serving as described later in chapter 1.15. If any other alcoholic beverages than the legally delivered alcoholic beverages are served on licensed premises or in connection of the premises, the licence holder or a staff member working on the premises can be sentenced for illegal sales of alcoholic substances (Criminal Code (39/1889), chapter 50 a). Alcoholic beverages have to always be purchased using the licence number of the place of business concerned. The licence holder is not permitted to procure alcoholic beverages with his/her licence number for functions which are not organised in the licensed premises in question. If an entrepreneur has both the retail and serving licence or several serving licences, all the purchases and stores which have been procured using one licence number have to be kept clearly separate from the other places of business. Stock transfers between active licensed premises are not possible. Serving and consumption of a customer's own alcoholic beverages in the licensed premises are prohibited at all times. Consequently, in private functions in restaurants, such as weddings, it is not permitted to consume for example as a welcoming toast the customer’s own champagne from abroad; only beverages which have been legally procured for serving are permitted. The law also restricts the consumption of customers’ own alcoholic beverages in premises without a licence. According to the law, drinking of alcoholic beverages is prohibited in restaurants and other places where food and refreshments are available to the public against payment (Alcohol Act, § 58). Where a private, closed occasion is arranged in another public apartment, drinking of alcoholic beverages is allowed on

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the occasion if the arranger of the occasion has notified the police of the matter (Alcohol Act, § 59). The regulations given in the Alcohol Act concerning the procurement of alcoholic beverages for others must be noted when alcoholic beverages are procured and served in catered functions arranged on a customer’s premises or other unlicensed premises or restaurants. The section 31 of the Alcohol Act states that it is prohibited to procure alcoholic beverages against payment for other persons. The sanctions on unlicensed sales and the procurement of alcoholic beverages for others are stated in chapter 50 a in the Criminal Code. The Alcohol Act is violated if a catering service procures alcoholic beverages for a function at the request of the organiser, and then charges a fee for delivering or serving them. Problems do not usually occur if the organiser of the function procures the alcoholic beverages, and the catering service only serves them together with the rest of the serving. A catering service may charge the organiser of a function for using the staff, for example by the hour. If the catering service is in charge of facilities where they regularly arrange paid catered functions, this constitutes running a restaurant, and the serving of alcoholic beverages on the premises requires a serving licence.

1.3 Alcohol book-keeping and alcohol stores Licence holders must record sales by each account so as to provide sales data about beer, other alcoholic beverages and food in the quarterly report submitted to the licensing authority. In case the authorities carry out an inspection, the licence holder has to be able to provide documentary evidence showing the alcoholic beverages on the licensed premises have been legally procured. It is not permitted to store other alcoholic beverages than those, which have been procured using the licence number for the premises, in the serving facilities of the licensed premises. Customers’ own alcoholic beverages which have been left in the premises for storing have to be kept clearly separate from the licensed beverages, for example in a cloakroom or other similar place.

1.4 Discontinuing licensed business activities If business activities are either discontinued or passed on to a new owner, the business alcoholic beverage stock can be handed over in accordance with the conditions and limitations set by the licensing authority (Alcohol Decree, § 28). It is not permitted to take beverages, which were procured for serving, for personal consumption when business activities are discontinued. The stock of alcoholic beverages has to be either handed over to the new owner or another licensed business or returned to the wholesaler. The buyer and seller are free to negotiate the hand-over price.

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When transferring the stock to the new owner or to other licensed premises, an inventory itemizing the alcoholic beverages and a deed of transfer must be made and kept available on the premises for the licensing authority to see. The buyer has to report about the transfer to the licencing authority. As stated in licence conditions, the licensing authority has to be notified within two weeks of the discontinuation of licensed business activities or changes in management or ownership.

1.5 Serving hours The catering premises may open at the earliest at 5 am, and they are allowed to stay open until 2 am. If alcoholic beverages are served in the catering premises and the serving of them is ordered to end earlier than 1:30 am on the licensed premises or in a part of them, the licensed premises or the respective part of them must be closed half an hour after the end of the serving hours at the latest (Act on Accommodation and Catering (308/2006), § 3, subsection 1). Licensed premises may stay open between 2 am and 4 am if the serving hours have been extended after 1:30 am in accordance with the respective regulations. In this case, the licensed premises must be closed half an hour after the end of the serving hours at the latest (Act on Accommodation and Catering, § 3, subsection 2). It is prohibited to allow new customers to enter the premises in the last half hour before the statutory closing time (Act on Accommodation and Catering, § 3, subsection 3). If the restaurant is open between 2 am and 5 am in accordance with a written notification to the police, it is not allowed to serve or consume alcoholic beverages in the restaurant during these hours (Act on Accommodation and Catering, § 4, subsection 1). Licensed premises may be open as a night café between the hours of 2am and 5am subject to the provision that alcoholic beverages are no longer served on the premises after 1.30am. From 2am, the business idea of the licensed premises can assume the nature of a night café and the licence holder can notify the police of opening hours between the hours of 2am and 5am. If licensed premises have been granted extended serving hours after 1.30am, the provisions applying to the opening hours of a night café can no longer be applied to the premises. It is allowed to start serving alcoholic beverages at 9 am. The serving must stop when the premises are closed, or at 1:30 am at the latest if the serving hours have not been extended. If the licensed premises are closed after midnight, the serving must stop half an hour before the closing time at the latest (Alcohol Decree, § 23, subsection 1). After the closing time, no customers may be allowed to stay in the serving area, nor is it permitted to consume alcoholic beverages in the restaurant. After the statutory closing time, it is also prohibited to organise private functions, or for the staff to consume alcohol in the restaurant.

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1.6 Extended serving hours

In accordance with section 23 of the Alcohol Decree, regular serving hours are between 9 am and 1.30 am. On application, serving hours can be increased in the morning and after 1.30 am. A licence can be granted to start serving alcoholic beverages at 5 am at the earliest or to extend serving hours until 2.30 am or 3.30 am. The Regional State Administrative Agency grants licences for extended serving hours. The licence for extended hours is applied for on a specific application form which is available from the Regional State Administrative Agencies or on the website www.yrityssuomi.fi. The licence for extended hours can also be applied for online if the applier already has a valid serving licence. The online application form is found at www.valvira.fi. The application form should be handed in approximately one month before the start of the planned extension of serving hours. The application has to be filled with care and reasoned thoroughly. The process is often delayed due to incomplete applications. Government Decree (1208/2002) lays down provisions for the grounds for granting extended serving hours. The references to sections below refer to the abovementioned decree. Extended serving hours can only be granted for a specific reason. The licence can only be granted if the licensed premises are located in a place where the extended serving hours do not appear to cause inconvenience or disturbance to those living in the surrounding areas. The licence can be refused or it can be granted with differing hours or extent if the authority sees it necessary in order to implement the general aim of the Alcohol Act. The licence for extended hours can also be refused or a previously granted licence withdrawn if serious serving offences, recurrent breaches of the peace or activities contrary to good manners have occurred in the licensed premises (§ 4). The licence to serve alcohol before 9 am can be granted only if special travel related reasons or a specific function or event requires it (§ 5, subsection 1). According to abovementioned decree, section 5, subsections 2 and 3, as a special reason to serve alcoholic beverages after 1.30 am is considered: 1) a business idea of the licensed premises which requires extended

serving hours due to high quality entertainment or other equivalent reasons and

2) a special function or event, nature of which requires extended serving hours, is organised in the premises.

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A licence to extend serving hours until 3.30 can be granted to licensed premises which are open primarily only in the evening and night time if 1) the premises function as part of a high-level hotel or 2) the premises’ standard of equipment and level of service make it into a

particularly high quality entertainment nightclub. The licence can be granted for every day of the week or specific days of the week. The licence can cover the entire premises, a department of the premises or another specified section of the premises (§ 6, subsection 2). Licensed premises, which have been granted a licence to serve alcoholic beverages on a specific day of the week after 1.30 am, are allowed to serve alcoholic beverages until 3.30 am on the eve of Independence Day, New Year, May Day and Midsummer unless the licensing authority states otherwise (§ 7). A licence for extended hours can be granted for up to two years. A temporary licence for up to one month can be granted for specific functions and events (§ 8). The licensing authority asks for a statement from the police concerning the application. A police statement that notes such problems as previous breaches of the peace can be an obstacle for receiving a licence. In addition, the police's notion of the nature of the business activities is also taken into account when the decision on extended opening hours is made (STTV guidelines ref. 608/43/06). The change to summer and winter time affects those restaurants which have been granted extended serving hours until 3.30 am. When the clocks are changed to summer time, last orders have to be taken at 2.30 am because the clocks go forward one hour from 3 am to 4 am. The licensed premises have to be closed according to the new time. The lost hour can be taken back when the clocks are turned back for winter time and last orders are at 3.30 am after the clocks have gone back from 4 am to 3 am.

1.7 Staff The licensed premises must have, in view of the extent and quality of the activity, an adequate number of staff in order to ensure efficient supervision and maintenance of order. For this reason, among others, the members of staff are not permitted to be under the influence of intoxicating substances when at work. A plan regarding the number and duties of the staff must be presented to the licensing authority. (Alcohol Act, § 21 c, subsection 2). The staff plan form is available from the Regional State Administrative Agencies or on the website www.yrityssuomi.fi. The staff plan is a document which must be available for inspection in the licensed premises and which has to be kept up-to-date with regard to changes in staff. A shift schedule corresponding with the information on the staff plan must also always be available in the licensed premises.

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A person under the age of 18 cannot serve alcoholic beverages unless s/he has obtained adequate vocational training (Alcohol Decree, § 27, subsection 1). A young person who has completed a degree in an educational institution for hotel, restaurant and catering services where the curriculum includes education on customer service in a restaurant and a practical training period in licensed premises can be seen to hold competence which is in accordance with the Alcohol Decree. A student, who has turned 16, can serve alcoholic beverages in accordance with the curriculum only when supervised by a trainer/supervisor who is over 20 years old and has appropriate training (Alcohol Decree, § 27, subsection 2). Serving of alcoholic beverages in accordance with the curriculum referred to in the provision takes place either in the restaurant of the educational establishment or at work during work-based learning periods under the supervision of a trainer or supervisor. Furthermore, a 17-year-old student who is studying in an institution for hotel, restaurant and catering services does not have a general eligibility to work in serving of alcoholic beverages.

1.8 Responsible manager Licensed premise are required to have a responsible manager and a necessary number of substitutes for him/her who are appointed by the licence holder. The responsible manager and his/her substitutes have to be suitable for the task, and they have to have adequate professional qualifications acquired either through education or experience. The responsible manager and his/her substitutes are, besides the licence holder, responsible for seeing to it that the licensed premises observe the provisions of the Alcohol Act (Alcohol Act, § 21 b, subsection 1). A person is unsuitable for the post of responsible manager or his/her substitute if the person, due to abuse of intoxicating substances or previous offences or defaults, obviously is not capable of managing his/her duties (Alcohol Act, § 21 b, subsection 2). In case adequate professional skills are acquired through education, at least one year’s fulltime education in the restaurant and catering industry is presupposed, provided that the curriculum includes teaching and practical training in serving of alcoholic beverages. In case adequate professional skills are acquired through experience it is presupposed that the person has been engaged on a fulltime basis in serving alcoholic beverages at least two years and has got a certificate issued by an educational institution for the restaurant and catering industry that he/she masters the provisions concerning serving of alcoholic beverages (Alcohol Act, § 21 b, subsection 3) One-year education is considered to mean studies of one school year, in other words, studies of nine months. By a practical training included in the curriculum is meant a minimum of one-month on-the-job training in serving of alcoholic beverages. Differing from subsection 3, on licensed premises where only alcoholic beverages containing a maxi-mum of 4.7 percentage by volume ethyl

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alcohol prepared through fermentation are served, the adequate professional skills can be established by a certificate issued by an educational institution for the restaurant and catering industry that the person masters the provisions on serving of alcoholic beverages (in Finnish so called “anniskelupassi”; Alcohol Act, § 21 b, subsection 4). Further provisions on the above mentioned curriculum in education for the restaurant and catering industry and certificates granted by educational institutions are noted in the Decree of the Ministry of Social Affairs and Health on the Professional Requirements for the Responsible Manager and his/her Substitutes in Licensed Premises (1371/2002). The licence holder’s document of the appointment of the responsible manager and his/her substitutes has to be available for inspection on the licensed premises. If there are several substitutes for the responsible manager, the order of the substitutes has to be shown on the document. The responsible manager’s and his/her substitutes’ education or experience-based professional skills have to be clarified at the licensed premises if the authorities so request (Alcohol Decree, § 27 a). This means that the documents proving the qualification of the responsible manager – such as education and employment certificates and transcripts – have to be available for inspection in the licensed premises. It has to be stated clearly in the document of the appointment of the responsible manager, who is the responsible manager and what is the order of his/her substitutes. In the document, there also has to be information for identifying the persons (birth dates). In many licensed premises the management shifts are also highlighted in the shift schedule. The order of the substitutes is necessary because the listed substitute will come and replace the responsible manager if s/he has to leave the premises or is unable to come to work. As the order of the substitutes is clearly stated in the document, it makes working easier for the staff especially in bigger licensed premises as it is easy to note the next substitute in the order. If necessary, the next substitute in the order can be called in to the premises. The task of the responsible manager is to ensure that the provisions of the Alcohol Act are followed in the licenced premises. This requires that s/he is present in the premises always when serving of alcoholic beverages is, according to the licence or the provisions, allowed in the premises. For example an arrangement, in which the responsible manager can be called in from his/her nearby home or duties in other premises, is not considered pursuant to the provision. The licensed premises may also be open during the hours when it is not allowed to serve alcoholic beverages there according to the licence, its validity conditions or the provisions (for example service stations). During these hours it is not necessary for the responsible manager to be present. However, the responsible manager or his/her substitute must always make sure that the served alcoholic beverages are consumed within the hour limits set by the provisions and that the alcohol consumption and availability are prevented after the end of the licensing hours.

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The aim of the responsible manager system is to ensure efficient self-supervision of the licensed premises which is central to the prevention of offences and disturbances. The licence holder has to ensure that the scheduled responsible manager is able to efficiently monitor all areas of the licensed premises. The preconditions of efficient monitoring of the premises are considered unenforced, and the monitoring is seen to be neglected if the responsible manager is completely tied up in the hotel reception, kitchen or working within a certain section of the premises. When arranging monitoring, the licence holder has to take into account the special conditions of the licensed premises. This means that the different sections of restaurant might require their own responsible managers, for example. The responsibility of the responsible manager and his/her substitutes is embodied by the fact that, in addition to the licence holder, they also can be punished if they neglect their duty of supervision. According to the Alcohol Act, it is punishable for the licence holder, the responsible manager or his/her substitute to deliberately or through gross negligence violate the obligations regarding maintaining of public order on the licensed premises laid down in section 23 (Alcohol Act, § 50 a, subsection 5, paragraph 6). The licence holder, the responsible manager or his/her substitute can be sentenced to a fine for a minor alcohol offence. The responsible manager and his/her substitute can also lose the suitability for the task if they act contrary to the provisions. It is important to stress that the supervision of the licensed premises is not only the responsible manager’s task and responsibility; instead, each employee needs, for their part, to know the provisions and regulation on serving of alcoholic beverages and to comply with them in cooperation with the rest of the staff. Creating and maintaining this kind of an attitude is a matter of honour for a professional licence holder and responsible manager. Further information about the responsible manager system is available in guidelines given by Valvira on 25.5.2012 “Guidelines on the responsible manager of licenced premises and his/her substitutes”. These guidelines as well as a list of educational establishment organizing tests on the provisions on serving of alcoholic beverages are available in Finnish at Valvira’s website www.valvira.fi. Updating of the list is based on notifications made by the schools to Valvira.

1.9 Order on licensed premises An intoxicated person shall not be permitted access to the licensed premises. A customer who behaves disturbingly or whose intoxication can be clearly perceived shall be removed from the premises. (Alcohol Act, § 23, subsection 1). Alcoholic beverages shall not be served on the premises to: 1) persons younger than eighteen; 2) persons who are behaving disturbingly or are clearly intoxicated; or

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3) if there is reason to suspect abuse of alcoholic beverages (Alcohol Act, § 24, subsection 1).

It is also prohibited to serve beverages which contain minimum of 1,2 and maximum of 2.8 % ethyl alcohol by volume to a person under the age of eighteen (Alcohol Act, § 24, subsection 2). A person purchasing alcoholic beverage has to, on request, prove his/her identity for evincing that s/he has turned eighteen (Alcohol Decree, § 26). Despite the fact that security officers check the age of young persons at the door of the licensed premises, the sales staff must also always check the customer’s age in the purchasing situation if there is any reason to believe due to appearance or something else that the person is under 18 years old. Checking of personal identities of customers must not, however, be based on discriminatory practice such as national origin. Diligent checking of IDs can prevent and bring up abuse of other persons’ IDs. A young customer's age must always be checked if the members of staff cannot otherwise definitely confirm that s/he is over the age of eighteen. The customers' age must be carefully checked against an official ID. The picture and the holder of the ID must match, that is, the person has to be able to be identified from the picture. Acceptable IDs for age verification are valid identity cards, passports and driving licences. Foreign passports and driving licences are also acceptable if they do not seem to be easily falsifiable and they show the person’s age. However, for example Kela cards, student cards or military passports are not acceptable for age verification. The restaurant staff must check if the customer is over 18 years old and if the picture in the ID represents the customer. The under-aged persons are not prohibited from spending time in restaurants. However, it is the task of the licence holder and staff to control that the under-aged persons cannot consume alcoholic beverages which were bought by someone else on the premises. Neglecting to supervise this is considered the same as serving alcoholic beverages to an under-aged customer. Serving of alcoholic beverages negligently to under-aged customers is a serious offence, and, in accordance with the established sanction procedures, the sanction for it is a withdrawal of the serving licence for a fixed term already after the first occurrence. The law is always violated when an under eighteen-year-old customer is served alcoholic beverages, even if the young person appears older than his/her age. An intoxicated person's judgement is considerably weakened. Due to this, s/he is unpredictable and his/her next move cannot be anticipated. An intoxicated person can easily cause disturbance for example if s/he takes another customer’s drink to him/herself. A clearly intoxicated person's characteristics are, among others, the following: • the person has difficulty to focus his/her eyes or he/she has glazed

eyes

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• the person is behaving disturbingly, loudly and he/she is over self-confident

• the person has difficulties to comprehend matters and to understand what is said to him/her

• the person’s moves are unsure and clumsy, he/she has difficulties to grasp things and his/her reactions are slow

• the person spills his/her drink and has difficulties to take a sip of it • the person’s walk is swaying or he/she falls without assistance • the person’s speech is lisping and no longer comprehensible • the person is disoriented or he/she has difficulties to control his/her

feelings • the person is dozing, falls easily asleep or has passed out/sleeps • the person feels nauseous. The characteristics of clear intoxication are always assessed contextually. When assessing intoxication, it has to be taken into account that the characteristics indicating intoxication may also be consequences of a disease or disability. Applying the characteristics must not lead to discrimination based on disease or disability. In order to avoid all sorts of inconvenience and disturbance, an intoxicated person has to be removed from the licensed premises immediately when the intoxication is clearly noticeable. The removal has to be carried out in a sensitive but determined manner. If the customer is considerably intoxicated, the staff has to make sure that the customer is safely taken for example to his/her home. Sometimes taking care of the customer's safety in removal situations will require calling the police. A penalty for abandonment has been enacted in the Criminal Code (chapter 21, § 14). In accordance with the Accommodation and Catering Act, section 5, the licence holder and the staff have the right to deny a potential customer the access to the premises, if there is a valid reason for the denial from the point of view of order on the premises, or from the point of view of the business idea of the enterprise. On the basis of the business idea, customer selection can be done by setting age limits or requirements on attire as requisites for access. The bases of customer selection must not be discriminatory. The provisions against discrimination are laid down in the Non-Discrimination Act (1325/2014), section 8. Nobody may be discriminated against on the basis of for example ethnic or national origin, language, religion, belief, opinion, health, disability, sexual orientation or other personal characteristics.

1.10 Alcohol portions Licensed premises have to have a sufficient assortment of mild alcoholic beverages and moderately priced non-alcoholic beverages (Alcohol Act, § 25). It is normally permitted to serve only one basic portion of alcoholic beverages per customer at a time. During a meal it is permitted to serve several different alcoholic beverages at one time. It is also permissible to

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serve alcoholic beverages to a group of people by bottle or in other sales packaging (Alcohol Decree, § 24, subsection 1). The basic portion for strong alcoholic beverages is 4 centilitres but they have to also be available in portions of 2 centilitres. In hotel room mini bars a basic portion can be 5 centilitres if the beverage has been packed into a 5-centilitre miniature bottle (Alcohol Decree, § 24, subsection 2). The basic portion for mild alcoholic beverages is 8 centilitres but they have to also be available in 4-centilitre portions (Alcohol Decree, § 24, subsection 3). Alcoholic beverages which have been produced purely through fermentation (such as white and red wine) or whose alcohol content is maximum of 5.5 % by volume can be served by glass or bottle or in other sales packaging. The maximum portion per customer at a time is one litre (Alcohol Decree, § 24, subsection 4). When serving cocktails with more than one alcoholic beverage in one drink, the maximum total amount of alcohol in one cocktail can be equal to that of 4 centilitres of strong alcoholic beverage (Alcohol Decree, § 24, subsection 5). Exceptions to this are cocktails made of beer, cider, sparkling wine or red or white wine. Under a decision based on the Alcohol Decree, a maximum of 2 cl of strong alcohol beverage or 4 cl of mild alcoholic beverage may be added with regard to cocktails where an alcoholic beverage made by fermentation is mixed with another alcoholic beverage.

Valvira can grant an exception to the regulations on the portion sizes (Alcohol Decree, § 24, subsection 6). A restaurant can apply for an exceptional permit for serving a special and slightly larger than normal cocktail. Serving by bottle may be the most practical method in e.g. private occasions in which the number of participants is great. In this case, the staff serves the alcoholic beverages in the customers' glasses measuring it by basic portions of the type of beverage, judging the portion size visually. The organiser of the event is then charged for the drinks per bottle. One has to be very restrained with regard to serving of strong alcoholic beverages by bottle to small parties (2 - 4 persons). When serving alcoholic beverages by bottle, the staff must note the level of the premises, the business idea, the customers, the time of day as well as the requirements of effective supervision and maintaining order. Serving by bottle must not lead to excess serving of alcohol or over-intoxication of customers. Under the Alcohol Decree, an arrangement has been approved whereby a group of people may be served using containers, such as a jug or beer dispenser, for serving drinks intended to be shared without jeopardising obligations to supervise serving. The quantity of alcoholic beverage served in a container for drinks intended to be shared may not, however, exceed the amount which members of the group could be served individually. For example, a group of three persons may be served a

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three-litre jug of beer or a group of four persons may be served a jug containing a cocktail which contains a maximum of 16 cl of strong alcoholic beverage. When using containers for serving drinks intended to be shared by a group of people, it must be ensured that the quantity of alcohol served remains reasonable to the extent that the staff serving the alcohol have an actual possibility to supervise the group and the amount of alcohol consumed by individual members of that group. For example, a group of ten persons served ten litres of beer in a container for serving drinks intended to be shared can no longer be considered acceptable from the supervision aspect. Serving so-called doubles, that is, serving multiple portions of alcoholic beverages to one customer at the same time is prohibited. Serving of alcoholic beverage in two separate glasses, i.e. two basic portions, to one customer at the same time is also considered serving doubles. The aim of the prohibition on serving doubles is to prevent the customers' fast intoxication and the inconvenience caused by it. The members of staff are thus able to observe the development of the customers intoxication when the alcoholic beverages are served in accordance with the amounts confirmed in the decree.

1.11 Serving for credit and giving a receipt It is not permissible to serve alcoholic beverages for credit or pledge or as an exchange for goods or services. However, serving of alcoholic beverages for credit is permitted: 1) to a community 2) to a tourist staying in a hotel or if charging cash in a festive, social or

other such function would cause unreasonable inconvenience due to the quality or extent of the function

3) to private individuals by complying with the credit arrangements approved by Valvira (Alcohol Decree, § 25).

Valvira has approved the following credit arrangements for private individuals: • an international credit card • a domestic credit card which has been approved in other countries

apart from Finland as a means of payment for alcoholic beverages. The condition for accepting the credit cards listed above as a means of payment for alcoholic beverages is that other payments that the customer might incur in the premises can be paid with the same credit card. The licence holder or the members of staff are not allowed to lend money to customers so that they could buy alcoholic beverages there. The Supreme Administrative Court in its case law has noted that this is considered a prohibited procedure to serve alcoholic beverages for credit.

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The Act on the Obligation to Provide a Receipt in Cash Transactions (658/2013) requires that the trader always has to offer the buyer a receipt in business transactions if the payment is made by cash or by a method of payment similar to cash. It is also possible to offer electronic receipts. The provisions of the Act apply to all businesses, irrespective of sector, with more than 10,000 euros of net sales per year. Compliance with the Act is supervised by the police, the tax administration and, in the case of licenced premises, the alcohol inspectors of the Regional State Administrative Agencies. The business operator must set out the following details on receipts: 1) operator’s business name, contact details and Business ID 2) date of issue of the receipt 3) an identification number of the receipt, or other detail specifying it 4) the quantity and type of goods, or a description of services 5) the amount of money paid for the goods or services, and the amount

of VAT payable, itemised by each VAT rate, or the price without VAT, itemised by each VAT rate.

1.12 Serving area and changing it

On the licensed premises alcoholic beverages may only be served within the serving area approved by the licensing authority on which an efficient supervision can be arranged. As a serving area may not be approved general facilities for the audience or spectators of sports, music or comparable events. The serving area must be marked off or marked so that its boundaries are clearly discernible to the customers, unless the serving area cannot be perceived clearly otherwise. It must be possible to supervise efficiently the movement of people to and from the serving area (Alcohol Act, § 21c, subsection 3). The alcoholic beverages which have been served have to be consumed within the serving area. Alcoholic beverages must not be brought for example to smoking room or smoking area if it is not included in the serving area. Retail sale or other taking of alcoholic beverages, which have been served or delivered to the restaurant in order to be served there, off the premises is prohibited (Alcohol Act, § 23, subsection 2). The prohibition includes terraces and outdoor serving areas which have been constructed in connection of various events. If a licence holder or staff member working on the premises allows alcoholic beverages procured for serving to be carried out of the premises, s/he can be sentenced to a punishment for alcohol offence (Criminal Code, chapter 50a).

1.12.1 The plan regarding the marking of the serving area A plan regarding the marking of the serving area shall be presented to the licensing authority (Alcohol Act, § 21c, subsection 3). The plan form is available from the Regional State Administrative Agencies or on the website www.yrityssuomi.fi.

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A written plan regarding the marking of the serving area must always be presented to the licensing authority when applying for a licence for new premises or when new serving areas in existing premises are taken to use. Inside ordinary licensed premises, the serving area can usually be clearly recognized because the various restaurant sections and room spaces intended for customer use are generally marked off by walls. However, plans must always be drawn up to take into account the special features of the licensed premises. Licensed premises also have places that are not intended as a serving area and which for this reason cannot be approved as a serving area. Such places include staff facilities, customer WC facilities, corridors and staircases. Signs and notices, for example, must make it clear to customers which places are not a serving area. Particular attention must be given to plans concerning marking off the serving area when the licensed premises are, for example, in conjunction with a concert hall or sports arena or when serving applies to temporary licensed premises at a public event. In such situations, the law prohibits the approval of a public spectator area as licensed premises. The plan must show how the serving area in the licensed premises referred to above will be marked off in practice. The area marked off must be readily visible to customers. In addition, the serving area should be marked off by various structures or requisites so that the area can be effective supervised and it is difficult for customers to remove alcoholic beverages from the serving area. Plans to mark off the serving area with regard to terraces must provide a clear picture of the visibility and adequacy of demarcation. Regarding outdoor terraces, it is important how the outdoor serving area has been arranged and how effectively it can be supervised. For example, if the terrace operates on a self-service basis or if there is a street or park path between the terrace and the licensed premises, particular attention must otherwise be given to marking off the serving area and supervising serving activities. If the terrace itself and access to and from it cannot be effectively supervised from inside the restaurant, the licensing authority may require alcoholic beverages to be served at tables on the terrace or may require a separate point-of-sale to be set up on the terrace. The arrangements regarding the marking of the serving area are important for the restaurant’s own self-supervision system. Clear marking of the serving area, which is planned and implemented for well-functioning self-supervision, enables serving in accordance with the provisions.

1.12.2 Changing the serving area Changing the serving area can concern indoor or outdoor areas within the licensed premises or areas which are apart from the licensed premises. The changes can be either permanent or temporary. The indoor changes of the serving area include, for example, the extension of the main dining room or other sections of the restaurant so

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that new room space is utilized for purposes of serving. In hotel restaurants, the serving area can include, among others, lobbies, hotel rooms, meeting rooms and cabinets as well as dressing areas connected to sauna sections. Changes can also mean decreasing the size of the licensed serving area. The serving area can be changed on the basis of the licence holder’s notification. However, the change presupposes permission from the licensing authority if it is significant from the point of view of the supervision of serving (Alcohol Act, § 21c, subsection 4). A change to the serving area requires permission if: 1) the serving licence has been granted temporarily, 2) the serving area is extended outside, 3) the serving area is extended to another building (Alcohol Decree, § 22,

subsection 1). The changes of the serving area inside the licensed premises usually are, in regards of the supervision of serving, such that the licensing authority can handle them on the basis of a notification only. For example, if a smoking room is built in the restaurant, reducing the area used for serving of alcoholic beverages and reducing the seating capacity, the change to the serving area can be handled on the basis of a notification only. The notification of changes to the serving area must be handed in at the licensing authority at least three weeks prior to the planned implementation of the changes. In turn, the licensing authority must notify, within two weeks of receiving the notification, if it is approved (Alcohol Decree, § 22, subsection 2). The following information and clarifications regarding the changes to the serving area must be attached with the notification or the application (the form is available from the Regional State Administrative Agencies or on the website www.yrityssuomi.fi.): 1) a report on whether the changes to the serving area are permanent or

temporary; 2) the date when the changed serving area is going to be taken into use; 3) a report on the licence holder’s permission to use the changed serving

area (e.g. rental agreement); 4) a report showing which area of the licensed premises the changes will

affect; 5) drawings of the changes which will be carried out in the licensed

premises or the planning permission drawings if the changes require planning permission;

6) the customer seating capacity in the new or changed licensed premises;

7) a plan showing how the new or changed serving area will be marked off;

8) a report on how alcoholic beverages are to be served in the new or changed serving area and how its supervision will be carried out;

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Under the sections 21 c and d of the Alcohol Act, the licensing authority can prohibit the introduction of the changes or determine limitations or conditions for them (Alcohol Decree, § 22, subsection 5). The licensing authority can limit the serving hours, the serving area, the kinds of alcoholic beverages that may be served or the number of places for customers. It can also set conditions necessary for the supervision of serving of alcoholic beverages and maintenance of order on the premises, if it is obvious on the basis of the location of or other circumstances related to the premises and the licence holder’s plans about the staff and their task and about marking of the serving area that the serving of alcoholic beverages on the premises cannot be reasonably supervised. (Alcohol Act, § 21 d, subsection 1).

1.13 Kitchen alcohol A restaurant can apply for a licence to use kitchen alcohol in food preparation. Kitchen alcohol is meant purely to be used in cooking, and it is free of alcohol tax. The use of tax-free kitchen alcohol for mixing drinks or cocktails is prohibited. Breaking this prohibition leads to the withdrawal of the serving and kitchen alcohol licence. The licence has to be applied for from Valvira. The condition for granting the licence is that the need for kitchen alcohol is justifiable and that the premises meet the set requirements. A report on the purpose for the alcohol and annual procurement needs (the types of alcohol, litres by type and the recipes) has to be attached with the application The use and stores of kitchen alcohol has to be recorded and it has to be possible to find out afterwards the amount and type of alcohol used for cooking from the licence holder’s records. Applying for a kitchen alcohol licence for minor use in food preparation is not profitable as a fee is charged for handling the licence application and a licence holder is charged an annual supervision fee as well. Alcoholic beverages originally acquired for serving can be transferred to kitchen use against receipt, and they can be used for cooking. Alcoholic beverages procured for serving can be used as raw materials in food preparation, in which case their price must be included in the price of the food, or they can be served as a part of the food portion and billed according to the price list. Any use of alcoholic beverages originally acquired for serving and then used for food preparation must be documented. The licence holder’s records have to include information about the amount and type of alcohol used for cooking.

1.14 Measuring instruments for serving Verified measuring instruments that comply with the Measuring Instruments Act shall be used in measuring the amount of alcoholic drinks (Measuring Instruments Act 707/2011 and Measuring Instruments Directive 2004/22/EY).

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Capacity serving measures (the transfer devices, also known as jiggers, such as 12 cl, 8 cl, 4 cl, 2 cl, 1.5 cl, 1 cl) must be officially inspected and verified before they are taken into service. A new verification is not necessary, if the verification stamp is readable and the measure is intact. Meters for alcoholic beverages (meters for spirits, wine, beer, cider and long drinks) must be inspected, or calibrated, once in every three years and whenever seals have been broken or there is a reason to suspect the meter’s accuracy. Approved line measures (also known as standard glasses) for alcoholic beverages are an alternative to transfer measures and meters for alcoholic beverages. The nationally approved standard glasses have traditionally been those for beer and cider. Approvals of line measures issued according to the Measuring Instruments Directive (MID) may apply to all serving sizes and various types of alcoholic beverages. New line measures that are taken into use have to have a MID approval. When using approved line measures for alcoholic beverages, the beverage must always be measured to the line The table below shows the verifications required for the measuring instruments used for serving alcoholic beverages:

TYPE EXAMINATIONS AND VERIFICATIONS FOR MEASURING INSTRUMENTS USED FOR SERVING ALCOHOLIC BEVERAGES

Measuring instrument

Type examination/approval

Initial verification

Re-verification

Re-verification interval

Bottle mouth meters - x x 3 years Meters for beer/cider x x x 3 years Meters for alcoholic beverages x x x 3 years Capacity serving measure (transfer measure)

- x - -

Standard glass (line measure) x x - - The traditional national inspection mark in alcoholic spirits measures consists of a picture of a crown, the last two digits of the year when the measure was calibrated (e. g. 06), and the number of the body that performed the verification (xx). Measures approved according to the Measuring Instruments Directive (MID) may also be in use, in which case they have a mark compliant with MID. Measuring instruments approved according to MID are equipped with a conformity marking that consists of the CE marking, a supplementary metrology marking (M), the last two digits of the year when the marking

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was affixed (such as 07) and the identification number of the notified body (such as 0000). In Finland, the re-verification mark consists of a stamp or sticker placed on the measuring instrument with a crown symbol and the time of the inspection. Official in-service verification may be performed and the respective marking affixed only by an approved inspection body. If seals are removed or broken by a brewery or otherwise, the performed verification becomes void. Finnish Safety and Chemicals Agency (Tukes) and the Regional State Administrative Agencies supervise that only legal measuring instruments are used in serving of alcoholic beverages. The use of an unverified measuring instrument is punishable. For more information on measuring and verifying the measuring instruments, please see www.tukes.fi.

1.15 Commercial import of alcohol for serving Having notified Valvira, the licence holder can import the types of alcoholic beverages for serving which have been specified in the serving licence (Alcohol Act, § 8). The notification is premises-specific. The notification is given to Valvira on a notification form that is available on the website www.valvira.fi. A 500 € fee is charged for handling the notification and a letter about receiving the notification is sent to the premises. This letter is presented to customs when importing alcohol. The importer is responsible for the imported alcoholic beverages (Alcohol Act, § 43). Valvira supervises and monitors the execution of this responsibility. All imported consignments have to be reported monthly to Valvira. Imported alcoholic beverages must be declared for taxation. The customs districts levy the tax. Importing alcoholic beverages is considered illegal if the excise duty on alcohol has not been paid for in Finland. Serving of alcoholic beverages, which have not been taxed, leads to withdrawing the licence.

1.16 Collecting information and the duty to report The licence holder is obligated (Alcohol Act, § 44) for control purposes to inform the licensing authority quarterly about the sales and staff information. Every licence holder has to deliver the information to the Regional State Administrative Agency no later than on the 10th day of the month following the end of quarter. If the licence is temporary, the form has to be handed in 30 days after the activities have been discontinued. The Regional State Administrative Agencies record the information into the alcohol trade register. The licence holder can fill and return the form online on the

http://www.valvira.fi/

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website www.valvira.fi or in paper form. The printable form is available on the website www.yrityssuomi.fi. If there has been no sales in the reporting period and the licensing authority has not been notified of the discontinuation of activities in the restaurant, the quarterly report has to be given by the due date stating that there has been no sales in that period. Neglecting to send the correct information is considered a credibility issue and, hence, as an offence that is meant in the Alcohol Act, section 22.1, paragraph 1 under which the licence can even be withdrawn in repeated cases. If the restaurant has not presented the information form after a request, the licensing authority will start sanction procedures. Receiving the information is important for the entire industry because it enables following the development of the industry and preventing grey economy and financial crimes.

2. Advertising alcoholic beverages in restaurants

2.1 General principles Advertising of strong alcoholic beverages on licensed premises is permitted if the premises hold a licence to serve strong alcoholic beverages. However, advertising may not be contrary to good manners, inappropriate from the viewpoint of the consumer or misleading. Advertising may not be visible from outside the restaurant (billboards, window stickers, adverts in the newspapers/magazines, website of the restaurant, social media). Advertising does not need to be restricted to the serving area but it is allowed to place advertisements in passages, sanitary facilities or other parts of the premises where they are not visible from outside. The main rule is that it is allowed to advertise mild alcoholic beverages (max 22% alcohol by volume). It is permissible to use product names and trademarks of mild alcoholic beverages and to give price information about them. Advertising is prohibited, however, if it is targeted at minors, or if the promotion methods are contrary to good manners or improper. The total impression created by the marketing is often decisive when it is assessed which practice violates the law. Advertising and sales promotion is not only traditional media advertising but also other commercial communication targeted at consumers, such as giving price lists or other product information or delivering promotional items for strong alcoholic beverages. Further information about alcohol advertising is available in Valvira’s guidelines 10/2014 (available only in Finnish and Swedish).

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2.2 Pricing and price announcements of alcoholic beverages In the Alcohol Act, there is no upper or lower limit for the pricing of alcohol. According to the Alcohol Act, section 33 a, bulk discounts and the "happy hour" marketing outside of the licenced premises are prohibited.

2.2.1 Pricing According to the Alcohol Act, section 33 a, subsection 1, it is not allowed to offer two or more containers or portions of any alcoholic beverage on bulk discount, in other words, priced together in such a way that the unit price of the same goods, bought separately, would be higher. In serving, the basic principle is that alcoholic beverages are served one portion per customer at a time. Because of this, bulk discounts in serving seldom come up. According to the rationale of the Act, the bulk discount prohibition concerns those cases also in which alcoholic beverages are served according to a sort of "take two for the price of one" -principle, in which two simultaneous orders of alcoholic beverages, made together for two different people, are priced less than two separate single orders would be. However, this regulation does not prohibit a restaurant from selling alcohol for a private occasion, for example, at a price less than the listed restaurant prices, provided the cheaper pricing does not require that the customer buys a certain amount of alcohol. The regulation does not concern a situation, either, in which the same alcoholic beverage is sold in different containers, for example in bottles of 0.33 litres and one litre. It is permitted that the alcoholic beverage in the larger container is priced lower per litre than it is in the smaller container. This is the case in the pricing of e.g. beer and red and white wine, when they are served per glass or per bottle. When alcoholic drinks are advertised, the size and alcohol content of the portion have to be mentioned. The advertisement must state in centilitres what constitutes, for example, a "large tankard" of ale or a "glass" of red wine. It is recommended to always notify of the price of drinks. At least on request, the prices of all the drinks sold on the premises must be available on the licensed premises. The price of an alcoholic drink may vary. The basis for the change in the pricing may be an event which is objectively observable. The pricing basis must be clearly explained, and the change must concern all customers equally. It is permissible, for example, to reduce the price of beer by 20 cents per goal during a televised sports event, or to fix the price of beer to reflect the outside temperature on the terrace. However, this kind of a special price is limited to apply for less than two months and therefore it cannot be advertised outside the restaurant (see chapter 2.2.2 below). The restaurant can price alcoholic beverages more economically for a customer group when it is clearly defined, such as registered regulars. Special prices for regular customers are thus permitted. In the advertising

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of the special prices for regular customers, the regulations explained later must be adhered to regarding the announcing of the special prices. The prohibition of bulk discounts applies also to mentioned system of two prices. In other words, a customer inside a pricing group has to be able to purchase an individual product at a reduced price; i.e. a regular customer or a person with a loyalty card has to be able to purchase an individual product at a regular customer’s special price. If the entrepreneur uses a customer bonus plan or a similar customer benefit plan in which alcoholic beverages form a part of the product purchases leading to a benefit, the following conditions must be adhered to: • The bonus system must not be limited to alcoholic beverages only.

The system must cover all purchases made by the customer on the licensed premises within a certain period of time.

• The benefit must be expressed in euros, its amount must be moderate and it may not be given to the customer in the form of alcoholic beverages

• The customer must have the freedom to choose which products or services he/she claims on the licensed premises for the amount of the euros of the gained benefit.

• The bonus system must not be marketed highlighting that the alcoholic beverages increase the bonus as well.

The licensing authority supervises the lawfulness of the bonus system and following of given instructions. The licence holder must provide an explanation of matters relating to the use of the bonus system, if the licensing authority asks for it.

2.2.2 Advertising special prices for alcoholic beverages The provisions of the Alcohol Act section 33 a set limits on announcing prices of mild alcoholic beverages outside the licensed premises. Under the provisions, it is not permitted to advertise a special price for any alcoholic beverage outside the licensed premises if the offer is valid for less than two months. The decisive factor is the uninterrupted period of validity of the price. "Happy hour" special offers are usually valid for a few hours at a time. In those cases, the requirement of two-month continuous period of validity is not fulfilled. It is not permitted to display the special prices for alcoholic beverages that are valid for less than two months, or "happy hour" prices, outside the licensed premises on places like, for example, the door, window or street, nor is it permitted to advertise them, for example, in papers, the website of the restaurant, and in the communications directed to the regular customers. Advertising special prices for alcohol is permitted only when the offer is valid without interruption for at least two months. If a special offer under a customer bonus plan or an offer available to bonus coupon holders is not valid for two months without interruption, it is not permitted to be advertised. In order to make sure that the validity period of the price of the advertised alcoholic beverage in question is completely

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unambiguous, it is advisable to mention the validity period of the price in the marketing materials. Because the pricing of alcoholic beverages is free as such, special prices and "happy hour" offers are permitted, but it is permitted to announce them only within the licensed premises. Valvira has given separate guidelines on this subject, no. 9/2012 “Advertising the Special Prices for Alcoholic Beverages” (available only in Finnish).

2.3 Inappropriate sales promotion Under the Alcohol Act, section 33, subsection 2, paragraph 7, the Valvira and the Regional State Administrative Agencies can intervene with the advertising and promotion activities of alcoholic beverages if they are contrary to good manners, they use methods that are inappropriate from the viewpoint of the consumer or they are misleading. Alcohol advertising, with which customers are attracted to the restaurant with free alcoholic beverages or offering drinks cheaper if the customer takes more, is prohibited. It is prohibited, as well, to arrange tastings of alcoholic beverages to customers in a restaurant. This kind of advertising appeals easily to so-called weak consumer groups such as the young or those with a tendency to abuse alcohol and can draw them to imprudently increase their alcohol consumption. Examples of inappropriate and prohibited promotion: • "First drink free", "Lottery tickets for free drinks" • Packaged services and/or goods sold by the restaurant, containing the

right to consume alcoholic beverages without limit; for example, "Free drinks on VIP-ticket", "Even money - and drink as much as you can before your time is up"

• "Two drinks for the price of one" • Bonus cards and other documents intended to be stamped, for

example: "Every tenth beer for free", "Every fifth drink for half price" • Coupons, delivered to customers for example on a street stating: “with

this coupon a free beer or cider in restaurant X”. • Beer drinking competitions and other similar events in which the drink

is alcoholic. A licence holder may, however, serve the customers mild alcoholic beverages for free, if it is done with an element of surprise and as a gesture of hospitality. For example, the customers present on the premises at a given moment may be served a round of some mild alcoholic beverage on the house because of a significant event. The hospitality gesture must not be announced beforehand for example by advertising it in the media or by text messages. The free serving must be completely random, and the amount of alcohol served must be moderate. It is not permissible to arrange the serving regularly so that the customers would know the time beforehand even if it were not publicly announced. When opening a new restaurant, a licence holder can arrange an opening party for invited guests. To this kind of an event, the licence holder may

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invite especially his/her relatives, friends, business partners and representatives of restaurant business. Personally invited persons are the licence holder’s guests to whom the licence holder can show hospitality by serving food and beverages for free. This kind of an event is about business entertainment, not about promoting the sales of alcoholic beverages. However, the serving regulations have to be followed in this kind of an event as in any other event. The licence holder may arrange also other kinds of business entertainment in a restaurant. For example business negotiations can include serving of food and alcoholic beverages for free. In each case, it has to be separately judged by the nature and extent of the event, if it is considered business entertainment or sales promotion of alcoholic beverages targeted to consumers.

2.4 Lotteries and open competitions It is allowed to organize games, lotteries and competitions in licensed premises if they have no connection to alcoholic beverages and alcoholic beverages are not used as their prizes. However, such sales promotion of alcohol, in which consumer’s participation in a game, lottery or competition is used, is prohibited. For example a licence holder cannot organize a game, lottery or competition in which alcoholic beverage is used as a prize. Other games, lotteries and competitions with any connection to alcoholic beverages are also prohibited regardless of the prize. It does not make any difference how the game, lottery or competition is carried out; the prohibition applies to alcohol-related games, lotteries and competitions that are carried out on the internet as well as the ones that are organized in the licensed premises. It makes neither any difference if chance decides the winner or if competitors’ skills or abilities are assessed.

2.5. Freebies and combined offers The buyer of alcoholic beverages must not be presented with an extra product for free if it does not have a palpable connection to the alcoholic beverage. For example a drink and its decorations have a clear connection in the situation in which the alcohol is consumed. In the established administrative practice, it is considered allowed for a licenced restaurant to offer a food portion and a portion of mild alcoholic beverage with a combined price if the offer fulfils the following conditions: • The offer applies to only one portion of alcoholic beverage. The

customer must be informed that there is a non-alcoholic alternative available.

• The drink is not advertised as free or given on the house; the drink is not “free” as the customer pays for it in the combined price

• Alcoholic beverage is not the main message of the announcement

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It is permitted to: • Include one portion of mild alcoholic beverage to be consumed during

the visit in question, in the price of an entrance ticket. The customer must be informed that there is a non-alcoholic alternative available. The drink may not be advertised as “free” because the customer pays for it in the price of the entrance ticket.

• Include one mild alcoholic drink in the price of a show ticket in the case of a significant function or event involving a program, held on licensed premises; where the drink can be considered a welcome gesture; and also to include a moderate, limited number of mild alcoholic drinks with the meal in the same ticket. There must be a non-alcoholic alternative available. It is not permitted to include strong alcoholic beverages in the show ticket.

When restaurant packages including food, alcoholic beverage and program services, for example, are marketed, it has to be taken into account that no one else than the licence holder can sell these packages. Between the restaurant and the customer, there must not be any operator who buys the package including alcohol from the restaurant and resells it to the customer. According to the Criminal Code, procuring alcoholic beverages for others against payment is punishable. Combined offers and freebies related to alcoholic beverages are inappropriate marketing in the view-point of the customer if the combined goods or freebies are used to attract customers to increase their number of alcohol purchases. This means that the buyer may not be rewarded with a freebie for increasing his/her alcohol purchases. In serving, the freebie can therefore be combined to just one alcohol portion.

2.6 Events for the regulars The licence holder may occasionally arrange events for the regulars, keeping the events restricted in participation and limited in time, and serve for free a moderate amount of mild alcoholic beverages. Occasional in this connection means 1 – 2 events a year. The regulars must have an existing customer relationship. The invitation to the event must be sent beforehand and it must be personal. A person is not a regular if he arrives at the restaurant and registers as a regular only then in order to benefit from the free service. In these events, only mild alcoholic beverages may be served for free to the regulars. Serving strong alcoholic beverages for free to regulars – who are in the position of consumers – is considered inappropriate and therefore illegal marketing. The invitation to the event must not contain expressions which might give the impression that there would also be free strong alcoholic beverages available during the event. The amount of alcohol served must stay moderate. Moderate means, among other things, that the served amount would not lead to intoxication

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of the customer in a normal situation. A moderate amount would consist of about three standard restaurant portions. Restricted events for regulars must be clearly limited in time in the invitation, for example an event may take place on 9 December, 2016, from 7 pm to 10 pm. The restaurant or the relevant section of it must be barred from other public for that period. After the event, the restaurant can continue operating normally, open for the public. The regulars also can continue their evening in the restaurant.

2.7 Product presentations It is permitted to present alcoholic beverages on a licensed serving area in connection with for example trade shows. In a trade show open for the public, it is not permitted to serve or to have alcoholic beverages tasted for free or for a token price. The tasting and consuming of drinks in connection with product presentations must be done according to the provisions and regulations concerning serving and advertising. The presenters in the alcohol sector must agree with the serving licence holder about the delivery of the alcoholic beverages to the trade show as well as other practical arrangements for the presentation. Procuring of alcoholic beverages has to be organized in the way described in chapter 1.2 of these guidelines.

2.8 Advertising of strong alcoholic beverages Advertising of strong alcoholic beverages inside the licensed premises is permitted if the premises have been granted a licence to serve them (so called A licence). Advertising must not be visible from outside of the restaurant. Advertising does not need to be restricted to the serving area but it is allowed to place advertisements in passages, sanitary facilities or other parts of the premises where they are not visible from outside. Advertising on licence holder’s web page or social media channels does not take place inside the licensed premises. Advertising has to be fact-based and temperate. It may not be contrary to good manners, inappropriate from the viewpoint of the consumer or misleading. Strong alcoholic beverages cannot be advertised • in products that the customers are meant to take away(postcards,

flyers, matchboxes etc.); • by giving products which display symbols of strong alcoholic

beverages (e.g. t-shirts) as prizes; • by offering samples of strong alcoholic beverages.

The staff clothing may display symbols of strong alcoholic beverages. Work clothes have to remain work clothes: the restaurant has to make sure that work outfits with symbols of strong alcoholic beverages do not end up outside the licensed premises. Advertising is permitted also in interior decoration and furniture of the licenced premises.

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Outside the restaurant premises it is prohibited to advertise strong alcoholic beverages directly or indirectly. It is permitted, however, to inform the public of the extent of the license, for example, “A-rated” or ”fully licensed”. It is forbidden, though, to announce: “strong alcoholic beverages available”. Strong alcoholic beverages cannot be advertised in newspapers, on television, display windows, window stickers, street door or advertising signs outside the restaurant or on the Internet for example on restaurant’s website or Facebook page. It is also forbidden to place bottles of strong alcoholic beverages visible in the window of the restaurant. In advertising outside of the restaurant it is forbidden to display: • product names of strong alcoholic beverages • types of strong alcoholic beverages (e.g. Irish Whiskies, coffee and

cognac). • references to strong alcoholic beverages in a roundabout way such as

using the beverage's product code instead of the name (for example 013 for Koskenkorva) or expressions like “unnamed drink”, “a beverage that cannot be advertised”.

• pictures of strong alcoholic beverage bottles or labels; • the established symbols of strong alcoholic beverages (e.g. the field

on a Koskenkorva bottle label); • the entire beverage selection, including strong alcoholic beverages,

e.g. all drinks for two euros. On terrace or another outside serving area, advertising must be such that it is not conspicuously observable from outside of the area. Great banners advertising strong alcoholic beverages, from far visible price information and sunshades with symbols of strong alcoholic beverages, for example, are therefore forbidden. Advertising drinks or cocktails made with strong alcoholic beverages means promoting strong alcoholic beverages which is prohibited outside the restaurant. The prohibition applies to all cocktails made with strong alcoholic beverages if their name includes the name of a strong alcoholic beverage (e.g. kossu-vissy, jallukola) or not (e.g. Caipiroska, Irish Coffee). Advertising the cocktail list is also prohibited if it includes cocktails which are made from strong alcoholic beverages. It is only permitted to advertise drinks which have been made entirely from under-22% volume alcoholic beverages. Pre-bottled mild alcoholic beverages can be advertised if the name does not include a product name of a strong alcoholic beverage. Hence, long drinks which have been bought from a wholesaler can be advertised but house long drinks cannot since they are made on the premises from strong alcoholic beverages, and advertising them promotes the sales of strong alcoholic beverages in the restaurants. Such names as “snapsi” and “salmari” or “salkkari” create an image of strong alcoholic beverages. If these names are used to advertise drinks made from mild alcoholic beverages, it has to be clearly shown, like

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“tervasnapsi 21%”, “mild salmari”, so that advertising would not become misleading.

2.9 Advertising of alcoholic beverages in public places

The main rule is that it is prohibited to advertise alcoholic beverages in public places. In licenced premises, however, those products can be advertised that are sold there. In addition, it is permitted to tell about availability of mild alcoholic beverages and advertise their prices on display window of the restaurant or outside the premises. Allowing advertising the availability and prices outside of the sales premises is an exception of the prohibition to advertise alcohol in public places. Outside the premises, the product may not be displayed, for example, by an especially large-sized advertisement or otherwise conspicuously. Advertising has to be restricted to communicating about availability and price; in other words, describing the quality, taste or other features of the product in more detail is not permitted. Advertisements have to be placed in immediate vicinity of the sales premises. Only for a justifiable reason that has to do with, for example, a location that is hard to find, advertisements can be placed elsewhere than within visual contact of the sales premises. In outside serving areas, the provision has to be notified considering parasols, posters and other decoration and furniture etc. Alcohol advertising in them may not be so conspicuous and targeted at outside of the serving area that it can be considered circumventing the prohibition to advertise in public places. Availability and prices of mild alcoholic beverages may be advertised for example

• on restaurant windows • on an A-shaped poster stand in immediate vicinity of the licensed

premises • on awnings of the licensed premises • on parasols in the outside serving area

There may be a picture of a beer glass, for example, on a restaurant window as a sign of availability. The name of the restaurant may be same as the name of a mild alcoholic beverage. In this case, however, one must take into account that advertising the restaurant in public places elsewhere than in its immediate vicinity can become prohibited indirect advertising of alcoholic beverage.

2.10 Using content produced by consumers and delivering advertising for distribution by consumers in online services

Advertising alcoholic beverages is prohibited if its commercial operator uses in the information network service administered by the operator

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verbal or audiovisual content produced by consumers or delivers verbal or audiovisual content produced by the operator or consumers through the service for distribution by consumers. It is prohibited for the commercial operator of advertising especially to use consumers’ own drinking photos and videos in alcohol advertising and to distribute them through its website or social media channels. The commercial operator may neither produce video ads that are meant to be distributed through consumers’ and bloggers’ websites and circles of friends. The advertiser may not urge or encourage consumers to share the content that can be considered alcohol advertising, no matter if it is produced by the commercial operator or by consumers. In many services, there is so called “Like” function. It is not considered content produced by a consumer if a consumer expresses by clicking a button that he or she likes content produced by the advertiser. Therefore, the advertiser does not need to remove or block “Likes”.

It is permitted to

• advertise mild alcoholic beverages on traditional websites • advertise mild alcoholic beverages on social media channels

providing that the restrictions concerning the “Share” function have been taken into account and consumers’ possibility to publish content or to comment on the page has been blocked or the advertiser removes the content produced by consumers that can be considered alcohol advertising

• use content produced by consumers and “Share” function in sales promotion of other products and services than alcoholic beverages. If the main message of content produced by a consumer is not related to alcoholic beverages, it does not need to be removed.

It is prohibited to

• encourage consumers to share alcohol advertisements • utilize the “Share” function that is linked to social media channels

in alcohol advertising on traditional websites (so called social media buttons)

• buy paid advertising that is meant to be shared by consumers in a social media channel (for example so called news feed ads)

3. Supervision and sanctions

3.1 Self-supervision The self-supervision of the licensed premises plays a central role in preventing misconduct. So far, there are no provisions in the Alcohol Act requiring the licence holder to draft a self-supervision plan for supervising the serving activities and maintaining order. However, a plan of this kind, containing procedural instructions for the staff for various cases in which

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misconduct and disturbances can occur, benefits both the licence holder and the staff. The plan should pay special attention on the prevention of the more serious offences, for example by making sure all regulations regarding minors and intoxicated customers are strictly adhered to. The staff should study under the leadership of the responsible manager, at regular intervals, how the supervision activities are being carried out under the self-supervision plan. If necessary, the plan must be enhanced to improve the operations and their supervision still further. Authority inspections monitor how the self-supervision is working. The Regional State Administrative Agency registers in the alcohol trade register whether the licensed premises have a self-supervision plan in use or not. Customers who are clearly intoxicated must be removed from the licensed premises. In addition, customers who behave disturbingly must be removed from the licensed premises (Alcohol Act, § 23, subsection 1). Maintaining good order on the licensed premises is primarily the task of the licence holder and the staff. However, if maintaining order or safety of the customers so requires, the police must be called to clear the situation. In all operation, the licence holder must also pay attention on the requirements of the near vicinity. The operation must not cause undue harm or disturbance to those living near the licensed premises. In all matters relating to the maintenance of good order on the premises, the licence holder should keep in regular contact with the local police. In order to maintain order and safety, a licence holder can place security personnel, as provided in the Security Stewards Act (1085/2015) on the premises and in their immediate vicinity. Also the police may order a licence holder to place an adequate number of security personnel on the premises if there is particular reason to do so to maintain order and safety.The Regional State Administrative Agency can set conditions concerning security personnel when granting the license, if the supervision and maintaining order so require (Alcohol Act, § 21 d and § 22 subsection 1).

3.2 Authority supervision The Regional State Administrative Agencies are responsible, within their area of operation, for the licence administration and supervision related to the retail sale and serving of alcoholic beverages and for the supervision of the advertising and sales promotion of alcoholic beverages (Alcohol Act, § 42). Valvira is entitled to handle supervision activities in the entire country (Alcohol Act, § 41). Inspection visits to licensed premises are conducted in a planned manner, often together with the police and other authorities. In order to prevent grey market operations and economic crimes in the restaurant business, the cooperation has been intensified especially with the tax administration, debt recovery, customs, police and occupational safety and health authorities. The tasks of Valvira include guiding of the licence administration and supervision activities of the Regional State Administrative Agencies, providing information and communications services for the alcohol administration, and supervising the retail sale, serving, advertising and sales promotion of alcoholic beverages in the entire country. The aim of

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Valvira’s guidance is to ensure that the law is applied in a consistent manner in the entire country (Alcohol Decree, § 1 a). For the sake of supervision, Valvira and the Regional State Administrative Agencies are entitled to have access to the licensed premises in order to inspect them and the operations performed there as well as to have access to the notifications, information and documents needed for the supervision. Valvira and the Regional State Administrative Agencies are also entitled to take and obtain free-of-charge such samples that are needed for the supervision (Alcohol Act, § 44). On inspection visits, the inspector works, as far as possible, in a way which does not disturb the customers or the normal operation of the restaurant. The inspector introduces himself or herself to the responsible manager by showing his or her badge. The responsible manager and the rest of the staff must cooperate well with the inspector. It is not appropriate, for example, to inform the customers that there is an inspector present, as this might cause needless confusion. The inspector discusses the possibly detected cases of misconduct or other defects with the responsible manager. Inspection records are taken, and a copy is given to the licence holder or the responsible manager. The records can include a request for the licence holder to present an explanation, if any misconduct or defects were detected. The role of the police in the supervision of serving activities is central. The police controls maintaining public order on licensed premises. If the maintenance of order so requires, the police can suspend the serving of alcoholic beverages for a maximum of 24 hours (Alcohol Act, § 46). The police notifies the Regional State Administrative Agency about the suspension for the sake of possible further proceedings (Alcohol Act, § 22 subsection 2). The police use an electronic inspection notification form for informing the Regional State Administrative Agency immediately if any misconduct or defects are detected on licensed premises so that the Regional State Administrative Agency can initiate the possible further actions required by the Alcohol Act. The police can impose a fine on a staff member working on licensed premises, for example a waiter or waitress, if he or she is caught in violation of the provisions on serving of alcoholic beverages (Alcohol Act, § 50a).

3.3 Sanctions for breaking the serving regulations The Regional State Administrative Agency can issue the licence holder an admonition or written warning or set conditions necessary for supervision. It can without compensation restrict the license it has granted by limiting the serving hours, serving area or the kinds of alcoholic beverage to be served. Also, the authority can, without compensation, withdraw the licence for a certain period or permanently if: 1) the Alcohol Act or the provisions or regulations issued in virtue of it

have been violated in the business,

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2) the licence holder is considered to no more fulfil the conditions for having the licence or to have lost his/her reliability; or

3) there has occurred disturbance or other malpractice on the licensed premises (Alcohol Act, § 22 subsection 1).

Valvira and Regional State Administrative Agency monitor that the licence holder continuously holds the reliability required under section 21 a of the Alcohol Act for serving of alcoholic beverages and that the economic and professional qualifications for continuing the serving activities are fulfilled and the licence holder abides by the provisions of the alcohol legislation. The prevention of grey market activities and economic crimes in the restaurant business forms a significant key area for the supervision activities. Permanent cancellations of licenses are, most often, caused by the licence holder’s neglecting to pay his taxes and other public charges as well as other similar neglects and losing the reliability required under the Alcohol Act. For single, minor misdemeanours, the sanction usually is an admonition or warning. Repeated and more serious offences can lead to the cancellation of the license either for a certain period or permanently. Serving alcoholic beverages to a person under 18 years old or to a person, who is clearly intoxicated, are serious offences. The authorities take a strict line on sanctions for serving to minors. The sanctions have been tightened as regards serving to intoxicated persons as well. It is the role of self-supervision to ascertain that there is no serving to minors or clearly intoxicated persons. Disturbances and violations of serving provisions, especially those concerning serving to intoxicated persons, can also lead to the cancellation of the license for extended serving hours. Prior to the setting of the sanction, the licence holder is asked to provide a written explanation (Administrative Procedure Act (434/2003), § 34). Mainly, the request for explanation is sent to the licence holder by mail. The request letter specifies the issues on which the explanation is requested. The request for explanation can also be left to the premises during an inspection if the issue is not remarkable. If the licence holder does not provide an explanation within the prescribed time, the matter can be solved under section 22 of the Alcohol Act.

3.4 Sanctions for violations of the advertising provisions in the Alcohol Act Provisions on sanctions for advertising offences are laid down in sections 48 –50 of the Alcohol Act. If defects or action in contrary to the provisions and regulations are observed in the process of controlling the observance of the ban on advertising alcohol or other provisions on marketing or sales promotion referred to in section 33 or otherwise, Valvira and the Regional State Administrative Agencies shall issue appropriate instructions with a view to remedying the defects or stopping the incorrect action and set a deadline for doing so. If alcoholic beverages are advertised or other marketing or sales promotion measure in contrary to section 33 of the Alcohol Act is taken, Valvira or the relevant Regional State Administrative Agency may prohibit

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the party commissioning the measure or the executor of the measure as well as those employed by them from continuing or repeating the action in contrary to the provisions. Valvira or the Regional State Administrative Agency may enforce the instruction, prohibition or order it has issued on the basis of the Alcohol Act by imposing notice of a conditional fine or by imposing notice that the measure that has not been taken within the prescribed time will be ordered done at the expense of the defaulting party. In accordance with section 22 of the Alcohol Act, advertising misconducts which have taken place in licensed premises, including breaches of pricing and price notification provision, can also lead to licence implications.

4. Granting a serving licence A serving licence can be granted to a natural person or a legal person. The licence is granted until further notice, for a fixed term or on a temporary basis. The serving licence is specific to the trader and the licensed premises. A trader who has a serving licence for one place cannot start serving in new premises before s/he has been granted a licence for them. If a trader with a serving licence hands over the premises to someone else who continues the business there, the new trader cannot start serving alcoholic beverages in the premises in question before the licensing authority has granted him/her a serving licence on his/her application. If the licence holder wishes to transfer the serving activities to new premises, s/he has to apply for a new licence. The Criminal Code, chapter 50 a, contains the provisions concerning illegal sales of alcohol. An unlicensed person who sells or otherwise procures for a fee, or offers or keeps alcoholic beverages for sale, can be fined or sentenced to imprisonment for a maximum of two years for alcohol offence. The financial benefits of the crime are forfeit as required in the Criminal Code.

4.1 Fixed term serving licence A fixed term serving licence is granted for a maximum of one year. A fixed term licence may be granted if there is a specific reason to observe the licence holders preconditions for carrying out serving activities. The criterion for granting a fixed term licence and for observation may be the licence holder’s tax debt which s/he is paying off according to the payment plan. Granting a fixed term licence may also be justified in order to observe the licence holder’s trustworthiness. A reason for this may be that the licence holder has previously committed crimes or s/he is justifiably suspected to have a problem with alcohol.

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If the licensed activities in the same place have previously caused disturbance and inconvenience to the surroundings or the public order, the licence might be granted for a fixed term to enable observation. A fixed term licence is also considered when the operation of the licensed premises is meant to go on just for a fixed period of time. Such a situation might occur when the premises have only been rented to the trader for a fixed term.

4.2 Temporary serving licence A temporary serving licence can be granted for an event, the duration of which has been clearly defined in advance. A licence for functions and events is granted for a maximum of one month. The preconditions for granting a temporary licence are the same as the ones for granting a licence until further notice or for a fixed term when it comes to, among others, the applicant, responsible manager and his/her substitutes and the location of the licensed premises. When the licence application is assessed, the nature of the event, the suitability of the premises and the serving arrangements are evaluated. Under section 21 d of the Alcohol Act, the licence might be rejected or limited if the serving licence is applied for a sports event or an occasion that is a family occasion by nature or in which otherwise a great number of children and young people participate. When temporary licences are granted, special attention is given to the nature of the event and its extent, as well as to the serving arrangements and the applicant’s ability to efficiently supervise the serving of alcohol and maintain order. The temporary licensed premises have to be clearly and unambiguously marked off. The serving area has to be marked off and control organised in a way which ensures that the served alcoholic beverages cannot be carried off the premises. When applying the licence, the licensing authority has to be presented with a plan regarding the marking of the serving area and a staff plan. The licensing authority can limit the seating capacity for preventing uncontrollable situations. The applicant has to prove that the temporary serving area will have sufficient sanitary facilities. As a rule, the applicant has to organise own sanitary facilities for the serving area. General sanitary facilities for a public event will not be considered to be the facilities of the serving area. Especially when planning major events, holding a preliminary meeting is recommended to go through the arrangements for the event and the associated legislative requirements from the viewpoint of the various authorities. The alcoholic beverages for the temporary licensed premises must be procured with the temporary licence number even if the licence holder has a restaurant with a licence valid until further notice in the region. When the activities under the temporary licence have been finished, the food and drink sales of the event have to be reported to the Regional

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State Administrative Agency on a quarterly report form within 30 days. After the event the remaining alcohol stock can be transferred to other licensed premises or returned to the wholesaler (see chapter 1.4).

4.3 Applying for a serving licence Before starting serving, the trader has to apply for and be granted a serving licence for the premises in question. The serving licence is granted on a written application by the Regional State Administrative Agency in whose area of operation the premises are located. A licence for serving aboard public transport is granted by the Regional State Administrative Agency of the applicant’s place of residence, or if the applicant does not have a residence in Finland, by Valvira (Alcohol Decree, § 20). If alcoholic beverages are sold to passengers in a Finnish vehicle that operates between Finland and other countries, the trader has to make a written notification to Valvira about it before starting selling. The notification has to state which is the company responsible for the transport and the company responsible for the sales of alcoholic beverages. In addition, it has to state other information that concerns the vehicle, its premises used for selling alcohol, supervision of alcohol sales and maintaining order, required in the Decree or ordered by the authority (Decree on Sales of Alcoholic Beverages and its Supervision in Vehicles Operating between Finland and Other Countries (1346/1994), § 8) It is recommended to deliver the application to the licensing authority well in advance before the licensed premises are due to open or a new owner takes over since serving without a licence or with the licence granted for the previous owner is illegal. As a rule, the premises have to be finished and the notified changes carried out before the licensing authority can approve the premises. The licence is not granted until the applicant and the premises have been verified to fulfil the requirements for granting a licence. The licence is applied for with a specific form which can be obtained from the Regional State Administrative Agency or from the website www.yrityssuomi.fi. The required documents are listed on the form. Every applicant has to give the company's business identity code in the application. The completed form with the attached documents is returned to the Regional State Administrative Agency who asks for statements from such parties as the police. The application has to state: 1) the name of the applicant, business identity code or personal identity

code or date of birth and contact details; 2) the names, contact details and personal identity codes or dates of birth

for the people in the governing body of a legal person, the director, the partners in a partnership and the accountable partners in a limited partnership;

3) the name of the responsible manager and his/her substitutes, their personal identity codes or dates of birth and contact details;

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4) the serving hours, location and contact details of the licensed premises.

The following have to be attached to the application: 1) up-to-date shareholder register and an explication of holding amounts

as well as social security number, home municipality and date of becoming a shareholder of the CEO and the main shareholders

2) a legal person’s articles of association, partnership agreement or association rules as well as the latest confirmed profit and loss account and balance;

3) the responsible manager’s and his/her substitute’s agreement to take the post and the certificates proving their professional qualification;

4) a plan for the number of staff and their tasks; 5) a plan regarding the marking of the serving area including the

drawings for it; 6) other clarifications required by the licensing authority of the applicant’s

financial standing, organisation, staff, responsible managers, customer seating capacity and the licensed premises and serving area.

The licensing authority can, if necessary, demand for further reports concerning preconditions for granting the licence, setting limitations to the licence or establishing terms for control and maintenance of order (Alcohol Decree, § 21).

4.4 Companies or other communities under formation A limited company, cooperative or an association which is under formation cannot be granted a licence because they have legal identity only after registration. However, if a licence is in such a case applied by and granted to a private person, the licence issue has to be brought to the licensing authority for processing after the registration of the company if business activities are run by the company. A partnership and a limited partnership can apply for a licence in their own name after the company’s start-up notification has been handed in at the registration authority.

4.5 Licence for serving fermented alcoholic beverages whose percentage by volume does not exceed 4.7

The so called C licence entitles the licence holder to serve alcoholic beverages whose percentage by volume is maximum 4.7 such as beer, cider as well as long drinks and light wines produced through fermentation. It is not permitted to serve mild cocktails if the ingredients include alcoholic beverages which are stronger than 4.7 by volume and/or have not been produced through fermentation.

4.6 Licence for alcoholic beverages whose percentage by volume exceeds 4.7 The licence to serve all alcoholic beverages, the so called A licence, entitles the licence holder to serve all mild and strong alcoholic beverages.

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The licence can also be granted as a B licence which entitles the licence holder to serve mild alcoholic beverages whose percentage by volume is no higher than 22%.

4.7 The grounds for granting a serving licence For granting a serving licence, the Alcohol Act imposes the following precondition which also applies in cases of change to ownership (Alcohol Act §§ 21 a - d): • the licence holder has to be deemed necessarily trustworthy to

serve alcoholic beverages as well as fulfil the financial and professional requirements;

• the licensed premises have to be suitable for restaurant use. They have to fulfil the requirements that legislation imposes on premises used in restaurant business.

Provisions on the approval and use of licensed premises are given especially in the Food Act (23/2006) and in the legislation on construction and fire and rescue services. • the licensed premises have to be exclusively managed by the

licence holder and the authorities have to be able to supervise the premises.

The mention of the licence holder’s exclusive management means that no other trader can run their own business in the premises. Business activities cannot be divided in such a way that the licence holder sells alcoholic beverages in the licensed premises and some other trader runs his/her own business selling food. This prohibition makes it easier to supervise the licensed premises and establishes a clear relationship of responsibility. The above does not, however, make it prohibited for the licence holder to buy food preparation services or prepared food from another trader, as long as, food in the licensed premises is sold by the licence holder and for his/her profit. • to enhance efficient supervision and maintenance of order, the

licensed premises must have a suitable number of staff to cover the extent and quality of the activities.

The licensing authority can require increasing the number of staff in the licensed premises if the licensing authority finds that, with the extent and quality of the licensed premises as well as requirements of efficient supervision in mind, efficient supervision and maintenance of order cannot be carried out with the number of staff the applicant proposes. The evaluation of the sufficiency of the number of staff can also come up in connection to violation cases. In the sanction decision, the licensing authority can, under section 22 of the Alcohol Act, set a condition on the licence, for example, that the licence holder has to hire a security officer if it finds that the number of staff in the licensed premises is not sufficient. • The licence can be rejected or limited if

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o serving licence is applied for premises in connection with premises mainly meant for or used by children or young people or in their immediate vicinity or for a place where carrying on of business has to be considered to be mainly aimed at children and young people;

o serving licence is applied for lunch catering arranged by an employer for staff

o serving licence is applied for a sports event or an occasion that is a family occasion by nature or in which otherwise a great number of children and young people participate; or

o the location of the licensed premises is such that the licensing authority has reasonable cause to suspect, based on the reports and opinions obtained, that the serving activity would cause disturbance or other unfavourable consequences for the housing environment, public order and security or community services and activities.

The Regional State Administrative Agencies request statements, mainly from the police, about the location of licensed premises. In addition, the residential environment and other actors are consulted where necessary. Efforts are made to increasingly take into account environmental perspectives in alcohol licence issues with the help of a so-called regional statement method, which has been trialled in a number of areas with the aim of increasing local influence. The licensing authority supervises that the provisions are complied with also during the validity of the licence. Hence, the provisions which apply to granting a licence also apply to previously granted licences, in which the authorities can intervene under section 22, subsection 1 of the Alcohol Act.

4.8 The requirements for the applicant A licence is granted to an over eighteen-year-old applicant who has not been declared bankrupt and whose ability to function is not limited and who possesses the required trustworthiness to serve alcoholic beverages as well as the necessary financial and professional preconditions. The applicant is considered to be lacking the required trustworthiness or financial preconditions if 1) the applicant abuses intoxicating substances, 2) the applicant is according to levy of execution or some other

specification incapable of paying his/her debts, 3) the applicant has in the preceding five years, when carrying on his/her

profession or otherwise, committed an offence for which one can be sentenced to prison,

4) the licence to serve alcoholic beverages on the premises of the applicant or of the corporation in which the applicant has exercised authority has been permanently cancelled in the preceding five years,

5) the applicant has repeatedly or to a considerably extent neglected payment of taxes or other public charges,

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6) the applicant has exercised authority in a corporation that has been in the preceding last five years declared bankrupt or whose bankruptcy has during that time expired due to lack of funds and the applicant’s above-mentioned or previous operation directly comparable to it shows that the applicant is obviously unsuitable to carry out serving of alcoholic beverages on the premises.

An applicant lacks the professional qualifications if he/she has not appointed the responsible manager and substitutes for the manager fulfilling the criteria laid down in section 21 b (see chapter 1.8). The number of substitutes has to be adequate to cover the opening hours. The abovementioned provisions concerning applicant also apply to the person who on the basis of ownership, an agreement or some other arrangement exercises authority on behalf of the applicant (Alcohol Act, § 21 a). The licensing authority can, if necessary, demand for further reports concerning preconditions for granting the licence, setting limitations to the licence or establishing terms for control and maintenance of order (Alcohol Decree, § 21, subsection 2).

4.9 Withdrawing an application If an application which has been delivered to the Regional State Administrative Agency is withdrawn before its processing has been finished, the handling fee is half of the entire fee the applicant would have been charged.

4.10 Changes to the company's ownership or authority relations If considerable changes take place in the ownership or authority of a licensed company or organisation, the changes have to be reported within two weeks to the licensing authority as required in the terms of licence.

4.11 Name changes Changes to the name of the licence holder or the business premises must always be reported to the licensing authority. The licensing authority enters the information in the licence register, correctness of which is of high importance for such matters as goods delivery and the collection of supervision fees.

4.12 Changes to the location of the premises or ownership If a licenced trader hands over the premises to someone else who continues the business there, the new trader cannot start serving alcoholic beverages in the licensed premises in question before the licensing authority has granted him/her a licence on his/her application. If the licence holder wishes to transfer the licensed activities to new premises, s/he has to apply for a new licence.

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4.13 Processing time The application has to be completed in good time because processing it and collecting statements from various authorities takes time. The average processing times for applications in the Regional State Administrative Agency is usually one month.

5. Licence and supervision fees The licensing authority charges fees from the licence holder on the decisions they make and an annual supervision fee. Behind this is the government principle related to the Act on Criteria for Charges Payable to the State, according to which the originator of work is liable to pay the incurred expenses. Unpaid fees can be enforced without a judgment or court order (Act on Criteria for Charges Payable to the State (150/1992), § 11, subsection 2). If the person liable to payment finds that a mistake has been made in the payment order, s/he can demand a correction from the authority who ordered the payment, within six months of the order. About the decision given to the correction demand can be appealed to the Administrative Court. The licence holders that are holding a serving licence valid until further notice are charged an annual supervision fee per specific premises. A new licence holder is not liable for the control fee during the first calendar year. A new holder of a licence for extended serving hours is neither liable for the supervision fee during the first calendar year The supervision fees on serving are invoiced per calendar year latest by the 30th of April to the licence holders that have been holding the licence on the 1st of April. The licence holder is not charged for the supervision fee on the year when his/her activities have ceased latest by 31 of March. Charges made by the regional state administrative agency are prescribed by Government decree and charges made by Valvira by decree of the Ministry of Social Affairs and Health.

Additional information

Senior Officer Juuso Nieminen, email: [email protected] Director Jussi Holmalahti Senior Officer Juuso Nieminen

Distribution Ministry of Social Affairs and Health Regional State Administrative Agencies Finnish Hospitality Association MaRa Education establishments organizing tests on the provisions on serving

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Additional Information (mostly available only in Finnish and Swedish) Guidelines of the National Product Control Agency (608/43/06) for the State Provincial Offices on applying the Government Decree on Extended Serving Hours (1208/2002) http://www.valvira.fi/documents/14444/22511/jatkoaikaohje.pdf Guidelines on advertising of alcoholic beverages (10/2014) http://www.valvira.fi/documents/14444/189409/alkoholimainonta.pdf Guidelines on announcing special prices of alcoholic beverages (9/2012) http://www.valvira.fi/documents/14444/22511/Valvira_ohje_9_2012.pdf Guidelines on the responsible manager of the licenced premises and his/her substitutes (12/2012) http://www.valvira.fi/documents/14444/22511/Valvira_ohje_12_2012.pdf Education establishments organizing tests on the provisions on serving of alcoholic beverages http://www.valvira.fi/documents/14444/22511/oppilaitokset.pdf Valvira’s guidelines on tobacco issues http://www.valvira.fi/web/en/tobacco Valvira’s guidelines concerning import of alcohol http://www.valvira.fi/web/en/alcohol/alkohol-import

http://www.valvira.fi/documents/14444/22511/jatkoaikaohje.pdf

http://www.valvira.fi/documents/14444/189409/alkoholimainonta.pdf

http://www.valvira.fi/documents/14444/22511/Valvira_ohje_9_2012.pdf

http://www.valvira.fi/documents/14444/22511/Valvira_ohje_12_2012.pdf

http://www.valvira.fi/documents/14444/22511/oppilaitokset.pdf

http://www.valvira.fi/web/en/tobacco

http://www.valvira.fi/web/en/alcohol/alkohol-import

Documents

Alcohol Issues in Licensed Premises