LCQ Off-Licence and On-Licence Differences 3 — Questions and Answers
Question 1: Under NZ law, what is the key difference in how intoxication is managed at on-licences versus off-licences?
- On-licences must manage intoxication actively during service; off-licences only need to refuse sales at the point of purchase (Correct answer)
- There is no difference — both are subject to identical obligations
- Off-licences must contact Police if they refuse a sale; on-licences do not
- On-licences can serve any level of alcohol to patrons; off-licences cannot
Correct answer: On-licences must manage intoxication actively during service; off-licences only need to refuse sales at the point of purchase
On-licences must continuously manage patron intoxication — refusing further service, removing patrons, ensuring safety. Off-licences only manage intoxication at the point of sale — they must refuse to sell to visibly intoxicated people but have no ongoing duty once the person leaves.
This reflects the different nature of the two licence types. At an on-licence, the patron remains on the premises — so the duty manager has an ongoing obligation to monitor their condition throughout the visit, refuse further service as needed, and ensure they leave safely. At an off-licence, the patron makes a purchase and leaves — so the duty manager's obligation is focused on that single transaction: assessing whether the person appears intoxicated and refusing sale if so.
Question 2: Under NZ law, must an off-licence hold a separate manager's certificate for its duty manager if the same person manages an on-licence at a separate location?
- No — one manager's certificate covers all premises in the same district
- Yes — a manager's certificate is personal and a duty manager can be appointed to multiple premises, but can only be on duty at one at a time (Correct answer)
- A manager can use their certificate at up to 3 premises simultaneously
- Certificates are site-specific and can only be used at the premises listed on the certificate
Correct answer: Yes — a manager's certificate is personal and a duty manager can be appointed to multiple premises, but can only be on duty at one at a time
A manager's certificate is a personal qualification that can be applied at any licensed premises. A person can be appointed as duty manager at multiple premises but can only physically be on duty at one premises at a time.
A manager's certificate belongs to the individual, not the premises. There is no restriction on the number of licensed premises at which a certified manager can be appointed as duty manager. However, the Act requires a certified manager to be physically present and responsible at the premises during trading hours. Therefore, the same person cannot simultaneously be the on-duty manager at two different locations.
Question 3: In NZ, what is the primary regulatory concern for off-licences regarding the sale of bulk or cheap alcohol?
- Tax compliance on high-volume sales
- That bulk or very cheap alcohol sales may encourage excessive consumption and increase community harm (Correct answer)
- Competition with on-licences that cannot offer the same prices
- The environmental impact of large volume packaging
Correct answer: That bulk or very cheap alcohol sales may encourage excessive consumption and increase community harm
The main regulatory concern with bulk or cheap alcohol sales is that they can encourage stockpiling and consumption of large quantities, increasing the risk of intoxication and related harm in the community.
Research consistently shows a relationship between alcohol price and consumption levels. Off-licences selling large volumes at very low prices can contribute to heavy drinking patterns, particularly in communities where alcohol harm is already prevalent. This is why some Local Alcohol Policies address minimum pricing, restrict high-strength products, or impose conditions on the volume of alcohol that can be sold in a single transaction. The DLC can also consider the likely community impact when assessing licence applications.
Question 4: Under NZ law, what is the legal position regarding consumption of alcohol purchased at an off-licence in a public place?
- Once purchased at an off-licence, alcohol may be consumed anywhere including public places
- Consuming alcohol in public places may be an offence under local bylaws, regardless of where it was purchased — the off-licence has no control over this (Correct answer)
- The off-licence duty manager is responsible for ensuring purchasers do not drink in public
- The Act prohibits all off-licence alcohol consumption outside the purchaser's private property
Correct answer: Consuming alcohol in public places may be an offence under local bylaws, regardless of where it was purchased — the off-licence has no control over this
Once alcohol is sold at an off-licence and taken away, consumption in public places is governed by local council bylaws prohibiting alcohol in public places. The off-licence itself has no control over where the patron consumes the product.
Many New Zealand local authorities have alcohol bans in public places — particularly in town centres, parks, and reserves. These bans are implemented under the Local Government Act, not the Sale and Supply of Alcohol Act. Once an off-licence has sold alcohol to a patron, that patron's consumption in a public place is a bylaw enforcement matter for local enforcement officers or Police — not a responsibility of the off-licence or its duty manager.
Question 5: In NZ, what type of signage is specifically required at the checkout of supermarket off-licences under host responsibility principles?
- A price comparison chart showing the cost per standard drink
- Signage about the minimum purchasing age (18), availability of non-alcoholic alternatives, and the Challenge 25 or equivalent age-checking policy (Correct answer)
- A notice about the penalties for giving alcohol to minors
- An allergen notice for all alcoholic products stocked
Correct answer: Signage about the minimum purchasing age (18), availability of non-alcoholic alternatives, and the Challenge 25 or equivalent age-checking policy
Off-licences, including supermarket alcohol areas, should display information about the minimum purchasing age and the age-checking policy, as well as availability of non-alcoholic options as part of host responsibility compliance.
Host responsibility signage requirements for off-licences typically focus on the point of purchase: the checkout or the entrance to the alcohol area. Required or expected signage includes the legal purchasing age (18), information about accepted proof-of-age documents, the Challenge 25 policy if adopted, and the availability of non-alcoholic alternatives. This ensures customers are informed about the retailer's age-checking approach before they reach the till.
Question 6: Under NZ law, what is the consequence for an off-licence that repeatedly fails to check ID and sells alcohol to minors?
- A fine equal to the value of the alcohol sold to minors
- The licensee and duty manager face prosecution, fines, and the DLC may cancel or impose additional conditions on the licence at renewal (Correct answer)
- Only the staff member who made the sale faces consequences — the licensee is not liable
- The first offence results in a warning only — no financial consequences apply
Correct answer: The licensee and duty manager face prosecution, fines, and the DLC may cancel or impose additional conditions on the licence at renewal
Selling alcohol to minors is a serious offence. Repeated failures can result in prosecution of the licensee and duty manager, significant fines, and the DLC imposing additional conditions or cancelling the licence.
The Act creates a tiered enforcement response to repeated offending. Individual staff who make sales to minors, the duty manager on duty, and the licensee as the responsible entity can all face prosecution. Fines for selling to a minor can reach $10,000 for individuals and more for companies. At licence renewal, a history of selling to minors is a significant adverse factor that could lead to additional conditions, reduced hours, or refusal to renew.
LCQ Off-Licence and On-Licence Differences 3
Under NZ law, what is the key difference in how intoxication is managed at on-licences versus off-licences?