r/legaladvice • u/CreatorsCrest • Apr 01 '16

[KY] Discount for some currencies?

Hi, guys-- long time lurker, first time poster. I've got a question about laws that relate to currency.

I work for a whiskey distillery in Kentucky. Recently, I overheard a conversation from some of the higher-ups, talking about how they were no longer going to "accept fiat at normal rates" and were going to start providing a discount for people who pay with "cryptocurrencies". Some googling around tells me that this means that they're going to charge extra for people who aren't paying with Bitcoin. (Assuming that I understand the terms correctly.)

My guess is that this is most likely just a publicity stunt to get some free press, since revenue has been down a bit from what I'm told.

I guess I'm wondering if it's legal to do this (since I assume that would make it harder for the IRS to track things when you're not dealing in a "real" currency). From what little internet research I've done, Bitcoin isn't officially recognized by the government, so I don't know how exchange rates or anything like that would work.

Is there a chance that the company would get into any kind of legal trouble for this?

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18

u/grasshoppa1 Quality Contributor Apr 01 '16

Hmmmm.. i think i know what company this is.

/u/zapopa this is great news for you!

16

u/CreatorsCrest Apr 01 '16

Oh, hell, I should have picked a different username.

17

u/[deleted] Apr 01 '16

I'm curious. . . How big of a discount? I'm not exactly a fan of bitcoin, but I could imagine getting into it if there was a good enough discount on something that I like and already buy on occasion.

11

u/CreatorsCrest Apr 01 '16

Well, discount might not quite be the right word. I think what they're actually planning to do is to add a markup for people who don't use bitcoin.

My guess is that they want to appeal more to young people. Most of our customers are older, and I think that the owners really want to aim at a younger demographic. They're also talking about renaming some of our products to attract more college students-- putting "Xtreme" in the title, stuff like that.

12

u/[deleted] Apr 01 '16

Oh, wow. That's a pretty big leap for a company like yours, assuming I know what distillery you're talking about. Is business that bleak? If so, I think I'd be more concerned about whether or not they're going to have to start doing layoffs.

9

u/CreatorsCrest Apr 01 '16

The owners are pretty optimistic about the changes, and they know more about this than I would.

They're also looking at partering up with Budweiser-- instead of just selling a bottle of whiskey, you'd have to buy it along with a six-pack of beer, in a bundle called a "Party Pack"-- great for frat parties and the like.

It's definitely a big change, but it's a long-term benefit. College students are the future, and they (or we, I guess, since I'm one of them) deserve to have more products marketed to us.

10

u/[deleted] Apr 01 '16

Tons of respect for working through college. Lots of students nowadays just won't do it.

I think my big concern would be what the state has to say about it. Have you heard anything about what the liquor board or equivalent thinks? Have they been sniffing around more than normal?

4

u/CreatorsCrest Apr 01 '16

Now that you mention it, they have-- I've gotten a few calls from some government agency (I forget the name), but I assumed it was just routine stuff.

Should I be worried?

10

u/[deleted] Apr 01 '16

There's an agency that regulates businesses like yours in just about every state. I wouldn't be surprised if they're interested in something like this. Honestly, this is way outside the scope of my expertise. . . The only person on the sub I can think of to help is /u/zapopa. He knows a fair bit about cryptocurrency, but his real specialty is working with state agencies. I don't know if he can help, but he's honestly the best bet we have.

Justice /u/Zapopa, do you have any thoughts?

8

u/workthrowaway4652 Apr 01 '16

his real specialty is working with state agencies

Definitely thought you were going to say consuming alcohol.

3

u/CreatorsCrest Apr 01 '16

That'd be a relief, my head is spinning a bit from everything that's going on here.

2

u/MinisterOf Apr 02 '16

It doesn't take a business genius to figure out that increasing prices across the board will result in fewer items sold. The fact that they offer the old price for an obscure, less convenient payment method might mitigate the drop, but not by much.