Hairdressers in Norfolk have been told they could face jail and a fine of up to £20,000 if they offer customers mulled wine at Christmas.
The threat came in a letter from Norwich City Council which said that serving alcoholic drinks broke the law.
Council leader Steve Morphew said the letter was a mistake and the policy would be applied in a more gentle way.
Norwich hairdressers are confused about what they can do to celebrate with their customers in the festive season.
Mr Morphew said: "The letter sent out was intended to be a gentle reminder but the way it was written was like it was wrapped in a brick thrown through someone's window.
"It is unacceptable the way it was done and it was a mistake.
Council officers walking around getting multiple haircuts to check if they are offered a drink is just not part of this planet.
"We will be a lot more gentle than the letter implied and we'll gently sort it out."
Speaking for the hairdressers, John Thaxton-Kay said: "If you don't understand something like this and you carry on doing it you are likely to fall foul of the law.
"I'm not prepared to go to prison or pay £20,000 in fines."
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