Tennessee retailers fined for illegal alcohol shipping
A US court has issued more than US$50,000 in fines against five online retailers in Tennessee for selling alcohol without a licence.
The US District Court for the Middle District of Tennessee at Nashville ruled that five retailers had violated the state’s liquor laws by illegally shipping alcohol without a licence from the Tennessee Alcoholic Beverage Commission (TABC).
The lawsuit was filed in July 2023 by the state’s attorney general, Jonathan Skrmetti, against Bottle Buzz, Prime Time Liquors, My Bev Store, The Liquor Bros and Wooden Cork Enterprises.
The court approved a settlement that included injunctive relief and penalties totalling US$58,320. The stores were ordered to stop illegal alcohol shipping and acknowledge that they had violated the law.
“These penalties mark a significant step in our efforts to halt illegal online alcohol distribution and ensure compliance with legal and safety standards. Businesses selling alcohol without a licence in Tennessee should expect severe penalties. We are committed to ensuring public safety and upholding state laws,” said Russell F Thomas, director of the TABC.
An investigation by the TABC saw undercover agents buy spirits from each retailer. Despite being warned that these unlicensed alcohol sales violated Tennessee law, each company continued to illegally ship spirits directly to consumers in the state, TABC noted.
This case is the first successful prosecution in Tennessee using the Twenty-First Amendment Enforcement Act, which allows state attorney generals to seek injunctive relief against illegal alcohol imports. Tennessee, Michigan and Ohio are the only states that have prosecuted cases under this Act.
Thomas added: “This injunction is a significant step in our ongoing efforts to combat illegal alcohol distribution by enforcing Tennessee licensure laws. These are the same laws that prevent minors from obtaining alcohol, ensure that taxes are paid, and keep counterfeit alcohol products off the market.”
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