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Tennessee Alcoholic Beverage Commission (TABC) fines online retailers and what it could mean for out-of-state sales

On Behalf of | Jun 6, 2024 | alcohol beverage law, In the News

Ryan Malkin, Principal Attorney of Malkin Law, spoke with BevNet about the latest decision in the Tennessee Alcoholic Beverage Commission case against five e-commerce retailers for shipping alcohol direct-to-consumer without a license. The retailers will pay civil penalties and have all agreed to cease illegal shipping. Ryan commented when this news officially broke in July 2023.

What It Means: Tennessee Alcoholic Beverage Commission (TABC) is drawing a line for e-commerce retailers on selling product out of state.

Why It Matters: Under the 21st Amendment Enforcement Act, states have the right to seek monetary damages under state law and an injunction to prevent future shipments. Tennessee is not the first state to sue e-commerce retailers, in fact, Ohio and Michigan have also sought civil action.

What Next: Other states may follow suit. In Ryan’s opinion, the amount of the fine is nominal and may not deter other retailers who intend to violate the rules in this state or other states.

Click Here to read more.

Related: Will A Lawsuit In Tennessee Spark A Crackdown on Online Liquor Sales?

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The foregoing was prepared as general information. It is not meant to provide legal advice granting any specific matter and should not be acted upon without professional counsel. If you have questions or require additional information regarding these or other related matters, please contact Malkin Law, P.A. This material may be considered attorney advertising under certain rules of professional conduct.