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