Agent of the Consumer: Tennessee’s Strict Enforcement on Alcohol Shipping

Hospitality, Alcohol & Leisure Blog Dec 16, 2024 New York, NY

By: Jaci Flug, Esq. and Louis J. Terminello, Esq.

Per Tennessee: Shipping as an “agent of the consumer” is “categorically false.”

In an email to all Tennessee direct shippers, the Tennessee Alcoholic Beverage Commission (TNABC) states that shipments made into the state as the “agent of the consumer” violate the Tennessee Code. Specifically, TNABC states:

Licensure is Non-Negotiable: No Contractual Language Can Replace It

Tennessee Code § 57-3-217 mandates that every winery shipping to consumers in Tennessee must hold its own direct shipper license. Certain marketing entities have promoted a misleading strategy suggesting that contractual language identifying the winery or shipper as the “agent of the consumer” after a payment is received could exempt businesses from this requirement. This is categorically false. Compliance with Tennessee’s licensure rules cannot be waived through contracts. Violating this provision could lead to cease-and-desist orders, financial penalties, or criminal charges.

TNABC has directly rejected the “agent of the consumer” argument, the means by which many e-commerce entities ship alcoholic beverages nationally. Retailers, suppliers, and third parties often claim in their terms of service that the consumer is responsible for compliance and that they are merely an “agent of the consumer” or “acting on the consumer’s behalf” when they send purchased alcoholic beverages across state lines. This statement by TNABC rejects these terms to avoid state licensure and alludes to civil and criminal penalties.

Those engaged in inter-state e-commerce of alcoholic beverages cannot rely on contractual terms to avoid state requirements or protect themselves from liability. Greenspoon Marder assists clients with compliant national interstate e-commerce.

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Agent of the Consumer: Tennessee’s Strict Enforcement on Alcohol Shipping

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