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

Dec 16, 2024

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.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 225 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | [email protected]

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Previous Next

News

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

Share

News & Events

News & Events