In a First, Tennessee Sues Six Online Spirits Retailers for Illegally Shipping Alcohol

The Tennessee State Capitol building in Nashville. (Photo: Brandon Hooper/Unsplash)

In a recently filed lawsuit, Attorney General of Tennessee Jonathan Skrmetti alleged six online liquor retailers are illegally shipping spirits into the state. The complaint was filed with the United States District Court for the Middle District of Tennessee at Nashville on July 14. 

Skrmetti claimed Bottle Buzz, Cask Cartel, The Liquor Bros/Lena’s Liquor, My Bev Store, Prime Time Liquors and Wooden Cork all “violated and continue to violate” Tennessee liquor laws. In the complaint, these retailers are allegedly shipping alcohol directly to Tennessee consumers from outside the state without a Tenessee Alcoholic Beverage Commission (TABC) license. 

As presented, the defendants are in breach of the Twenty-First Amendment to the United States Constitution. This act states, “the transportation or importation into any State, Territory, or Possession of the United States for delivery or use therein of spiritous liquors, in violation of laws thereof.” 

The act was first passed in 2000 and allows state attorneys generals to seek civil actions when alcohol is illegally imported or transported within the state. 

These retailers are allegedly in violation since Tennessee law does not permit the shipping of “intoxicating liquors” directly to consumers from outside the state.

Part of the problem is these retailers are tax dodging by shipping directly to consumers. As a result, Tennessee is losing out on revenue generated through the sale of spirits. The practice of shipping or importing alcoholic beverages into Tennessee without paying taxes and without being authorized by Tennessee’s alcohol commission is considered a class E felony.

Uncover agents from the TABC conducted six separate investigations during which they “purchased and received unauthenticated and untaxed distilled spirits from each defendant.” Afterward, each retailer was sent a cease and desist, notifying them to stop illegally shipping into the state. Reportedly this was ignored and prompted the state to take legal action.

“I am very happy that General Skrmetti decided to prosecute this case,” said Russell Thomas, Executive Director of the TABC in a statement. “Our agents and staff worked hard to collect the evidence against these bad actors. Too often, we find websites operated by unscrupulous individuals willing to deceive consumers.”

The lawsuit is the first time Tennessee has used the Twenty-First Amendment Enforcement Act to prosecute violators of its alcohol laws. 

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