Tennessee achieved a court victory against five online liquor stores that were selling alcohol without a license in the state, the state announced in a Tuesday release.
Undercover agents of the Tennessee Alcoholic Beverage Commission (TABC) ordered and received alcohol from each online seller, Tennessee Attorney General Jonathan Skrmetti’s office said in a release announcing the original lawsuit in July 2023. Staff attorneys then sent cease and desist letters to each distributor, but each letter was ignored.
The United States District Court for the Middle District of Tennessee approved a combined settlement of nearly $60,000. The distributors also agreed to cease their illegal shipping and acknowledge their violations.
“These penalties mark a significant step in our efforts to halt illegal online alcohol distribution and ensure compliance with legal and safety standards,” TABC Director Russel F. Thomas said in the Tuesday release. “Businesses selling alcohol without a license in Tennessee should expect severe penalties. We are committed to ensuring public safety and upholding state laws.”
The defendants in the case consisted of Bottle Buzz, Prime Time Liquors, My Bev Store, The Liquor Bros, and Wooden Cork Enterprises. Cask Cartel was a defendant in the original lawsuit but was not among those included in the final settlement.
The case is Tennessee’s first successful prosecution under the 21st Amendment Enforcement Act, TABC noted in its Tuesday release. The law, passed by Congress in 2000, allows state attorneys general to bring civil actions to restrain someone from importing or transporting alcohol violating state laws.
It was also the state’s first prosecution under the 21st Amendment Enforcement Act. Only two other states—Michigan and Ohio—have prosecuted under the law.
Tennessee law prohibits alcohol sellers from shipping alcohol directly to consumers from out-of-state without a state-issued license.
“This injunction is a significant step in our ongoing efforts to combat illegal alcohol distribution by enforcing Tennessee licensure laws,” Thomas said in the Tuesday release. “These are the same laws that prevent minors from obtaining alcohol, ensure that taxes are paid, and that keep counterfeit alcohol products off the street.”
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Matthew Giffin is a reporter at The Tennessee Star and The Star News Network. Follow Matthew on X/Twitter.
