96 % of the digital platforms accepted order and payment from a 15-year-old consumer
43 % of the package deliveries did not obtain an adult signature
26 % of these deliveries were simply left at a consumer ’ s door
0 % of delivery personnel verified the age of the recipient
DIRECT TO CONSUMERS
96 % of the digital platforms accepted order and payment from a 15-year-old consumer
43 % of the package deliveries did not obtain an adult signature
26 % of these deliveries were simply left at a consumer ’ s door
0 % of delivery personnel verified the age of the recipient
Jake Hegeman , WSWA assistant general counsel , legal and regulatory , and Michael Bilello , WSWA senior vice president for communications and marketing , caution against the dangers of illegal alcohol shipping .
in the chain ?” “ There may be a lawful way to do this ,” he adds , “ but what they ’ re doing isn ’ t lawful .” To curb this unlawful behavior , Mahoney ’ s team sends cease-and-desist letters to all parties involved , along with notice to the common carriers .
“ This is one of the most effective things we can do , because [ the common carriers ] will shut off the shippers in a heartbeat ,” Mahoney explains . “ The common carriers have been pretty good partners , especially UPS .”
AN ACTIVE APPROACH Massachusetts is far from the only state effectively attacking illegal shipping . In Michigan , law enforcement ramped up their efforts in the last seven years . This comes after the state fought in court against out-of-state alcohol shipping — and lost . But companies can only legally ship so much product into the state , and must have a Michigan presence to go through the state ’ s three-tier system .
Companies still break these laws . Typically this means shipping more product than is allowed , and / or lacking a licensed Michigan presence .
“ We find out from the carriers whether the shippers are licensed or not , and then we send out cease and desist letters with info on how to comply ,” says Don McGehee , division chief , Michigan department of attorney general . He spoke at the same NABCA panel as Mahoney . “ If we find out that they shipped again , whether through our controlled buys or the carrier reports , then we sue them .”
Currently , Michigan has 19 active lawsuits against wineries , distilleries and breweries .
“ We ’ ve had a lot of injunctions , a lot of fines well over $ 100,000 ,” McGehee says . After the state took these actions , the amount of illegal shipping declined 78 % in the first year , he adds , and 58 % in the second year .
“ It ’ s having an effect ,” McGehee says . “ Are we getting them all ? Of course not . But we ’ re making a dent in it .”
Like Massachusetts , Michigan has worked with UPS and FedEx , and also noticed similar setups behind these crimes : alleged in-state alcohol producers operating as something they are not .
“ A lot of these are fulfilment centers , not actual wineries . Some are licensed and some make a few products , but not the majority of the product ,” McGehee says . “ Like Wine . com . Ohio also took action against them . Wine . com is trying to bypass
16 Beverage Wholesaler • Winter 2022