TRIP REPORT
The NABCA Legal 2024 panel , The Growing Frontier for Supplier Advertising : E-Commerce discussed how the rapidly evolving digital domain affects the modern alcohol landscape .
panel Speakeasy : Top Litigation Trends the Industry Needs to Know . Panelists compared these legal risks to when plaintiff lawyers previously came after websites for not being ADA compliant for blind people .
The solution for those in the alcohol industry ? Proactiveness . Put language that waives class action lawsuits in favor of arbitration in the terms and conditions that someone must agree to when they check that initial popup box confirming they are 21 years old .
“ The goal is to show someone that you are not an easy mark ,” said Angela Spivey , of Alston & Bird , who referred to these kind of lawsuit threats as “ ransom notes .” A proactive legal analysis of your site ’ s transparency regarding data collection can be a critical weapon against plaintiff lawyers . “ Call their bluff ,” Spivey said of this situation . “ Threaten sanctions . Let them know that you ’ re going to cost them a lot of time and money , and are not worth their investment .”
In terms of post-Covid issues , the pandemic saw the growth of “ social districts .” These are designated areas in municipalities where people can buy drinks to go from participating on-premise accounts , and then carry and consume those alcoholic beverages outside . Proving popular , social districts have remained after the pandemic . Regulation-wise , this can be problematic .
“ They can expand as large as they want to be ,” said Don McGehee , Division Chief Alcohol and Gambling Enforcement Division , Michigan Department of Attorney General , during the panel , Alcohol Delivery in a Post-Covid World . Michigan currently contains around 90 social districts . “ They don ’ t have to put up barriers , so it can be difficult to know whether you ’ re in the district or not ,” McGehee said . “ People want to bring their to-go drink into another bar , and they can ’ t do that .”
Later in the same panel , Tyler Glaze , an alcohol policy
The panel Alcohol Delivery in a Post-Covid World touched on topics that included the rise and risks of " social districts ," and the ongoing efforts to regulate third-party delivery apps , especially when it comes to checking the IDs of individuals receiving the alcohol deliveries .
analyst for the Oregon Liquor and Cannabis Commission , shared the results of an undercover study conducted by the OLCC in 2022 . The commission ordered alcohol from various third-party delivery apps and found that 37 % of delivery did not check for ID .
This led to passage of a law that required delivery driver training , using instructional programming first approved by the OLCC . The commission also received the right to hold minor decoy operations to track delivery compliance . Additionally , the legislation mandated that third-party delivery services apply for and hold a permit for their business practices .
“ We didn ’ t want to live in the Wild Wild West ,” Glaze explained . “ We wanted to install strong regulatory framework that works for everyone .” •
10 StateWays • Summer 2024 www . stateways . com