TABC investigation leads to fines and a federal court injunction against illegal alcohol suppliers

May 28 – NASHVILLE, TN – The Tennessee Alcoholic Beverage Commission (TABC) today announced a major victory against illegal alcohol sales in Tennessee. A federal court approved a settlement that includes an injunction and more than $50,000 in civil penalties against five online liquor stores that shipped alcohol directly to consumers without the proper license.

“These penalties are an important step in our efforts to stop the illegal online sale of alcohol and ensure compliance with legal and safety standards. Businesses that sell alcohol without a license in Tennessee face harsh penalties. We are committed to public safety and compliance with state laws,” said Russell F. Thomas, director of the Tennessee Alcoholic Beverage Commission.

As part of separate investigations, undercover TABC agents purchased liquor from each of the accused alcohol distributors. Despite being warned that these unlicensed alcohol sales violated Tennessee law, each business continued to illegally deliver liquor directly to consumers in the state. Attorney General Jonathan Skrmetti initiated civil enforcement proceedings under the Twenty-First Amendment Enforcement Act and the Tennessee Consumer Protection Act on July 14, 2023. The defendants agreed to pay penalties totaling $58,320, cease illegal shipments, and admit their violations.

This case is the first successful prosecution in Tennessee under the Twenty-First Amendment Enforcement Act, which allows state attorneys general to obtain injunctions against illegal alcohol imports. Tennessee, Michigan and Ohio are the only states that have prosecuted cases under this law.

Since his appointment in 2019, TABC Executive Director Russell F. Thomas has emphasized curbing illegal alcohol shipments. “This injunction is an important step in our ongoing efforts to combat the illegal alcohol trade by enforcing Tennessee’s licensing laws – the same laws that prevent minors from obtaining alcohol, ensure payment of taxes, and prevent the market for counterfeit alcohol products. I thank General Skrmetti and his team for their excellent work,” Thomas said.

The settlement decision can be read here.

To report illegal shipments or other violations of state liquor laws, please visit our complaint portal.

To learn more about the Tennessee Alcoholic Beverage Commission, visit our website at tn.gov/abc.