AG Platkin, Consumer Affairs take action against nine out-of-state retailers for unlicensed alcohol sales in N.J.
NEW JERSEY– Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) Thursday announced administrative actions against nine out-of-state retailers for allegedly violating New Jersey’s consumer protection laws by engaging in the unlicensed sale of alcohol in the state.
Two of the unlicensed retailers were issued Notices of Violation seeking penalties of $4,000 each. The remaining seven retailers resolved the allegations against them by agreeing to stop selling into the state without a license and pay a $2,000 civil penalty each.
The actions are the result of a collaborative effort between the Division and the Division of Alcoholic Beverage Control (“ABC”) to address the unlicensed shipment of alcohol directly to New Jersey consumers.
“Whether in-state or out-of-state, retailers selling alcohol beverages to consumers in New Jersey must abide by the laws that help ensure lawful and proper practices in the industry,” said Attorney General Platkin. “Alcohol is a substance with potential for abuse and addiction, and we will not allow retailers to skirt the laws that ensure proper regulatory oversight of its sale in our state.”
“New Jersey’s Consumer Fraud Act prohibits unlawful business practices, including those that violate state and federal laws,” said Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs. “By taking action against these retailers, the Division is sending a message that we are prepared to use the CFA to protect consumers and hold accountable businesses operating without regard for the laws of our state.”
“Retailers selling alcoholic beverages to New Jerseyans must comply with the laws that provide ABC with regulatory oversight of the transactions and products being sold,” said Kirstin Krueger, Interim Director of the Division of Alcoholic Beverage Control. “The enforcement actions announced today not only protect the public from potentially unsafe alcohol and deter sales to underage individuals; they also send a clear message that anyone attempting to ship alcohol in New Jersey without a license will be held accountable.”
The New Jersey Alcoholic Beverage Control Act (“ABC Act”) prohibits the sale or distribution of alcoholic beverages directly to New Jersey consumers by any person or entity not properly licensed.
In 2023, the Division’s Office of Consumer Protection (“OCP”) launched an investigation into out-of-state businesses allegedly making shipments of alcohol directly to New Jersey consumers without the requisite license. As part of the investigation, a DCA investigator acting in an undercover capacity purchased alcoholic beverages from websites affiliated with nine out-of-state businesses. The businesses fulfilled the orders and distributed products into the state, despite not being licensed to do so, in violation of the ABC Act and, by extension, the CFA.
The out-of-state businesses that completed the sales are:
- 102 Kraft Wines, Inc. d/b/a Station Plaza Wine & Spirits (NY)
- Big Derby Distilling Company d/b/a Copperworks Distilling Company (WA)
- Hillside Winery, Inc. a/k/a/ Mill Bridge Winery (TN)
- Jackson Hole Winery, LLC (WY)
- Northeast Wine Development, LLC d/b/a All-Star Wines & Spirits (NY)
- P.H.A.J. Inc. d/b/a Sussex Wine & Spirits (NY)
- Robomar, Inc. d/b/a Pike’s Wine & Liquors (NY)
- Szkutak Wine Ventures, LLC d/b/a Samsara Wine Co. (CA)
- A Tribute to Grace Wine Company, LLC (CA)
The undercover transactions involved unlicensed sales of wine and spirits shipped into New Jersey. Seven of the businesses entered consent orders resolving the allegations after subsequent contact with the Division. Two businesses–Station Plaza Wine & Spirits and Pike’s Wine & Liquors–were issued notices of violation
