Yesterday, Wine & Spirits Wholesalers of America (WSWA) offered its support of Tennessee Attorney General Jonathan Skrmetti’s recent legal action against illegal spirits shipments.
The federal lawsuit, filed under the Twenty-First Amendment Enforcement Act, alleges that six out-of-state defendants were involved in the illegal shipment of spirits into Tennessee that failed to comply with initial cease and desist letters when the Tennessee Alcoholic Beverage Commission (TABC) uncovered their illegal activity in a series of investigations starting in 2020.
“Companies that break the law by illegally shipping alcohol into Tennessee hurts law abiding Tennessee companies,” WSWA President & CEO Francis Creighton said. “We commend AG Skrmetti for sending a strong message that Tennessee will enforce its law by protecting consumers and ensuring that bad actors don’t evade Tennessee taxes.”
AG Skrmetti joins a growing number of Attorneys General recognizing the impact illegal shipments have on state tax revenue. WSWA estimates that the total cost to properly enforce producer direct-to-consumer (DTC) spirits shipping in Tennessee to be millions annually, including the cost of hiring 14 new enforcement officers.
The lawsuit seeks injunctive relief under the Twenty-First Amendment Act, as well as civil penalties and the reimbursement of investigative and prosecutorial actions.
