Michigan Cracks Down On Unlawful Alcohol Sales
June 1, 2000
Retailers and direct
shippers beware - the Michigan Liquor Control Commission (MLCC), an agency with
the Michigan Department of Consumer and Industry Services, has increased its
efforts to prosecute retailers engaging in the unlawful sale of alcohol to
minors and to prosecute direct shippers.
In 1999, approximately
35% of all alcohol violations in Michigan were related to the sale of alcohol to
minors. The Michigan Attorney General’s office, with the cooperation of the
MLCC, hopes to reduce those numbers. Earlier this year, the Michigan Attorney
General’s Office and MLCC conducted a joint, online sting operation. As a
result of the operation, the Attorney General’s office filed criminal charges
against two alcohol retailers in Illinois who sold and shipped alcohol to a
minor without asking the minor’s age or requiring proof of identification.
“Notices of Intended Action” also have been issued to four other online
businesses (three based in Illinois, and one based in California) for the
alleged sale and shipment of alcohol into Michigan without a proper Michigan
license.
In connection with the
same sting, the Michigan Attorney General’s office also helped facilitate an
agreement with United Parcel Service (UPS) regarding delivery of alcohol into
Michigan. On February 10, 2000, UPS became the first shipping company to enter
an assurance of discontinuance with the Michigan Attorney General’s office.
UPS was represented in
this matter by Holland & Knight. The agreement the Attorney General’s office and UPS reached had seven components:
- UPS agreed not to ship alcohol into Michigan and agreed to notify its customers who are alcohol
shippers that it would not ship alcohol into Michigan.
- UPS agreed to advise
its customers that attempts to ship illegally into Michigan using UPS may result
in termination of its shipping contract with the customer.
- If UPS identified
that a package being shipped to Michigan contains alcohol, it agreed to advise
the shipper that UPS does not ship alcohol into Michigan. UPS also agreed to
provide the package to the MLCC and advise the shipper that it was providing
notice of the attempted shipment to the Attorney General’s
office.
- UPS agreed to train
or re-train employees who handle shipments regarding the policy against alcohol
shipments into Michigan.
- UPS agreed it would
terminate its shipping contract with any customer criminally convicted by the
Attorney General of illegal alcohol shipments into Michigan. UPS also agreed to
terminate its shipping contract with a customer if the Attorney General provided
sufficient evidence that the customer had made one or more illegal shipments of
alcohol into Michigan after being directly notified by the Attorney General, the
MLCC, or UPS, that such shipments are illegal.
- UPS agreed that any alcohol shipment that can be made legally within Michigan by properly licensed
retailers would only be delivered by UPS to a person 21 years of age or
over.
- UPS agreed to pay
$5,000 in investigative costs to the State of Michigan.
Retailers should keep
in mind that there are certain conditions under which they can legally sell
alcohol over the Internet without violating Michigan’s direct shipping laws.
For more information about the proper procedure required for Internet sales,
parties can contact Ken Wozniak, the MLCC Legislative Liaison, at (517)
322-1390. Alternatively, those interested in Internet sales of alcohol can
contact Richard M. Blau, the head of Holland & Knight’s Beverage Alcohol
Practice Area. Mr. Blau can be reached at 1 (888) 688-8500 or rblau@hklaw.com.
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