In an Enforcement Action against Kroger, the Florida DABT Imposes Brick-and-Mortar Standards on E-Commerce Sales
June, 2024 - United States of America
Florida’s Department of Business and Professional Regulation, Division of Alcoholic Beverages and Tobacco (DABT) entered into a consent order with Kroger Fulfillment Network LLC,[1] which requires Kroger to amend their E-Commerce or “Remote Order” practices. Specifically, DABT requires, and Kroger agreed that:
- All payments for the purchase of Remote Orders shall be processed exclusively at the Licensed Place of Business;
- Remote orders shall be charged on a receipt which reflects only transactions for the purchase of Permitted Merchandise;
- Remote Orders shall not be packaged with any items or merchandise prohibited by Section 564.04(1), Florida Statues; and
- All Remote Orders shall be fulfilled, packaged and prepared for delivery exclusively within the Licensed Place of Business.
Essentially, DBAT rejected business practices intended to streamline e-commerce processes and stuck to the letter of the law written for brick-and-mortar sales. This consent order is notable because public documents regarding beverage alcohol e-commerce enforcement actions are few and far between. Yet, each time e-commerce issues are placed before regulators, strict adherence to brick-and-mortar laws is required. Building for compliance based on brick-and-mortar laws and analysis remains the best bet.
If you have any questions about navigating the intricate landscape of beverage alcohol e-commerce regulations, click here to contact a member of our Hospitality, Alcohol & Leisure Industry Group today.
[1] DABT Case No. 2022-039849
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