NYSLANew York State Liquor Authority
NYSLANew York Seniors Legal Assistance Project (est. 2006)
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References in periodicals archive ?
The overwhelming majority of the NYSLA questions had nothing to do with ShipCompliant's "Producer Direct" program, whereby wineries holding New York direct-shipping permits ship and fulfill orders sent to New York residents.
On April 9, 2013, the NYSLA issued a declaratory ruling (5) denying ShipCompliant's petition and concluding that certain 3T sales through the MarketPlace Platform violated ABCL [section]111, which states: "A license issued to any person ...
The NYSLA expressed concern that the TPP--an unlicensed entity--was exerting a Thigh degree of control over the business operations" of the participating licensees in the 3T sales relationship, and that licensees were playing a passive role.
In addition, the NYSLA had reservations about the escrow-type account that was part of the retailer's agreement with ShipCompliant, stating that the arrangement "call(ed) into question what, if any, control the participating retailer exercised over funds paid for the alcoholic beverages."
Despite the lengthy hearing in January and the detailed ruling by the NYSLA, there are still no comprehensive guidelines for licensees wishing to work with TPPs to improve sales to New York consumers.
In the meantime, however, the NYSLA warned licensees that they should avoid TPP arrangements where: (a) licensees are playing a passive role in the transaction and/or incur no business risk in the arrangement; (b) an unlicensed party performs "retail functions" such as control over product selection, pricing, fund distribution and licensee's profit margin and (c) an on party derives "a substantial portion of the sale or sales made."