Ohio AG looks to stop flow of illegal liquor to state
Ohio Attorney General Dave Yost filed for an injunction Wednesday to stop the flow of illegal liquor shipments to the state.
The move comes after a month-long investigation by the Attorney General's office that determined multiple out-of-state providers of liquor were circumventing Ohio law and shipping directly to consumers.
According to the release, the law is designed to help control the sale of alcohol to minors, ensure payment of taxes and protect Ohio liquor businesses from out of state competition.
The May investigation found multiple direct sales by companies such as Wine.com, Winc, Ace Spirits and Wine Country Gift Baskets.
Data from the Division of Liquor Control says Wine.com directly shipped 24,000 packages to Ohio last year while Winc sent about 13,000.
The release says there are tens of thousands of retail stores for wine and liquor in Ohio and illegal competition could cost businesses jobs and the state tax revenue.
A Cleveland business owner said the sales are hurting his business because customers have found prices online that are below state minimums.
"These distributors are flagrantly skirting the law and keeping Ohio from collecting tax money it is entitled to," Yost said. "We're not talking nickels and dimes here. The tax revenue lost due to online liquor sales could be anywhere from tens of thousands to millions of dollars."
Attorney General Yost said the lost revenue is even more important during the challenging economic times presented by the coronavirus pandemic.