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INDUSTRY NOTICE: Avoiding tier violations when using B2B e-commerce platforms
To: TABC-licensed and -permitted distributors, wholesalers, retailers, and stakeholders Re: Avoiding tier violations when using B2B e-commerce platforms TABC is aware that multiple business-to-business (B2B) e-commerce platforms have entered the Texas market, and some retailers are using these platforms to place or facilitate their alcoholic beverage orders with distributors and wholesalers. The agency is also aware that some distributors and wholesalers have contracted with e-commerce platforms to serve as one of the wholesaler’s or distributor’s designated ordering platforms. This is a significant development in Texas’s alcoholic beverage industry, so I want to take this opportunity to stress to all interested parties that TABC still enforces a strict separation between the manufacturing, wholesaling, and retailing levels of the industry. Members of the industry remain free to run their respective businesses as they see fit, within the confines of the law; however, a member of one tier of the industry may not manage or control the business or interests of a member of another tier. To that point, if a retailer attempted to force a distributor or wholesaler to use or accept orders from a particular e-commerce platform, that may constitute a violation of the Alcoholic Beverage Code (“Code”). TABC will investigate such allegations for potential enforcement action. While e-commerce platform operators are generally not licensed by TABC, they must still abide by the Code. If a platform operator changes, redirects, or otherwise interferes with the fulfillment of an alcoholic beverage order placed by a retailer, TABC will investigate to determine if a violation occurred. TABC’s goal is to provide a healthy regulatory environment for the Texas alcoholic beverage industry to ensure public safety while also supporting businesses. The emergence of e-commerce platforms does not change that goal, and we will closely monitor how these platforms operate to help ensure the health of the industry and the safety of Texans. If you have questions regarding this letter, please contact TABC in writing at P.O. Box 13127, Austin, TX 78711; by email at marketing.practices@tabc.texas.gov; or by phone at 512-206-3411. Sincerely, Thomas W. Graham Executive Director
Read moreMeeting documents posted for Nov. 14 commission meeting
TABC has posted meeting documents to BoardDocs for the commission meeting scheduled for Thursday, Nov. 14, 2024, at 10:30 a.m. Central time.
Read moreAgenda posted for Nov. 14 commission meeting
Join us in person or online for a regularly scheduled meeting of the Texas Alcoholic Beverage Commission on Thursday, Nov. 14, 2024.
Read moreTABC, Human Trafficking Rescue Alliance take action against nine Houston-area bars on allegations of human trafficking, prostitution
HOUSTON — More than 200 peace officers and employees from the Texas Alcoholic Beverage Commission, Houston Police Department, Harris County Sheriff’s Office, FBI, and other local, state, and federal agencies converged on nine Houston-area bars suspected of engaging in human trafficking during a series of operations conducted Oct. 18. The joint action resulted in TABC suspending the nine businesses’ liquor licenses, as well as the removal of 84 suspected victims from the premises. The operation is believed to be the largest such investigation of suspected human trafficking at TABC-licensed businesses in state history, according to TABC Chairman Kevin J. Lilly. “This operation’s success is the result of careful investigation, undercover work, and coordination between TABC and our partners in the Human Trafficking Rescue Alliance,” Lilly said. “Human trafficking is a stain on our society, and it’s unfortunately more prevalent than most Texans realize. I couldn’t be prouder of our peace officers for their diligence, their willingness to work across agency lines, and their commitment to putting the safety of the victims first.” The investigation was made possible through the close working relationship between TABC and its partners in the Human Trafficking Rescue Alliance (HTRA), Lilly added. “All of us within the Texas law enforcement community are committed to keeping our fellow Texans safe, as well as protecting anyone who’s been victimized by human traffickers,” he said. “I believe the men and women of the Human Trafficking Rescue Alliance are an incredible credit to their agencies and all of Texas.” The locations’ TABC licenses were suspended as outlined in Section 11.614 of the Alcoholic Beverage Code, which authorizes the agency to suspend a business’s liquor license for up to 90 days if the commission determines “that the continued operation of a permitted or licensed business would constitute a continuing threat to public welfare.” Licenses and permits suspended during the Oct. 18 operation include: El Flamingo Club, 3715 Aldine Mail Route Koko Bongo, 955 Federal Road Los Escorpiones #2, 1636 Federal Road Los Escorpiones #5, 2815 Luell St. El Cruzero Sports Bar, 7715 W. Hardy Road Bora Bora Sports Bar, 11028 Aldine Westfield Road El Rinconcito Night Club, 743 Freeport St. La Condesa, 8810 Jensen Drive Las Margaritas Night Club, 210 E. Little York Road No alcohol may be served or sold at the locations while the businesses’ TABC licenses/permits are suspended. The case remains under investigation by TABC, the Houston Police Department, and other members of HTRA. Media Contact: Chris Porter TABC Director of Communications (512) 206-3462 media@tabc.texas.gov
Read moreAgenda posted for Oct. 3 stakeholder meeting
Join TABC staff virtually to discuss draft rules for publication on Oct. 3, 2024, 10-11 a.m. Central time. This meeting will be held by Zoom only.
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