The California Department of Alcoholic Beverage Control Issues Advisory on Club Renewals

On June 17, 2019, the California Department of Alcoholic Beverage Control (the “Department”) issued an Industry Advisory to its licensees in the alcoholic beverage industry regarding club renewals (the “Advisory”).  The purpose of the Advisory is to alert its licensees to the legal requirements for subscription services or other purchasing agreements, which commonly operate in the alcoholic beverage industry as wine clubs, beer-of-the-month clubs and spirits clubs.  The Advisory notes that when consumers sign up for these clubs and agree to receive future shipments or deliveries of wine, beer or spirits, they effectively become subscribers to the licensee’s offering of products.  To the extent these memberships are creating a paid subscription or purchasing agreement that is automatically renewed, the clubs must comply with California and Federal statutes that regulate such purchasing arrangements.  Read More ›