AG Sanctions Nine Out-of-State Alcohol Retailers for Unlicensed Sales to New Jersey Consumers

Retailers from New York, California, and other states cited or fined following undercover investigation into illegal direct-to-consumer shipments.

TRENTON, N.J. — Attorney General Matthew J. Platkin and the New Jersey Division of Consumer Affairs announced administrative enforcement actions against nine out-of-state alcohol retailers accused of violating New Jersey’s consumer protection laws by engaging in unlicensed sales and shipments of alcoholic beverages directly to residents of the state.

The actions stem from a 2023 undercover investigation by the Division’s Office of Consumer Protection (OCP) in coordination with the Division of Alcoholic Beverage Control (ABC). The investigation determined that the businesses conducted unauthorized sales of wine and spirits into New Jersey in violation of the New Jersey Alcoholic Beverage Control Act (ABC Act) and the Consumer Fraud Act (CFA).

“Whether in-state or out-of-state, retailers selling alcohol beverages to consumers in New Jersey must abide by the laws that help ensure lawful and proper practices in the industry,” said Attorney General Platkin. “Alcohol is a substance with potential for abuse and addiction, and we will not allow retailers to skirt the laws that ensure proper regulatory oversight of its sale in our state.”

Details of the Enforcement Actions

Two of the out-of-state retailers — Station Plaza Wine & Spirits (102 Kraft Wines, Inc., NY) and Pike’s Wine & Liquors (Robomar, Inc., NY) — received Notices of Violation seeking $4,000 in civil penalties each for noncompliance. The remaining seven businesses entered into consent orders in which they agreed to cease all unlicensed sales into New Jersey and paid $2,000 civil penalties to resolve the allegations.

The nine businesses identified are:

• 102 Kraft Wines, Inc. d/b/a Station Plaza Wine & Spirits (New York)

• Big Derby Distilling Company d/b/a Copperworks Distilling Company (Washington)

• Hillside Winery, Inc. a/k/a Mill Bridge Winery (Tennessee)

• Jackson Hole Winery, LLC (Wyoming)

• Northeast Wine Development, LLC d/b/a All-Star Wines & Spirits (New York)

• H.A.J. Inc. d/b/a Sussex Wine & Spirits (New York)

• Robomar, Inc. d/b/a Pike’s Wine & Liquors (New York)

• Szkutak Wine Ventures, LLC d/b/a Samsara Wine Co. (California)

• A Tribute to Grace Wine Company, LLC (California)

According to the Attorney General’s Office, these businesses processed and fulfilled online orders placed by a DCA investigator acting in an undercover capacity. All shipments of alcoholic beverages occurred without the businesses holding the required New Jersey retail or shipping licenses, which are mandatory under the ABC Act for any direct-to-consumer alcohol distribution into the state.

“Retailers selling alcoholic beverages to New Jerseyans must comply with the laws that provide ABC with regulatory oversight of the transactions and products being sold,” said Kirstin Krueger, Interim Director of the Division of Alcoholic Beverage Control. “The enforcement actions announced today not only protect the public from potentially unsafe alcohol and deter sales to underage individuals; they also send a clear message that anyone attempting to ship alcohol in New Jersey without a license will be held accountable.”

Legal and Regulatory Context

Under New Jersey law, entities that sell or deliver alcoholic beverages to consumers within the state must be properly licensed through the Division of Alcoholic Beverage Control. Violations of these licensing requirements may also constitute consumer fraud when sales occur without transparency or legal authority.

The enforcement effort reflects New Jersey’s broader commitment to protecting consumers from illegal or unregulated sales practices, particularly those involving controlled products such as alcohol.

“New Jersey’s Consumer Fraud Act prohibits unlawful business practices, including those that violate state and federal laws,” said Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs. “By taking action against these retailers, the Division is sending a message that we are prepared to use the CFA to protect consumers and hold accountable businesses operating without regard for the laws of our state.”

The investigation was led by Investigator Aziza Salikhova of the Office of Consumer Protection. Legal representation was provided by Deputy Attorney General Monica Finke, under the supervision of Section Chief Jesse J. Sierant of the Consumer Fraud Prosecution Section, within the Affirmative Civil Enforcement Practice Group of the Division of Law.

This action reinforces state policy that out-of-state companies are not exempt from New Jersey’s consumer and licensing laws and must comply when engaging in commerce that reaches residents within the state.