Online liquor sales – ensuring compliant and responsible liquor sales

E-commerce has enabled businesses that hold liquor licenses to sell liquor for consumption off the premises, to advertise their products to a larger audience, and to receive orders from customers they would otherwise not be able to reach through a physical storefront.

Some businesses now operate entirely online – with their licensed premises serving purely as administrative offices from where tasks such as order processing and logistical arrangements relating to the sale and delivery of liquor are managed. To learn more about the requirements to apply for a liquor license for an online business, click on the following link: https://daniecronje.com/online-liquor-sales-no-special-liquor-license-required/ .

Businesses that operate online, through a website or e-commerce platform, must however ensure that reasonable measures are in place to comply with statutory obligations in terms of the Western Cape Liquor Act.

Trading days and hours

The trading days and hours for the sale of liquor are determined by the relevant municipality in which the licensed premises are located. The Liquor Authority requires that the sale, supply, and delivery of liquor ordered online must occur within the prescribed trading hours set by the municipality – in the same way as physical stores.

To ensure compliance, a business must take reasonable steps to ensure all deliveries take place within the permitted hours. Additional safeguards – such as clearly displaying delivery hours on the website – further demonstrate the business’s commitment to compliant and responsible liquor sales.

Businesses offering on-demand deliveries can also implement cut-off times for order placement to prevent last-minute deliveries that risk falling outside the permitted trading hours.

Website requirements – No sale of liquor to persons under the age of 18

The Liquor Authority has intensified its efforts to clamp down on the sale of liquor to underage persons. It is therefore expected that online businesses will be held to strict(er) standards, particularly since a customer can remain “anonymous” behind a screen.

Businesses must take reasonable steps to implement appropriate age verification measures on their websites. The following measures can be considered non-negotiable: an age gate when opening the website and a clear contractual warranty or acknowledgment within the terms and conditions, which the customer must accept before making any purchases.

Responsible trading can be further promoted through the display of responsible drinking messages across the platform.

Deliveries

Whether a business uses its own delivery personnel and vehicles or makes use of a third-party service provider, clear instructions must be in place to prevent the delivery of liquor to persons under the age of 18.

Liquor may not be handed over to any person under the age of 18. The delivery personnel must, where there is reasonable doubt, request proof of identification to confirm that the recipient is of legal drinking age.

Quantity of liquor sold

No person may purchase, and a licensee may not sell, more than 150 litres of liquor to a single individual in one day.

The website must therefore be appropriately configured to block orders that exceed this prescribed threshold. It is also advisable to monitor repeated or high-volume orders (under the prescribed threshold) to the same person or delivery address, as this may reasonably raise suspicion that the liquor is being resold unlawfully.

If you require assistance with ensuring compliance for your online liquor sales, or if you have any questions regarding your liquor license conditions, you are welcome to contact us at danie@daniecronje.com or lizanne@daniecronje.com