It's a Federal Crime to Sell Booze Secondhand


Spirits writer Chuck Cowdery continues writing about the absence of a legalized secondary booze market in the U.S., including pointing to the particular federal regulation making it illegal:

"There is, on the internet, a very active secondary market in rare bourbons and other alcoholic beverages. People offer bottles for sale or indicate bottles they would like to buy. Transactions are arranged by email or other private messaging. This happens on Facebook and Craigslist, and probably many other places. I’m not going to point you to any of them. They aren’t hard to find.

Unfortunately, in the United States the secondary market in alcoholic beverages is illegal. I’ve written about this before, as recently as October.

It is illegal to sell alcohol if you don’t have a license to sell alcohol. It is against Federal law and it is against state law in every state.

There has been some question, at least in my mind, as to whether, in a given transaction, both buyer and seller are in legal jeopardy. Clearly the seller is in violation, but is the buyer? I couldn’t point to a law that said the buyer was in trouble too. Now I can.

At the Federal level, laws regulating alcoholic beverages can be found in Title 27 of the Code of Federal Regulations. I’ve spent a lot of time in the early parts of Title 27, Chapter I, Subchapter A, especially Part 5, which gets into the labeling and advertising of distilled spirits, but I never made it down to Part 31, which regulates alcohol beverage dealers. There we find a section (27 CFR 31.141) titled “Unlawful purchases of distilled spirits.” It says that it is “unlawful for any dealer to purchase distilled spirits for resale from any person other than” a licensed dealer..."

The whole piece is worth reading. R Street's Kevin Kosar has previously called for legalizing the secondary alcohol market in the U.S.