sort by

Illinois’ New DTC Compliance Requirements

Matthew Mann
Sep 21, 2016   |   Matthew Mann Recommended for:   Wine Shipping & Fulfillment, DTC Compliance
Winery Winery

In August, the state of Illinois enacted a revision of their direct-to-consumer (DTC) shipping law in a way that directly impacts any winery shipping to consumers in the state, and in particular those wineries using third party fulfillment services to manage their direct shipments. In short, that’s most wineries shipping DTC to the state. Here’s what you need to know:

Appointing a Designated Shipper

The most important item for you to know is that the new law (SB 2989), requires wineries with a winery shipper license in the state to designate the name and address of all locations from where they ship. This includes third-party fulfillment providers, such as WineDirect. You can do this when you apply for your Illinois license. In addition, you will need to submit a letter to the Illinois Liquor Control Commission (I.L.C.C.) appointing your fulfillment provider as a designated shipper.

New Reporting Requirements

Another piece of the legislation requires the designated fulfillment providers to file annual shipment activity reports, detailing all shipments made to Illinois consumers. This report is used to cross-reference against reports filed by the winery shipper licensee to verify all shipments are legal. WineDirect already provides similar reports for other states, so we are fully ready to comply with Illinois’ new legislation.

You Are Responsible for All Shipments

The law makes wineries responsible for the shipment activities of their fulfillment providers. As such, this change creates a higher level of scrutiny and responsibility by wineries using fulfillment providers to ship DTC to Illinois, but should not be of concern for WineDirect clients: we always ship compliantly, and provide accurate and timely reporting of shipments as required by the various states. If you work with another fulfillment provider, make sure they are equipped to comply with the new regulations and are shipping legally to Illinois consumers.

Increased Licensing Fees

The new law also increases the costs for a Winery Shipper’s license:

  • $350/initial license; $250/renewal – if producing < 250,000 gallons annually.
  • $1,000/initial license; $750/renewal – if producing between 250,000 & 500,000 gallons annually.
  • $1,500/initial license; $1,200/renewal – if producing > 500,000 gallons annually.

What Happens Next

The law doesn’t take effect until January 1, 2017, and the I.L.C.C. is still finalizing the rules and forms, so you will have time to make the necessary changes. WineDirect will monitor the situation and advise you when the new rules and forms are in place, including a template for the Appointment Letter. Our team is here to assist you in complying with these changes, and we will keep you informed of developments as soon as they occur.

New call-to-action

Get DTC updates delivered straight to your inbox:

Find more resources from this category.

Ada Winery Website Compliance 751X450
WineDirect Completes a Website Accessibility Audit

This comprehensive audit certifies that our ecommerce tools meet ADA website accessibility standards.

Ecommerce, DTC Compliance

Blog 744Px X 446Px Integrated Payments Carousel Refunds 1
Free Guide — How to Evaluate a New DTC Software Partner for Your Winery

A checklist of must-have features and recommended questions to ask as you go through the buying process.

Wine Club, Marketing, Tasting Room & Hospitality, DTC Compliance

How To Manage Special Requests 750X450
How to Manage Special Requests From Wine Club Members

When wine club members have unique needs, it's important to try to accommodate them. Here's how.

Wine Club, Wine Shipping & Fulfillment

Get DTC updates delivered straight to your inbox:

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our privacy policy.