"It demonstrates a serious breakdown in their systems.
"All the premises and managers will face action with the Alcohol Regulatory and Licensing Authority and we will be seeking suspension or cancellation of their licences."
Police would lodge their applications with the authority within the next fortnight and would seek a hearing to request cancellation of two licences.
All the premises checked during the undercover purchases were chain liquor stores. Supermarkets and on-licence venues were not part of the operation.
A 17-year-old volunteer, who did not carry identification, bought the alcohol during the operation and none of the three outlets asked for identification, Mr Paulin said.
"Our volunteers don't carry any identification at all and, when they are asked, they say they don't have any, but on each of the three occasions [on Friday] they weren't asked at all.
"It's definitely frustrating -- frustrating and disappointing."
Police would not confirm the three outlets involved but the Otago Daily Times understands all are part of major national chains.
One repeat offender is understood to be the Bottle-O outlet in Princes St.
When contacted yesterday, owner Lovepreet Minhas said the store would fight the claim.
He had spoken to the store's manager and said the staff member working at the time of the operation "checked the ID", he said.
"It was a driver's licence and he was over 18. That's why he sold it to him," he said.
When asked if he was aware the volunteers did not carry identification, Mr Minhas said that was "incorrect" and hung up the phone.
The outlet faced a one-day suspension of its licence last month after alcohol was sold to an underage teen in February during another controlled purchase operation.
In August, the authority handed out an unprecedented 21-day suspension to another Dunedin liquor outlet after two 16-year-olds were able to buy RTDs during a controlled purchase operation last year.
Dunedin City Council liquor licensing co-ordinator Kevin Mechen said he could not comment on the operations, as he was unsure of details, but council licensing inspector Tony Mole would appear at the hearings in support of police.
Mr Paulin said he expected the hearings would be held next year.