Law says no to internet wine sales

A website that arranges sales and auctions of fine wines has been refused an off-licence but will continue to operate - and in doing so will technically break the law.

But the company behind the site believes it is unlikely to be prosecuted because the problem is less with the wine sales themselves than with the failure of the law to catch up with what it is doing.

In a reserved decision, the Liquor Licensing Authority found that it could not grant an off-licence to Cellarsoft because the company had no premises where it sold liquor.

The authority said there was no provision in the Sale of Liquor Act 1989 for a website to be premises where an off-licence holder could sell or deliver liquor.

Although Cellarsoft had, as its registered office, a central Auckland law firm, the authority said: "It would make a mockery of the law if a sign showing the opening hours and a copy of the licence were displayed on the exterior and interior of the legal offices."

Cellarsoft sought the off-licence because it did not want its new business to break the law or to be perceived as breaking the law.

A director of the company, 28-year-old Stuart Parker, said he had not read the decision but he believed the company could still use its website - www.cellarsoft.co.nz - legally and would continue with its business.

"We have made every effort from the start to remain lawful," he said. "It's not like a fly-by-night operation selling home brew out of the boot of somebody's car.

"The problem we have is that the law still doesn't understand how to interpret what we are doing. It is not wrongdoing on our part. It's just an unfortunate lapse of foresight or flexibility on the part of lawmakers."

The company was incorporated in February last year. Its business involves trading by collectors of fine wines over the internet. Individuals register for free membership through the company's website.

Members can buy wine from other members through the website or sell their wine by auction organised by Cellarsoft.

The authority said Cellarsoft regarded itself as agent or facilitator for each sale but it did not handle or store any liquor.

The authority said it regretted that it could not offer the company the security it sought but said it had not been persuaded it would be desirable to amend the act to overcome Cellarsoft's difficulties.