Public health experts in Australia claim that there are too many websites that promote ridiculously cheap alcohol claiming they fuel Australia's drinking problem and encourage buying by under-age drinkers. Group buying sites - which offer deals on meals, beauty treatments and household products (think Flipkart, Snapdeal and Indiatimes Shopping in India) - are increasingly emailing members with offers of up to 70 per cent discount on liquor ordered bought in bulk.
Under the Australian Liquor Control Act 1988, it is an offence to sell or supply liquor to a person under the age of 18 (Eighteen) years on licensed or regulated premises; or for a person under the age of 18 years to purchase, or attempt to purchase, liquor on licensed or regulated premises.
A report cites recent offers that include an Our Deal promotion knocking A$140 off the recommended retail price of a dozen bottles of wine and a bottle of whisky, and a LivingSocial offer of a case of wine for A$59 - less than A$5 a bottle.
Vinomofo discounted wine site has been criticised for using a trade name that directly appeals to young people, and for an 'irresponsible'' competition in which entrants could win a Mini full of wine, by running a ’How many bottles of wine can you fit in a Mini’ campaign on their website.
Supermarket giants Coles and Woolworths have previously come under fire for heavily discounting alcohol; health experts say online traders are selling it even more cheaply but are flying under the radar.
''The big retailers have to pay distribution costs, marketing costs and retail staff costs, and that's the thing that protects us from these ridiculously low prices on alcohol. But these costs don't exist for online providers so they can charge whatever they like,'' said alcohol campaigner Sandra Jones, director of the University of Wollongong's Centre for Health Initiatives. ''If we had a minimum price for alcohol it would address this problem because they wouldn't be able to sell below a set cost.''
Australia's National Preventive Health Agency is investigating a floor price for alcohol as a measure to curb problem drinking, with recommendations to be delivered to the federal government next year. Similar campaigns have been going on in countries like UK and Ireland where alcoholism has become a national problem.
Research shows that price and availability are two of the main drivers of problem drinking. Professor Jones said online sites offering home delivery made it easier for minors to access alcohol as members usually only have to tick a box to say they are 18, and can pay with a Paypal account. While most group buying sites say proof of age may be required for delivery, Professor Jones said it was not clear how strictly this was enforced. In 2009, a Sunday Age investigation had revealed it was very easy for minors to buy liquor online, with couriers often not checking for ID on delivery.
Andre Eikmeier, founder of Vinomofo, has defended cheaper prices on his website. ''A $40 Shiraz down to $20 isn't really promoting irresponsible drinking, so much as responsible spending,” he says, adding wine could not be delivered to an unattended address nor collected by a minor.
Amazon starts online wine sales
Even as the controversy about cheap online sales is increasing in Australia (the case may bring to mind the internet sales in UK by the big supermarket chains like Tesco and Sainsbury’s which offer promotional deals on wine regularly and delWine often recommends the readers to buy when the deal is on, with an implicit assumption that the buyers are generally responsible), the biggest online retailer, Amazon started online sale of wines a week ago, last Thursday.
This was the third attempt on the part of the retailer which was perhaps also bogged down by the complex inter-state laws on alcoholic beverages in the US. About 1000 labels are being offered at the first instance from Napa, Washington State etc. The shipments are made directly by the producer who pays monthly listed charges to the retailer along with commission on each bottle sold.
The detractors would criticise this as a move to encourage underage buyers to order wine. But Amazon clarifies that both the purchaser and recipient of wine must be at least 21 years old and all shipments require an adult signature at delivery. So far, the service is limited to the States of California, Connecticut, Florida, Idaho, Illinois, Iowa, Nebraska, Nevada, North Carolina, Oregon, Washington, Wyoming, and Washington, D.C. But it will be expanded to other states soon.
To put things in proper perspective - in India, online wine sales are not allowed. Some states allow variation in the retail sales price. In Delhi, no discounts are allowed on the declared MRP whereas in nearby Gurgaon, there is no declared price and rates are negotiable, especially if the purchase is made by the case, from a wholesaler/retailer. |