Online liquor gets audited: a review of regulatory controls and supply practices of online liquor retailers in NSW, Australia

Abstract

Objectives: In New South Wales (NSW), Australia, the number of 'online liquor licences' -packaged liquor licences with conditions restricting the sale of alcohol to online, phone or fax orders -increased from 101 in 2010 to 500 by May 2018. International and national evidence is emerging that this growth in online liquor licences has been accompanied by increased risk of supply to young and intoxicated people. This study aimed to determine the extent to which online liquor retailers in NSW have adopted safeguards to prevent people younger than 18 years purchasing alcohol online; and the supply of alcohol to intoxicated people. It also aimed to assess the regulatory framework in NSW for these licences. Methods:We undertook an audit between May and November 2018 of regulatory controls for 213 online liquor retailers in NSW with publicly available websites at the time of auditing. A comparative analysis of the NSW Liquor Act 2007 and the NSW Liquor Regulation 2018 was conducted.Results: Three gaps in the existing legal safeguards for online liquor retailers were identified: inconsistent application of the NSW Liquor Act 2007; the inability of the regulator to complete compliance auditing; and an absence of consistent mandatory signage. The study also identified inconsistencies between the regulation of physical and online liquor retailers.Conclusions: Study findings led to the formulation of recommendations for regulatory change, which were presented to the government oversight agency, Liquor & Gaming NSW, in April 2019 and followed up by written submissions from the research group on behalf of Northern Sydney Local Health District Health Promotion. Several key reforms were subsequently incorporated into the NSW Liquor Amendment (24-hour Economy) Bill 2020. Findings have informed an advocacy approach which has led to improved regulatory reform within NSW.

‘The convenience is a double‐edged sword’: Qualitative interviews with people who use online alcohol delivery services

“…This suggests that these services may be disrupting ‘routine drinking activities’ (behaviours that drinkers engage in when consuming alcohol). The availability of online alcohol delivery services, particularly fast delivery services, has expanded rapidly in recent years (e.g., data from NSW [25]), increasing the ease and speed with which people can access alcohol in the home. For some study participants, this availability appears to influence the way a home drinking occasion might progress; where previously it may have ended when all the alcohol in the home was consumed, it can now continue, if desired, due to the availability of fast alcohol delivery services.…”

“…So even if I don't need $100 worth of items, I'll add things to my cart just to save money on the delivery fee.' (Female, 25 One participant discussed how direct advertising of discounts via text message could lead her to make an online alcohol order that she otherwise would not have had the service not prompted her with a discount: 'You get umm texted at, you know, a $20 or $30 off code from [online wine store] and you might not have been intending to order any alcohol but because you got that code you decide to order when maybe you weren't thinking of ordering any wine that week.' (Female, 35-44, AUDIT-C = 5)…”

Promoting health in the digital environment: health policy experts’ responses to on-demand delivery in Aotearoa New Zealand

“…Proposals for alcohol largely relate to strengthening and enforcing existing restrictions by extending them to on-demand services for rapid delivery ( Mojica-Perez et al , 2019 ; Casswell, 2020 ; Noyes et al , 2021 ; Fitzgerald et al , 2022 ). They include tightening procedures for online age authentication and requiring specific training for delivery drivers following the example of similar changes that have been introduced in parts of Australia [e.g.…”

“…Proposals and recommendations for these policy changes, however, are not necessarily straight forward to implement in a constantly changing digital environment ( Jankhotkaew et al , 2022 ), where industry players exploit loopholes where regulations and policy are unclear ( Colbert et al , 2021 ; Noyes et al , 2021 ; Ling et al , 2022 ). Barriers include resource constraints, legal loopholes, low priority among decision-makers, limited capacity for implementing further regulation, and gaps in knowledge that would assist decision making ( Noyes et al , 2021 ).…”

“…Proposals and recommendations for these policy changes, however, are not necessarily straight forward to implement in a constantly changing digital environment ( Jankhotkaew et al , 2022 ), where industry players exploit loopholes where regulations and policy are unclear ( Colbert et al , 2021 ; Noyes et al , 2021 ; Ling et al , 2022 ). Barriers include resource constraints, legal loopholes, low priority among decision-makers, limited capacity for implementing further regulation, and gaps in knowledge that would assist decision making ( Noyes et al , 2021 ). It also takes time for policies to be established and regulations to be defined, implemented and enforced, and the time lag has allowed marketers to ‘reinvent’ products so that they can stay in business and force regulators to constantly ‘play catch up’ [( Ling et al , 2022 ), p. 225].…”