Is Marketplace legal?

Yes. Vinfolio submitted the regulatory basis of the Vinfolio Marketplace system to the California ABC and the ABC had no questions. Here are the supporting details:

Vinfolio's Marketplace is an authorized CA ABC Act Section 23355.1(d) auction house. Vinfolio (CA retail license no. 20-441362) possesses the requisite auction bond (No. 57BSBCG5262) and operates in accordance with Section 2328 of the California Commercial Code (Sale by Auction), and subject to the provisions of Sections 1812.600 to 1812.609 of the California Civil Code (Auctioneer and Auction Companies).

According to CA ABC Act Section 23335.1(d), any person, whether an individual or member of the trade, may offer any wine for sale (which is registered for sale in the U.S.) without restrictions or labeling requirements.

No wine changes hands in the Marketplace in a direct consumer to consumer transaction. All wines sold at auction must be delivered to Vinfolio by the sellers, and delivered from Vinfolio to the buyers.

When a winning bid is obtained, wine is physically removed from Vinfolio storage (which are CA type 14 licensed public warehouses) or transferred from the seller's remote U.S. location to Vinfolio for inspection, and either completion or rejection of the bid. Vinfolio's CA type 9 importing license provides us with a blanket right to bring wine into California from any jurisdiction within the U.S. No contact is permitted between sellers and bidders (who are interacting anonymously) nor is any wine shipped directly from sellers to bidders.

If inspection is successful, title then passes directly from the seller to the winning bidder with Vinfolio acting as the auction house consignee.

Buyers of wine in the Marketplace are limited to consumers and retail licensees only per CA ABC Act Section 23355.1(d). 

Outbound shipping by Vinfolio is restricted to legal states where a retailer may ship but buyers may always make their own shipping arrangements with third parties.

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