Online age verification technology challenges shipping opponents

Wines & Vines, Sept, 2005 by Tina Caputo

One of the main arguments against the direct shipping of wine to consumers, particularly via online sales, is that it provides an easy way for minors to get their hands on forbidden beverages. When faced with the retort that few 15-year-olds have their own credit cards with which to make Internet purchases, the standard response from wholesalers and concerned citizens is that it's easy enough to swipe mom's Visa card when she's not looking.

But what if there were a way to instantly verify a wine buyer's identity online, at the time of purchase--even if the buyer in question had gotten his hands on an adult's credit card? Would wholesalers declare the world of Internet wine buying safe for minors and encourage states to open the direct-shipping floodgates? We'll soon find out, if a new online age verification system catches on with U.S. wineries.

Developed by IDology Group, LLC, a high-tech company based in Tallahassee, Fla., IDlive helps wineries and online retailers stop minors from buying wine over the Internet.

"I believe IDlive's technology significantly challenges the posture taken by the wholesalers," says IDology group VP and chief marketing officer Raye Croghan. "We have reached out in the past, to no avail. If we can disarm them, perhaps the real issue can be addressed and dealt with on a fair playing field."

In addition to forcing wholesalers and distributors to acknowledge their true agendas, Croghan says, IDlive helps wineries steer clear of government sting operations. "The system has highly effective and creative sting prevention capabilities," she says. Even if a winery is caught in a sting, "Our winery clients have the protection of exercising their right to what's called due diligence defense, recognized in all states."

Many people believe that shipping companies are liable for wine packages that are delivered into the hands of minors--particularly if the delivery person fails to obtain the required adult signature. However, according to Kristin Krause, public relations specialist for regulatory and government affairs in FedEx's Washington D.C. office, that is not the case. "Our terms and conditions of carriage place the responsibility for ensuring compliance with applicable laws and regulations on the person or company tendering the shipment to us," she confirms.

How It Works

IDlive allows wineries and online retailers to create a customized Internet verification system that taps into public records. The system sifts through and sorts the data to verify age and identity, then provides a confirmation (or denial) to the company that is taking the order. (Because the consumer's detailed personal information is not divulged in this process, the data is protected against identity theft.)

To prevent kids from using a parent's credit card to buy wine, the system can be set up to enable a "knowledge-based verification"--meaning, that it searches pubic records for information about the cardholder, and presents questions that only that person should be able to answer. (For example: "What make/model car were you associated with in 1979?")

IDlive can be set up to run automatically or manually. In a manual system, the winery representative or online retailer enters the name, address and year of birth of the buyer, then clicks a button to determine if the person is of age. If IDlive is unable to verify a person's information, or it is determined that the buyer is a minor, the system can respond in various ways, according to each individual winery's preference. Some wineries list an 800-number that the customer must call to verify purchase, while others simply send a message to the user, declining the order.

"We try to re-create the entire retail buying experience in an online environment," Croghan says, from selecting the product to bringing it to the counter to having the cashier check the ID. "The difference is that we know if an ID is fake, while retailers don't always know."

IDlive In Action

After the Supreme Court's recent ruling on direct shipping, IDology extended an offer of 500 free age verification checks and free enrollment for wineries that registered by May 31. A large wine conglomerate and several small wineries took advantage of the offer, and have since signed contracts to continue the service. When the original offer expired, IDology rolled out an ongoing free verification trial: 250 IDs in 10 days at no charge. (For more information, phone 866-520-1234, or visit idology.com.)

The company's first winery client, Lamborn Family Vineyards, based in Orinda, Calif., has been using IDlive since August of 2004. According to sales and marketing head Brian Lamborn, the technology is useful because the winery relies heavily on direct and Internet sales for its Zinfandel and Cabernet Sauvignon wines. "It was and continues to be a concern that we know that our customers are of legal age," Lamborn says. "The argument that underage consumers have access to alcohol via the Internet is a total smokescreen. However, we as producers do have a moral responsibility to ensure that we are doing everything we can in the responsible distribution of our product. IDlive helps us achieve that goal."