8-01 Online Vendors

8.01 Online Vendors

Effective Date: 02/01/2026

PURPOSE:    

To outline policy requirements specific to Vendors conducting WIC transactions through an online ordering and/or delivery system.

DEFINITIONS:

Online Vendor means a retail food entity that operates an online storefront and is authorized to redeem WIC benefits through an online ordering and/or delivery system.

Pharmacy Vendor means a Vendor who is authorized to provide only WIC-approved formulas and nutritionals in exchange for WIC benefits. Pharmacy Vendors may be grocers with on-site pharmacies or stand-alone pharmacies.

WIC Vendor means a retail food store or pharmacy authorized to redeem WIC benefits. This includes Online Vendors, brick-and-mortar retail stores and Pharmacy Vendors.

POLICY:

1. Online Vendors must go through the same authorization process and are subject to the same WIC Vendor Selection Criteria (Policy 2.02) as brick-and-mortar WIC Vendors, with a few key differences:

    

   1. The pre-authorization visit and training may be conducted virtually, using phone or video conferencing. (See Policy 2.01 Vendor Applications & Authorization and Exhibits 8.01A WIC Online Vendor Application and 8.01B WIC Online Vendor Pre-authorization Report.)

       

   2. Online Vendors are not subject to the limitation policy that restricts the number of authorized vendors by zip code, as they have no fixed location. (See Policy 2.04 Vendor Limitation Policy.)

       

   3. An Online Vendor may utilize multiple physical locations for order fulfillment and/or pickup provided each location is owned and operated by the same owning entity. Said fulfillment locations will be authorized under a single WIC Online Vendor Contract and Vendor ID. Fulfillment locations may be outside the state, but delivery and pickup locations must have a Michigan address. (See Exhibit 8.01C WIC Online Vendor Contract.)

    

2. Online Vendors are subject to all applicable WIC Program policies and sanctions as described in Federal Regulation 7 CFR Part 246 and Michigan WIC Vendor Policies and procedures.

    

3. For reimbursement and cost containment purposes, Online Vendors are assigned to the same peer group as brick-and-mortar locations owned by the same entity. If no physical location exists, the Vendor will be placed in the peer group deemed appropriate by the Department. (See Policy 2.03 Vendor Peer Groups.)

    

4. Online Vendors are subject to Michigan WIC compliance activities, including monitoring, inventory audits and compliance buys; however, these activities may be conducted virtually. (See Policy 5.01 Overview of Vendor Compliance and Exhibits 5.03A WIC Vendor Monitoring Visit Report and 8.01D WIC Online Vendor Compliance Buy Report.)

    

5. Violations accrued by an Online Vendor may result in adverse actions, including, but not limited to, termination from the WIC Program. At the Department’s discretion, compliance findings from Online Vendor investigations may be used to establish patterns of non-compliance or impose sanctions on related brick-and-mortar locations, and vice versa. (See Policy 6.01 Vendor Sanction Schedule Overview and Exhibit 6.01A WIC Vendor Sanction Schedule.)

References:

7 CFR Part 246

Cross-References:

2.01 Vendor Applications & Authorization

2.02 Vendor Selection Criteria

2.03 Vendor Peer Groups

2.04 Vendor Limitation Policy

5.01 Overview of Vendor Compliance

6.01 Vendor Sanction Schedule Overview

Exhibits:

5.03A WIC Vendor Monitoring Visit Report

6.01A WIC Vendor Sanction Schedule

8.01A WIC Online Vendor Application

8.01B WIC Online Vendor Pre-authorization Report

8.01C WIC Online Vendor Contract

8.01D WIC Online Vendor Compliance Buy Report