Fresh & Easy stores in California have been banned from selling alcohol via self-service tills.
California state governor Jerry Brown has signed Assembly Bill 183 banning alcohol sales through self-serve checkout machines in the state.
The move could spell further trouble for Tesco's American arm, which relies on self-service tills more than any local competitor.
Tesco last week revealed at its interim results last week that Fresh & Easy had scaled back its losses for the period by 23% to £73m – and was on track to break even by 2013.
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