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FTC Says Online Wine Sales Don't Encourage Underage Drinking
July 8, 2003

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Research Summary

A Federal Trade Commission (FTC) study says that online wine purchases shipped to homes aren't giving minors easier access to alcohol, the Associated Press reported July 3.

The report also said that states which ban direct shipping of wine prevent consumers from saving as much as 21 percent on the cost of some vintages.

"E-commerce can offer consumers lower prices, greater choices and increased convenience," said FTC Chairman Timothy Muris. "In wine and other markets, however, anticompetitive barriers to e-commerce are depriving consumers of those benefits."

The study, which looked at states that allow direct shipping and require an adult signature to accept a wine package, found few problems. "We also found no evidence suggesting that direct shipping increases underage drinking beyond the levels attributable to sales by brick-and-mortar stores," Muris said. "Unfortunately, the evidence shows that adolescents currently can obtain alcohol without going to the trouble and expense of ordering it over the Internet."

The FTC report provides support for the wine industry's efforts to end bans on direct shipping.

"Arguments against direct shipment simply do not hold up under scrutiny," said David Sloane, president of WineAmerica, an association with more than 700 members in 48 states. "The report will have an extraordinary impact on state legislatures and the federal courts in the months ahead."

Internet sales allow wineries to market and ship directly to consumers, bypassing wholesalers and retailers -- the key opponents of laws allowing Internet sales of wine.

Craig Wolf, an attorney for the Wine and Spirits Wholesalers of America, criticized the FTC's report. "People don't want a looser system of distribution of alcohol," Wolf said.

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