The U.S. Supreme Court has begun hearing arguments in the debate over state laws that ban direct shipments of wine to consumers, MSNBC reported Dec. 6.The issue was raised by winemakers, who are banned in about 24 states from directly shipping their products to consumers. Other states allow online and phone sales of wine that consumers can't find in their states, for shipment to their home address.
Winemakers argue that the federal Commerce Clause, which prohibits states from limiting interstate commerce, takes precedence over the 21st Amendment, which gives states the right to regulate alcohol.
The issue has attracted legal celebrities like Ken Starr (for the wineries) and Robert Bork (for wholesalers), and legal briefs from shippers like UPS and FedEx, dozens of state attorneys general, Nobel laureates, and conservative groups.
"There are deeper principles involved here," said Daniel McFadden, a Nobel-winning economist at the University of California at Berkeley who filed a pro-shipping brief. "I would hope the Supreme Court would go back to fundamental principles, which is that the government should not interfere with private commerce unless there's a clear and pressing social objective to do so."
Direct shipments of wine have been taking place for nearly two decades in states like California, whose vineyards produce most of the country's wine. But the advent of the Internet has resulted in a boom in the direct wine shipment business.
Currently, smaller vineyards must deal with a three-tier system that relies on wholesalers to control which wines reach store shelves. The system favors the top producing wineries and producers with big marketing budgets. Small wineries argue that direct shipping is the only way for them to compete in markets where their wine isn't sold.
Wholesalers contend that direct shipping raises other issues, such as ensuring that wine isn't being sold or shipped to minors and that states are receiving their appropriate sales taxes.
The Supreme Court could issue a decision sometime next year on whether a state has the authority to allow its own wineries to ship wine to residents, while prohibiting other states' winemakers from doing so.
Take Action: Preventing shipment of alcoholic beverages to minors, not the battle between vintners and distributors, is the main issue of concern for prevention advocates. Adopting laws that will prevent alcohol-related deaths and injuries among young people is one of Join Together's 10 Drug and Alcohol Policies That Can Save Lives.
What You Can Do: Regardless of the Supreme Court's decision, educate your local lawmakers about the possible public-health consequences of allowing unmonitored shipments of alcoholic beverages to homes where minors may be present.
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