Granholm only took us so far. In 2015, UPS and FedEx announced they would
no longer accept shipments of alcoholic beverages from retailers if the goods
were not bound for one of fourteen states that explicitly allows such exchange
in response to a crackdown by state regulators.[1] This is a sharp departure from prior
practice.
Before
2015, state laws requiring a license to ship across state lines were technically
on the books. But they went unenforced,
and their interpretation was up for debate.
Retailers shipped alcohol much more freely over state lines, creating
enormous opportunities for alcoholic beverage retailers to expand their
customer base considerably by fulfilling out-of-state orders over the
internet. This was good for consumers,
too. A family hosting a dinner party in rural
Missouri who wanted to serve Walla Walla Riesling could order a few bottles
directly from a Seattle retailer, paying the cost of shipping for the
privilege.
However, a coalition of alcoholic
beverage wholesalers, led by Wine and Spirits Wholesalers of America (WSWA),
has been systematically lobbying states and the federal government to favorably
interpret these statutes and enforce them against interstate alcoholic beverage
shippers.[2]
WSWA is a formidable foe. The industry group has nearly 400 member companies,
representing 80% of the wholesale market.
It enjoys tax-favored 501(c)(6) nonprofit trade association status.[3]
Daniel Posner, owner of a White
Plains wine retailer and President of the National Association of Wine
Retailers discussed the fracturing effect on the retail sector, allowing
wholesalers to further consolidate their industry power.[4]
Craig Wolf, President and C.E.O. of
WSWA, defended the industry group’s motivations, citing their interest in consumer
protection. Mr. Wolf insisted the
tighter regulations would reduce counterfeiting and curtail underage drinking
by teens ordering alcohol over the internet.[5] Mr. Posner countered, telling the New York Times that “this is pure greed.”[6]
Regardless of whether there is a
legitimate health and safety concern associated with allowing retailers to ship
their wares across state lines, state regulators are not doing their
constituents any favors. They are
protecting out-of-state interests at the expense of retailers back home, and
distorting the alcoholic beverage market in the process. This is not effective governing. Sit down, state representatives, you’re drunk.
[1]
Eric Asimov, Wines are no longer free to
travel across state lines, The New
York Times, Oct. 23, 2017, https://www.nytimes.com/2017/10/23/dining/drinks/interstate-wine-sales-shipping-laws.html?_r=0.
[2] Id.
[3] Wine
and Spirits Wholesalers of America Website, www.wswa.org.
[4] Asimov,
supra n. 1.
[5] Asimov,
supra n. 1.
[6]
Asimov, supra n. 1.
