In a similar approach to an earlier 2nd Circuit ruling, later overturned by the Supreme Court of the United States, the 2nd Circuit Court of Appeals yesterday handed down a wine shipping ruling that endorsed state-sanctioned discrimination against out-of-state businesses. A three-judge panel of the Second Circuit in New York ruled that the state may allow its own wine stores to ship wine to New Yorkers while preventing out-of-state stores from doing the same.
“We believe this decision contradicts a Supreme Court decision, and is particularly bad news for New York wine lovers as well as the state of New York,” said Tom Wark, executive director of the Specialty Wine Retailers Association (SWRA). “The ruling not only fails to follow the Supreme Court but it also keeps New York State from collecting millions of dollar in taxes on shipments of wine from out-of-state wine stores that would happily pay taxes on wine shipments.”
In 2005 the U.S. Supreme Court said loudly and clearly that, “States may not enact laws that burden out-of-state producers or shippers simply to give a competitive advantage to in-state businesses." They also confirmed that the rule that in-state and out-of-state businesses be treated equally “is essential to the foundations of the Union.”
This recent decision runs squarely in the face of this simple, straightforward command by the Supreme Court. It also runs counter to federal court decisions in both Texas and Michigan that found similar discriminatory wine shipping laws unconstitutional.
“Though uninvolved in this lawsuit, Specialty Wine Retailers Association will continue to work with lawmakers who believe in free trade and protecting consumers, rather than protecting special interests who oppose these two basic tenets of the American democracy,” said Wark. “SWRA remains involved in lawsuits challenging discriminatory laws as well as working to change laws in places like New York, Michigan, Illinois and California where well-heeled special interests have purchased economic protection for a flawed system that helps their profits while hurting consumers, the economy and the American wine industry.”
Specialty Wine Retailers Association is a national organization of fine wine retailers, wine clubs, auction houses and consumers that advocate for fair and well-regulated wine shipping laws. For more information about SWRA see http://www.specialtywineretailers.org.
Contacts:
Specialty Wine Retailers Association
Tom Wark, 707-935-4424
twark@specialtywineretailers.org