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Responsible State Shipping Laws Prevent Underage
Access to Wine
Many states across the country have allowed wineries to ship
directly to consumers for years without any problems in regard to
underage access to those wines. Prior to the Supreme Court decision
on the Granholm case, approximately twenty-six states had shipping
laws that allowed various forms of direct to consumer shipments.
These states have successfully implemented their laws to protect
against underage access to alcohol.
Since the Granholm
decision, many states have opened up to allow direct to consumer
shipments of wine. Legislatures in these states examined available
information and created controllable, accountable and responsible
permit systems for out of state wineries that provide for consumer
shipments while protecting against underage access.
In July 2003, the Federal Trade Commission conducted
a lengthy examination of the direct shipment issue, which involved
interviewing regulators from states with direct shipment laws, bringing
stakeholders together for a public workshop, and conducting a study
to determine the economic implications of direct shipment for consumers.
The commission released a detailed report entitled “Possible
Anticompetitive Barriers to E-Commerce: Wine” [.pdf].
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Not surprisingly, the FTC report found that regulators in direct
shipment states report few, if any, problems regarding underage
access. Prior to the Supreme Court decision, 87% of the nation’s
population could receive wine shipped directly to their home from
in-state sources. If home delivery of wine posed an enormous risk
of delivery to underage persons, surely so many states would not
have enacted and retained laws allowing such deliveries.
It is well known that underage drinkers are not seeking
out premium table wine, paying extra shipping charges and waiting
a week or two for delivery. The likelihood of underage buyers taking
the trouble, exposing themselves to discovery, leaving a documentary
paper trail and paying the costs of home delivery by common carrier
is very minimal, a fact confirmed time and again by regulators in
states where direct wine shipment is commonplace, such as Missouri
and Virginia.
If there are problems with any producers or retailers
not following the same procedures as wineries allowing underage
consumers to access wines, spirits and beer they must be dealt with.
Wineries have been working with state legislatures and state alcohol
control boards to devise a shipping system that is controllable,
responsible and accountable and that removes incentives for shipments
to underage purchasers. Wineries and consumers are willing to comply
with these rules in order to retain the privilege of direct shipping.
As long as the state can regulate such shipments and those sellers
that do not comply with the regulations are dealt with, then wineries
continue to support the laws allowing direct to consumer shipments.
At the same time, wineries continue to have zero tolerance for underage
access.
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