Monday, May 16, 2005

Supreme Court rejects ban on out-of-state wine sales

Fresh from the presses (via MSNBC):

WASHINGTON - Raising the bar on states wanting to restrict online commerce, the Supreme Court ruled Monday that wine lovers may buy directly from out-of-state wineries, striking down laws banning a practice that has flourished because of the Internet and growing popularity of winery tours.

While the ruling only involves wine sales, industry groups expect that it will soon apply to beer and other alcoholic beverages currently regulated through state-licensed wholesalers and retailers.

Lawyers involved in the case say the ruling will also make it harder for states to restrict Internet commerce on other regulated items — from contact lenses to car insurance.

The 5-4 decision strikes down laws in New York and Michigan that make it a crime to buy wine directly from vineyards in another state. In all, 24 states have laws that bar interstate shipments.

The state bans are discriminatory and anti-competitive, the court said.

“States have broad power to regulate liquor,” Justice Anthony Kennedy wrote for the majority. “This power, however, does not allow states to ban, or severely limit, the direct shipment of out-of-state wine while simultaneously authorizing direct shipment by in-state producers.”

If a state chooses to allow direct shipments of wine, it must do so on evenhanded terms,” he wrote.

Kennedy was joined in his opinion by Justices Antonin Scalia, David Souter, Ruth Bader Ginsburg and Stephen Breyer.


Read the rest of the article here.

This is a GOOD thing (especially for us vino lovers). I find it to be very odd the way that the voting broke down. Scalia with Ginsburg & Breyer in the affirmative while Thomas, Renquist and Stevens were in opposition.

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