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Supreme Court Ruling on Retail Wine Sales Can Be Beneficial To The Wine Consumers

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09/07/2019 Good News For The Wine Collectors In Search For Bottles That Are Not Available At The Local Wine Store.

The U.S. Supreme Court passed out a law in Tennessee around late June for retail wine sales. Allegedly, it can turn out to be a bonanza for the wine collectors across the country.

Tennessee Wine & Spirits Retailers Association v. Thomas concerned a Tennessee law which required the applicants for a retail liquor license to have lived in the state for at least two years. By abolishing the law as a violation of interstate commerce, the court’s decision potentially opens the door for more consumers to buy wine from out-of-state retailers. 

“The commerce clause says the federal government, not the states, has the right to regulate interstate commerce,” says Tom Wark, executive director of the National Association of Wine Retailers (NAWR). “When [states] bar out-of-state retailers from shipping in, that's a violation.”

If we talk about the present situation, only 16 states allow consumers to buy wine from retailers outside their states. In all the other states, out-of-state sales are illegal - including 17 that allow in-state retailers to sell wine within the boundaries. 

Wine Bottles in retail store on shelves

Looking at New York - the law in New York allows in-state retailers to ship wine to New Yorkers. “It bars out-of-state retailers from doing the same thing. It’s a classic example of discrimination,” says Tom. “It’s these “discriminatory” laws—favoring in-state versus out-of-state retailers—that consumers and NAWR will work with state legislatures to reverse as soon as possible.” 

If lawmakers resist at reversing course, then according to Tom, “you file suit—you challenge the law based on the state violating the commerce clause of the constitution. We’d prefer to do it with legislation, but we're willing to go either way.”

Further shedding light on the same, Tom says that it is possible that some states would choose to say no to the out-of-state retailers by barring in-state shipping sales too - a move that wine wholesalers who oppose all retailer-to-consumer shipping are likely to push for in some jurisdictions.

“There are some states that are historically hostile, if you will, to consumer choice,” Tom says. With the change of laws and the court visits, the real consumer change may take some time, but Tom is confident that it will happen. “Once states start to see others change their laws, the ball starts to roll a little faster.”

If Tom Wark is right, fine wine consumers and collectors who are in search of bottles that aren’t available at their local wine stores are most likely to benefit. 

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