FC: Judge lets case proceed against New York anti-booze law

[Declan McCullagh <declan () well com>]

**********

Judge Berman's decision:
http://www.ij.org/PDF_folder/ny_winecase/wine_decision1.pdf
Law in question:
http://assembly.state.ny.us/cgi-bin/claws?law=5&art=9
Background on case:
http://www.wired.com/news/politics/0,1283,34126,00.html

**********

http://www.wired.com/news/print/0,1294,38617,00.html

Net-Sold Wine Makes Me Feel Fine
by Declan McCullagh (declan () wired com)

3:00 a.m. Sep. 8, 2000 PDT
WASHINGTON -- If you're a New Yorker with a yen for a fine
California merlot, you may want to toast a recent federal court
ruling.

U.S. District Judge Richard Berman handed a public interest law
firm a preliminary victory in its challenge to a state law banning
out-of-state companies from shipping alcohol to Empire State
residents.

New York's Direct Shipment and Advertising Ban -- a criminal law
that promises a year's prison time to those who break it -- has
been around for decades, but the recent popularity of websites
like wine.com and evineyard.com could transform would-be
entrepreneurs into convicted criminals.

"Technological advancements facilitate -- as never before -- the
commerce between and among states. The Internet increasingly
is responsible for direct sale and shipment of goods to
consumers," Berman wrote in his 23-page opinion released
Tuesday. In it, he denied the state government's request to
dismiss the lawsuit, which is widely viewed as a test case.

The Institute for Justice, a nonprofit, free-market group in
Washington, applauded the ruling and said it planned to ask for
summary judgment or a full trial.

A victory in this case could be the beginning of the end for similar
laws in dozens of other states that prevent would-be shoppers
from ordering alcohol online. As of last year, only 17 states
allowed direct shipments.

"With the ability the Internet has brought to facilitate commerce
and trade among the states, it is more important than ever that
courts enforce the protections of the commerce clause" to the
U.S. Constitution, said Miranda Perry, an Institute for Justice
staff attorney. "This is why this case is important."

Beer and wine distributors in New York state back the law, which
grants them a profitable monopoly -- markups are in the 25
percent range -- on selling out-of-state alcohol.

Wineries that are too small to draw the attention of a distributor,
which can only carry a limited number of labels, are out of luck.
The law says "no alcoholic beverages shall be shipped into the
state" unless sent to a licensed distributor.

A coalition of groups, including Peerless Importers, Premier
Beverage Company, and the Allied Food and Commercial Workers
International Union, intervened in the case, Swedenburg v. Kelly,
on the side of the state attorney general's office.

[...] 




-------------------------------------------------------------------------
POLITECH -- the moderated mailing list of politics and technology
You may redistribute this message freely if it remains intact.
To subscribe, visit http://www.politechbot.com/info/subscribe.html
This message is archived at http://www.politechbot.com/
-------------------------------------------------------------------------