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U.S. Federal Appeals Court Upholds Wine Ban
In Swedenburg v. Kelly, the 2nd U.S. Circuit Court of Appeals upheld a state law barring out-of-state wineries from shipping wine directly to New York consumers, overturning a lower court decision that found the ban unconstitutional as interfering with interstate commerce.
The unanimous court decision re-affirms New York state's constitutional right to ensure that out-of-state alcohol providers comply with the state's alcohol regulatory system, a right conferred upon the state by the Twenty-First Amendment. The court was not persuaded by evidence that the Internet and increased travel have created an easier access for an "increasingly sophisticated national market of wine connoisseurs" and held that "changes in marketing techniques or national consumer demand for a product do not alter the meaning of a constitutional amendment."
New York, like most states, requires that all sales of alcohol in the state, whether by producers or importers, wholesalers or retailers, be made to or by state-licensed entities. In order for out-of-state companies to be able to ship to New York customers, they need simply to establish a "physical presence" in the state.
The issue has national implications as similar cases have been filed in eleven other states.
For a full copy of the Appeals Court decision, visit:
http://caselaw.findlaw.com/data2/circs/2nd/029511p.pdf