For Immediate Release: December 1, 2004

San Francisco – On Tuesday, December 7, 2004, the U.S. Supreme Court will hear cases that will determine whether California wineries can sell their products to a national market over the Internet and ship it directly to customers, a practice currently banned in many states.

“California wineries, particularly smaller family-run operations, should be able to ship their product directly to customers in all states,” said K. Lloyd Billingsley, editorial director of the Pacific Research Institute and author of the new report Wine Wars: Defending E-Commerce and Direct Shipment in the National Wine Market.

Billingsley rejects the argument that Internet sales and direct shipping of wine will promote underage drinking.

“This is clearly an issue of protectionism, at odds with the Commerce Clause of the Constitution. The high court has an historic chance to end the legacy of Prohibition and rule in favor of direct shipping. It should not be a felony, as it is in some states, to buy a bottle of premium wine and ship it to your own home,” he said.

As Wine Wars explains, small wineries with niche markets, many in California, would benefit most from direct shipping. Massive liquor distributorships, which fail to include many small labels, oppose such a move.

“Twenty-four states prohibit direct shipments of wine and 13 ‘reciprocity’ states allow it, up from four a decade ago,” said Billingsley, who also authored PRI’s Ship the Wine in its Time in 2002.

“The trend is toward direct shipping and the high court should recognize that current reciprocity arrangements could simply be extended to all states.”

Federal appellate courts have rendered split decisions on the issue, leading the Supreme Court to take up the case. According to Wine Wars, the issue boils down to a basic question. “Current restrictions against direct shipping are based not on public welfare but on protectionist economic interests and discriminate against many California wineries along with consumers nationwide,” said Billingsley.

“The Supreme Court should stop discriminatory treatment, promote free trade and competition, and bring the entire nation into line with the intent of the commerce clause and the speed of the Internet,” he said.

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About PRI For more than two decades, the Pacific Research Institute for Public Policy (PRI) has championed individual liberty through free markets. PRI is a non-profit, non-partisan organization dedicated to promoting the principles of limited government, individual freedom, and personal responsibility.