Wine Retailers Disappointed by Court’s Upholding of Discriminatory Shipping Law

The National Association of Wine Retailers (NAWR) has expressed disappointment following the 9th Circuit Court of Appeals’ decision in the Day v. Henry case, which validates Arizona’s law that prohibits the shipping of wine from out-of-state retailers to consumers within the state. This ruling highlights a split among circuit courts regarding the constitutionality of state alcohol laws that may discriminate against interstate commerce.

Currently, Arizona allows local wine retailers to ship to state residents but denies this same privilege to out-of-state sellers. As a result, Arizona consumers are restricted from accessing a vast selection of wines that are not available through local wholesalers, ultimately decreasing the state’s tax revenue and interfering with commerce between states.

Tom Wark, NAWR’s executive director, emphasized the need for the U.S. Supreme Court to hear this case to address what he perceives as discriminatory practices in wine shipping laws. He pointed out that the recent ruling creates a circuit split, which underscores the inconsistency in how courts are interpreting state laws related to alcohol distribution.

The 9th Circuit’s ruling aligns with decisions from the 4th and 8th Circuits, which have upheld state regulations requiring out-of-state retailers to establish physical locations within the state to be permitted to ship. Conversely, courts in the 6th and 1st Circuits argue that states must provide substantial justification for such requirements, asserting they must serve public health and safety interests.

Wark criticized the 9th Circuit’s prioritization of an outdated "Three-Tier System" over the rights of consumers. He noted that dissenting opinions within the court acknowledge that the purpose of the three-tier system is to promote public welfare rather than serve as a barrier to broader market access.

In light of this ruling, NAWR continues to fight for equitable access for wine retailers and looks towards future legal avenues to combat such discriminatory laws.

For more context about the National Association of Wine Retailers, visit their official site: NAWR.