Wine, Commerce, and the Constitution
Last December, the Supreme Court heard oral argument in three cases that will decide whether states can allow in-state wineries, but not out-of-state wineries, to ship wine directly to consumers. These cases raise thorny constitutional and policy issues. The plaintiffs, consumers and wineries, argue that the dormant Commerce Clause prevents states from discriminating against out-of-state residents through overtly protectionist regulation. They also argue that interstate direct shipping of wine, like e-commerce generally, benefits consumers. The defendants, states and wine wholesalers, counter that the Twenty-First Amendment specifically authorizes states to control alcohol distribution and even to discriminate against out-of-state residents. They also argue that states treat out-of-state wineries differently for valid policy reasons, including concerns about underage drinking and tax collection.
