North Carolina Statute on Internet Wine Sales Held Discriminatory

The U.S. Court of Appeals (4th Cir.) released its decision in Beskind v. Easley, holding that North Carolina's ban on direct shipment of wine from out of state wineries to North Carolina residents violates the U.S. Constitution's Commerce Clause. Numerous state protectionist statutes effectively ban many forms of e-commerce, including sales of wines. E-commerce proponents have challenged such protectionist statutes under the Constitution's Commerce Clause with various levels of success. However, the challenge with respect to Internet wine sales, and other direct sales of alcoholic beverages, is complicated by the U.S. Constitution's 21st Amendment, which endows the U.S. states with the authority to regulate alcohol sales. At first instance, the District Court ruled on summary judgment that North Carolina's Alcoholic Beverage Control (ABC) statutes unconstitutionally discriminates against out-of-state wine manufacturers and sellers. This decision was upheld by the Appeals Court which determined that North Carolina's ABC laws treat in-state manufacturers of wine differently from out-of-state manufacturers of wine. The Court held that this practice was discriminatory against out-of-state wine manufacturers and shippers, and therefore violates "a central tenet of the Commerce Clause." The Appeals Court, however, declined to enjoin enforcement of the statutes. For a copy of the decision, visit: http://pacer.ca4.uscourts.gov/opinion.pdf/021432.P.pdf For a copy of related decisions, visit: http://www.ij.org/PDF_folder/ny_winecase/wine_decision_11_12_02.pdf http://makeashorterlink.com/?W6C015154 Summary by: Tina Nanov