A Federal District Court judge in Illinois went straight to the heart of the matter, ruling that “to allow Out-of-State Plaintiffs to operate outside the (Illinois) three-tier system while in-state retailers diligently operate within the regulatory framework and help limit the potential social problems connected with the improper use of alcohol would actually provide Out-of-State Plaintiffs with an unfair advance other the in-state retailers rather than remove any self-perceived disadvantage to Plaintiffs.”
With those words, Judge Samuel Der-Yaghiayan held that Illinois law prohibiting an out-of-state retailer from directly shipping beverage-alcohol to an in-state consumer, did not violate the Commerce Clause. The suit was brought by Lebamoff Enterprises Ltd., an Indiana retailer, which sought to ship wine to Illinois residents from Indiana.
He added that the plaintiffs hadn’t shown that in-state and out-of-state entities are treated unequally.
“For the protection of the public, all alcohol directly sold to Illinois consumers must first pass through the three-tier regulatory system (which) ensures proper control and regulation of alcohol and ensures the proper collection of revenue, which promotes the welfare of the Illinois public.”
Craig Wolf, president/ceo, Wine & Spirits Wholesalers of America, praised the decision, saying:
“For over eight decades, primary state authority and a strong regulatory framework have been guiding principles of the three-tier system of beverage alcohol manufacture, distribution and sales. The modern three-tier system enables American consumers to enjoy the widest selection of products available anywhere in the world, while guaranteeing appropriate regulatory oversight, efficient tax collection, as well as a commitment to social responsibility and opposition to underage access.”
“WSWA supports the rights of states to regulate alcohol within their borders as granted by the Twenty-first Amendment. Judge Der-Yeghiayan’s ruling includes strong language in support of a well-regulated three-tier system and the principle of primary state authority,” Wolf added. “This ruling is a powerful blow against those who seek to work around, not within, the nation’s long-standing and consistently upheld beverage-alcohol laws.”