Twice in the past two decades, the U.S. Supreme Court has heard landmark cases involving protectionist alcohol laws, and twice the Court has made it clear that when states discriminate against out-of-state alcohol businesses, they are running afoul of the U.S. Constitution. But so far, many lower courts have refused to listen. Now, the Supreme Court may be poised to step in and clarify once and for all that, when it comes to alcohol, regulators cannot simply ignore the Constitution.
The latest case arises out of Arizona, where several wine enthusiasts have brought a legal challenge to the state's requirement that all wine retailers must have an in-state physical storefront in order to ship wine directly to Arizona consumers. The challengers argue that this physical presence requirement violates the so-called Dormant Commerce Clause, which forbids states from unduly interfering with interstate commerce by discriminating against out-of-state economic interests.
