Federal court reinstates Indiana 'face-to-face' wine provision
Associated Press
August 8, 2008
Indiana residents must first make face-to-face contact with a wine merchant before they can place wine orders over the phone or the Internet, a federal appeals court ruled. A federal judge lifted the face-to-face requirement in August 2007, but the U.S. 7th Court of Appeals in Chicago reinstated it Thursday, ruling that a lack of age verification makes it easier for minors to get wine shipped to them. Although Thursday's ruling is a loss for Hoosier connoisseurs and the wineries that want to ship products to them, it was a victory for the Indiana Alcohol and Tobacco Commission and others who argued that the "face-to-face" rule was needed to protect minors. "That's a great win for Hoosier families concerned about underage kids getting alcohol. We're very pleased the court did this," said Jim Purucker, executive director of Wine and Spirits Wholesalers, an intervening defendant in the case. The ruling is also a win for wine distributors and wholesalers that get a cut out of sales when wine is shipped directly to the consumer by a vintner, or wine merchant. But Indiana wineries fear the ruling will limit business. Charles Thomas, president of Chateau Thomas Winery in Plainfield, said customers willing to order by phone or Internet might not be willing to travel to his winery. "Now they might say that they aren't going to drive to Plainfield, that they're going to have some other wine instead," he said. In Thursday's ruling, the appellate court rejected an August 2007 ruling by U.S. District Court Judge John D. Tinder of Indianapolis that Indiana's face-to-face provision "erects a trade barrier to most out-of-state wineries." Instead, the appeals court determined that the provision's impact on interstate commerce was negligible. "Indiana has not tried to keep wine from crossing its border," the court said. The appellate court's 11-page ruling also rejected evidence submitted by plaintiffs that age-based verification online is as effective as verification in person that an individual is at least 21 years old. "It is important to remember that we are dealing with effects on the margin; make it easier for minors to get wine by phone or Internet, and sales to minors will increase," the court said. Attorney Robert Epstein, who represented plaintiffs including several Indiana wine consumers and a Michigan winery, said he did not believe the appeals court made a complete analysis of the balance between state interests and the rights of consumers and wineries. "We are weighing our options right now," Epstein said, on whether to seek a rehearing before the full appeals court or to appeal to the U.S. Supreme Court.
Associated Press
August 8, 2008
Indiana residents must first make face-to-face contact with a wine merchant before they can place wine orders over the phone or the Internet, a federal appeals court ruled. A federal judge lifted the face-to-face requirement in August 2007, but the U.S. 7th Court of Appeals in Chicago reinstated it Thursday, ruling that a lack of age verification makes it easier for minors to get wine shipped to them. Although Thursday's ruling is a loss for Hoosier connoisseurs and the wineries that want to ship products to them, it was a victory for the Indiana Alcohol and Tobacco Commission and others who argued that the "face-to-face" rule was needed to protect minors. "That's a great win for Hoosier families concerned about underage kids getting alcohol. We're very pleased the court did this," said Jim Purucker, executive director of Wine and Spirits Wholesalers, an intervening defendant in the case. The ruling is also a win for wine distributors and wholesalers that get a cut out of sales when wine is shipped directly to the consumer by a vintner, or wine merchant. But Indiana wineries fear the ruling will limit business. Charles Thomas, president of Chateau Thomas Winery in Plainfield, said customers willing to order by phone or Internet might not be willing to travel to his winery. "Now they might say that they aren't going to drive to Plainfield, that they're going to have some other wine instead," he said. In Thursday's ruling, the appellate court rejected an August 2007 ruling by U.S. District Court Judge John D. Tinder of Indianapolis that Indiana's face-to-face provision "erects a trade barrier to most out-of-state wineries." Instead, the appeals court determined that the provision's impact on interstate commerce was negligible. "Indiana has not tried to keep wine from crossing its border," the court said. The appellate court's 11-page ruling also rejected evidence submitted by plaintiffs that age-based verification online is as effective as verification in person that an individual is at least 21 years old. "It is important to remember that we are dealing with effects on the margin; make it easier for minors to get wine by phone or Internet, and sales to minors will increase," the court said. Attorney Robert Epstein, who represented plaintiffs including several Indiana wine consumers and a Michigan winery, said he did not believe the appeals court made a complete analysis of the balance between state interests and the rights of consumers and wineries. "We are weighing our options right now," Epstein said, on whether to seek a rehearing before the full appeals court or to appeal to the U.S. Supreme Court.
