Tales of the Red Tape #12: Regulatory Grapes of Wrath

Diane Katz / May 31, 2011

In the 1939 movie You Can’t Cheat an Honest Man, W. C. Fields demands to know “What contemptible scoundrel stole the cork from my lunch?!” If asked today, the answer might well be Congress. Dozens of Members are backing legislation that would allow states to prohibit consumers from making interstate purchases of wine.

Proponents of the bill claim that their motives are as pure as a fine pinot—i.e., to secure state sovereignty. But the proposed Community Alcohol Regulatory Effectiveness Act is actually a cynical attempt to sidestep a 2005 ruling by the U.S. Supreme Court that struck down such wine sale prohibitions in Michigan and New York. In Granholm v. Heald, a majority of justices wisely held that banning out-of-state wineries from shipping directly to Michigan consumers violated the Constitution’s Commerce Clause. (more…)