NY bill could ease online wine dispute

Jul 15, 2015

(PressConnects) - A bill headed to Gov. Andrew Cuomo's desk could curtail an ongoing dispute that wine retailers say has stifled their online sales.

If approved by Cuomo, the legislation – which lawmakers passed last month – would prevent theNew York State Liquor Authority from penalizing a New York-based retailer for any "perceived violations" of other states' liquor laws.

The measure would apply largely to wine stores who sell their products online and ship to other states.

Some retailers have been entangled in a regulatory battle with the State Liquor Authority, which has taken action against sellers who are shipping their product to the more-than-35 states whose laws prevent out-of-state, direct-to-consumer alcohol sales.

The dispute, wine sellers said, has held back their online business, and they're urging Cuomo to sign the bill.

"Customers just want ease," said Daniel Posner, owner of Grapes The Wine Companyin White Plains, Westchester County, and president of the National Association of Wine Retailers. "I'm sure the people at the New York State Liquor Authority do shop online in various other avenues of industry, and it's unfortunate that wine really stays in the dark ages, for lack of a better term."

The state Legislature passed the bill in mid-June, days before ending its 2015 legislative session.

The bill was spurred largely by a dispute between the State Liquor Authority and Empire Wine, an Albany-area retailer that had been targeted by the authority for shipping wine to states that bar direct consumer sales.

The two sides have sparred over Empire's license, with the battle making stops in a courtroom and an administrative hearing process along the way. It's been closely watched by national wine trade groups and publications.

The State Liquor Authority points to regulations allowing it to take action against a license holder for "improper conduct." The bill, if signed by Cuomo, would require a finding of guilt in other states for New York's liquor authority to fine the retailer or strip its license.


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