• by December 8, 2004

In case your attention was focused elsewhere in these frenzied weeks before year's end, you may not have heard about a case before the U.S. Supreme Court involving wine and the Web. It's a case, indeed, along with a case or two of cabernet sauvignon.

A group of wine producers wants the court to rule that state bans on the direct shipment of out-of-state wine is unconstitutional. The Supreme Court will hear oral arguments stemming from a dispute involving conflicting points in the U.S. Constitution that impact the sale of wine from one state to another. Lawyers for Michigan and New York argue the laws ensure adequate pricing and regulation of the wine industry.

At issue is the constitution's "commerce clause," which prevents states from throwing up barriers to interstate trade. However, the 21st Amendment to the constitution, which repealed Prohibition, gave states the power to regulate alcohol sales.

So where does the Web come in? Well, there are state laws that prevent wine shops and wineries from shipping directly to consumers who place orders over the Internet. Interestingly, nearly half of our 50 states prohibit such sales if they originate from a different state.

Ken Starr, the former special prosecutor in the Monica Lewinsky case that led to the impeachment of President Clinton, is the lead attorney for the Coalition for Free Trade, a group arguing for direct shipments to consumers. Starr maintains that the laws support the wholesalers.

Michigan, a state where one of the cases was filed, argued that the court can't deny states the authority to regulate wine and alcohol sales. More than 30 states support Michigan and New York. Five others, including California, support the shippers.

A ruling is expected next year.