THE COSTCO COURT CASE SUMMED UP
The Costco court case is getting started today, Tuesday, March 21, in the U.S. District Court in Seattle. The court will take a look at the following provisions in Washington law and determine whether certain elements in Washington State’s alcohol code can be exempted:
The ban on volume discounts.
The mandatory 10% markup from supplier to distributor and distributor to retailer.
The ban on central warehousing at retail.
Wholesaler price posting, where prices are posted and remain in place for 30 days.
The ban on varying prices to different retailers
Mandated freight charges to retailers, even when picked up at the dock.
The cash law: a ban on credit sales
The reason this case is important is because it will set a precedent on whether the above provisions are protected by the 21st Amendment. Costco argues that there is no evidence that the above provisions in Washington’s alcohol code were crafted for the purpose of temperance, tax collection or guaranteeing orderly markets. The Liquor Control Board, the AG, and the wholesalers argue that Costco’s motives in attempting to dismantle the 3-tier system are entirely for financial gain, and would only help Costco at the expense of other smaller retailers. Take a look at Wednesday’s Beer Business Daily for a more in-depth look.
The ban on volume discounts.
The mandatory 10% markup from supplier to distributor and distributor to retailer.
The ban on central warehousing at retail.
Wholesaler price posting, where prices are posted and remain in place for 30 days.
The ban on varying prices to different retailers
Mandated freight charges to retailers, even when picked up at the dock.
The cash law: a ban on credit sales
The reason this case is important is because it will set a precedent on whether the above provisions are protected by the 21st Amendment. Costco argues that there is no evidence that the above provisions in Washington’s alcohol code were crafted for the purpose of temperance, tax collection or guaranteeing orderly markets. The Liquor Control Board, the AG, and the wholesalers argue that Costco’s motives in attempting to dismantle the 3-tier system are entirely for financial gain, and would only help Costco at the expense of other smaller retailers. Take a look at Wednesday’s Beer Business Daily for a more in-depth look.
posted at 2:01 PM
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