DIRECT SHIPPING IN OHIO HAS THE FEDERAL TRADE COMMISSION’S SUPPORT

Ohio wholesalers and winemakers are still bargaining over direct shipment. The staff of the Federal Trade Commission’s three bureaus – Competition, Consumer Protection, and Economics – filed a comment yesterday with the Ohio State Senator Eric Fingerhut, citing their support for SB 179, a proposal that would legalize direct shipping inside and outside of the state to consumers. In the bill, the customer must be of legal age and personally sign for the wine when it is delivered. “Based on our review, we believe that, if enacted, SB 179 would enhance consumer welfare,” wrote the staff. “Consumers benefit from the increased competition that direct shipping proves,” said Maureen Ohlhausen, Director of the FTC’s Office Policy Planning. If so, then how will small Ohio wineries fair against increased competition from California, Oregon and Washington vineyards to name a few? Without wholesalers they will likely have a more difficult time getting their products on retail shelves and creating awareness among wine-drinkers.