STOP ACT DIVIDES THE INDUSTRY

Alcohol industry executives from the supplier and distributor tiers are becoming increasingly divided over the draft language in the H.R. 864, the so-called Stop Underage Drinking Act, as it includes language which suppliers believe could be used against the industry in future class-action litigation.

You may recall that the Wine and Spirits Wholesalers of America passed a resolution supporting the Stop Act, mainly because it included “Sense of Congress” language which reinforced the notion strong state regulation was necessary to control the flow of alcohol into markets. This “Sense of Congress” language, however, does not create any new statutory law, but nevertheless provides direction to judges of what Congress’ wishes are.

Suppliers believe the Sense of Congress language is of only moderate value, compared to the potentially dangerous language found elsewhere in the Stop Act linking industry marketing to underage consumption. Congress is in recess for the month of August, so no action is required until the House reconvenes in September. This may give the industry some time to hammer out a compromise.

Still, some manufacturer reps have confided in WSD that the bill was dead until the NBWA and the WSWA threw their support behind it. Developing……..