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Prohibition, the Sequel
(FORTUNE Small Business) – When Congress repealed Prohibition in 1933, the Foppianos of Sonoma County, Calif., joyfully stopped growing prunes and returned to their true love, winemaking. Yet strangely enough, the federal and state laws that restored prosperity to the Foppianos are now hindering their ability to use the Internet to sell their wines. How? Thirty states, including New York and Texas, have laws stemming from the repeal of Prohibition that require out-of-state winemakers to sell products only through a wholesaler--no easy task when it comes to low-volume specialty types like Foppiano's spicy Petite Sirah. A couple of clicks on a Website, of course, would be the solution. So small winemakers are pleading for changes to the laws to permit direct shipping to customers. No way, say big wholesalers, who are urging Congress to toughen direct-shipping bans. So far, the vintners are winning: In February, a federal judge in Houston called Texas' direct-shipping ban "economic protectionism" and ruled it unconstitutional; a judge in Indiana issued a similar decision this year. But don't raise your glasses yet. This one will be tied up in the courts for years to come. --Edward Robinson |
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