WASHINGTON, DC 04/17/2025 - For years, proponents of direct-to-consumer (DTC) shipping of wine and spirits have painted a rosy picture of consumer convenience and economic opportunity. However, time and time again, when policymakers take a closer look at the real-world consequences, they recognize the inherent risks of deregulating a socially sensitive product like alcohol.
The latest example comes from Hawaii, where the Senate Judiciary Committee recently considered HB 108, a bill seeking to expand DTC spirits shipping. After hearing testimony from stakeholders—including both those pushing for deregulation and those raising serious concerns—Chair Karl Rhoads made the responsible decision to defer the bill. His reasoning was clear:
“There’s also testimony indicating there’s concerns this bill may cause a worse drunk driving problem than we already have and encourage or make it easier for underage people to drink,” said Senate Judiciary Committee Chair Karl Rhoads.
This statement cuts through the rhetoric of DTC advocates and highlights the reality that regulators and lawmakers across the country face: unrestricted online sales of alcohol create undeniable risks. When alcohol is sold outside of the established three-tier system, states lose oversight, compliance becomes difficult to enforce, and the doors open wider for illegal sales to minors.
HB 108’s failure is just the latest example of why lawmakers continue to reject sweeping DTC deregulation. Regulators must prioritize public safety over industry lobbying, ensuring that alcohol remains a controlled substance with clear checks and balances. While the conversation around DTC alcohol sales will undoubtedly continue, the facts remain the same—wherever these bills are thoroughly examined, they face significant resistance due to concerns over underage access, tax evasion, and public safety.