WSWA Issues Statement on FTC Lawsuit Against Southern Glazer's Wine & Spirits:
“The Federal Trade Commission (FTC)’s suit against Southern Glazer’s Wine & Spirits (SGWS), invoking the Robinson-Patman Act, raises significant concern. Though it was enacted in 1936, business practices since that time have evolved to reflect current government guidance and enforcement. Given its sudden and selective revival in the context of the beverage alcohol industry —one of the most heavily regulated and transparent sectors in the nation— WSWA is seeking further clarification from the FTC on the actions taken against one of our members.
“Volume-based discounts are a long-accepted practice across the economy and, in the case of alcohol, often regulated by the states. Targeting such practices without any prior guidance is equally as concerning. This is particularly true in one of the country’s most heavily regulated industries, one that has a culture of regulatory compliance at both the federal and state levels.
“WSWA firmly supports the 21st Amendment, which grants states primary authority to regulate alcohol distribution and sales. This decentralized approach has fostered a dynamic, competitive, and consumer-centric marketplace that benefits consumers, the economy, and the industry alike. Our market is a global model of effective regulation, balancing public health and safety with economic growth, innovation, and consumer choice. This system, built on federal-state and public-private cooperation, promotes diversity, fairness, and accessibility in the marketplace.
“Since the end of Prohibition, a body of law has developed that protects public safety by creating a buffer between producer and retailer and banning certain trade practices. Wholesalers, including SGWS, play a key role in this regulatory structure and in creating well-regulated competition within all three tiers of the industry.
“Businesses cannot thrive —or even survive— in the 21st Century when laws long unenforced are suddenly resurrected without clear guidance from regulators. We urge policymakers, including the incoming Trump Administration, to remain steadfast in their commitment to fostering American business growth.
“WSWA supports fair competition and we continue to call on the government to focus its enforcement on issues that protect public health and safety, promote innovation, and strengthen the beverage alcohol market as a global model for success.”