WBWWA Legal Issues

Legal Issues

The Costco Lawsuit:
An Attempt to Dismantle Washington’s Three-Tier System

Costco Wholesale Corporation filed a lawsuit in February 2004 in U.S. District Court in Seattle against the Washington State Liquor Control Board that challenges Washington state’s regulatory system of safeguards governing the importation, distribution and sale of beer and wine in Washington.

If Costco’s legal challenge succeeds, it will destroy the three-tier regulatory system Washington put in place to license and control the distribution of beer and wine. This system was designed and mandated by the Washington State Legislature to prevent unregulated, unaccountable sales of alcohol. Any changes to the system should be made by the state legislature for the benefit of the public interest – not a retailer’s bottom line.

Background on the Costco Lawsuit
If Costco’s legal challenge succeeds, it will destroy the three-tier regulatory system Washington put in place to license and control the distribution of beer and wine...

What Washington Retailers and Producers Say About the Three Tier System and the Costco Lawsuit
If Costco were to succeed in dismantling Washington’s 70-year old regulatory system for wine and beer, Costco, Wal-Mart and other big chain stores would be the winners. Consumers would lose out on choice...

WBWWA Executive Director Phil Wayt Denounces Costco Lawsuit
Costco’s lawsuit against Washington State seeks to dismantle the state’s system of regulatory safeguards that protect the public by controlling sales of beer and wine.

Media Coverage of the Costco Case

The Supreme Court Reviews States’ Constitutional Power to Regulate Alcohol Sales and Shipments

In a 5-4 decision, the U.S. Supreme Court on May 16, 2005 reaffirmed the broad powers of the states to regulate alcohol but said states must treat in-state and out-of-state wineries even handedly. The Court ruled that out-of-state wineries should be able to bypass state regulatory regimes that require face-to-face transactions, if in-state wineries have the same opportunity.

Learn more about how U.S. Supreme Court decision might impact Costco's lawsuit in Washington State.

Click below to read the latest press releases on the Supreme Court case.

WSWA Press Release (May 16, 2005) Word document
Scotus Press Release (December 7, 2004) Word document

Click here to learn more about the Supreme Court cases.



• Retailers' & Producers' Response to Lawsuit • WBWWA's Response to Lawsuit • 21st Amendment • Media Coverage		Legal Issues The Costco Lawsuit: An Attempt to Dismantle Washington’s Three-Tier System Costco Wholesale Corporation filed a lawsuit in February 2004 in U.S. District Court in Seattle against the Washington State Liquor Control Board that challenges Washington state’s regulatory system of safeguards governing the importation, distribution and sale of beer and wine in Washington. If Costco’s legal challenge succeeds, it will destroy the three-tier regulatory system Washington put in place to license and control the distribution of beer and wine. This system was designed and mandated by the Washington State Legislature to prevent unregulated, unaccountable sales of alcohol. Any changes to the system should be made by the state legislature for the benefit of the public interest – not a retailer’s bottom line. Background on the Costco Lawsuit If Costco’s legal challenge succeeds, it will destroy the three-tier regulatory system Washington put in place to license and control the distribution of beer and wine... What Washington Retailers and Producers Say About the Three Tier System and the Costco Lawsuit If Costco were to succeed in dismantling Washington’s 70-year old regulatory system for wine and beer, Costco, Wal-Mart and other big chain stores would be the winners. Consumers would lose out on choice... WBWWA Executive Director Phil Wayt Denounces Costco Lawsuit Costco’s lawsuit against Washington State seeks to dismantle the state’s system of regulatory safeguards that protect the public by controlling sales of beer and wine. Media Coverage of the Costco Case The Supreme Court Reviews States’ Constitutional Power to Regulate Alcohol Sales and Shipments In a 5-4 decision, the U.S. Supreme Court on May 16, 2005 reaffirmed the broad powers of the states to regulate alcohol but said states must treat in-state and out-of-state wineries even handedly. The Court ruled that out-of-state wineries should be able to bypass state regulatory regimes that require face-to-face transactions, if in-state wineries have the same opportunity. Learn more about how U.S. Supreme Court decision might impact Costco's lawsuit in Washington State. Click below to read the latest press releases on the Supreme Court case. WSWA Press Release (May 16, 2005) Word document Scotus Press Release (December 7, 2004) Word document Click here to learn more about the Supreme Court cases.
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