May 24, 2004

            LANSING – The U.S. Supreme Court announced today that it will hear Attorney General Mike Cox’s appeal of a lower court ruling that, if allowed to stand, would gut Michigan’s ability to effectively regulate alcohol sales – including those to minors – made through the mail or over the Internet.

            "Michigan’s regulation of alcohol is vital to protecting children and collecting taxes due to the state," Cox said.

            Cox appealed a ruling by the 6^th Circuit Court in Heald v. Engler that struck down Michigan’s three-tier system – similar to many other states – for regulating the importation and distribution of alcoholic beverages. The current system – in place pending the outcome of the case – requires consumers to purchase and receive alcoholic beverages from licensed in-state retailers (the 3^rd tier); retailers to purchase and receive them from licensed wholesalers (the 2^nd tier); and wholesalers to purchase and receive them from licensed manufacturers (the 1^st tier).

            Historically, the three-tier structure was created to protect against collusion, price-fixing and monopolization that existed before Prohibition. But more recent technological developments and social changes – such as the Internet and the problem of younger drinkers who also have access to an automobile – make the system useful in preventing illegal sales to minors as well as collecting taxes.

            "Through the 21^st Amendment to the U.S. Constitution, states can regulate alcohol, and that is precisely what Michigan is doing," Cox said. "Our system is a mandate from the citizens of the state, and I will do everything in my power to vindicate their interests."

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For further information contact: Matt Davis
517-373-0481 (Office)
State of Michigan, Department of Attorney General