Attorney General Press Release
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 6th 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 3rd tier); retailers to purchase and receive them from
licensed wholesalers (the 2nd tier); and wholesalers to purchase and
receive them from licensed manufacturers (the 1st 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 21st 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