Court Upholds Tenn. Direct Shipping Ban

In a mixed victory for wineries and wholesalers, a federal appeals court upheld Tennessee’s ban on direct wine shipments, although it ruled that special provisions unfairly favor local wineries. The 6th U.S. Circuit Court of Appeals said federal trade rules allow the state to prohibit in-state and out-of-state wineries from bypassing wholesalers and selling directly to consumers. However, the judges disagreed with the special rules for in-state wineries, or Tennessee’s Grape and Wine Law. Basically, the law is designed to