Post and Hold Liquor Pricing Requirements Violate Antitrust Laws
In Costco Wholesale v. Hoen, the Ninth Circuit upheld the District Court’s determination that Washington’s requirements that liquor sellers post their pricing, and hold such prices for 30 days violates the Sherman Antitrust Act. The Court found that Washington’s goals of promoting temperance did not save the statutes, as Washington failed to establish the “post and hold” requirements actually do promote temperance, and therefore, the state’s interests do not outweigh those of the Antitrust Act. The Court overturned the district court’s finding that other liquor regulations also violated the Sherman Anti-trust Act, finding that once the post-hold requirements were severed, the other regulations, such as prohibiting volume discounts or credit sales to wine and beer retailers were unilateral restraints.
