Greenspoon Marder Hospitality, Alcohol & Leisure Blog: Introducing the Proposed United States Postal Service Shipping Equity Act
Hospitality, Alcohol & Leisure Blog
Oct 9, 2019
Louis J. Terminello, Esq.
From an advisory issued by the National Conference of State Liquor Administrators (NCSLA), reported that Representative Jackie Speier (D-California) introduced H.R. 2517 known as “United States Postal Service Shipping Equity Act.” The Act is designed to level the playing field for the US Postal Service which would grant it authority to mail alcoholic beverage directly to consumers.
Forty-three (43) states and the district of Colombia permit direct-to-consumer shipment of alcohol totaling over 3 billion dollars in sales. To this point, only common carriers such as FedEx and UPS have profited from this lucrative market segment. The Bill is designed to open this area as a revenue center for the post office and will likely lead to improved competitive shipping prices for shippers of alcohol.
Certainly there will be regulations in place that require such things as prior registration by the shipper, receiving consumers must be 21 years or older and all state and local laws must be complied with.
It’s been reported that the US Post Office saw a loss of 3.9 billion dollars in fiscal year 2018. Perhaps the expansion into this revenue center will shrink that number a bit and the Act, if passed, will likely be welcomed by shippers and consumers alike.
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