The Dangers of Common Ownership in an Uncommon Industry

“The Dangers of Common Ownership in an Uncommon Industry: Alcohol Policy in America and the Timeless Relevance of Tied-House Restrictions,” was authored by alcohol law attorney Jessica C. Starns.

The report explores the history of tied-house laws and the abuses of pre-Prohibition alcohol commerce that served as the catalyst for their adoption, as well as the orderly and competitive marketplace they helped create post-Prohibition. The research also explores the marketplace dynamics that make these laws as essential today as they were in 1933.

“The profit motive and goal of vertical control of a market are alive and well in modern day corporate America,” explains Starns. “So maintaining three independent tiers of the beverage alcohol industry and preventing common ownership and influence between licensees in different tiers is still relevant and a key component of state based alcohol regulation.”

Starns is a former executive counsel for the Louisiana Office of Alcohol and Tobacco Control.