Liquor, Wine Wholesalers Settle Pay To Play Scheme
ALBANY—Under an agreement reached to resolve an investigation of illegal marketing practices by wine and liquor wholesalers in New York, the state’s eight largest wholesalers will adopt a series of reforms and pay $1.6 million in fines and costs.
“For decades, pay-to-play practices were rampant in the state’s alcohol industry as retailers, wholesalers and suppliers used a variety of schemes to avoid the clear directive of the state’s Alcohol Beverage Control Law,” Attorney General Eliot Spitzer said. “The system benefitted a favored few, to the detriment of thousands of smaller stores, bars and restaurants.”
“Today, as a result of this agreement, these illegal schemes have been halted and a level playing field restored throughout the industry. Ultimately, consumers may see lower costs as a result of fairer competition.”…
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