Distilled Spirits Council Commends Missouri Governor Nixon for Vetoing “Franchise Protection” BillJuly 13, 2012 By: Nightclub and Bar
The Distilled Spirits Council (DISCUS) today commended Missouri Governor Jay Nixon for vetoing Senate Bill 837 – legislation that would have created special, government-sanctioned protections for a small group of wholesalers.
“We commend Governor Nixon for recognizing the importance of preserving competition in Missouri’s marketplace and especially for the careful reasoning of his veto message,” said DISCUS President Peter Cressy. “This veto will have a resounding positive impact on Missouri consumers, small businesses and the entire state hospitality industry.”
In his veto statement, Governor Nixon wrote that Senate Bill 837 “threatens to lock suppliers into contracts with wholesalers, with no effective means of relief. In this situation, competition is diminished, the consumer inevitably suffers and Missouri agriculture is harmed.”
The U.S. Federal Trade Commission (FTC), the federal agency responsible for maintaining competition and safeguarding the interests of consumers, has analyzed similar legislative proposals from other states and also concluded time and time again that, when competition is eliminated from the wholesale tier, there is less service to retailers, fewer brand choices and increased prices for consumers.