FTC Says Calif. Beer Bill Could Raise Prices And Hurt Variety

Law360 (March 23, 2020, 10:30 PM EDT) — A proposed California bill aimed at restricting agreements between beermakers and wholesalers could result in higher prices, less variety and stifled innovation, the Federal Trade Commission said in a letter to state lawmakers on Monday.

The FTC urged California legislators to vote down A.B. 1541, arguing, among other things, that it would hurt the state’s craft brewers.

“The bill’s restrictions are likely to burden members of California’s large, and growing, craft brewing industry especially, as smaller, developing brewers might find it hard to bear the costs of the proposed restrictions, and might be ill-equipped to enforce, alter, or decline to renew…