From the Desk Of the Comptroller

In my continuing efforts to protect consumers and small businesses across Maryland, my office recently released reports on an investigation of illegal alcohol sales in Worcester County and the implications of direct wine shipping to Maryland consumers.

Just last month, my agency completed the most extensive investigation in its history on the Worcester County Liquor Control Board amidst allegations of price discrimination and trade practice violations. As the state's regulator of alcoholic products, monitoring industry wholesalers and retailers is a critical to protecting consumers and keeping a level playing field for small businesses. My investigations found the Liquor Control Board did indeed engaged in price discrimination, selling product below-cost and two other violations of Maryland regulations.

The complete report can be found at www.comp.state.md.us/Worcester_County_LCB2010_web.pdf.

I'm happy to announce that the Worcester County Liquor Board agreed with our findings and has settled the case with a significant monetary fine.

My office also recently released a report for lawmakers on the consequences of allowing the direct shipment of wine from in and out-of-state wineries. Thirty-seven states and the District already allow for consumers to purchase wine directly from vineyards.

The objective study found that direct shipment of wine will not hurt Maryland retailers, will promote local wineries and serve as a convenience for the consumer. The report also squashed myths of increased underage drinking and devastation to Maryland's alcohol retailers. I look forward to supporting legislation that will likely come this year before the Maryland General Assembly calling for direct shipment of wine.

Since taking office, I have worked to make Maryland friendlier to small businesses as well as ensuring greater compliance with existing state and federal tax laws. Maryland small businesses that play by the rule deserve a level playing field, especially in these tough economic times.

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