Idaho Wine Commission drafts social-media legislation

Published 9:45 am Friday, December 11, 2020

The Idaho Wine Commission wants the 2021 Legislature to legalize social-media promotion of wine-related events at retail establishments such as grocery stores and restaurants.

Post-Prohibition laws treat manufacturers, wholesalers and retailers equally; one segment can’t create an advantage or disadvantage for another.

Advertising must also comply with federal Alcohol and Tobacco Tax and Trade Bureau regulations. The standards aim to prevent promotion of illegal products or activities and to ensure fairness.

Social-media posts about off-site events may be viewed as driving business to a single retailer, a violation of the bureau’s and many states’ “tied-house” rules, according to the Wine Institute, a California industry group.

The Idaho Wine Commission proposes amending state Title 23-1338 on wine industry- sponsored events to legalize using social media and websites to promote events.

“Right now, the wine industry is at some risk if people started heavily enforcing the guidelines as they relate to social media,” said Idaho Wine Commission Chairman Earl Sullivan, of Telaya Wine Co. in Garden City.

The proposed legislation would align the state with “the current situation that exists in modern-day advertising” and allow wineries to use increasingly popular social-media “as a viable marketing solution,” he said.

Wineries and vintners would be allowed to post information “related to retailers or distributors who sell or promote their products, including direct links to the retailers’ or distributors’ websites, on their (own) websites,” the proposed amendment reads in part.

Licensed retailers and distributors could post information related to wineries whose products they sell or promote, “including direct links to a winery’s or vintner’s website, on their (own) websites.” The parties would be allowed to repost or share promotional information or images about events.

Passing the amendment likely will result in enhanced promotion of Idaho’s grape and wine industry, and increased sales, the purpose statement says.

Commission legislative adviser Roger Batt said it is important as COVID-19 prompts the industry to adjust marketing. He said it would not require social-media participation, and the industry would continue to comply with existing regulations.

“We see technology and social media as a great way to promote our projects and the events we have,” he said.

The existing Title 23-1325 says retailers and wineries can’t aid one another in their businesses, though it does not address social media.

Idaho State Police Alcohol Beverage Control “does often search social media for alleged violations of Title 23, and we receive concerns from the public about social media in regard to alcohol violations,” Capt. Brad Doty said.

Other West Coast states have also modified their laws.

California at the start of 2019 relaxed its rules that consider social-media posts about such events as illegal transfers of “a thing of value” — advertising. Earlier, state regulators found violations.

The institute said California wineries previously could post the host retailer’s name and address inconspicuously. They could not praise the retailer or include a picture of its premises. Now they can provide more of the retailer’s contact information, post still pictures of the premises, and repost social-media posts that are compliant.

Washington state in 2019 modernized its law to set standards for how wineries, breweries and distilleries can use social media to promote events on restaurants’ or retailers’ premises. The bill drew bipartisan support. Distributors remained neutral. Washington Wine Institute Executive Director Josh McDonald said the change has been well-received so far and has benefited the industry.

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