FTC Staff Comment to the Honorable Bill Seitz Concerning Ohio H.B. 306 to Amend the Operation of Wine

UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION WASHINGTON, D.C. 20580 Office of Policy PlanningBureau of CompetitionBureau of EconomicsDecember 12, 2005 The Honorable Bill SeitzOhio House of RepresentativesRiffe Center77 South High StreetColumbus, OH 43215Re: Comment on Proposed Wine Franchise Legislation Dear Representative Seitz: The staffs of the Federal Trade Commission’s (“FTC” or “Commission”) Office of Policy 1Planning, Bureau of Competition, and Bureau of Economics are pleased to respond to your 2invitation for comments on Ohio HB 306, with which you propose to amend the operation of wine wholesale franchises in Ohio. The Proposed Legislation likely would increase wholesalers’ incentives to lower 3wholesale prices and to undertake efforts to increase the demand for wine suppliers’ brands, and therefore is likely to decrease the costs of wine distribution and to increase competition among wholesalers. Further, the Proposed Legislation is likely to increase competition among suppliers of wine. Consequently, we believe that, if enacted, the Proposed Legislation is likely to lead to lower wine prices for Ohio consumers, and may increase the variety of wines from which Ohio consumers can choose. 1 This letter expresses the views of the Federal Trade Commission’s Office of Policy Planning, Bureau ofCompetition, and Bureau of Economics. The letter does not necessarily represent the views of the Federal TradeCommission or of any ...