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Malloy Proposes Reforming Alcohol Pricing To Lower Costs

FAIRFIELD, Conn. -- Gov. Dannel P. Malloy has introduced legislation to modify a 1981 state law that mandates that retailers of alcoholic beverages sell their products at certain, and artificially high, prices. 

Gov. Dannel P. Malloy

Gov. Dannel P. Malloy

Photo Credit: Jay Polansky

The proposal will put the authority to determine the prices of these products back into the hands of retailers and out of the hands of government. Currently, Connecticut is the only state in the region with a law requiring that retailers of alcoholic beverages sell their products at a minimum price determined by the wholesaler industry.

That means retailers cannot set the price of the products they put on the shelves in their own stores. As a result, consumers in Connecticut often pay more for these products than in other states because of an artificially determined price that was required by the government. This statute is unique to only off-premises alcohol retailers and treats no other types of industries in the same manner. 

“Why would government force residents to pay artificially high prices? It’s illogical and backwards. We need to be competitive with surrounding states, who have lower prices – and we need to let the market work instead of allowing backwards laws to remain on the books,” Malloy said. “You’re either for inflated, artificially high prices, or you’re against them. We’ve done much to reform out liquor laws in a consumer-friendly way, from Sunday sales to allowing stores to remain open later. But the prices for residents should come down – it’s the commonsense thing to do.” 

The governor is proposing that the law be modified to allow retailers to sell wine and liquor using a more reasonable, logical criteria: actual cost paid. This is the same standard used in neighboring states in the Northeast. 

The legislation is Senate Bill 14, An Act Ensuring the Regional Competitiveness of Connecticut's Liquor Prices. It comes after the governor passed a series of reforms, including allowing off-premises alcohol to be sold on Sundays and allowing stores to remain open later if they choose.

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