FTC Raises Competitive Concerns in CA

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In a joint letter to a California Assembly Member, the Federal Trade Commission and the Department of Justice raised concerns with A.B. 1541 which proposes to strengthen franchise provisions for distributors. According to the federal agencies, the bill would likely diminish competition among California beer wholesalers and increase manufacturers’ costs of obtaining distribution services from wholesalers. These effects, in turn, would likely increase the cost of beer distribution, with consumers paying higher prices for beer.