108 Iowa L. Rev. 445 (2022)

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Abstract

Since the repeal of Prohibition in 1933, most states have relied on some form of a three-tier system to regulate the manufacture, distribution, and sale of alcohol. With the rapid changes in technology, e-commerce, and consumer habits today, the use of unlicensed third-party providers (“TPPs”) to solicit and deliver alcohol orders on behalf of licensed retailers threatens to upend alcohol regulation and the three-tier system. This would be undesirable because it might frustrate several goals of alcohol regulation such as protecting public health and safety, ensuring a fair and orderly alcohol market, and holding entities involved in the alcohol industry accountable to the public. Examining Iowa Code section 123.46A, Iowa’s third-party alcohol delivery law that was enacted in July 2021, this Note argues that more effective regulation of TPP activity can be achieved by: (1) issuing TPP licenses, (2) requiring licensed retailers to exercise control over every part of the transaction facilitated by TPPs, and (3) amending Iowa’s tied-house law to prohibit manufacturers and distributors from acquiring an economic interest in TPPs.