Urban Artifact, a popular Ohio-based brewery known for its unique fruit-infused beers, has filed a lawsuit against the Pennsylvania Liquor Control Board, alleging discriminatory practices against out-of-state breweries.

The crux of the lawsuit lies in Pennsylvania’s regulations governing direct-to-consumer beer shipments. While in-state breweries can ship unlimited quantities of beer directly to Pennsylvania residents, out-of-state breweries face significant restrictions. These include obtaining specific licenses, paying additional fees, and adhering to strict shipment limits.

Pennsylvania breweries have been able to ship their beer directly to customers within the state for several years. With the practice gaining popularity at the height of the 2020 Covid pandemic.

Urban Artifact argues that these regulations create an uneven playing field, unfairly benefiting Pennsylvania breweries and hindering competition from out-of-state businesses. The brewery contends that the state’s laws violate the Commerce Clause of the U.S. Constitution, which prohibits states from unduly burdening interstate commerce.

“What’s happening here is really unfair to out-of-state businesses,” Jeffrey Jennings, the attorney representing Urban Artifact, told Local 12 in Cincinnati. “You shouldn’t be discriminated against just because you’re located in a different state.”

The lawsuit seeks a declaration that Pennsylvania’s beer shipping laws are unconstitutional and a permanent injunction preventing the state from enforcing the discriminatory regulations.

Urban Artifact currently sells its beer online in roughly eight states and wants to expand to more. The outcome of the case could have far-reaching implications for the craft beer industry, potentially impacting how other states regulate beer sales.