The coronavirus pandemic has left the government dependent on public compliance and the goodwill of its citizens. But now that the end is in sight, our bureaucratic overlords seem to be doing everything they can to squash what little benevolence remains.
This month, the Food and Drug Administration reportedly slapped hundreds of distilleries with an unexpected fee of more than $14,000 because they produced hand sanitizer in the early days of the pandemic. Keep in mind: Craft distillers across the country began producing sanitizer because the United States was facing a massive shortage as panicked shoppers bought hand soap, cleaning wipes, and other sanitation products in bulk. Now, they’re being punished for helping consumers and healthcare workers during their time of need.
Part of the reason this is so unconscionable is because the FDA seems to have orchestrated this entire mess. The agency issued a temporary nonprescription drug policy in March that allowed distilleries producing sanitizer to be classified as “over-the-counter drug monograph facilities.” This classification requires facilities to pay user fees upward of $14,000. But the FDA said nothing of this at the time, according to distillery owners.
“This incredibly frustrating news comes as a complete shock to the more than 800 distilleries across the country that came to the aid of their local communities and first responders,” Distilled Spirits Council President and CEO Chris Swonger told USA Today.
Almost every distillery owner slapped with these fines said the same:
CEO of Saint Augustine Distillery Philip McDaniel agreed and said the fees were handed out at “such short notice,” giving the business owners little “time to react” or “plan.”
Aaron Bergh, president and distiller at Calwise Spirits in California, told Reason he was in “literal disbelief” when he received the notice. “I had to confirm with my attorney this morning that it’s true,” he said.
“I compare it to surprise medical billing,” Becky Harris, president of the American Craft Spirits Association, told Reason.
It gets worse. Unless distilleries update their classification status with the FDA by Thursday, they could be liable for an additional fee in 2022 as well, the agency said. So, not only must distilleries contend with this year’s unexpected fine, they must also start preparing for a long-term battle against the FDA.
All of this at a time when most businesses, distilleries included, are struggling to stay afloat. Several distillery owners said the sanitizer they produced brought in little profit, and a good portion of it was donated to front-line workers and hospitals. Producing sanitizer was not some grand moneymaking scheme, and few craft distillers have anything to show for it.
This is bureaucracy at its worst. Needless regulations slow down our markets, compound existing problems, and punish hard-working people who aren’t familiar with every single one of the rules. (Hint: No one is familiar with every single one of the rules — not even the people who write them.)
If ever there was a sign that we need less government, this should be it. Craft distillers stepped up and did more to help the public than the FDA has done in years. Therefore, the only debt owed is a debt of gratitude that distilleries did what the government could not.
