1) The document analyzes the results of Virginia legalizing direct interstate wine shipments to consumers in 2003 after previously only allowing direct shipments from in-state wineries. 2) It finds that in 2002, prior to the law change, consumers could save 8-21% on wines over $20/$40 by purchasing online compared to brick-and-mortar stores. 3) After the law change in 2003, the price spread between online and brick-and-mortar reduced to an average of 8.97% less online, indicating Virginia's law change increased competition and lowered prices for consumers.