The founding fathers can rest easy: Your right to drink a Big Gulp in New York City is sacrosanct... for now.
The NYC law banning large sugar-filled drinks from restaurants and stores was an overreach of executive power, the NY State Appeals Court decided Tuesday, which upheld an earlier decision from the lower court.
The new law, which said certain businesses should not sell a sugary drink larger than 16 ounces, “violated the state principle of separation of powers.”
In other words, “ARGHHHH MUST GET GIANT MOUNTAIN DEW INSIDE ME!”
NY Mayor Michael Bloomberg had sought to fight obesity with the rule which drew fire from business groups, labor unions, restaurants and the beverage industry.
The law, which State Supreme Court Justice Milton Tingling called “Arbitrary and capricious”, was “laden with exceptions” because it exempted any business not under the jurisdiction of the local health department, which meant 7/11 could sell 64 ounce beverages but a restaurant couldn’t serve a 20.
Tingling said the health department didn’t have the authority to pass such rules. The appellate court agreed Tuesday.
Bloomberg told reporters the decision was “a temporary setback.”
“All the studies show, if the glass or plate in front of you is small, you’ll eat less,” he said last year. “If you want 32 ounces, the restaurant has to serve it in two glasses. That’s not exactly taking away your freedoms. It’s not something the Founding Fathers fought for.”
Bloomberg says 5,000 New Yorkers are killed by obesity related issues every year, and sugary drinks are the key driver.
Coca-Cola (
NYSE: KO,
Stock Forum) prices rose $0.10 to $40.38 at the time of writing, with Pepsico (
NYSE: PEP,
Stock Forum) following that rise with a $0.19 jump to $85.44. Micro soda player Jones Soda (
NASDAQ: JSDA,
Stock Forum) rose $0.04 to $0.90.
-Chris Parry, Stockhouse.com