Philadelphia's Asian-American and Arab-American business communities are challenging the enforcement of local and state ordinances, claiming they disproportionately target minority-owned establishments. The lawsuit, filed on November 26 in the Eastern District of Pennsylvania, accuses the city of Philadelphia and Pennsylvania's Bureau of Liquor Control Enforcement of selectively enforcing vague liquor laws against businesses owned by Asian Americans and Arab Americans, leading to unjust suspensions and closures of liquor licenses.

The businesses, represented by the Asian-American Licensed Business Association (AALBA) and the Arab American Business Association (AAB), argue that these vague ordinances have resulted in punishments for incidents beyond their control, such as crime occurring in or near their establishments. The lawsuit focuses on how the city’s curfew laws and nuisance ordinances disproportionately affect these businesses, located in neighborhoods predominantly owned by racial minorities. These laws, the plaintiffs claim, are not equally enforced in predominantly white areas of the city.

According to the complaint, Philadelphia’s city ordinances and state laws governing liquor licenses are overly broad, allowing for arbitrary enforcement. One business faced penalties for a violation related to a sign pointing to additional seating, a requirement not clearly outlined in the law. Another business was penalized for the criminal actions of patrons who were later acquitted, yet the liquor license violation stood.

The plaintiffs also argue that businesses are deterred from reporting criminal activity due to fears of being labeled as a "nuisance" establishment, resulting in reduced safety. The lawsuit highlights how such selective enforcement undermines both the businesses’ ability to operate and the safety of the surrounding areas.

Legal representation for the plaintiffs, Kyle Garabedian of Kang Haggerty LLC, emphasized the historical context of discrimination against minority-owned businesses in Philadelphia. He criticized the city's actions, stating that many of these business owners now face the threat of being driven out of business by discriminatory enforcement practices.

The case, which could have broader implications for the enforcement of local and state laws on minority-owned businesses, is being heard in the U.S. District Court for the Eastern District of Pennsylvania under the case number 2:24-cv-06348.