I'm not a lawyer but if the three tier system wasn't supported by the government, or somebody did it on another product wouldn't it be considered illegal? I don't know... but everytime I hear or read about racketeering it reminds me of the distribution system, whether thats the correct term or not I don't know but what they do sure seems like something Al Capone did. Maybe they only cared back then because they weren't collecting any tax off it though, no permit fees etc.
I think the Mafia still exists, they just have different spellings of it now... c-o-n-g-r-e-s-s, s-e-n-a-t-e, etc. etc.