DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Industry Circular

Number: 2011-02

Date: April 7, 2011

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Application of Alcohol Beverage Advertising Regulations to Television Advertising

To: Proprietors of Beverage Distilled Spirits Plants, Bonded Wineries, Bonded Wine Cellars, Taxpaid Wine Bottling Houses, Breweries, Importers, Wholesalers, and Others Concerned.

1. PURPOSE.

This circular clarifies the Alcohol and Tobacco Tax and Trade Bureau’s (TTB) policy regarding the applicability of the regulations requiring the inclusion of mandatory information to television advertising of alcohol beverages.

2. AUTHORITY.

Section 105(f) of the Federal Alcohol Administration Act (FAA Act), 27 U.S.C. 205(f), authorizes the Secretary of the Treasury to prescribe regulations for the advertising of wine, distilled spirits, and malt beverages. The FAA Act requires that these regulations, among other things, prevent consumer deception, prohibit the use of misleading statements, irrespective of falsity, and provide the consumer with adequate information as to the identity and quality of the product advertised.

The TTB advertising regulations for wine, distilled spirits and malt beverages, promulgated under the FAA Act are as follows: 27 CFR part 4, subpart G sets forth the regulations for advertising wine; part 5, subpart H sets forth the regulations for advertising distilled spirits; and part 7, subpart F sets forth the regulations for advertising malt beverages. The regulations set forth in §§ 4.62, 5.63, and 7.52, require certain mandatory statements (e.g., responsible advertiser name and address) to appear in advertisements for wines, distilled spirits, and malt beverages, respectively, and the regulations set forth in §§ 4.64, 5.65, and 7.54 prohibit certain advertising practices and prohibit certain statements from appearing on such advertisements.

3. BACKGROUND.

As part of its advertising program, TTB reviews advertisements for malt beverages, wine, and distilled spirits. These advertisements appear in a variety of media, including print, internet, radio, and television.

TTB has learned that television stations sometimes run advertisements more frequently than required by their contracts with industry members in order to provide added value to the industry members and to fill otherwise empty broadcast air time. In many instances, such additional advertisements are run without the knowledge of the industry member, and, on these occasions, the television station often omits the mandatory information required by the FAA Act and the TTB regulations. TTB became aware of this practice after contacting an industry member to seek corrective action for a television advertisement that did not include the required mandatory information.

4. TTB’S POLICY REGARDING MANDATORY INFORMATION FOR TELEVISION ADVERTISING.

Industry members are reminded that mandatory information is required for all alcohol beverage advertisements. We strongly recommend that industry members fully inform their media outlets and advertising agencies of the requirement to include the applicable mandatory information in all advertisements that are placed for the industry members’ products.

5. QUESTIONS.

If you have any questions about these advertising policies, please contact the Advertising, Labeling, and Formulation Division (ALFD). You can reach ALFD by:

John J. Manfreda
Administrator
Alcohol and Tobacco Tax and Trade Bureau