Federal Alcohol Administration Act
The FAA Act provides for regulation of those engaged in the alcohol beverage industry, and for protection of consumers.
- To ensure the integrity of the industry, the FAA Act includes provisions to:
- Require a permit for those who engage in the business as a producer, importer, or wholesaler of alcohol beverages;
- Issue, suspend, and revoke permits;
- Ensure the integrity of the industry by preventing persons who are not likely to operate in accordance with the law from entering the trade;
- Protect the revenue and consumers by ensuring the integrity of the industry members;
- To protect consumers, FAA Act provisions:
- Ensure that labeling and advertising of alcohol beverages provide adequate information to the consumer concerning the identity and quality of the product;
- Require that alcohol beverages bottlers and importers must have an approved certificate of label approval (COLA) or an exemption certificate before the product may be sold in the United States
- Prevent misleading labeling or advertising that may result in consumer deception regarding the product.
- The FAA Act includes provisions to preclude unfair trade practice. These provisions:
- Regulate the marketing promotional practices concerning the sale of alcohol beverages; and
- Regulate practices such as exclusive outlets, tied house arrangements, commercial bribery, and consignment sales.
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