Trade Practices

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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Page last reviewed/updated: 08/07/2013

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