Trade Practices

Trade Practices Laws and Regulations

Trade Practices are defined in the Federal Alcohol Administration Act of 1935.  Amendments are reflected in the Code of Federal Regulations, and in the agency's industry circulars and rulings.

Laws

Federal Alcohol Administration (FAA) Act

Historical Background

Summary of FAA Act Provisions

Specific FAA Act Provisions

  • (a) Exclusive outlet - An exclusive outlet is a practice by which an industry member requires a retailer to purchase its alcohol beverages.
  • (b) "Tied house'' - A "tied house" is a practice whereby an industry member induces a retailer to purchase its alcohol beverages.
  • (c) Commercial bribery - Commercial bribery is a practice whereby an industry member induces a wholesaler or retailer to purchase its alcohol beverages.
  • (d) Consignment sales - Consignment Sales is a practice whereby an industry member sells, offers for sale, or contracts to sell to any trade buyer (wholesaler or retailer) or for such trade buyer to purchase, offer to purchase or contract to purchase any such alcohol beverages on consignment, or with the privilege of return or any other type of consignment sale noted in Section 105(d) of the FAA Act and 27 Code of Federal Regulations 11.21.
  • (e) Labeling
  • (f) Advertising

Regulations

Part 1 - Basic Permit Requirements under the FAA Act

Part 4 - Labeling and Advertising of Wine

Part 5 - Labeling and Advertising of Distilled Spirits

Part 6 - Tied House

Part 7 - Labeling and Advertising of Malt Beverages

Part 8 - Exclusive Outlets

Part 10 - Commercial Bribery

Part 11 - Consignment Sales

Part 13 - Labeling Proceedings

Part 16 - Alcoholic Beverage Health Warning Statement
Page last reviewed/updated: 04/30/2013

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