Trade Practices

Specific FAA Act Provisions

27 United States Code, Chapter 8, Subchapter I, Section 205

Source: U.S. Code Online via GPO Access

Unfair competition and unlawful practices

It shall be unlawful for any person engaged in business as a distiller, brewer, rectifier, blender, or other producer, or as an importer or wholesaler, of distilled spirits, wine, or malt beverages, or as a bottler, or warehouseman and bottler, of distilled spirits, directly or indirectly or through an affiliate:

(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

The Secretary of the Treasury shall give reasonable public notice, and afford to interested parties opportunity for hearing, prior to prescribing regulations to carry out the provisions of this section.

Amendments

1999--Subsec. (e). Pub. L. 106-113 substituted "United States Patent and Trademark Office" for "United States Patent Office" in first par.

1988--Subsec. (e). Pub. L. 100-690, Sec. 8001(b)(2), substituted "the date of the enactment of this title" for "the date of the enactment of this Act", which had been translated editorially as "August 29, 1935", thereby requiring no change in text.

1942--Subsec. (f)(2). Act Apr. 20, 1942, substituted "beverages and wines are prohibited" for "beverages are prohibited and except that, in case of wines, statements of alcoholic content shall be required only for wines containing more than 14 per centum of alcohol by volume,"

1936--Subsec. (e). Act Feb. 29, 1936, substituted "August 15, 1936,

in the case of distilled spirits, and December 15, 1936, in the case of

wine and malt beverages" for "March 1, 1936,".

Subsec. (e). Act June 26, 1936, amended subsec. (e) generally.

Effective Date of 1999 Amendment

Amendment by Pub. L. 106-113 effective 4 months after Nov. 29, 1999, see section 1000(a)(9) [title IV, Sec. 4731] of Pub. L. 106-113, set out as a note under section 1 of Title 35, Patents.

Source: U.S. Code Online via GPO Access

Page last reviewed/updated: 09/04/2012

TTB
No FEAR Act | Disaster Relief | Treas.gov | Inspector General | White House |
USA.gov | Webmaster | Business.USA.gov