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Beverage Media
July 2013
know
the
law
T
he Alcohol and Tobacco Tax and
Trade Bureau (“ TTB”) Industry
Circular 2013-01, issued on May
13th, provides guidance on the applica-
tion of TTB’s advertising regulations to
internet activities. It is important to un-
derstand that in general TTB regulations
do not apply to the retail tier; rather these
regulations are addressed to suppliers, im-
porters and wholesalers, known in TTB
parlance as “Industry Members.”
Federal regulations require the Indus-
try Member, who is the responsible adver-
tiser, to include certain Mandatory State-
ments in all advertisements. In the case of
wine, the Mandatory Statement includes
the name, city and state of the responsible
advertiser as well as the class, type and
distinctive designation of the product. In
the case of spirits, the Mandatory State-
ment includes the name, city and state of
the responsible advertiser, the class and
type of the product, alcohol content, per-
centage of neutral spirits and the name of
the commodity. Some of the information
may be omitted when the advertisement
is addressed to a broad category of bever-
ages rather than to a specific product.
In addition, Federal Regulations for-
bid the inclusion of any statement that is
false, disparaging to a competitor’s prod-
uct or creates a misleading impression as
to the effects on health.
In its May Circular, the TTB warns
that advertising regulations apply to the
types of advertisements listed in the regu-
lations and advertisements in “any other
media.” When an Industry Member cre-
ates a Facebook page, uploads videos to
YouTube, creates an internet blog or sets
up a Twitter account for consumers to fol-
low, its purpose is to induce sales in in-
terstate or foreign commerce. Therefore,
these are considered advertising and are
subject to the TTB regulations.
When using blogs, Facebook and
other webpages, which combine into one
document with sub-tabs, the TTB rec-
ommends that the responsible advertiser
place the Mandatory Statement on the
“profile” or “about” page.
The TTB recognizes that it is not
practical to require the Mandatory on
each statement sent out on a micro blog
such as Twitter. However, the Mandatory
Statement must still be placed on the re-
sponsible advertiser’s “profile” page.
If the Industry Member provides a link
from one website to another, the Manda-
tory must be placed in each website. If the
purpose of a posting or action is to drive
consumers to the product or to keep the
consumer loyal, it is an advertisement and
comes under the regulations.
See the full TTB Circular
online at:
BevNetwork.com
Governor’s Summit
Impact Continues
G
overnor Cuomo hosted a summit on
New York’s Alcoholic Beverage in-
dustry in October of 2012. Follow-
ing through on one of the summit’s topics,
the administration has sponsored legisla-
tion to spirits producers in the state.
The legislation is clearly intended
to boost New York’s agricultural com-
munity. Products manufactured sub-
stantially from ingredients grown in
New York are designated as “New York
Labeled” and have special tasting and
sales privileges. In addition, manufac-
tures, except distillers, are authorized to
sell a great number of souvenirs and ad-
ditional products.
The proposed legislation also
would allow producers to otherwise
use areas of buildings and equipment
not fully employed in the production
of an alcoholic beverage, when such
use (i) is reasonably necessary to re-
alize the maximum benefit from the
premises and equipment and/or re-
duces the overhead of the [licensee];
(ii) is in the public interest because of
emergency conditions; (iii) involves
research projects related to equip-
ment, materials, processes, products,
by-products or wastage; or (iv) in the
judgment of the authority, will not
impede the effective administration of
the ABC law.
The proposed bill also codifies a
portion of the SLA Advisory related to
marketing/supplier permits. Under the
proposed legislation, these permits will
be available only to manufacturers and
importers from sister states.
Keven Danow is an attorney representing members of all
three tiers of the Beverage Alcohol Industry and mem-
ber of the firm of Danow, McMullan & Panoff, P.C. 275
Madison Ave, NY, NY. 10022. (212 3703744). Website:
dmppc.com; email:
,. This article
is not intended to give specific legal advice. Before tak-
ing any action, the reader should consult with an attor-
ney familiar with the relevant facts and circumstances
TTB Extends Mandatory
Statements to Internet
SLA Boosts State’s Spirits Producers’ Freedom & Power
By Keven Danow
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online
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