Trade Practices | TTB: Alcohol and Tobacco Tax and Trade Bureau

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(See sections 105(a) through (d) of the FAA Act (27 U.S.C. 205(a)–(d)) for more information.) 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Resources</strong></a></p></p> </div> </div></div></div></div> </div> </div> </div> </div> </div> </div> <div class="region region-breadcrumb"> <div id="block-ttb-breadcrumbs" class="block block-system block-system-breadcrumb-block"> <div class="content"> <div class="treas-breadcrumb"> <div class="grid-container"> <div class="grid-row"> <div class="grid-col"> <nav aria-label="breadcrumb" class="treas-breadcrumb__nav"> <h2 id="system-breadcrumb" class="visually-hidden">Breadcrumb</h2> <ol class="treas-breadcrumb__list"> <li class="treas-breadcrumb__item" title="Home"> <a href="/" class="treas-breadcrumb__link">Home</a> </li> <li class="treas-breadcrumb__item" title="Business Central"> <a href="/business-central" class="treas-breadcrumb__link">Business Central</a> </li> <li class="treas-breadcrumb__item" title="Trade Practices"> Trade Practices </li> </ol> </nav> </div> </div> </div> </div> </div> </div> </div> <main class="usa-section" id="content"> <div id="main-content" class="grid-container"> <div class="grid-row grid-gap"> <div class="grid-col-12"> </div> </div> <div class="grid-row grid-gap"> <div class="region-content grid-col"> <div data-drupal-messages-fallback class="hidden"></div> <h1 class="margin-0"><span class="treas-page-title">Trade Practices</span></h1> <article> <div> <div class="layout layout--onecol"> <div class="layout__region layout__region--content"> <div class="block block-layout-builder block-extra-field-blocknodepagecontent-moderation-control"> <div class="content"> </div> </div> <div class="block block-layout-builder block-extra-field-blocknodepagelinks"> <div class="content"> </div> </div> <div class="block block-layout-builder block-field-blocknodepagebody"> <div class="content"> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>TTB is committed to creating a fair and level playing field nationwide for alcohol beverage industry members of all sizes through a strong regulatory compliance program and active enforcement of the trade practice provisions of the Federal Alcohol Administration Act (FAA Act). (See sections 105(a) through (d) of the FAA Act (27 U.S.C. 205(a)–(d)) for more information.) These provisions prohibit industry members from engaging in the following marketing practices that threaten the independence of retailers and/or give the industry members an unfair advantage over their competitors:</p><ul class="usa-list"><li><a href="/glossary/glossary-e">Exclusive outlet</a></li><li><a href="/glossary/glossary-t">Tied house</a></li><li><a href="/glossary/glossary-c">Commercial bribery</a></li><li><a href="/business-central/trade-practices/consignment-sales" data-entity-type="node" data-entity-uuid="a2797c59-c318-4b40-88b9-b7199801b44a" data-entity-substitution="canonical" title="Consignment Sales">Consignment sales</a></li></ul><p>Industry members who engage in these anti-competitive practices damage other, law-abiding businesses and prevent consumers from enjoying a wide selection of products.</p><h2>Reports</h2><p><a href="https://home.treasury.gov/system/files/136/Competition-Report.pdf" target="_blank" rel="noopener">Competition in the Market for Beer, Wine and Spirits</a> (February 2022)</p><p>This report on competition in the market for the alcohol industry details challenges to the growth of small businesses and new entrants into the marketplace. It also contains recommendations to better level the playing field for these businesses by enforcing existing laws and modernizing outdated alcohol regulations. </p><p><a href="/media/73155/download?inline" data-entity-type="media" data-entity-uuid="472005a8-8bd4-41d5-ad66-64b915e04143" data-entity-substitution="media_download_inline" title="fy20-report-faa-act-enforcement.pdf">TTB FY20 Report on FAA Act Enforcement</a></p><p>This file contains 8 identical copies of the report as submitted to the Chairs and Ranking Members of the House and Senate Appropriations Committees and Financial Services and General Government (FSGG) Subcommittees.</p><h2>Trade Practices Resources</h2><table class="usa-table" role="presentation" border="1"><tbody><tr><td><p><strong><img class="padding-1 align-left" src="/system/files/images/icons/law-reg-icon.png" alt="Blue icon with gavel." width="100" height="100"></strong><a href="/trade-practices/laws-and-regulations" title="Trade Practices | Laws and Regulations" target="_self"><strong>Laws and Regulations</strong></a></p><p>Regulatory information relating to trade practices</p></td><td><p><strong><img class="padding-1 align-left" src="/system/files/images/icons/scroll.png" alt="Blue icon with paper and pen." width="100" height="100"></strong><a href="/trade-practices/rulings" title="Trade Practices Rulings" target="_self"><strong>Rulings</strong></a></p><p>Rulings related to trade practices issued by TTB and its predecessor agencies</p></td></tr><tr><td><p><strong><img class="padding-1 align-left" src="/system/files/images/icons/IndCirc.png" alt="Blue icon with "IC"." width="100" height="100"></strong><a href="/trade-practices/industry-circulars" title="Trade Practices Industry Circulars" target="_self"><strong>Industry Circulars</strong></a></p><p>Industry Circulars related to trade practices issued by TTB and its predecessor agencies</p></td><td><p><strong><img class="padding-1 align-left" src="/system/files/images/icons/store-register.png" alt="Blue icon with storefront and shopping cart." width="100" height="100"></strong><a href="/laws-regulations-and-public-guidance/liquor-laws-regulations-retail-dealers" target="_blank"><strong>Liquor Laws and Regulations for Retail Dealers</strong></a></p><p>Regulatory information relating to trade practices</p></td></tr><tr><td><p><strong><img class="padding-1 align-left" src="/system/files/images/icons/faqs-icon.png" alt="Blue icon with "FAQ's"." width="103" height="105"></strong><a href="/faqs/general-trade-practice-faqs"><strong>Frequently Asked Questions (FAQs)</strong></a></p><p>Frequently asked questions about trade practices</p></td><td> </td></tr></tbody></table><h2>Educational Resources</h2><h3>TTB Trade Practices Video Series</h3><table class="usa-table" role="presentation" border="1"><tbody><tr><td><a href="/trade-practices/faa-act-history-background"><img class="padding-1 align-center" src="/system/files/images/TP/HistoryBackground.jpg" alt="Overview - Temporary Voluntary Disclosure Program" width="213" height="120"></a><p><strong>FAA Act History & Background (16:19)</strong></p><p>In this video we introduce the trade practice rules and the history leading up to the rules. We also discuss various terms every industry member should know.</p><p><a href="/trade-practices/faa-act-history-background"><strong>Watch video</strong></a></p></td><td><a href="/trade-practices/tied-house"><img class="padding-1 align-center" src="/system/files/images/TiedHouse.jpg" alt="Permits Online Demo - Requesting Access to Permits Online" width="213" height="120"></a><p><strong>Tied House (14:28)</strong></p><p>In this video we discuss Tied House practices and the rules and regulations associated with them. </p><p><a href="/trade-practices/tied-house"><strong>Watch video</strong></a></p></td></tr><tr><td><a href="/trade-practices/exclusive-outlet"><img class="padding-1 align-center" src="/system/files/images/TP/ExclusiveOutlet.jpg" alt="Permits Online Demo- Change in Proprietorship" width="213" height="114"></a><p><strong>Exclusive Outlet (11:30)</strong></p><p>In this video we discuss arrangements which are considered Exclusive Outlets and the rules and regulations that cover these activities.</p><p><a href="/trade-practices/exclusive-outlet"><strong>Watch video</strong></a></p></td><td><a href="/trade-practices/commercial-bribery"><img class="padding-1 align-center" src="/system/files/images/TP/CommercialBribery.jpg" alt="Permits Online Demo - Change in Control" width="213" height="115"></a><p><strong>Commercial Bribery (9:52)</strong></p><p>In this video we explain activities considered Commercial Bribery and the rules and regulations that cover these activities.</p><p><a href="/trade-practices/commercial-bribery"><strong>Watch video</strong></a></p></td></tr><tr><td><a href="/trade-practices/consignment-sales"><img class="padding-1 align-center" src="/system/files/images/TP/ConsignmentSales.jpg" alt="Permits Online Demo - Change in Control" width="213" height="114"></a><p><strong>Consignment Sales (12:07)</strong></p><p>We explain prohibited arrangements under the Consignment Sales rules and regulations.</p><p><a href="/trade-practices/consignment-sales"><strong>Watch video</strong></a></p></td><td> </td></tr></tbody></table><h3>Other media</h3><table class="usa-table" role="presentation" border="1"><tbody><tr><td><p><strong><img class="padding-1 align-left" src="/system/files/images/TP/ftp-should-know.png" alt="Permits Online Demo - Change in Control" width="213" height="159">Federal Trade Practices: What Every Industry Member Should Know</strong></p><p><a href="/media/73153/download?inline" data-entity-type="media" data-entity-uuid="7734eb87-2d39-49f7-9521-e49a5e749737" data-entity-substitution="media_download_inline" title="trade-practice-final.pptx">Slideshow</a></p></td></tr></tbody></table><p> </p><p><em>This information is being issued to help the public to understand and comply with the laws and regulations that the Alcohol and Tobacco Tax and Trade Bureau administers. It is not intended to establish any new, or change any existing, definitions, interpretations, standards, or procedures regarding those laws and regulations. For specific questions about how the trade practice laws pertain to activities in Puerto Rico or other United States territories you may email TTB at </em><a href="mailto:tradepractices@ttb.gov"><em>tradepractices@ttb.gov</em></a><em>.</em></p><p> </p><div><div class="usa-alert usa-alert--success"><div class="usa-alert__body" id="contactFooter"><h4 class="usa-alert__heading">CONTACT US</h4><p>For more information about Trade Practices or to report a violation, contact our Market Compliance Office at <strong>202-453-2251, (option 2), </strong>or by fax at 202-453-2873, or by email at <a class="usa-link" href="mailto:TradePractices@ttb.gov">TradePractices@ttb.gov</a>. </p><p>Visit our <a class="usa-link" href="/offices/trade-investigations-division" target="_self">Trade Investigations Division</a> (TID) page for more information about TID's mission and responsibilities.</p></div></div></div></div> </div> </div> </div> </div> </div> </article> <p> Last reviewed: June 28, 2017 <br> Last 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