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Hot Topics in Alcohol Beverage Law and Regulation

Stay updated on legal symposiums, advertising regulations, budget changes, and ongoing litigations in the alcohol industry. Learn about FTC orders, TTB reorganization, state and federal litigations impacting the alcohol sector.

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Hot Topics in Alcohol Beverage Law and Regulation

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  1. Hot Topics in Alcohol Beverage Law and Regulation NABCA Legal Symposium James M. Goldberg

  2. Federal Trade Commission • Alcohol beverage advertising self-regulation study • First study in 1999 • 2008 report found high levels of compliance with voluntary placement standards • Orders requesting information should issue in mid-April with report (4th study) due in spring, 2013

  3. Federal Trade Commission • Consent order with Phusion Products (Four Loko) • New labels required, can redesign to allow resealing • More than 200 opposing comments received • About a dozen supporting comments • Facebook privacy settlement garnered less than 60 comments • Final decision expected in May/June

  4. Alcohol, Tobacco and Firearms Tax and Trade Bureau • TTB reorganization? • Move all to IRS? • Split between IRS and FDA? • Fiscal 2013 budget • Spending cut about 3%, staff reduced from 496 to 482 • Budget Appendix page 1119 • Transfers responsibility for criminal investigations from TTB to IRS

  5. Alcohol, Tobacco and Firearms Tax and Trade Bureau • On-premises infused spirits products • 2010 e-mail to MD Comptroller’s office • Infusion appears to be “processing” • Past cases generally limit mixing to 24 hours prior to consumption • “Particular circumstances” test • No “significant jeopardy” to FET revenue • More formal ruling expected soon (?)

  6. State Litigation • Project Extra Mile v. Nebraska Liquor Control Commission • Nebraska Supreme Court March 2, 2012 • Commission exceeded authority by classifying and taxing FMB’s as beer, since law plainly defines spirits as beverages that contain alcohol obtained by distillation • LB 824 would classify FMB’s as malt beverages

  7. State Litigation • Southern Wine and Spirits of America v. Division of Alcohol and Tobacco Control • USDC WD Mo. • Challenge to state law requiring spirits wholesalers to be incorporated in MO and have at least 60% of shareholders be bona fide residents of MO for at least three years

  8. Federal Litigation • Lorillard, Inc. v. U.S. Food and Drug Administration • USDC DC opinion February 29, 2012 • Invalidates effort to force tobacco manufacturers to include graphic, anti-smoking warnings on all cigarette packages and advertising • Not ordinary disclosure requirements of the kind previously upheld by Scotus

  9. Federal Litigation • American Beverage Association v. Snyder • USCA Sixth Circuit • Challenge to MI beverage container deposit law requiring interstate manufacturers to produce containers uniquely branded for sale in state and criminalizes sale of such MI-only containers in other states lacking a “substantially similar” law • District court had upheld the statute

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