THE FEDERAL TRADE COMMISSION
AND ITS OVERREACH IN THE
REGULATION OF ALCOHOL
N
BWA has expressed concerns to members of Congress regarding the Federal Trade Commission (FTC) and its
activities relating to alcohol regulation. As provided by the U.S. Constitution’s 21st Amendment and reinforced by
Congress on numerous occasions, alcohol’s primary regulation lies with the states.* The principal federal regulator
of alcohol is the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB).
In recent years, the FTC has been involved in a series of activities to undermine state laws regulating the sale and
distribution of alcohol beverages. Specifically, the FTC has sought to undermine a state’s ability to protect the welfare of
citizens through effective regulation.
Alcohol is a socially sensitive product. As the Constitution states, alcohol, by its definition, is an intoxicating product. For
nearly 80 years, the states have passed laws and established regulations governing the importation, distribution and sale
of alcohol. These state laws are passed by locally-elected state legislators and reflect the attitudes of local citizens.
Today’s system also allows for an unparalleled growth of businesses. In 1983, there were fewer than 50 breweries in the
U.S. In 2012, there are more than 1,850 breweries in the U.S. The independent three-tier system and state regulation
work together to ensure access to market for brewers large and small.
The regulation of alcohol must continue to be conducted by the states in a manner that is designed to protect the citizens
of each individual state. Alcohol is a unique product that is different from other consumer goods and must be regulated
carefully to ensure the safety of consumers. The FTC’s efforts to undermine state alcohol regulation are in conflict with
the stated intent of Congress and the 21st Amendment.
NBWA encourages Congress to oppose efforts by the FTC to interfere with
state regulation of alcohol and to continue to support the state-based alcohol
regulatory system that has successfully balanced consumer interest in
competition with the public’s interest in effective regulation for nearly 80
years.
*The STOP Underage Drinking Act (PL#109-422) states, “Alcohol is a unique product and should be regulated differently than
other products by the States and Federal Government. States have primary authority to regulate alcohol distribution and sale, and
the Federal Government should support and supplement these State efforts.” The law also says, “Continued State regulation and
licensing of the manufacture, importation, sale, distribution, transportation and storage of alcoholic beverages are clearly in the
public interest and are critical to promoting responsible consumption, preventing illegal access to alcohol by persons under 21
years of age from commercial and non-commercial sources, maintaining industry integrity and an orderly marketplace and furthering effective State tax collection.”
National Beer Wholesalers Association
1101 King Street, Suite 600 • Alexandria, Virginia 22314-2965 • www.nbwa.org