Ruling 54-513

Rev. Ruling 54-513

Labeling and Advertising of Malt Beverages

Section 29 and 54 of Regulations No. 7 relating to labeling and advertising of malt beverages issued pursuant to subsections (e) and (f) of section 5 of the Federal Alcohol Administration Act prohibit, within the jurisdictional limits prescribed in the statute, the appearance of certain types of statements and illustrations in the labeling and advertising of malt beverages. The Internal Revenue Service has ruled that the following cases, among others, are covered by these provisions.

References to low starch content of a particular beer are held to be precluded by these regulations in view of the fact that starch is not present in beer.

References to the illustrations of prominent athletes consuming or preparing to consume the advertised malt beverages are considered likely to mislead the public and therefore are subject to the above provisions of regulations.

References likely to be considered as indicative of alcoholic content such as the phrase "Is it stronger?" are precluded by section 29(f) except on labels where required to appear by State law and section 54(c) of these regulations which, in effect, prohibit all references to alcoholic content.

The use of references which are likely to create the impression that the consumption of a malt beverage would be conducive to health or to physical well-being, such as the words "bracing," "invigorating," and "pickup," or the phrases "clears your throat," "relaxes you," are held to be precluded by sections 29(a), 29(e), 54(a) and 54(e) from appearing on labels or in advertisements, respectively.

It will be noted that the next to the last paragraph of section 5 of the Federal Alcohol Administration Act provides, in effect, that with respect to malt beverages, the labeling and advertising provisions shall apply to the labeling or advertising of malt beverages for introduction into a State only to the extent that the State law imposes similar requirements with respect to the labeling or advertising of malt beverages not so introduced.

27 U.S.C. 205; 27 CFR 7.54