|August 23, 2018
For Immediate Release
|Office of Congressional and Public Affairs
TTB Press Release
TTB Trade Practice Investigation Results in Permit Suspension
Washington, D.C. — On August 21, 2018, Modus Operandi Cellars, LLC, a bonded winery in St. Helena, California, served a one day suspension of its basic permit. This latest enforcement action clearly demonstrates TTB’s determination to put an end to anti-competitive practices that hurt law-abiding businesses and prevent consumers from enjoying a wide selection of products.
Specifically, over the course of almost two years, Modus Operandi Cellars, LLC, engaged in consignment sales of wine to wholesalers who were not obligated to pay for the wine until after it had been sold to retailers. Consignment sales arrangements, like other unlawful trade practices, are used to gain an unfair advantage over law-abiding industry members and ultimately limit consumer choice.
The Modus Operandi Cellars, LLC, investigation was part of the joint operation that TTB conducted with the California Department of Alcoholic Beverage Control in March 2018.
TTB remains committed to actively enforcing the trade practice provisions of the Federal Alcohol Administration Act. TTB will continue to assess ways that enforcement actions can encourage voluntary compliance and discourage noncompliant industry members from treating those enforcement actions as a simple cost of doing business.