|December 6, 2018
For Immediate Release
|Office of Congressional and Public Affairs
TTB Press Release
TTB Accepts $1.5 Million Offer in Compromise for Trade Practice Violations
Washington, D.C. — TTB has accepted a $1.5 million offer in compromise from QAC, LLC (d/b/a Eagle Brands), a wholesaler in Miami, Florida, for alleged violations of the trade practice provisions of the Federal Alcohol Administration Act (FAA). This case developed out of the joint operation that TTB conducted with Special Agents from the Florida Division of Alcoholic Beverages and Tobacco (ABT), Miami District Office, targeting alleged "pay to play" schemes in the greater Miami area. This is the largest single offer in compromise that TTB has ever accepted, surpassing the Warsteiner case, which also resulted from the Miami joint operation.
Specifically, TTB alleges that Eagle Brands paid retailers to carry and promote its products to the exclusion of competing products and hid those payments as banquet events, credit card payments for rebates, or consumer samplings. TTB also alleges that Eagle Brands employees provided retailers with draft systems that were to be used exclusively for Eagle Brands products.
This case serves as an example of the types of unlawful activity that TTB highlighted in Industry Circular 2018-7. TTB remains committed to putting an end to anti-competitive practices that hurt law-abiding businesses and prevent consumers from enjoying a wide selection of products.
Please visit www.ttb.gov for additional information on prohibited trade practices or to see this and other offers in compromise that have been accepted.