Press Release - FY 20-1

TTB Trade Practice Investigation Results in Suspensions and a $5 Million Offer in Compromise

FY—20—1

Washington, D.C. – TTB has accepted a $5 million Offer in Compromise (OIC) from Anheuser-Busch, LLC (“A-B”) for alleged violations of the Federal Alcohol Administration (FAA) Act.  Additionally, A-B served a two-day suspension of its importer and wholesaler permits in Littleton, Colorado, and a four-day suspension of its importer and wholesaler permits in Denver, Colorado.

Specifically, TTB alleges that A-B violated the FAA Act trade practice laws set forth in 27 U.S.C. § 205 by:

• Entering into sponsorship agreements with various entities in the sports and entertainment industries requiring concessionaires and other retailers to purchase A-B’s malt beverages and prohibiting them from purchasing specific competitor brands;
• Inducing sports industry concessionaires to purchase A-B’s malt beverages by furnishing fixtures, equipment, and services;
• Reimbursing, through credit card swipes, retailers for the cost of installing malt beverage draft dispensing systems, thereby inducing them to purchase A-B’s malt beverages;
• Requiring retailers to purchase A-B’s malt beverages in return for such retailers’ use of equipment A-B furnished them free of charge or below market value;
• Using third parties (business entities and payment services) to provide money or things of value to retailers in exchange for placement of A-B’s malt beverages; and
• Paying retailers purportedly for items such as consumer samplings, when, in fact, the retailers did not receive the goods or services purportedly purchased, and such payments were actually for A-B product placement.

This $5 million OIC resolves any such alleged violations that may have taken place throughout the United States through July 2, 2020.

TTB remains committed to putting an end to anti-competitive practices that negatively impact law-abiding businesses and prevent consumers from enjoying a wide selection of products.  If you have questions regarding prohibited trade practices, please visit our Trade Practices page for additional information about the laws and regulations.  Please visit our Administrative Actions page to view the OIC and the suspension documents.

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Page last reviewed: July 9, 2020
Page last updated: July 9, 2020
Maintained by: Office of Congressional and Public Affairs