Press Release - FY 21-1

TTB Trade Practice Investigation Results in an $850,000 Offer in Compromise

FY—21—1

Washington, D.C. – TTB has accepted an $850,000 Offer in Compromise (OIC) from RN Acquisition, LLC and City Beverage – Markham, LLC of Chicago and Arlington Heights, Illinois.  
Specifically, TTB alleges that these entities and/or their affiliates unlawfully:

• Violated the Federal Alcohol Administration (FAA) Act’s tied house prohibition (27 U.S.C. § 205(b)), by inducing a retailer to purchase their malt beverages to the exclusion of competitor brands by paying sponsorship funds to a third-party concert promotion company commonly owned and/or managed by the retailer’s owner and/or manager;
• Violated the FAA Act’s tied house and exclusive outlet (27 U.S.C. § 205(a)) prohibitions by paying or reimbursing another industry member as part of a scheme to induce a multi-purpose venue retail concessionaire to purchase their malt beverages to the exclusion of competitor brands through a sponsorship of the venue, and by providing various trade items to the retail concessionaire;
• Violated the FAA Act’s tied house prohibition by providing various trade items to a retailer at below-market value, which induced the retailer to purchase the their malt beverages to the exclusion of competitor brands; and
• Violated 27 U.S.C. § 203(c), by operating without a basic permit at one of its warehouses.

TTB is committed to ensuring a level playing field for law abiding businesses and to stopping anti-competitive practices that 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.

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Page last reviewed: April 15, 2021
Page last updated: April 15, 2021
Maintained by: Office of Congressional and Public Affairs