[Federal Register Volume 67, Number 124 (Thursday, June 27, 2002)]
[Proposed Rules]
[Pages 43496-43509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16026]



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Part IV





Department of the Treasury





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Bureau of Alcohol, Tobacco, and Firearms



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27 CFR Part 7



Labeling and Advertising of Malt Beverages (2000R-107P); Proposed Rule

  Federal Register / Vol. 67, No. 124 / Thursday, June 27, 2002 / 
Proposed Rules  

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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 7

[Notice No. 946]
RIN 1512-AC10


Labeling and Advertising of Malt Beverages (2000R-107P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed rule revises the regulations regarding the 
labeling and advertising of malt beverages in accordance with plain 
language principles. These changes also incorporate minor technical 
amendments. There are no changes in requirements from the existing 
regulations. The Bureau of Alcohol, Tobacco and Firearms (ATF) is 
making this change in order to more clearly communicate the existing 
requirements. Because we are amending these regulations to conform to 
the plain language style, we are limiting comments to the effects of 
this change in the regulations' language. While we welcome comments on 
any aspect of these regulations, we will consider in this rulemaking 
only those comments that bear on the change in language.

DATES: We must receive your written comments not later than August 26, 
2002.

ADDRESSES: You must send written comments to: Chief, Regulations 
Division, Notice No. 946, Bureau of Alcohol, Tobacco and Firearms, P.O. 
Box 50221, Washington, DC 20091-0221.
    See also the heading entitled ``Public Participation--Submission of 
Comments'' in the SUPPLEMENTARY INFORMATION portion of this notice for 
information about submitting comments by FAX or by electronic mail.
    Anyone may examine copies of written comments to this notice of 
proposed rulemaking, including comments submitted by FAX or by 
electronic mail. Comments will be available for public inspection 
during normal business hours at: ATF Reading Room, Room 6480, 650 
Massachusetts Avenue NW., Washington, DC 20226; telephone 202-927-7890.

FOR FURTHER INFORMATION CONTACT: You may contact Charles N. Bacon, 
Program Manager, Bureau of Alcohol, Tobacco and Firearms, 10 Causeway 
Street, Room 701, Boston, MA 02222; telephone 617-557-1323.

SUPPLEMENTARY INFORMATION:

Public Participation--Submission of Comments

    We request comments from all interested persons. We will carefully 
consider all comments we receive on or before August 26, 2002. We will 
give the same consideration to comments we receive after that date if 
it is practical to do so, but we give assurance of consideration only 
to comments we receive on or before the closing date.
    Because we intend that this rulemaking revise only the style of 
language, and not the effect of the regulations, we solicit comments on 
that basis only. Accordingly, comments should be limited to the 
following questions: Does this language have the same effect as the old 
regulations? Does the plain language format effect the operation of the 
regulations? Is this new style helpful or useful? We will not consider 
in this rulemaking any comments that go beyond this scope.

Will ATF Treat My Comments as Confidential?

    No. We will not recognize any material in comments as confidential. 
Your comments may be disclosed to the public. You should not include 
any material that you consider to be confidential or inappropriate for 
public disclosure. We may disclose the name of any person submitting a 
comment.

May I Submit a Comment by Facsimile Transmission?

    Yes. You may submit comments by facsimile transmission to (202) 
927-8602. Facsimile comments must meet these guidelines. They must:
    1. Be legible when printed on 8\1/2\ x 11'' paper;
    2. Contain the notice number and a written signature; and
    3. Be three pages or less in length.
    We will not accept FAX comments longer than three pages. We will 
not acknowledge receipt of FAX transmittals. We will treat facsimile 
comments as originals.

May I Submit Comments by Electronic Mail?

    Yes. You may submit comments by electronic mail to 
[email protected] or through the ATF home page at http://www.atf.treas.gov. Electronic mail comments must include:
    1. A reference to this document's ATF notice number;
    2. Your e-mail address; and
    3. Your name and post office address.

Background

    This is a plain language revision of 27 CFR part 7, Labeling and 
Advertising of Malt Beverages. We issued the original requirements in 
part 7 after an opportunity for notice and comment in the rulemaking 
process. Since we are making only stylistic changes and minor technical 
amendments, we are limiting comments to the plain language issue in 
this proposed rule. As this revision adopts the plain language style, 
there is no change in the intent or effect of the regulations from the 
existing part 7. There are no changes to the authority, scope, or 
effect of the regulations. The authority for these requirements remains 
27 U.S.C. 205.

Discussion

What Is ATF Doing About the Interim Regulation on Alcohol Content?

    This revision combines the existing sections that concern alcohol 
content. We omit the old Sec. 7.26, a section we suspended on April 19, 
1993, in T.D. ATF-339. Instead, we simply state the current ``interim'' 
requirements found at Sec. 7.71. The plain language requirements are in 
new Secs. 7.100 through 7.108.

Why Is ATF Issuing Part 7 in Plain Language?

    We intend for this revision to provide greater clarity to part 7. 
It is one of the first revisions of our regulations to adopt the plain 
language style. As one of the smaller parts in title 27, it is one that 
is more easily revised. This change gives us a plain language version 
to serve as a model for future revisions.

How Does This Revision Change Part 7?

    There are no changes to the current requirements. There are no 
additions or deletions from regulatory provisions. However, we are 
amending part 7 in several ways.
    We are expanding section headings, moving material from subordinate 
sections to main section numbers, reorganizing for easier reading, and 
simplifying language.
    We are combining identical requirements for labeling and 
advertising. We had previously listed nearly identical requirements for 
labeling and advertisement in separate subparts. We are now combining 
similar requirements that apply to both labeling and advertising. Where 
requirements differ, we make those distinctions in separate sections.
    We are stating requirements in a more logical, clearly identified 
order.
    1. New subpart C lists requirements for labeling malt beverages.

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    2. New subpart D lists requirements for advertising malt beverages.
    3. New subpart E lists prohibited practices for labeling and 
advertising of malt beverages.

To What Extent Does This Regulation Apply?

    These regulations apply to the labeling and advertising of malt 
beverages to the extent that State law applies to these issues. Some 
States have adopted the Federal Alcohol Administration Act (FAA) 
requirements. Other States have different requirements, including:
    Specific State alcohol beverage regulations,
    General incorporation of the Federal rules as State rules, or
    Other requirements, such as regulation of alcohol beverages as 
food.
    If your State requires that you label your malt beverages, whether 
through a malt beverage-specific law, or through a more general law, 
such as a requirement to label as a food product, then these labeling 
regulations apply to you. Likewise, if your State consumer protection 
or unfair merchandise practices impose similar requirements on 
advertising malt beverages, then these advertising regulations apply to 
you.

Is My Internet Advertisement Covered by These Regulations?

    Yes. If you are subject to part 7, your Internet advertisement is 
subject to these rules. The old part 7 makes it clear that any medium 
is covered. When these regulations were first issued in 1936, the 
Internet did not exist. This revision of part 7 makes it clear that the 
Internet is a covered medium.

How Can I Find a New Section From an ``Old'' Section in the Revised 
Part 7?

    This chart is a cross-reference between the previous section 
numbers and the new section numbers:

   Cross Reference Table--Previous Part 7 Sections to Revised Sections
------------------------------------------------------------------------
             Previous section                      Revised section
------------------------------------------------------------------------
7.1.......................................  7.1
7.2.......................................  7.2
7.3.......................................  7.15
7.3(a)....................................  7.4
7.3(b)....................................  7.5
7.4.......................................  7.6
7.10......................................  7.10
7.20(a)...................................  7.3
7.20(b)...................................  7.8, 7.30
7.20(c)(1)................................  7.110
7.20(c)(1)................................  7.111
7.20(c)(2)................................  7.112
7.21......................................  7.60
7.21(a)...................................  7.61
7.21(b)...................................  7.62
7.21(c)...................................  7.63
7.22(a)...................................  7.40
7.22(a)(3)................................  7.80
7.22(b)(1)................................  7.41
7.22(b)(2)................................  7.42
7.22(b)(3)................................  7.43
7.22(b)(4)................................  7.44
7.22(b)(5)................................  7.45
7.22(b)(6)................................  7.46
7.22(b)(7)................................  7.47
7.23(a)...................................  7.50
7.23(b)...................................  7.51
7.23(b)...................................  7.52
7.23(c)...................................  7.53
7.24(a)...................................  7.70
7.24(b)...................................  7.71
7.24(c)...................................  7.72
7.24(d)...................................  7.73
7.24(e)...................................  7.74
7.24(f)...................................  7.75
7.24(f)...................................  7.77
7.24(f)...................................  7.78
7.24(g)...................................  7.76
7.24(h)...................................  7.79
7.25(a)(1)................................  7.81
7.25(a)(2)................................  7.82
7.25(b)...................................  7.83
7.25(c)...................................  7.84
7.26......................................  Omitted
7.27......................................  7.90
7.27(a)...................................  7.91
7.27(b)...................................  7.91
7.27(c)...................................  7.90
7.28(a)...................................  7.31
7.28(b)(1)................................  7.33
7.28(b)(2)................................  7.33
7.28(b)(1)................................  7.32
7.28(c)...................................  7.34
7.28(c)...................................  7.35
7.28(c)...................................  7.36
7.28(d)...................................  7.37
7.28(e)...................................  7.38
7.29(a)...................................  7.300
7.29(a)(1)................................  7.301
7.29(a)(2)................................  7.302
7.29(a)(3)................................  7.303
7.29(a)(4)................................  7.304
7.29(a)(5)................................  7.305
7.29(a)(5)................................  7.306
7.29(a)(6)................................  7.320
7.29(a)(6)................................  7.321
7.29(b)...................................  7.307
7.29(b)...................................  7.308
7.29(c)...................................  7.309
7.29(d)...................................  7.310
7.29(d)...................................  7.311
7.29(e)...................................  7.312
7.29(f)...................................  7.313
7.29(f)...................................  7.314
7.29(g)...................................  7.322
7.29(h)...................................  7.323
7.30......................................  7.3
7.31(a)...................................  7.20
7.31(a)...................................  7.21
7.31(b)...................................  7.24
7.31(c)...................................  7.25
7.31(d)...................................  7.26
7.40......................................  7.3
7.41(a)...................................  7.20
7.41(a)...................................  7.22
7.41(b)...................................  7.26
7.42......................................  7.23
7.50......................................  7.3
7.50......................................  7.200
7.50......................................  7.201
7.51......................................  7.11
7.51......................................  7.12
7.51(a)...................................  7.13
7.51(b)...................................  7.14
7.52......................................  7.210
7.52(a)...................................  7.211
7.52(b)...................................  7.212
7.52(c)...................................  7.213
7.53(a)...................................  7.220
7.53(b)...................................  7.221
7.53(c)...................................  7.222
7.53(d)...................................  7.223
7.53(e)...................................  7.224
7.54......................................  7.300
7.54(a)(1)................................  7.301
7.54(a)(2)................................  7.302
7.54(a)(3)................................  7.303
7.54(a)(4)................................  7.304
7.54(a)(5)................................  7.305
7.54(a)(5)................................  7.306
7.54(a)(6)................................  7.307
7.54(a)(6)................................  7.308
7.54(a)(7)................................  7.309
7.54(b)(1)................................  7.330
7.54(b)(2)................................  7.331
7.54(c)(1)................................  7.313
7.54(c)(1)................................  7.314
7.54(c)(2)................................  7.332
7.54(c)(3)................................  7.333
7.54(d)(1)................................  7.334
7.54(d)(2)................................  7.335
7.54(e)...................................  7.312
7.54(f)...................................  7.336
7.54(g)...................................  7.310
7.54(g)...................................  7.311
7.54(h)...................................  7.337
7.55(a)...................................  7.340
7.55(b)(1)................................  7.350
7.55(b)(2)................................  7.351
7.55(b)(3)................................  7.353
7.60......................................  7.9
7.71(a)...................................  7.100
7.71(b)(1)................................  7.101
7.71(b)(2)................................  7.102
7.71(b)(3)................................  7.102
7.71(c)(1)................................  7.103
7.71(c)(2)................................  7.104
7.71(c)(3)................................  7.103
7.71(c)(3)................................  7.105
7.71(d)...................................  7.106
7.71(e)...................................  7.107
7.71(f)...................................  7.108
------------------------------------------------------------------------

How Can I Find an ``Old'' Section From the New Section in the Revised 
Part 7?

    This chart shows the derivation of the new language from the old. 
It is a cross-reference between the revised section numbers and the 
previous section numbers.

[[Page 43498]]



Derivation Reference Table--Revised Part 7 Sections to Previous Sections
------------------------------------------------------------------------
         Revised section                      Previous section
------------------------------------------------------------------------
Omitted..........................  7.26
7.1..............................  7.1
7.2..............................  7.2
7.3..............................  7.20(a), 7.30, 7.40, 7.50
7.4..............................  7.3(a)
7.5..............................  7.3(b)
7.6..............................  7.4
7.7..............................  Part 7 references to prior rulemaking
                                    decisions.
7.8..............................  7.20(b)
7.9..............................  7.60
7.10.............................  7.10
7.11.............................  7.51
7.12.............................  7.51
7.13.............................  7.51(a)
7.14.............................  7.51(b)
7.15.............................  7.3
7.20.............................  7.31(a), 7.41(a)
7.21.............................  7.31(a)
7.22.............................  7.41(a)
7.23.............................  7.42
7.24.............................  7.31(b)
7.25.............................  7.31(c)
7.26.............................  7.31(d), 7.41(b)
7.30.............................  7.30
7.31.............................  7.28(a)
7.32.............................  7.28(b)(1)
7.33.............................  7.28(b)(1), 7.28(b)(2)
7.34.............................  7.28(c)
7.35.............................  7.28(c)
7.36.............................  7.28(c)
7.37.............................  7.28(d)
7.38.............................  7.28(e)
7.40.............................  7.22(a)
7.41.............................  7.22(b)(1)
7.42.............................  7.22(b)(2)
7.43.............................  7.22(b)(3)
7.44.............................  7.22(b)(4)
7.45.............................  7.22(b)(5)
7.46.............................  7.22(b)(6)
7.47.............................  7.22(b)(7)
7.50.............................  7.23(a)
7.51.............................  7.23(b)
7.52.............................  7.23(b)
7.53.............................  7.23(c)
7.60.............................  7.21
7.61.............................  7.21(a)
7.62.............................  7.21(b)
7.63.............................  7.21(c)
7.70.............................  7.24(a)
7.71.............................  7.24(b)
7.72.............................  7.24(c)
7.73.............................  7.24(d)
7.74.............................  7.24(e)
7.75.............................  7.24(f)
7.76.............................  7.24(g)
7.77.............................  7.24(f)
7.78.............................  7.24(f)
7.79.............................  7.24(h)
7.80.............................  7.22(a)(3)
7.81.............................  7.25(a)(1)
7.82.............................  7.25(a)(2)
7.83.............................  7.25(b)
7.84.............................  7.25(c)
7.90.............................  7.27, 7.27(c)
7.91.............................  7.27(a), 7.27(b)
7.100............................  7.71(a)
7.101............................  7.71(b)(1)
7.102............................  7.71(b)(2), 7.71(b)(3)
7.103............................  7.71(c)(1), 7.71(c)(3)
7.104............................  7.71(c)(2)
7.105............................  7.71(c)(3)
7.106............................  7.71(d)
7.107............................  7.71(e)
7.108............................  7.71(f)
7.110............................  7.20(c)(1)
7.111............................  7.20(c)(1)
7.112............................  7.20(c)(2)
7.200............................  7.50
7.201............................  7.50
7.210............................  7.52
7.211............................  7.52(a)
7.212............................  7.52(b)
7.213............................  7.52(c)
7.220............................  7.53(a)
7.221............................  7.53(b)
7.222............................  7.53(c)
7.223............................  7.53(d)
7.224............................  7.53(e)
7.300............................  7.29(a), 7.54
7.301............................  7.29(a)(1), 7.54(a)(1)
7.302............................  7.29(a)(2), 7.54(a)(2)
7.303............................  7.29(a)(3), 7.54(a)(3)
7.304............................  7.29(a)(4), 7.54(a)(4)
7.305............................  7.29(a)(5), 7.54(a)(5)
7.306............................  7.29(a)(5), 7.54(a)(5)
7.307............................  7.29(b), 7.54(a)(6)
7.308............................  7.29(b), 7.54(a)(6)
7.309............................  7.29(c), 7.54(a)(7)
7.310............................  7.29(d), 7.54(g)
7.311............................  7.29(d), 7.54(g)
7.312............................  7.29(e), 7.54(e)
7.313............................  7.29(f), 7.54(c)(1)
7.314............................  7.29(f), 7.54(c)(1)
7.320............................  7.29(a)(6)
7.321............................  7.29(a)(6)
7.322............................  7.29(g)
7.323............................  7.29(h)
7.330............................  7.54(b)(1)
7.331............................  7.54(b)(2)
7.332............................  7.54(c)(2)
7.333............................  7.54(c)(3)
7.334............................  7.54(d)(1)
7.335............................  7.54(d)(2)
7.336............................  7.54(f)
7.337............................  7.54(h)
7.340............................  7.55(a)
7.350............................  7.55(b)(1)
7.351............................  7.55(b)(2)
7.353............................  7.55(b)(3)
------------------------------------------------------------------------

What Are the Technical Amendments ATF Is Making in This Rule?

    We are making minor technical amendments to clarify the appropriate 
ATF officer who is responsible for certain actions. These changes 
incorporate references to the ``appropriate ATF officer'' and to ATF 
delegation orders. These changes are necessary to more effectively 
administer these rules with the continued prospect of organizational 
changes. We have frequently found that our regulatory requirements do 
not match our organizational alignment. Sometimes we have made several 
reorganizational changes before the regulations are changed to reflect 
the current responsibilities. In the case of these regulations, there 
are named ATF officials whose titles are more than 10 years outdated. 
It is not unusual for the rules to require actions by officers whose 
title or function has changed several times. By amending the rules to 
cite ``appropriate ATF officer'' we can then make the necessary changes 
more easily in an ATF delegation order that we make available through 
our Distribution Center and publish on our Internet website. This ATF 
order delegates specific responsibilities to the ``appropriate'' ATF 
officer. We express these requirements in a new Sec. 7.15.

What Changes Is ATF Making for Cross-References to Previous Rulemaking 
Decisions?

    We are moving cross-references for previous Treasury Decisions to a 
new Sec. 7.7. This cross-reference facilitates future updates of this 
important research tool for those who need this information.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this notice of proposed rulemaking because 
there are no new or revised recordkeeping or reporting requirements.
    The Office of Management and Budget has previously approved the 
collections of information contained in this notice of proposed 
rulemaking, in accordance with the requirements of the Paperwork 
Reduction Act of 1980 or the Paperwork Reduction Act of 1995. The 
collection of information in this regulation is in the following 
sections:

                                        Information Collections in Part 7
----------------------------------------------------------------------------------------------------------------
                                                                                                     OMB sontrol
        For the purpose of . . .                   Old section                  New section              No.
----------------------------------------------------------------------------------------------------------------
Declaration of sulfites.................  Sec.  722.(b)(6)............  Sec.  7.46.................    1512-0469

[[Page 43499]]

 
Name and address........................  Sec.  7.25..................  Secs.  7.81-7.84...........    1512-0474
----------------------------------------------------------------------------------------------------------------

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.) do not apply because this notice of proposed rulemaking will not 
have a significant economic impact on a substantial number of small 
entities. Any final rule published as a result of this notice will not 
impose, or otherwise cause, a significant increase in reporting, 
recordkeeping, or other compliance burdens on a substantial number of 
small entities.
    We do not expect the final rule to have a significant secondary or 
incidental effect on a substantial number of small entities. 
Accordingly, we certify under the provisions of section 3 of the 
Regulatory Flexibility Act (5 U.S.C. 605(b)) that this notice will not 
have a significant economic impact on a substantial number of small 
entities.
    Pursuant to section 7805(f) of the Internal Revenue Code of 1986, 
we have submitted this regulation to the Chief Counsel for Advocacy of 
the Small Business Administration for comment on its impact on small 
business.

Executive Order 12866

    We determined that this rule is not a significant regulatory action 
because it will not:
    1. Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or tribal governments or communities;
    2. Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    3. Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    4. Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866.

Drafting Information

    The principal author of this document is William H. Foster, 
Regulations Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 7

    Advertising, Authority delegations, Beer, Consumer protection, 
Customs duties and inspection, Imports, Labeling, Packaging and 
Containers, Reporting and recordkeeping requirements.

Proposed Rule

    For the reasons set forth in the preamble, we propose to amend 
title 27, Code of Federal Regulations, by revising part 7 in its 
entirety as follows:

PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES

    Par. 1. To incorporate the principles of plain language, revise 
part 7 to read as follows:

PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES

Subpart A--What Is the Scope of The Regulations in This Part?
Sec.
7.1   What do the regulations in this part cover?
7.2   To which jurisdictions do the regulations in this part apply?
7.3   How does State law affect the regulations in this part?
7.4   What ATF Forms must I use?
7.5   Where do I get ATF Forms?
7.6   What other regulations apply?
7.7   Which Treasury Decisions preceded the revision of this part?
7.8   Who must comply with the regulations in this part?
7.9   Do these regulations apply to malt beverages I export in bond?
Subpart B--Definitions
7.10   What terms must I know to understand these regulations?
7.11   What is a malt beverage ``advertisement?'
7.12   What are examples of malt beverage advertisements?
7.13   Is my malt beverage label an advertisement?
7.14   Is a news article an advertisement?''
7.15   Who is the ``appropriate ATF officer'' for malt beverage 
labeling and advertising?
Subpart C--Labeling Requirements for Malt Beverages

Requirements for Certificates of Label Approval

7.20   When must I obtain a certificate of label approval from ATF 
for a domestic malt beverage?
7.21   When must I obtain a certificate of label approval from ATF 
for an imported malt beverage?
7.22   How do I obtain a certificate of label approval?
7.23   When must I exhibit a certificate of label approval?
7.24   Must imported malt beverage labels be identical to the label 
on the certificate of label approval?
7.25   What if my imported malt beverage labels do not conform to my 
certificate of label approval?
7.26   Where do I find the ATF procedures for certificates of label 
approval?

General Label Requirements

7.30   Why must I label my malt beverages?
7.31   Must I use a contrasting background?
7.32   What size of type is acceptable for the alcohol content 
statement?
7.33   What size of type is acceptable for mandatory information 
other than the alcohol content?
7.34   Is English required for the label?
7.35   May I make statements in foreign languages?
7.36   May I use Spanish for malt beverages destined for Puerto 
Rico?
7.37   How must I attach my labels to the containers?
7.38   May I state information that is not required?

Mandatory Label Information

7.40   What information is required on my brand label?
7.41   What additional information is required for an imported malt 
beverage?
7.42   What additional information is required for malt beverages I 
bottle or pack for another person?
7.43   Am I required to include the alcohol content?
7.44   How must I label my malt beverage made with FD&C Yellow No. 
5?
7.45   How must I label my malt beverage if saccharin is present?
7.46   How must I label my malt beverage if it contains sulfites?
7.47   How must I label my malt beverage if it contains aspartame?

Brand Names

7.50   What is the brand name?
7.51   What is a misleading brand name?
7.52   How can I fix a misleading brand name?
7.53   Are certain trade or brand names of foreign origin exempt 
from Sec. 7.51?

Misbranding

7.60   What is ``misbranding?''
7.61   What if my label doesn't have all the mandatory information?
7.62   On my cartons or cases may I use material that is prohibited 
on labels?

[[Page 43500]]

7.63   May I use containers that are permanently marked with someone 
else's name?

Class and Type

7.70   What is class and type?
7.71   What is the class for a reconstituted malt beverage?
7.72  What is ``half and half?''
7.73  What class designation may I use to label malt beverages with 
less than one-half of 1 percent alcohol by volume?
7.74  What rules apply to class for ale, porter, and stout?
7.75  What are the requirements for geographical names for 
distinctive types of malt beverages?
7.76  What is a generic geographical name for distinctive types of 
malt beverages?
7.77  What are examples of distinctive types of malt beverages with 
geographical names that are not generic?
7.78  How may I designate Pilsner beer that I produce in the United 
States?
7.79  How may I use a geographical name on other than a distinctive 
malt beverage type?

Name and Address

7.80  Where must I state my name and address?
7.81  What name and address is required for domestic malt beverages?
7.82  What name and address is acceptable if I pack or bottle for 
someone else?
7.83  What name and address is required for imported malt beverages?
7.84  What type of address must I state on my label?

Net Contents Statement

7.90  Where must I state the net contents of my container?
7.91  How must I state net contents?

Alcohol Content

7.100  When may I state the alcohol content of my malt beverage?
7.101  What measurement do I use to state alcohol content?
7.102  How do I state alcohol content?
7.103  What tolerance is permitted between actual alcohol content 
and the label statement of alcohol content?
7.104  What is the acceptable tolerance for ``low'' or ``reduced'' 
alcohol malt beverages?
7.105  What is the tolerance for a malt beverage I label with a 
``0.0%'' alcohol content?
7.106  When may I use the terms ``low alcohol'' or ``reduced 
alcohol?''
7.107  When may I use the term ``non-alcoholic?''
7.108  When may I use the term ``alcohol free?''

Relabeling Malt Beverages

7.110  May I alter a malt beverage label already on the container?
7.111  May I relabel a malt beverage?
7.112  How do I get permission to relabel a malt beverage?
Subpart D--Advertising of Malt Beverages
7.200  Who must comply with these regulations?
7.201  Are there exceptions to advertising requirements?

Mandatory Advertising Statements

7.210  What statements are mandatory for malt beverage 
advertisements?
7.211  What information is required about the responsible 
advertiser?
7.212  What information is required for malt beverage class?
7.213  Is there any exception to mandatory information?

Legibility of Mandatory Information

7.220  What are the requirements for legibility of mandatory 
information?
7.221  What are the requirements for legibility on signs, 
billboards, or displays?
7.222   May I place mandatory information in a separate part of my 
advertisement?
7.223   May I combine mandatory information for more than one 
product?
7.224   How apparent must the mandatory information be to viewers?
Subpart E--Prohibited Practices for Labeling and Advertising
7.300  What is covered by these prohibitions?

Malt Beverage Labeling and Advertisements

7.301   You must not use false or misleading statements.
7.302   You must not disparage a competitor's products.
7.303   You must not use obscene or indecent material.
7.304   You must not use statements about testing and analyses that 
may mislead consumers.
7.305   You must not use misleading statements about guarantees.
7.306   You may use a statement for a money-back guarantee.
7.307   You must not mislead consumers as to government authority 
for your malt beverage processes.
7.308   You may use a municipal or State permit number.
7.309   You must not mislead consumers as to government supervision 
of your malt beverage business.
7.310   You must not use United States flags or other insignia.
7.311   You must not use flags or insignia in a misleading manner.
7.312   You must not use curative or therapeutic claims.
7.313   You must not use words that may mislead as to alcoholic 
strength.
7.314   What is not misleading as to alcoholic strength?

Additional Malt Beverage Labeling Practices

7.320  Your brand and trade names must not include misleading 
endorsements.
7.321   What is an acceptable brand or trade name labeling 
endorsement?
7.322   You must not use numerals that are misleading as to 
alcoholic content.
7.323   You must not use prohibited labeling statements on 
coverings, cartons, or cases.

Additional Malt Beverage Advertisement Practices

7.330  You must not use advertisement statements inconsistent with 
your malt beverage labeling.
7.331   You must not use an unapproved label in an advertisement.
7.332   You may depict an approved label with alcohol content in a 
malt beverage advertisement.
7.333   You may use an advertisement with an actual container 
showing an approved alcohol content label.
7.334   You must not use misleading class statements.
7.335   You must not use ale, porter, or stout designations in a 
misleading manner.
7.336   Your advertisement must not confuse brands.
7.337   You must not use deceptive advertising techniques.

Comparative Advertisements

7.340   May I use comparative advertising?

Taste Tests in Advertisements

7.350   May I use taste tests in malt beverage advertisements?
7.351   What scientific procedures must I use for taste tests?
7.352   Must I list the name and address of the taste test 
administrator?

    Authority: 27 U.S.C. 205.

Subpart A--What Is the Scope Of The Regulations in This Part?


Sec. 7.1  What do the regulations in this part cover?

    The regulations in this part relate to the labeling and advertising 
of malt beverages.


Sec. 7.2  To which jurisdictions do the regulations in this part apply?

    This part applies to the States of the United States, the District 
of Columbia, and the Commonwealth of Puerto Rico.


Sec. 7.3  How does State law affect the regulations in this part?

    These regulations apply to malt beverage labeling and advertising 
in interstate commerce only to the extent that State law imposes 
similar requirements on malt beverages that are exclusively intrastate. 
You must comply with these regulations to the extent that the State 
imposes similar requirements on malt beverages that you remove for 
consumption or sale only in that State.


Sec. 7.4  What ATF Forms must I use?

    The Director prescribes all forms required by these regulations. 
Follow the instructions on each form and furnish all of the required 
information. If you fail to follow instructions or to provide the 
information that we require, you may not receive the service or benefit 
that you request. To comply with labeling regulations use: Application 
for and Certification/

[[Page 43501]]

Exemption of Label/Bottle Approval, ATF Form 5100.31.


Sec. 7.5  Where do I get ATF Forms?

    You can download ATF forms from our website at www.atf.treas.gov. 
You may also request forms by mail from the ATF Distribution Center. 
The mailing address is: ATF Distribution Center, P.O. Box 5950, 
Springfield, VA 22150-5950.


Sec. 7.6  What other regulations apply?

    You may find other related regulations in these parts of title 27, 
Code of Federal Regulations (27 CFR):

Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act.
Part 4--Labeling and Advertising of Wine.
Part 5--Labeling and Advertising of Distilled Spirits.
Part 13--Labeling Proceedings.
Part 16--Alcoholic Beverage Health Warning Statement.
Part 25--Beer.
Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands.
Part 27--Importation of Distilled Spirits, Wines and Beer.
Part 71--Rules of Practice in Permit Proceedings.


Sec. 7.7  Which Treasury Decisions preceded the revision of this part?

    We issued these Treasury Decisions in earlier rulemaking concerning 
malt beverage labeling and advertising:

------------------------------------------------------------------------
                                Federal  Register
  Treasury  decision  (T.D.)         citation               Date
------------------------------------------------------------------------
6521..........................  25 FR 13859        Dec. 29, 1960.
6672..........................  28 FR 9637         Aug. 31, 1963.
                                29 FR 3572         Mar. 20, 1964.
ATF-48........................  43 FR 13534        Mar. 31, 1978.
ATF-66........................  45 FR 40552        June 13, 1980.
ATF-92........................  46 FR 46912        Sept. 23, 1981.
ATF-94........................  46 FR 55097        Nov. 6, 1981.
ATF-180.......................  49 FR 61374        Aug. 8, 1984.
ATF-224.......................  51 FR 7673         Mar. 5, 1986.
ATF-225.......................  51 FR 8492         Mar. 12, 1986.
ATF-249.......................  52 FR 5956         Feb. 27, 1987.
ATF-280.......................  54 FR 3594         Jan. 25, 1989.
ATF-294.......................  55 FR 5421         Feb. 14, 1990.
ATF-339.......................  58 FR 21231        April 19, 1993.
ATF-344.......................  58 FR 40354        July 28, 1993.
ATF-372.......................  61 FR 20723        May 8, 1996.
------------------------------------------------------------------------

Sec. 7.8  Who must comply with the regulations in this part?

    You must mark, brand, or label your malt beverage containers and 
comply with these regulations if you are a malt beverage brewer, 
wholesaler, or importer, directly or indirectly, or through an 
affiliate, and you introduce malt beverages into interstate commerce, 
or you receive malt beverages in interstate or foreign commerce.


Sec. 7.9  Do these regulations apply to malt beverages I export in 
bond?

    No, these regulations do not apply to malt beverages you export in 
bond.

Subpart B--Definitions


Sec. 7.10  What terms must I know to understand these regulations?

    These terms have specific meanings for malt beverage labeling and 
advertising.
    Act. The Federal Alcohol Administration Act.
    Advertisement. See Sec. 7.11.
    Appropriate ATF officer. See Sec. 7.15.
    Brand label. The label carrying, in the usual distinctive design, 
the brand name of the malt beverage.
    Bottler. Any person who places malt beverages in containers of a 
capacity of one gallon or less.
    Certificate of label approval. An ATF Form, the Application for and 
Certification/Exemption of Label/Bottle Approval, ATF Form 5100.31.
    Container. Any can, bottle, barrel, keg, or other closed 
receptacle, in any size or material, for the sale of malt beverages at 
retail.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, 
Department of the Treasury, Washington, DC.
    Gallon. A U.S. gallon of 231 cubic inches at 39.1 deg. F (4 deg. 
C). All other liquid measures used are subdivisions of the gallon as 
defined.
    Interstate or foreign commerce. Offering for sale, selling, 
shipping, delivering for sale or for shipment, removing from U.S. 
Customs custody, or otherwise introducing malt beverages into commerce 
between any State and any place outside the State, or between points 
within the same State but through any place outside the State, or 
commerce within the District of Columbia.
    Malt beverage. A beverage made by the alcoholic fermentation of an 
infusion, decoction, or combination of both, in potable brewing water, 
of malted barley with hops, or their parts or products, and with or 
without:
    (1) Other malted cereals,
    (2) The addition of unmalted or prepared cereals,
    (3) Other carbohydrates or carbohydrate products prepared,
    (4) The addition of carbon dioxide, and
    (5) Other wholesome products suitable for human food consumption.
    Other terms. Any other term defined in the Federal Alcohol 
Administration Act and used in this part has the same meaning assigned 
to it by the Act.
    Packer. Any person who places malt beverages in containers of a 
capacity in excess of one gallon.
    Person. Any individual, partnership, joint-stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver trustee, or liquidating agent, and including an 
officer or employee of any agency of a State or political subdivision 
thereof.
    State. Any State of the United States including the District of 
Columbia and the Commonwealth of Puerto Rico.
    These regulations. Part 7, title 27, Code of Federal Regulations 
(27 CFR part 7).
    United States: The several States, the District of Columbia, and 
the Commonwealth of Puerto Rico.
    We. In these regulations ``we'' refers to the Bureau of Alcohol, 
Tobacco and Firearms.
    You and I. ``You'' and ``I'' refer to the person who must comply 
with these regulations.


Sec. 7.11  What is a malt beverage ``advertisement?

    A malt beverage ``advertisement'' includes any written, broadcast, 
or verbal statement, illustration, or depiction in any medium that is:
    (a) In interstate or foreign commerce, or
    (b) Calculated to induce sales in interstate or foreign commerce, 
or
    (c) Disseminated by mail.


Sec. 7.12  What are examples of malt beverage advertisements?

    This list does not include all forms of advertisement, but includes 
examples. ``Advertisement'' includes all material(s): written, printed, 
graphic, or any other media, including those in:
    (a) Newspapers, magazines, trade booklets, menus, wine cards, 
leaflets, circulars, mailers, book inserts, catalogs, promotional 
materials, sales pamphlets, periodical literature, or similar 
publications;
    (b) Matter accompanying malt beverage containers;
    (c) Representations made on cases, in any billboard, sign, other 
outdoor advertisement, public transit card, or similar material;
    (d) Radio or television broadcasts or Internet or other electronic 
communications;
    (e) Any other media.


Sec. 7.13  Is my malt beverage label an advertisement?

    No, labels on containers are not advertising under these 
regulations. However, you must comply with the labeling requirements of 
these regulations when you affix any label to

[[Page 43502]]

any malt beverage container, coverings, cartons, or cases of containers 
you use for sale at retail.


Sec. 7.14  Is a news article an advertisement?

    No, we do not consider unpaid and unsolicited news material to be 
advertisements. For example, most articles, editorials, and news 
releases are not advertisements. We do, however, consider news 
material, articles, editorials, and news releases to be advertisements 
if you:
    (a) Pay or promise to pay for the material, directly or indirectly, 
or
    (b) Direct the material to be written.


Sec. 7.15  Who is the ``appropriate ATF officer'' for malt beverage 
labeling and advertising?

    The ``appropriate ATF officer'' is the officer or employee of the 
Bureau of Alcohol, Tobacco and Firearms (ATF) who is authorized to 
perform the function that is required by a particular regulation. The 
Director delegates authorities in these regulations to certain ATF 
officers. You will find the specific ``appropriate ATF officer'' in the 
delegation order for part 7. As needed, we may periodically update the 
delegation order. On the effective date of this regulation the current 
delegation order is ATF O 1130.2A, Delegation Order `` Delegation of 
the Director's Authorities in 27 CFR Part 4, 5, and 7, Labeling and 
Advertising of Wine, Distilled Spirits, and Malt Beverages. You may 
obtain the current delegation order:
    (a) By mail from: ATF Distribution Center, P.O. Box 5950, 
Springfield, Virginia 22150-5190; or
    (b) By Internet at: http://www.atf.treas.gov.

Subpart C--Malt Beverage Labeling Requirements

Requirements for Certificates of Label Approval


Sec. 7.20  When must I obtain a certificate of label approval from ATF 
for a domestic malt beverage?

    You must obtain a certificate of label approval from us if you:
    (a) Bottle or pack malt beverages, or
    (b) Remove malt beverages from the plant where they are bottled or 
packed.


Sec. 7.21  When must I obtain a certificate of label approval from ATF 
for an imported malt beverage?

    You must obtain an approved certificate of label approval in order 
to obtain release of bottled imported malt beverages in containers from 
U.S. Customs custody. You must deposit the original or a copy of an 
approved certificate of label approval, ATF Form 5100.31, with the 
appropriate U.S. Customs officer at the port of entry.


Sec. 7.22  How do I obtain a certificate of label approval?

    To obtain a certificate of label approval, you must submit an 
application to the appropriate ATF officer (see Sec. 7.15) on 
Application for and Certification/Exemption of Label/Bottle Approval, 
ATF Form 5100.31. If we approve your label, we will issue your approved 
certificate to you.


Sec. 7.23  When must I exhibit a certificate of label approval?

    You must exhibit your certificate of label approval upon the demand 
of any duly authorized representative of the United States Government 
or any duly authorized representative of a State or political 
subdivision of the State. You may exhibit an original or duplicate 
original of a certificate of label approval.


Sec. 7.24  Must imported malt beverage labels be identical to the label 
on the certificate of label approval?

    Yes, except for certain permissible changes, your certificate of 
label approval must match the actual labels. You must present the 
original or copy of an approved certificate of label approval to obtain 
release from U.S. Customs custody. The certificate of label approval 
permits certain changes to labels. See the back of Certificate of Label 
Approval (ATF Form 5100.31) for details.


Sec. 7.25  What if my imported malt beverage labels do not conform to 
my certificate of label approval?

    If the labels for your imported malt beverages in U.S. Customs 
custody do not conform to certificates of label approval issued by us, 
then you must relabel the malt beverages:
    (a) Prior to release, and
    (b) Under the supervision and direction of the U.S. Customs 
officers of the port at which the malt beverages are located.


Sec. 7.26  Where do I find the ATF procedures for certificates of label 
approval?

    You will find the procedures regarding the issuance, denial, and 
revocation of certificates of label approval, as well as appeal 
procedures in part 13 of this chapter.

General Label Requirements


Sec. 7.30  Why must I label my malt beverage?

    The Federal Alcohol Administration Act requires that, in compliance 
with these regulations, you must label, mark, and brand all malt 
beverages that you introduce into interstate or foreign commerce. For 
beverages that move only within a State, the Act requires you to take 
these actions to the extent that similar State law requires you to 
label, mark, and brand malt beverages.


Sec. 7.31  Must I use a contrasting background?

    Yes. You must design your labels so that all statements required by 
these regulations are readily legible under ordinary conditions, and 
all such statements are on a contrasting background. This applies to 
all mandatory information under these regulations.


Sec. 7.32  What size of type is acceptable for the alcohol content 
statement?

    You must state all portions of the alcohol content statement in the 
same size and kind of lettering and of equally conspicuous color. 
Unless State law requires otherwise, you must make the statement of 
alcohol content in script, type, or printing. Use a size of type in 
accordance with these requirements.

------------------------------------------------------------------------
                                           Then the size of the script,
          If the container is:               type, or printing of the
                                             alcohol content must be:
------------------------------------------------------------------------
(a) 8 fluid ounces or less.............  Not smaller than 1 millimeter.
(b) More than 8 fl. oz.................  Not smaller than 2 millimeters.
(c) 40 fl. oz. or less.................  Not larger than 3 millimeters.
(d) Larger than 40 fl. oz..............  Not larger than 4 millimeters.
------------------------------------------------------------------------

Sec. 7.33  What size of type is acceptable for mandatory information 
other than the alcohol content?

    For mandatory information other than the alcohol content you must 
use a size of type in accordance with these requirements.

[[Page 43503]]



------------------------------------------------------------------------
                                           Then the size of the script,
                If . . .                     type, or printing of all
                                          mandatory information must be:
------------------------------------------------------------------------
(a) The mandatory information is stated  More conspicuous than that of
 among other descriptive or explanatory   the descriptive or explanatory
 information.                             information that it appears
                                          with.
(b) The container is one-half pint or    Not smaller than 1 millimeter.
 less.
(c) The container is more than one-half  Not smaller than 2 millimeters.
 pint.
------------------------------------------------------------------------

Sec. 7.34  Is English required for the label?

    Yes, on malt beverage labels you must use the English language for 
all mandatory information other than the brand name.


Sec. 7.35  May I make statements in foreign languages?

    Yes, you may make additional statements in foreign languages if the 
statements do not conflict with or contradict the requirements of these 
regulations.


Sec. 7.36  May I use Spanish for malt beverages destined for Puerto 
Rico?

    Yes, you may use Spanish instead of English for malt beverage 
labels on containers you bottle or pack for consumption in Puerto Rico. 
If you use Spanish, you must also state the net contents in English.


Sec. 7.37  How must I attach my labels to the containers?

    You must firmly affix labels. You must attach the labels to 
containers of malt beverages in such a way that they cannot be removed 
without a thorough application of water or other solvents.


Sec. 7.38  May I state information that is not required?

    Yes, your labels may contain information other than the mandatory 
label information required by these regulations if the information:
    (a) Complies with the requirements of these regulations, and
    (b) Does not conflict with, or in any manner qualify, statements 
required by these regulations.

Mandatory Label Information


Sec. 7.40  What information is required on my brand label?

    On your brand label you must state your:
    (a) Brand name, in accordance with Secs. 7.50 through 7.53,
    (b) Class, in accordance with Secs. 7.70 through 7.79,
    (c) Name and address in accordance with Secs. 7.80 through 7.84, 
and
    (d) Net contents in accordance with Sec. 7.90 through 7.91.


Sec. 7.41  What additional information is required for an imported malt 
beverage?

    In the case of imported malt beverages, you must state the name and 
address of the importer on the brand label or on a separate front or 
back label in accordance with Sec. 7.83.


Sec. 7.42  What additional information is required for malt beverages 
that I bottle or pack for another person?

    If you bottle or pack malt beverages for a permit holder or 
retailer, you must include your name and address as the bottler or 
packer on the brand label or on a separate back or front label in 
accordance with Sec. 7.82.


Sec. 7.43  Am I required to include the alcohol content?

    If required by State law, you must list the alcohol content on the 
brand label or on a separate back or front label in accordance with 
Secs. 7.100 through 7.108. Nothing in this section relieves you from 
complying with State law.


Sec. 7.44  How must I label a malt beverage made with FD&C Yellow No. 
5?

    If you use this coloring material, then you must include the 
statement: ``Contains FD&C Yellow No. 5.'' on the brand label or on a 
separate back or front label.


Sec. 7.45  How must I label my malt beverage if saccharin is present?

    When saccharin is present in the finished product, you must include 
the following statement, separate and apart from all other information, 
on the brand label or a back or front label:

    Use of this malt beverage may be hazardous to your health. This 
malt beverage contains saccharin which has been determined to cause 
cancer in laboratory animals.


Sec. 7.46  How must I label my malt beverage if it contains sulfites?

    (a) Where sulfur dioxide or a sulfiting agent is detected at a 
level of 10 or more parts per million, measured as total sulfur 
dioxide, you must include one of these:
    (1) ``Contains sulfites'' or
    (2) ``Contains (a) sulfiting agent(s)'' or
    (3) A statement identifying the specific sulfiting agent.
    (b) The sulfite declaration may appear on a strip label or neck 
label instead of appearing on the front or back label.

(Approved by the Office of Management and Budget under Control No. 
1512-0469.)


Sec. 7.47  How must I label my malt beverage if it contains aspartame?

    (a) When the malt beverage contains aspartame you must include the 
following statement in accordance with Food and Drug Administration 
(FDA) regulations, in capital letters, separate and apart from all 
other information:

PHENYLKETONURICS: CONTAINS PHENYLALANINE

    (b) This statement may appear on the brand label, or any front or 
back label.

Brand Names


Sec. 7.50  What is the brand name?

    The ``brand name'' is the trade name you use when you sell your 
malt beverage. You must have a brand name for your malt beverage. If 
you do not develop a brand name to sell your malt beverage, then you 
must use your name as the brand name for the purpose of these 
regulations.


Sec. 7.51  What is a misleading brand name?

    A brand name is misleading if it creates any erroneous impression 
or inference as to the age, origin, identity, or other characteristics 
of the malt beverage. We may find a brand name misleading by itself or 
in association with other printed or graphic matter. You must not use a 
misleading brand name.


Sec. 7.52  How can I fix a misleading brand name?

    One way to fix a misleading brand name so that it does not convey 
an erroneous impression as to the age, origin, identity, or other 
characteristics of the malt beverage is to qualify your misleading 
brand name by adding the word ``brand.''


Sec. 7.53  Are certain trade or brand names of foreign origin exempt 
from Sec. 7.51?

    Some trade or brand names of foreign origin are exempt from the 
misleading prohibition in Sec. 7.51. You may use a trade or brand name 
of foreign origin that meets these conditions:
    (a) It was registered in the United States Patent Office on or 
before August 29, 1935;
    (b) It was used by you or your predecessors in the United States 
for a period of at least 5 years immediately preceding August 29, 1935;

[[Page 43504]]

    (c) The trade or brand name is qualified by the name of the 
location in the United States where you produce the malt beverage; and
    (d) The qualification is as conspicuous as the trade name or brand.

Misbranding


Sec. 7.60  What is ``misbranding?''

    The Act provides that malt beverage containers must bear the labels 
required by these regulations. If your labels do not conform to these 
requirements then the law provides that your containers are misbranded.


Sec. 7.61  What if my label doesn't have all the mandatory information?

    Your malt beverage is misbranded if the container does not have a 
brand label (or a brand label and other permitted labels) that:
    (a) Contains the mandatory label information as required by 
Secs. 7.40 through 7.47, and
    (b) Conforms to the general requirements specified in these 
regulations.


Sec. 7.62  On my cartons or cases may I use material that is prohibited 
on labels?

    No, your malt beverage is misbranded if you use any material 
intended for retail use that contains any statement, design, device, or 
graphic, pictorial, or emblematic representation that is prohibited by 
these regulations. Examples of materials include:
    (a) Containers,
    (b) Caps on containers,
    (c) Labels on the containers, or any carton, case, or other 
covering of the container, and
    (d) Any written, printed, graphic, or other matter accompanying the 
container to the consumer.


Sec. 7.63  May I use containers that are permanently marked with 
someone else's name?

    No, your containers are misbranded if they are marked, branded, or 
burned with the name of a person other than the name required for the 
brand label.

Class and Type


Sec. 7.70  What is class and type?

    You must state on your brand label the class of your malt beverage, 
and if desired, you may state the type of malt beverage. Class is a 
designation of malt beverage known to the trade, such as ``beer,'' 
``ale,'' ``porter,'' ``stout,'' ``lager,'' or ``malt liquor.'' You may 
also further distinguish a malt beverage by using names known to the 
trade. If the malt beverage is not known to the trade under a 
particular designation, you must state a distinctive or fanciful name, 
together with an adequate and truthful statement of the composition of 
the malt beverage. We consider this statement to be a statement of 
class and type for the purposes of these regulations.


Sec. 7.71  What is the class for a reconstituted malt beverage?

    Regulations permit you to reconstitute any malt beverage that you 
have concentrated by the removal of water. You may reconstitute the 
malt beverage only by the addition of water and carbon dioxide. You 
must label these reconstituted malt beverages in the same manner as 
malt beverages that have not been concentrated and reconstituted. 
However, you must show the class designation of these beverages in 
accordance with these conditions. You must:
    (a) Show the statement: ``PRODUCED FROM ------ CONCENTRATE'' 
together with the class designation,
    (b) Use the appropriate class designation in the blank, and
    (c) Show all parts of the class designation in lettering of 
substantially the same size and kind.


Sec. 7.72  What is ``half and half?'

    You may designate a malt beverage as ``half and half'' only if it 
is composed of equal parts of two classes of malt beverages. You must 
conspicuously state the names of both together with the designation 
``half and half.''


Sec. 7.73  What class designation may I use to label malt beverages 
with less than one-half of 1 percent alcohol by volume?

    (a) For malt beverages containing less than one-half of 1 percent 
(0.5%) of alcohol by volume you must list the class as one of the 
following:
    (1) ``Malt beverage,''
    (2) ``Cereal beverage,'' or
    (3) ``Near beer.'' If you use the designation ``near beer,'' both 
words must appear in the same size and style of type, in the same color 
of ink, and on the same color background.
    (b) You must not use the class designations ``beer,'' ``lager 
beer,'' ``lager,'' ``ale,'' ``porter,'' or ``stout,'' or any other 
class or type designations that are commonly applied to malt beverages 
containing one-half of 1 percent (0.5%) or more of alcohol by volume.


Sec. 7.74  What rules apply to class for ale, porter, and stout?

    You must not use ``ale,'' ``porter,'' or ``stout'' unless your malt 
beverage:
    (a) Is fermented at comparatively high temperature,
    (b) Possesses the characteristics generally attributed to ``ale,'' 
``porter,'' or ``stout,'' and
    (c) Is produced with no coloring or flavoring materials other than 
those recognized in standard brewing practices.


Sec. 7.75  What are the requirements for geographical names for 
distinctive types of malt beverages?

    You may use geographical names for distinctive types of malt 
beverages only if:
    (a) The malt beverage is produced in the particular region 
indicated by the name;
    (b) We find under Sec. 7.76 that the name is generic; or
    (c) The malt beverage conforms to the designated type and together 
with the name, and in lettering equally visible as the name, there must 
appear:
    (1) The word ``type,''
    (2) The word ``American,'' or
    (3) Some other statement indicating the true place of production.


Sec. 7.76  What is a generic geographical name for distinctive types of 
malt beverages?

    A generic geographical name is one that by usage and common 
knowledge has lost its geographical significance as a place of origin 
for the product. We determine which geographical names are generic. An 
example of a generic geographical name is ``India Pale Ale.''


Sec. 7.77  What are examples of distinctive types of malt beverages 
with geographical names that are not generic?

    These are examples of distinctive types of beer with geographical 
names that are not generic:
    Dortmund, Dortmunder, Vienna, Wien, Wiener, Bavarian, Munich, 
Munchner, Salvator, Kulmbacher, Wurtzburger.


Sec. 7.78  How may I designate Pilsner beer that I produce in the 
United States?

    You may designate beer you produce in the United States as 
``Pilsen,'' ``Pilsener,'' or ``Pilsner'' without further modification 
if it conforms to that type.


Sec. 7.79  How may I use a geographical name on other than a 
distinctive malt beverage type?

    (a) You may use geographical names that are not names for 
distinctive types of malt beverages if:
    (1) The malt beverage is produced in the particular place or region 
indicated in the name; or
    (2) We determine the brand name is not misleading as to origin of 
the malt beverage.
    (b) If we find that your geographical name is misleading you must 
not use the name. One method to prevent a name from being misleading is 
to

[[Page 43505]]

qualify the geographical name by adding the word ``brand.''

Name and Address

(Approved by the Office of Management and Budget under control number 
1512-0474)


Sec. 7.80  Where must I state my name and address?

    You must state your name and address:
    (a) On the brand label, or
    (b) By blowing, branding, or burning it into the container.


Sec. 7.81  What name and address is required for domestic malt 
beverages?

    On labels of containers of domestic malt beverages you must state 
your name as the bottler or packer and the place where you bottle or 
pack. You may show your principal place of business instead of the 
actual place where you bottle or pack if the address you show is a 
location where you also bottle or pack. We may disapprove your listing 
of a principal place of business if its use creates a false or 
misleading impression as to the geographic origin of the malt beverage.


Sec. 7.82  What name and address is acceptable if I pack or bottle for 
someone else?

    If you bottle or pack malt beverages for another person you:
    (a) Must state your name and address, and
    (b) May state the name and address of the other person immediately 
after the words ``bottled for,'' ``distributed by,'' or some other 
similar appropriate phrase.


Sec. 7.83  What name and address is required for imported malt 
beverages?

    If you are importing malt beverages as a permittee who is the 
importer, an exclusive agent, a sole distributor, or any other person 
responsible for the importation, then you:
    (a) Must state on labels of containers of imported malt beverages 
the words ``imported by'' or a similar appropriate phrase followed 
immediately by the name of the importer and the importer's principal 
place of business in the United States, and
    (b) May state the name and principal place of business of the 
foreign manufacturer, bottler, packer, or shipper. If State or foreign 
law requires the name and place of business, then they must appear on 
the label.


Sec. 7.84  What type of address must I state on my label?

    (a) You must state your post-office address. You may omit your 
street address and use only your city and state.
    (b) You may state additional addresses if:
    (1) You are actively engaged in malt beverage business at the 
additional addresses, and
    (2) You state, together with the additional address, an appropriate 
description of the business you conduct at that location.

Net Contents Statement


Sec. 7.90  Where must I state the net contents of my container?

    You must state the net contents of your container on the brand 
label or by blowing, branding, or burning it into the container. You do 
not need to state the net contents on any label if you have the net 
contents blown, branded, or burned in the container in plainly legible 
characters, which are clear and not obscured in any way.


Sec. 7.91  How must I state net contents?

    You must state net contents in accordance with this chart. Express 
fractions in their lowest denominations.

                         Net Contents Statements
------------------------------------------------------------------------
                                             Then you must state net
         If your container is:                      contents:
------------------------------------------------------------------------
(a) Less than 1........................  in fluid ounces, or fractions
                                          of a pint.
(b) 1 pint.............................  1 pint.
(c) More than 1 pint, but less than 1    in fractions of a quart, or in
 quart.                                   pints and fluid ounces.
(d) 1 quart............................  1 quart.
(e) More than 1 quart, but less than 1   in fractions of a gallon, or in
 gallon.                                  quarts, pints, and fluid
                                          ounces.
(f) 1 gallon...........................  1 gallon.
(g) More than 1 gallon.................  in gallons and fractions of a
                                          gallon.
------------------------------------------------------------------------

Alcohol Content


Sec. 7.100  When may I state the alcohol content of my malt beverage?

    (a) You may state the alcohol content and the percentage and 
quantity of the original gravity or extract on a label. When you state 
alcohol content you must use:
    (1) The statement required by these regulations, or
    (2) If it is different, the manner of statement required under 
State law.
    (b) Nothing in this section relieves you from complying with State 
law.


Sec. 7.101  What measurement do I use to state alcohol content?

    You must state the alcohol content in percent of alcohol by volume. 
You must not use percent by weight, proof, ranges, or maximums or 
minimums.


Sec. 7.102  How do I state alcohol content?

    State the alcohol content of your malt beverage in accordance with 
these requirements:
    (a) You must use one of these options:
    (1) ``Alcohol------ percent by volume,''
    (2) ``Alcohol by volume ------ percent,''
    (3) ``------ percent alcohol by volume,'' or
    (4) ``------ percent alcohol/volume.''
    (b) You may use these substitutions:
    (1) ``Alc'' for alcohol,
    (2) ``Vol'' for volume, and
    (3) ``%'' for percent.
    (c) State alcohol content as follows:
    (1) If your malt beverage contains 0.5 percent alcohol by volume, 
you must state alcohol content to the nearest one tenth of a percent.
    (2) If your malt beverage contains less than 0.5 percent alcohol by 
volume, you may state alcohol content in one hundredths of a percent.


Sec. 7.103  What tolerance is permitted between actual alcohol content 
and the label statement of alcohol content?

    We accept these listed tolerances between the actual alcohol 
content of your malt beverage and the alcohol content you state on the 
label.

[[Page 43506]]



------------------------------------------------------------------------
      If your malt beverage:             An acceptable tolerance is:
------------------------------------------------------------------------
(a) Contains 0.5 percent or more    any malt beverage you label as
 alcohol by volume.                  containing 0.5 percent or more
                                     alcohol by volume must not contain
                                     less than 0.5 percent alcohol by
                                     volume, regardless of any
                                     tolerance.
                                    Otherwise, 0.3 percent, either above
                                     or below the stated percentage of
                                     alcohol.
(b) Contains less than 0.5 percent  the actual alcoholic content must
 alcohol by volume.                  not exceed the labeled alcoholic
                                     content.
------------------------------------------------------------------------

Sec. 7.104  What is the acceptable tolerance for ``low'' or ``reduced'' 
alcohol malt beverages?

    For malt beverages which you label as ``low alcohol'' or ``reduced 
alcohol'' the actual alcohol content must not equal or exceed 2.5 
percent alcohol by volume, regardless of any tolerance permitted by 
Sec. 7.103.


Sec. 7.105  What is the tolerance for a malt beverage I label with 
``0.0 %'' alcohol content?

    There is no tolerance here. You may label a malt beverage with an 
alcoholic content of 0.0 percent alcohol by volume only if:
    (a) You also label it as ``alcohol free,'' and
    (b) It contains no alcohol.


Sec. 7.106  When may I use the terms ``low alcohol'' or ``reduced 
alcohol?'

    You may use ``low alcohol'' or ``reduced alcohol'' only on malt 
beverages containing less than 2.5 percent alcohol by volume.


Sec. 7.107  When may I use the term ``non-alcoholic?''

    You may use ``non-alcoholic'' on malt beverages only if you also 
use it together with the statement: ``contains less than 0.5 percent 
(or .5%) alcohol by volume.'' This statement must be in readily legible 
printing on a completely contrasting background.


Sec. 7.108  When may I use the term ``alcohol free?''

    You may use ``alcohol free'' only on malt beverages containing no 
alcohol.

Relabeling Malt Beverages


Sec. 7.110  May I alter a malt beverage label already on the container?

    No, the Act provides that it is unlawful to alter, mutilate, 
destroy, obliterate, or remove any mark, brand, or label on malt 
beverages you hold for sale in interstate or foreign commerce, or after 
shipment in interstate or foreign commerce, except as authorized by 
Federal law. You may relabel the malt beverage with prior permission 
from us.


Sec. 7.111  May I relabel a malt beverage?

    You may obtain permission to add additional labeling or to relabel 
malt beverages in containers if additional labeling or relabeling is 
justified to comply with:
    (a) These regulations, or
    (b) Requirements of State law.


Sec. 7.112  How do I get permission to relabel a malt beverage?

    You must file a written application for permission to relabel. File 
with the appropriate ATF officer (see Sec. 7.15). You must submit:
    (a) Two complete sets of the old labels,
    (b) Two complete sets of any proposed labels, and
    (c) A statement of the:
    (1) Reasons for relabeling,
    (2) Quantity and the location of the malt beverages, and
    (3) Name and address of the person who will relabel.

Subpart D--Advertising of Malt beverages


Sec. 7.200  Who must comply with these regulations?

    You must comply with these regulations if you are a malt beverage 
brewer, wholesaler, or importer and you publish or disseminate, or 
cause to be published or disseminated, any malt beverage advertisement, 
directly or indirectly, or through an affiliate.


Sec. 7.201  Are there exceptions to advertising requirements?

    There are two exceptions to these requirements. These regulations 
do not apply to:
    (a) Outdoor advertising in place on September 7, 1984: but the 
rules apply upon replacement, restoration, or renovation of that 
advertising; or
    (b) The retailer, publisher, broadcaster, or provider of any 
advertising medium unless you are in business as a malt beverage 
brewer, wholesaler, bottler, or importer, directly or indirectly, or 
through an affiliate.

Mandatory Advertising Statements


Sec. 7.210  What statements are mandatory for malt beverage 
advertisements?

    All malt beverage advertisements must comply with these regulations 
and state the:
    (a) Responsible advertiser (see Sec. 7.211), and
    (b) Malt beverage class (see Sec. 7.212).


Sec. 7.211  What information is required about the responsible 
advertiser?

    The advertisement must state the name, city and state of the 
brewer, bottler, packer, wholesaler, or importer responsible for its 
publication, broadcast, or Internet content.


Sec. 7.212  What information is required for malt beverage class?

    The advertisement must contain a conspicuous statement of the class 
to which the malt beverage belongs, corresponding to the statement of 
class these regulations require to appear on the label of the product. 
(See Secs. 7.70-7.79)


Sec. 7.213  Is there any exception to mandatory information?

    Yes, there are these exceptions to mandatory information.

------------------------------------------------------------------------
        When your advertisement:                     You may:
------------------------------------------------------------------------
(a) Refers to: A general malt beverage   state only the name and address
 line, or all of the malt beverage        of the responsible advertiser.
 products of one company, whether by
 the company name or by the brand name
 common to all the malt beverages in
 the line.
(b) Refers to only one type of malt      not use the exception. State
 beverage marketed under the specific     the name and address of the
 brand name.                              responsible advertiser and the
                                          class.
(c) Is on consumer specialty items.....  state only:
                                         (1) the company name, or
                                         (2) brand name of the product.
------------------------------------------------------------------------


[[Page 43507]]

Legibility of Mandatory Information


Sec. 7.220  What are the requirements for legibility of mandatory 
information?

    In any written, printed, or graphic advertisement, all statements 
you make to comply with these regulations must be in lettering or type 
size sufficient to be conspicuous and readily legible.


Sec. 7.221  What are the requirements for legibility on signs, 
billboards, or displays?

    In the case of signs, billboards, or displays your name and address 
may appear in type size or lettering smaller than the other mandatory 
information, provided that the information is legible upon closer 
examination of the sign or billboard.


Sec. 7.222  May I place mandatory information in a separate part of my 
advertisement?

    No, you must clearly state mandatory information as a part of the 
advertisement. You must not separate mandatory information in any 
manner from the remainder of the advertisement.


Sec. 7.223  May I combine mandatory information for more than one 
product?

    No, you must clearly separate statements of mandatory information 
for two or more products.


Sec. 7.224  How apparent must the mandatory information be to viewers?

    You must state mandatory information in print, electronic and 
audiovisual media so that it is readily apparent to the persons viewing 
the advertisement.

Subpart E--Prohibited Practices For Labeling and Advertising


Sec. 7.300  What is covered by these prohibitions?

    These prohibitions may apply to:
    (a) The use for sale to the consumer of:
    (1) Containers of malt beverages,
    (2) Labels on malt beverage containers,
    (3) Labels on shipping containers,
    (4) Cartons, cases, or individual coverings of malt beverage 
containers, and
    (5) Written, printed, graphic, or other matter accompanying malt 
beverage containers.
    (b) Malt beverage advertisements.

Malt Beverage Labeling and Advertisements


Sec. 7.301  You must not use false or misleading statements.

    For malt beverage labels and advertisements you must not use any 
statement that:
    (a) Is false or untrue in any particular, or
    (b) Tends to create a misleading consumer impression, whether or 
not the statement is true or false, either directly, by ambiguity, 
omission, inference, or by addition of irrelevant, scientific or 
technical matter.


Sec. 7.302  You must not disparage a competitor's products.

    Your malt beverage labels and advertisements must not disparage a 
competitor's products.


Sec. 7.303  You must not use obscene or indecent material.

    You must not use labels and advertisements with any statement, 
design, device, or representation that is obscene or indecent.


Sec. 7.304  You must not use statements about testing and analyses that 
may mislead consumers.

    You must not use any statement, design, device, or representation 
relating to analyses, standards, or tests, whether these are true or 
false, that is likely to mislead the consumer.


Sec. 7.305  You must not use misleading statements about guarantees.

    You must not use any statement, design, device, or representation 
relating to any guarantee, whether these are true or false, that is 
likely to mislead the consumer.


Sec. 7.306  You may use a statement for a money-back guarantee.

    Malt beverage labels and advertisements may include money-back 
guarantee statements.


Sec. 7.307  You must not mislead consumers as to government authority 
for your malt beverage processes.

    You must not use statements that may mislead consumers to believe 
that your malt beverage is manufactured or processed under any 
government authority.
    (a) Such statements include:
    (1) Simulations of government stamps,
    (2) Designs that resemble or simulate a stamp of the United States 
Government or of any State or foreign government, and
    (3) Any statement that your malt beverage is brewed, made, bottled, 
packed, labeled, or sold under, or in accordance with, any municipal, 
State, Federal, or foreign government authorization, law, or 
regulation.
    (b) Your label may include:
    (1) A stamp authorized or required by the United States Government 
or any State or foreign government,
    (2) A statement that is required or specifically authorized by 
Federal, State, or municipal, law or regulation, and
    (3) A statement that is required or specifically authorized by the 
laws or regulations of the foreign country where the malt beverage is 
produced.


Sec. 7.308  You may use a municipal or State permit number.

    If you display a municipal or State permit number on your label or 
in advertisement, you may not use any additional statement to accompany 
the permit number, except that you may use an additional statement that 
is required by State law.


Sec. 7.309  You must not mislead consumers as to government supervision 
of your malt beverage business.

    You must not use malt beverage labels or advertisements with 
statements that imply governmental supervision over production, 
bottling, or packing of malt beverages. Examples of these statements 
include:
    (a) ``Bonded''
    (b) ``Bottled in bond''
    (c) ``Aged in bond''
    (d) ``Bonded age''
    (e) ``Bottled under customs supervision,'' or
    (f) Phrases containing these or synonymous terms.


Sec. 7.310  You must not use United States flags or other insignia.

    You must not use malt beverage labels or advertisements that 
contain any statement, design, device, or pictorial representation that 
relate, directly or indirectly, to:
    (a) The armed forces of the United States,
    (b) The United States flag, or
    (c) Any emblem, seal, insignia, or decoration associated with the 
United States flag or armed forces.


Sec. 7.311  You must not use flags or insignia in a misleading manner.

    You must not use malt beverage labels or advertisements that 
contain misleading flags or insignia. Examples include: flags, 
statements, designs, devices, seals, coats of arms, crests, other 
insignia, or pictorial representations of these. Such labels or 
advertisements are misleading if a consumer may falsely believe the 
malt beverage is:
    (a) Endorsed by,
    (b) Made by,
    (c) Used by,
    (d) Produced by,
    (e) Produced under the supervision of, or

[[Page 43508]]

    (f) Made in accordance with the specifications of the person whom 
the flag or insignia represents.


Sec. 7.312  You must not use curative and therapeutic claims.

    You must not use malt beverage labels or advertisements with 
misleading curative or therapeutic claims. Examples include any 
statements, designs, representations, pictorial representations, or 
devices that represent malt beverage consumption as having curative or 
therapeutic effects. The claims are misleading if they:
    (a) Are untrue in any way, or
    (b) Tend to create a misleading impression.


Sec. 7.313  You must not use words that may mislead as to alcoholic 
strength.

    Your labels and advertisements must not use words that are 
misleading as to the alcoholic strength of your malt beverage. You must 
not use misleading numerals, letters, characters, figures, or similar 
words or statements. For example, you must not use these terms:
    (a) ``Strong,''
    (b) ``Full strength,''
    (c) ``Extra strength,''
    (d) ``High test,''
    (e) ``High proof,''
    (f) ``Pre-war strength,'' or
    (g) ``Full old-time alcoholic strength.''


Sec. 7.314  What is not misleading as to alcoholic strength?

    You may use words or statements of alcoholic strength or alcohol 
content under these conditions.
    (a) If State law requires you to include alcoholic strength or 
content statements on your labels or in your advertisements.
    (b) You may use the terms ``low alcohol,'' ``reduced alcohol,'' 
``non-alcoholic,'' and ``alcohol-free,'' in accordance with 
Secs. 7.106, 7.107, and 7.108.
    (c) You may use a malt beverage alcohol content statement in 
accordance with Secs. 7.100 through 7.108.

Additional Malt Beverage Labeling Practices


Sec. 7.320  Your brand and trade names must not include misleading 
endorsements.

    You must not use a brand or trade name that is misleading. Brand or 
trade names are misleading if:
    (a) You use the name of:
    (1) Any living individual of public prominence,
    (2) An existing private or public organization,
    (3) A name that is a simulation or an abbreviation of a living 
individual or organization, or
    (4) Any graphic, pictorial, or emblematic representation of these 
individuals or organizations; and
    (b) The use of the name is likely to mislead a consumer to falsely 
believe the individual or organization:
    (1) Endorses,
    (2) Uses,
    (3) Produces,
    (4) Supervises production of, or
    (5) Gives specifications to produce the malt beverage.


Sec. 7.321  What is an acceptable brand or trade name labeling 
endorsement?

    Brand or trade names are not misleading if you use the name of any 
person in business as a malt beverage producer, importer, bottler, 
packer, wholesaler, retailer, or warehouseman. You may also use the 
name of any living individual of public prominence, or an existing 
private or public organization, provided that you or your predecessors 
used the trade or brand name prior to August 29, 1935.


Sec. 7.322  You must not use numerals that are misleading as to 
alcoholic content.

    Your malt beverage labels must not contain statements that 
consumers may consider as statements of alcoholic content. Examples 
include: statements, designs, or devices, whether in the form of 
numerals, letters, characters, figures, or otherwise. However, you may 
use statements as required by State law, or as permitted by Secs. 7.100 
through 7.108.


Sec. 7.323  You must not use prohibited labeling statements on 
coverings, cartons, or cases.

    For retail packaging and other materials you may use statements and 
graphics that are allowed by these regulations. You must not use any 
statements, graphic pictorials, emblematic representations, or other 
matter, that are prohibited on labels or containers. For malt beverages 
these prohibitions apply to:
    (a) Individual coverings,
    (b) Cartons,
    (c) Cases,
    (d) Other container wrappers, and
    (e) Any written, printed, graphic, or other matter accompanying the 
container.

Additional Malt Beverage Advertisement Practices


Sec. 7.330  You must not use advertisement statements inconsistent with 
your malt beverage labeling.

    You must not use malt beverage advertisement statements that are 
inconsistent with your labeling statements.


Sec. 7.331  You must not use an unapproved label in an advertisement.

    Any label you depict on a bottle in an advertisement must be a 
reproduction of an approved label.


Sec. 7.332  You may depict an approved label with alcohol content in a 
malt beverage advertisement.

    In any advertising media you may depict an approved malt beverage 
label that bears a statement of alcoholic content permitted under 
Secs. 7.100 through 7.108. The statement of alcohol content on the 
label must not appear more prominently in the advertisement than it 
does on the approved label.


Sec. 7.333  You may use an advertisement with an actual container 
showing an approved alcohol content label.

    In any advertising media you may display an actual malt beverage 
container showing the approved label bearing a statement of alcohol 
content permitted under Secs. 7.100 through 7.108.


Sec. 7.334  You must not use misleading class statements.

    Your advertisements must not use misleading statements as to the 
class of your malt beverage. If your malt beverage contains less than 
one-half of 1 percent alcohol by volume you must not use:
    (a) ``Beer,''
    (b) ``Lager beer,''
    (c) ``Lager,''
    (d) ``Ale,''
    (e) ``Porter''
    (f) ``Stout,'' or
    (g) Any other class or type designation commonly applied to 
fermented malt beverages containing one-half of 1 percent or more 
alcohol by volume.


Sec. 7.335  You must not use ``ale,'' ``porter,'' or ``stout'' 
designations in a misleading manner.

    Your advertisements may use designations for ``ale,'' ``porter,'' 
or ``stout'' only when your malt beverage:
    (a) Is fermented at a comparatively high temperature,
    (b) Possesses the characteristics generally attributed to ``ale,'' 
``porter,'' or ``stout,'' and
    (c) Is produced without the use of coloring or flavoring materials 
other than those recognized in standard brewing practices.


Sec. 7.336  Your advertisement must not confuse brands.

    Your advertisement must not lead to brand confusion.
    (a) This provision applies to your representations in:
    (1) One advertisement,
    (2) Two or more advertisements in one issue of a periodical or 
newspaper, and

[[Page 43509]]

    (3) One piece of other written, printed, or graphic matter.
    (b) You must not advertise two or more different malt beverage 
brands if any of the following occur:
    (1) The advertisement tends to create an impression that 
representations you make for one brand applies to the another brand;
    (2) The representations are contrary to any provision of the 
regulations in this part; or
    (3) The representations are in any respect untrue.


Sec. 7.337  You must not use deceptive advertising techniques.

    You must not use malt beverage advertisements that use subliminal 
or similar advertising techniques. These prohibited advertisements 
include: the use of any device or technique that conveys, or attempts 
to convey, a message to a person by means of images or sounds of a very 
brief nature that cannot be perceived at a normal level of awareness.

Comparative Advertisements


Sec. 7.340  May I use comparative advertising?

    Yes, you may use comparative advertising that is not disparaging of 
a competitor's product.

Taste Tests in Advertisements


Sec. 7.350  May I use taste tests in malt beverage advertisements?

    Yes, you may use taste test results in advertisements comparing 
competitors' products unless they are disparaging, deceptive, or likely 
to mislead the consumer.


Sec. 7.351  What scientific procedures must I use for taste tests?

    You must use a taste test procedure that meets scientifically 
accepted procedures. An example of a scientifically accepted procedure 
is outlined in the Manual on Sensory Testing Methods, ASTM Special 
Technical Publication 434, published by the American Society for 
Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 
19103, ASTM, 1968, Library of Congress Catalog Card Number 68-15545.


Sec. 7.352  Must I list the name and address of the taste test 
administrator?

    Yes, if you use a taste test in your advertisement, you must also 
make a statement in the advertisement providing the name and address of 
the taste test administrator.

    Signed: August 17, 2001.
Bradley A. Buckles,
Director.

    Approved: May 14, 2002.
Timothy E. Skud,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 02-16026 Filed 6-26-02; 8:45 am]
BILLING CODE 4810-31-P