[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR7.29]

[Page 93-96]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 7_LABELING AND ADVERTISING OF MALT BEVERAGES--Table of Contents
 
           Subpart C_Labeling Requirements for Malt Beverages
 
Sec. 7.29  Prohibited practices.

    (a) Statements on labels. Containers of malt beverages, or any 
labels on such containers, or any carton, case, or individual covering 
of such containers, used for sale at retail or any written,

[[Page 94]]

printed, graphic, or other matter accompanying such containers to the 
consumer shall not contain:
    (1) Any statement that is false or untrue in any particular, or 
that, irrespective of falsity, directly, or by ambiguity, omission, or 
inference, or by the addition of irrelevant, scientific or technical 
matter, tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's products.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of falsity, which the 
appropriate ATF officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate ATF 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) A trade or brand name that is the name of any living individual 
of public prominence, or existing private or public organization, or is 
a name that is in simulation or is an abbreviation thereof, or any 
graphic, pictorial, or emblematic representation of any such individual 
or organization, if the use of such name or representation is likely 
falsely to lead the consumer to believe that the product has been 
endorsed, made, or used by, or produced for, or under the supervision 
of, or in accordance with the specifications of, such individual or 
organization: Provided, That this paragraph shall not apply to the use 
of the name of any person engaged in business as a producer, importer, 
bottler, packer, wholesaler, retailer, or warehouseman, of malt 
beverages, nor to the use by any person of a trade or brand name that is 
the name of any living individual of public prominence, or existing 
private or public organization, provided such trade or brand name was 
used by him or his predecessors in interest prior to August 29, 1935.
    (b) Simulation of Government stamps. No label shall be of such 
design as to resemble or simulate a stamp of the United States 
Government or of any State or foreign government. No label, other than 
stamps authorized or required by the United States Government or any 
State or foreign government, shall state or indicate that the malt 
beverage contained in the labeled container is brewed, made, bottled, 
packed, labeled, or sold under, or in accordance with, any municipal, 
State, Federal, or foreign government authorization, law, or regulation, 
unless such statement is required or specifically authorized by Federal, 
State, or municipal, law or regulation, or is required or specifically 
authorized by the laws or regulations of the foreign country in which 
such malt beverages were produced. If the municipal or State government 
permit number is stated upon a label, it shall not be accompanied by an 
additional statement relating thereto, unless required by State law.
    (c) Use of word ``bonded'', etc. The words ``bonded'', ``bottled in 
bond'', ``aged in bond'', ``bonded age'', ``bottled under customs 
supervision'', or phrases containing these or synonymous terms which 
imply governmental supervision over production, bottling, or packing, 
shall not be used on any label for malt beverages.
    (d) Flags, seals, coats of arms, crests, and other insignia. Labels 
shall not contain, in the brand name or otherwise, any statement, 
design, device, or pictorial representation which the appropriate ATF 
officer finds relates to, or is capable of being construed as relating 
to, the armed forces of the United States, or the American flag, or any 
emblem, seal, insignia, or decoration associated with such flag or armed 
forces; nor shall any label contain any statement, design, device, or 
pictorial representation of or concerning any flag, seal, coat of arms, 
crest or other insignia, likely to mislead the consumer to believe that 
the product has been endorsed, made, or used by, or produced for, or 
under the supervision of, or in accordance with the specifications of 
the government, organization, family, or individual with whom such flag, 
seal, coat of arms, crest, or insignia is associated.
    (e) Health-related statements--(1) Definitions. When used in this 
paragraph (e), terms are defined as follows:

[[Page 95]]

    (i) Health-related statement means any statement related to health 
(other than the warning statement required by Sec. 16.21 of this 
chapter) and includes statements of a curative or therapeutic nature 
that, expressly or by implication, suggest a relationship between the 
consumption of alcohol, malt beverages, or any substance found within 
the malt beverage, and health benefits or effects on health. The term 
includes both specific health claims and general references to alleged 
health benefits or effects on health associated with the consumption of 
alcohol, malt beverages, or any substance found within the malt 
beverage, as well as health-related directional statements. The term 
also includes statements and claims that imply that a physical or 
psychological sensation results from consuming the malt beverage, as 
well as statements and claims of nutritional value (e.g., statements of 
vitamin content). Statements concerning caloric, carbohydrate, protein, 
and fat content do not constitute nutritional claims about the product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
malt beverage, alcohol, or any substance found within the malt beverage, 
to a disease or health-related condition. Implied specific health claims 
include statements, symbols, vignettes, or other forms of communication 
that suggest, within the context in which they are presented, that a 
relationship exists between malt beverages, alcohol, or any substance 
found within the malt beverage, and a disease or health-related 
condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of malt 
beverage or alcohol consumption.
    (2) Rules for labeling--(i) Health-related statements. In general, 
labels may not contain any health-related statement that is untrue in 
any particular or tends to create a misleading impression as to the 
effects on health of alcohol consumption. TTB will evaluate such 
statements on a case-by-case basis and may require as part of the 
health-related statement a disclaimer or some other qualifying statement 
to dispel any misleading impression conveyed by the health-related 
statement.
    (ii) Specific health claims. (A) TTB will consult with the Food and 
Drug Administration (FDA), as needed, on the use of a specific health 
claim on a malt beverage label. If FDA determines that the use of such a 
labeling claim is a drug claim that is not in compliance with the 
requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not 
approve the use of that specific health claim on a malt beverage label.
    (B) TTB will approve the use of a specific health claim on a malt 
beverage label only if the claim is truthful and adequately 
substantiated by scientific or medical evidence; sufficiently detailed 
and qualified with respect to the categories of individuals to whom the 
claim applies; adequately discloses the health risks associated with 
both moderate and heavier levels of alcohol consumption; and outlines 
the categories of individuals for whom any levels of alcohol consumption 
may cause health risks. This information must appear as part of the 
specific health claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of malt beverage or alcohol consumption 
is presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of malt beverage or alcohol consumption; and
    (B)(1) Includes as part of the health-related directional statement 
the following disclaimer: ``This statement should not encourage you to 
drink or to increase your alcohol consumption for health reasons;'' or
    (2) Includes as part of the health-related directional statement 
some other qualifying statement that the appropriate TTB officer finds 
is sufficient to dispel any misleading impression conveyed by the 
health-related directional statement.
    (f) Use of words ``strong,'' ``full strength,'' and similar words. 
Labels

[[Page 96]]

shall not contain the words ``strong,'' ``full strength,'' ``extra 
strength,'' ``high test,'' ``high proof,'' ``pre-war strength,'' ``full 
oldtime alcoholic strength,'' or similar words or statements, likely to 
be considered as statements of alcoholic content, unless required by 
State law. This does not preclude use of the terms ``low alcohol,'' 
``reduced alcohol,'' ``non-alcoholic,'' and ``alcohol-free,'' in 
accordance with Sec. 7.71 (d), (e), and (f), nor does it preclude 
labeling with the alcohol content in accordance with Sec. 7.71.
    (g) Use of numerals. Labels shall not contain any statements, 
designs, or devices, whether in the form of numerals, letters, 
characters, figures, or otherwise, which are likely to be considered as 
statements of alcoholic content, unless required by State law, or as 
permitted by Sec. 7.71.
    (h) Coverings, cartons, or cases. Individual coverings, cartons, 
cases, or other wrappers of containers of malt beverages, used for sale 
at retail, or any written, printed, graphic, or other matter 
accompanying the container shall not contain any statement or any 
graphic pictorial, or emblematic representation, or other matter, which 
is prohibited from appearing on any label or container of malt 
beverages.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-66, 45 FR 
40552, June 13, 1980; T.D. ATF-180, 49 FR 31674, Aug. 8, 1984; T.D. ATF 
280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21232, Apr. 19, 
1993; TTB T.D.-1, 68 FR 10105, Mar. 3, 2003]

    Effective Date Note: By TTB T.D.-21, 70 FR 234, Jan. 3, 2005, Sec. 
7.29 was amended by revising the introductory text of paragraph (a) and 
by adding a new paragraph (a)(7), effective Jan. 3, 2006. For the 
convenience of the user, the revised and added text is set forth as 
follows:

Sec. 7.29  Prohibited practices.

    (a) Statements on labels. Containers of malt beverages, or any 
labels on such containers, or any carton, case, or individual covering 
of such containers, used for sale at retail, or any written, printed, 
graphic, or other material accompanying such containers to the consumer, 
must not contain:

                                * * * * *

    (7) Any statement, design, device, or representation that tends to 
create a false or misleading impression that the malt beverage contains 
distilled spirits or is a distilled spirits product. This paragraph does 
not prohibit the following on malt beverage labels:
    (i) A truthful and accurate statement of alcohol content, in 
conformity with Sec. 7.71;
    (ii) The use of a brand name of a distilled spirits product as a 
malt beverage brand name, provided that the overall label does not 
present a misleading impression about the identity of the product; or
    (iii) The use of a cocktail name as a brand name or fanciful name of 
a malt beverage, provided that the overall label does not present a 
misleading impression about the identity of the product.

                                * * * * *