[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: 27CFR7.54]

[Page 99-101]
 
            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 F_Advertising of Malt Beverages
 
Sec. 7.54  Prohibited statements.

    (a) General prohibition. An advertisement of malt beverages shall 
not contain:
    (1) Any statement that is false or untrue in any material 
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) Any statement that the malt beverages are brewed, made, bottled, 
packed, labeled, or sold under, or in accordance with, any municipal, 
State, or Federal authorization, law, or regulation; and if a municipal 
or State permit number is stated, the permit number shall not be 
accompanied by any additional statement relating thereto.
    (7) 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.
    (b) Statements inconsistent with labeling. (1) Advertisements shall 
not contain any statement concerning a brand or lot of malt beverages 
that is inconsistent with any statement on the labeling thereof.
    (2) Any label depicted on a bottle in an advertisement shall be a 
reproduction of an approved label.
    (c) Alcoholic content. (1) Advertisements shall not contain the 
words ``strong,'' ``full strength,'' ``extra strength,'' ``high test,'' 
``high proof,'' ``full alcohol strength,'' or any other statement of 
alcoholic content, or any statement of the percentage and quantity of 
the original extract, or any numerals, letters, characters, figures, 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,'' as used on labels, in accordance with 
Sec. 7.71 (d), (e), and (f).
    (2) An approved malt beverage label which bears a statement of 
alcoholic content permitted under Sec. 7.71 may be depicted in any 
advertising media. The statement of alcoholic content on the label may 
not appear more prominently in the advertisement than it does on the 
approved label.
    (3) An actual malt beverage bottle showing the approved label 
bearing a statement of alcoholic content permitted under Sec. 7.71 may 
be displayed in any advertising media.
    (d) Class. (1) No product containing less than one-half of 1 per 
centum of alcohol by volume shall be designated in any advertisement as 
``beer'', ``lager beer'', ``lager'', ``ale'', ``porter'', or ``stout'', 
or by any other class or type designation commonly applied to fermented 
malt beverages containing one-half of 1 per centum or more of alcohol by 
volume.
    (2) No product other than a malt beverage fermented at comparatively 
high temperature, possessing the characteristics generally attributed to 
``ale,'' ``porter,'' or ``stout'' and produced without the use of 
coloring or flavoring materials (other than those recognized in standard 
brewing practices) shall be designated in any advertisement by any of 
these class designations.
    (e) Health-related statements--(1) Definitions. When used in this 
paragraph (e), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
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

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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 advertising--(i) Health-related statements. In 
general, advertisements 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. Such disclaimer or other qualifying statement must 
appear as prominent as the health-related statement.
    (ii) Specific health claims. A specific health claim will not be 
considered misleading if it 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 
and in a manner as prominent as 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, 
and in a manner as prominent as the health-related directional 
statement, the following disclaimer: ``This statement should not 
encourage you to drink or increase your alcohol consumption for health 
reasons;'' or
    (2) Includes as part of the health-related directional statement, 
and in a manner as prominent as 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) Confusion of brands. Two or more different brands or lots of 
malt beverages shall not be advertised in one advertisement (or in two 
or more advertisements in one issue of a periodical or a newspaper or in 
one piece of other written, printed, or graphic matter) if the 
advertisement tends to create the impression that representations made 
as to one brand or lot apply to the other or others, and if as to such 
latter the representations contravene any provision of Sec. Sec. 7.50 
through 7.54 or are in any respect untrue.
    (g) Flags, seals, coats of arms, crests, and other insignia. No 
advertisement

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shall contain any statement, design, device, or pictorial representation 
of or relating to, or capable of being construed as relating to the 
armed forces of the United States, or of the American flag, or of any 
emblem, seal, insignia, or decoration associated with such flag or armed 
forces; nor shall any advertisement contain any statement, device, 
design, 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.
    (h) Deceptive advertising techniques. Subliminal or similar 
techniques are prohibited. ``Subliminal or similar techniques,'' as used 
in this part, refers to any device or technique that is used to convey, 
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.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-180, 49 
FR 31675, 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 10106, Mar. 3, 
2003]

    Effective Date Note: By TTB T.D.-21, 70 FR 235, Jan. 3, 2005, Sec. 
7.54 was amended by revising the introductory text of paragraph (a) and 
by adding a new paragraph (a)(8), effective Jan. 3, 2006. For the 
convenience of the user, the revised and added text is set forth as 
follows:

Sec. 7.54.  Prohibited statements.

    (a) General prohibition. An advertisement of malt beverages must not 
contain:

                                * * * * *

    (8) 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 in advertisements for malt beverages:
    (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 advertisement 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 advertisement does not 
present a misleading impression about the identity of the product.

                                * * * * *