Beverage advertising scrutinized
Pub Date: 6/1/2006
Even while under-aged exposure to alcohol advertising in magazines has dropped dramatically over the past few years, a group of state attorneys general are clamoring for an expanded Federal Trade Commission investigation into the role alcohol advertising plays in illegal youth drinking.
The Center on Alcohol Marketing and Youth (CAMY) at Georgetown University, an entity dedicated to limiting adult beverage promotion, recently admitted that "youth exposure to alcohol advertising in magazines declined 31 percent from 2001 to 2004."
Beer and spirits trade associations have adopted marketing standards that prohibit member companies from advertising in media where less than 70 percent of the audience is adult.
The policies have apparently been effective, as the CAMY report found "only 3 percent of ads and less than 2 percent of spending" was in magazines with over 30 percent underage readership.
CAMY and other reform organizations nevertheless are not satisfied, agitating for even stricter standards, advocating no alcohol advertising in media with an under-aged audience that exceeds 15 percent, effectively muzzling all adult beverage advertising.
And they have apparently found allies in 20 state attorney's general who asked the FTC, as part of its routine review of alcohol marketing, to "update data from alcohol advertisers, including data on expenditures, marketing practices and independent review procedures."
Utah Attorney General Mike Shurtleff, a co-chairman of the group, said he believes the current 70 percent adult standard excessively exposes the under-aged to adult beverage advertising, pressing instead for an 85 percent standard.
The FTC has in the past found an 85 percent adult audience standard would effectively preclude alcohol companies from reaching their adult audiences.
Industry trade groups, including the Distilled Spirits Council of the U.S. and Beer Institute, noted they have over the years launched and operate numerous responsibility programs, many of which target limiting youth access and, more recently, are working for enhanced penalties including drivers license suspension for youth who illegally obtain alcohol.
Harry Wiles, executive director of the American Beverage Licensees, "America's Beer, Wine and Spirits Retailers," said, "While this issue is primarily centered on the producer tier and their national advertising campaigns, retailers will be keeping a close eye on these developments.
"We readily recognize that often what transpires on the federal level can trickle down to local arenas, too," Wiles continued. "We are aware of some state and local groups that are working to get laws and ordinances introduced to limit or end marketing and promotion for taverns and bottle shops, such as banning sales and specials, happy hours and so on."
"We must always keep in mind that retailers run legal businesses that responsibly sell legal products and that they are as entitled to free speech rights under the First Amendment as anyone else."
Meanwhile some states continue to increase penalties on retailers who sell alcohol to the under-aged. Most recently the Louisiana Senate unanimously voted to increase fines from the current $100 to $500 to a minimum of $500 and a maximum of $5,000. Jail terms range from 30 days to six months along with suspension or revocation of licenses.
Recently, the Alcohol and Tobacco Tax and Trade Bureau (TTB) issued an advisory that stated, "TTB encourages industry members to submit advertising materials for review by the Market Compliance Office of the Advertising, Labeling and Formulation Division prior to use.
"Upon request, we will provide written pre-clearance of the advertising materials, protecting you from exposure to charges of willful violations of the advertising provisions of the Federal Alcohol Administration Act (FAA Act).
"We strongly recommend that industry members seek TTB guidance for planned advertising, including web page content, if you feel any uncertainty as to the content or presentation of these advertisements."
Source: The Montana Tavern Times, July, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.