"SEC. 2. Misbranding. To sell or otherwise introduce into commerce any alcoholic beverages that are misbranded, unless the member of the industry can establish a guaranty valid under regulations prescribed by the Administration. Alcoholic beverages shall be deemed to be misbranded

"(a) Food and Drugs Aot Requirements.-If they are misbranded within the meaning of the Federal Food and Drugs Act and the member of the industry cannot establish a guaranty valid under Section 9 of the said Act.

"(b) Standards of Fill-If their container is so made, formed, or filled as to mislead the purchaser, or its contents fall below the standard of fill prescribed by regulations of the Administration.

"(c) Standards of Identity.-If they purport to be or are represented as alcoholic beverages for which a definition of identity has been prescribed by regulations of the Administration and they fail to conform to the definition.

"(d) Standards of Quality.-If they purport to be or are represented as alcoholic beverages for which standards of quality have been prescribed by regulations of the Administration, and (1) fail to state on the label, if so required by the regulations, their standard of quality in such terms as the regulations specify, or (2) fall below the standard stated on the label.

"(e) Label Requirements.-If in package form and they fail to bear a label conforming to such requirements as the Administration may by regulation prescribe. Regulations for the purposes of this subsection shall be prescribed by the Administration, but only after due notice and opportunity for hearing to the members of the industry."

4. CODE OF FAIR COMPETITION FOR THE ALCOHOLIC BEVERAGES IMPORTING INDUSTRY

Sections 1 and 2 of Article V provide as follows:

"The following practices constitute unfair methods of competition and shall not be engaged in by any member of the industry:

SECTION 1. False Advertising. To publish or disseminate in any manner any false advertisement of any alcoholic beverages. An advertisement shall be deemed to be false if

it is untrue in any particular, or if directly or by ambiguity, omission, or inference it tends to create a misleading impression.

"SEC. 2. Misbranding. To import, sell, or otherwise introduce into commerce any alcoholic beverages that are misbranded. Alcoholic beverages shall be deemed to be misbranded:

"(a) Food and Drugs Act Requirements.-If they are misbranded within the meaning of the Food and Drugs Act.

"(b) Standards of Fill.-If their container is.so made, formed, or filled as to mislead the purchaser, or its contents fall below the standard of fill prescribed by regulations of the Administration.

"(c) Standards of Identity. If they purport to be or are represented as alcoholic beverages for which a definition of identity has been prescribed by regulations of the Administration and they fail to conform to the definition.

"(d) Standards of Quality.-If they purport to be or are represented as alcoholic beverages for which standards of quality have been prescribed by regulations of the Administration, and (1) fail to state on the label, if so required by the regulations, their standard of quality in such terms as the regulations specify, or (2) fall below the standard stated .on the label.

"(e) Label Requirements.—If in package form and they fail to bear a label conforming to such requirements as the Administration may by regulations prescribe. Regulations for the purpose of this subsection shall be prescribed by the Administration, but only after due notice and opportunity for hearing to members of the Industry."

NOTE. Each of the Codes of Fair Competition for the Distilled Spirits. Distilled Spirits, Rectitying, Alcoholic Beverage Wholesale, and Alcoholic Beverages Importing, Industries also contain the following provision, which is taken from section 2 of Article XI of the Code of Fair Competition for the Distilled Spirits Industry, the language of the provision being identical in each of the four Codes specified above:

"The Administration shall prescribe such regulations as may be provided for in this Code or as may be reasonably necessary to carry out the provisions of this Code which it is authorized to administer, and may make such interpretations of such provisions and regulations as it deems necessary. Such regulations and interpretations shall have the same force and effect as the provisions of this Code."

APPENDIX B

1. MISBRANDING RULINGS

The Administration has, from time to time, issued several series of rulings and interpretations, formal and informal, relating to the administration of the code provisions and regulations which concern standards of identity, standards of fill, and label and false advertising requirements for distilled spirits. These materials may be secured from the Administration upon request. There follows below an index of the rulings issued to date. Number

of

Ruling

RULINGS

SUBJECT MATTER OF RULING

1. Distinction between foreign and domestic type whiskeys; designations of foreign type whiskey cannot include the word "straight"; age and percentage statements of foreign type whiskeys; labeling of domestic type whiskeys produced abroad; labeling of foreign type whiskeys produced in the United States."

2. Age Statements for Scotch Whiskey.

3. "Aged in our Bonded Warehouse"; "Fine Pennsylvania Whiskeys"; "Distillers of Medicinal Whiskey under Government Permit during Prohibition."

Number of Ruling

4. Statement of Age of Distilled Spirits.

5. Cartons.

6. Obsolete.

7. Name and address of distiller not Required on Back Label; Age of Whiskey not to be stated by Month of Distillation and Bottling.

8. Buchu Gin.

9. Obsolete.

10. Obsolete.

11.

"Bottled for

12. Obsolete.

13. Obsolete.

Association of Retail Druggists."

14. Obsolete.

15. Computation of Percentage of Neutral Spirits Reduced in Proof in Blends.

16. Status of miniature sample bottles.

17. Standards of till; Exemption of Specialties.

18. Designation of Blend of Imported Martinique Rum and Domestic Rum; Labeling tuereof.

19. Obsolete.

20. Additional age statement for Scotch Whiskey. (See Misbranding Ruling No. 2.) 21. Obsolete.

22. Obsolete.

23. Status of distilled spirits produced in Virgin Islands; Use of words "Bottled by' upon labels of such products.

24. Obsolete.

25. Wrappers.

26. Obsolete.

27. Obsolete.

28. Molasses and Cane Neutral Spirits; Permitted Uses.

29. "Sour Mash ""

30. Obsolete.

prohibited as part of type designation.

"

31. Use of insignia of British Royal Arms upon labels of distilled spirits prohibited as misleading. 32. "

Rock and Rye."

33. Geographical Brand Names; "Pride of Maryland"; "Southland's "; and "Arkansas

Traveler.

34. Mixtures of Rum; "Blended Rum"; Imitation Rum; Mixture or blend of Rum and Neutral Spirits; Proper designation thereof.

35. Improper use of words "Bottled by "; Misleading and prohibited unless distilled spirits actually bottled by a distiller or rectifier other than actual distiller or rectifier thereof. 36. Standards of Fill Regulations; Declaration of net contents conforming to regulations of F. A. C. A., but not as required by Federal Food and Drugs Act regulations. 37. Words "Original" and "Genuine."

38. Dublin Irish Whiskey.

39. Biended type whiskeys; required volume percent shall include straight-type whiskey only.

40. Obsolete.

41. London Dry Gin.

Label of domestically manufactured article must negative impression that product is of foreign origin.

42. "Straight_Brandy."

43. Phrase" Guaranteed to be Pure for Medicinal Use;" conditions of permitted use. 44. Obsolete. 45. Blend of Apple Brandy and Straight Rye or Bourbon Whiskey; Not to be designated "Blended Whiskey"; Trade designation; Distinctive names; Labeling of such mixture.

as

46. Imitation Slivovitz; Imitation Prune Brandy.

47. Representations of presence, excellence, or other characteristics of ingredients; Names and percentage amounts by volume; Manner of stating.

49. Labeling of rectified products; 'Bottled under Government Supervision" and like phrases considered misleading. 50. Obsolete.

51. Labeling of imported distilled spirits; Name of foreign distiller, rectifier, or other foreign firm, if stated, need not be preceded by words " Distilled by "," "Blended by ", etc. 52. Labeling of Straight Whiskey reduced below standard proof; May not be designated as "Straight Whiskey"; Permitted designations.

53. Use of back labels not necessary under Labeling Regulations. 54. Alcoholic beverages designated"Absinthe"

or

"Absinthe Type" and the like, not to be sold or otherwise introduced into commerce; Preparations so designated considered misbranded whether or not containing wormwood or other deleterious ingredients.

55. Obsolete.

56. Use of word "Kentucky" as part of brand name of distilled spirits blended in State other than Kentucky does not require presence upon label of word "Brand ", provided distilled spirits so blended were in fact produced in State of Kentucky. 57. Age statements for Vodka and other distilled spirits specifically named in Misbranding Ruling No. 4 may not be stated upon label, except when manufacturing and bottling dates required to be stated by State law or regulation, and then only in State so requiring.

58. Obscene or offensive labels.

59. Appropriate designations upon labels of rectified products of the character of manufacture.

Number of Ruling

60. False advertising; Advertisement of blended-whiskey products prominently display

61.

"

ing presence of aged, bonded whiskeys used therein, and of such design that it tends to create misleading impression that the blends either are blends solely of straight whiskeys and contain no neutral spirits, or are blends solely of straight whiskeys all over a specified age, considered objectionable.

Straight Whiskey "; Character as such not altered by addition of flavoring material not in excess of 2% % by volume. 62. Standards of Fill Regulations; Product known as "Advocaat" held by Commissioner of Internal Revenue not to be a cordial; Advocaat" therefore required, if bottled domestically or imported after January 1, 1935, to be in standard-size containers prescribed. 63. Guarantees under revised Labeling Regulations.

64. Bottling or manufacturing dates required upon labels by State law or regulation construed as age representations requiring additional proper age statement under Labeling Regulations. 65. State requirements; Age statements or other matter required by State law or regulation, but at variance with, or prohibited by the provisions of the revised Labeling Regulations; Labels containing required State matter restricted to sales in States so requiring.

66. Obsolete.

67. Distilled Spirits Revised Labeling Regulations; Filing of Labels_not equivalent to registration with U. S. Patent Office under trade-mark law; Extent of Administration's approval of labels.

68. Obsolete.

69. Obsolete.

70. Distilled Spirits Revised Labeling Regulations; Results of chemical analyses, certificates of quality and the like considered to be guaranties within meaning of Section 12 (k). 71. Standards of bill Regulations; Tolerances from required fill.

72. Distilled Spirits Revised Labeling Regulations; Distilled Exclusively for."

73. Obsolete.

74. Obsolete.

75. Distilled Spirits Revised Labeling Regulations; Age statements for blended products; additional statements permitted disclosing age and percentage of all whiskeys present in any of the types of blends.

76. Distilled Spirits Revised Labeling Regulations; Permitted designations of mixture of Straight Whiskey and Cane Alcohol (cane neutral spirits or cane distillate); age and percentage statement required; proper form thereof. 77. Distilled Spirits Revised Labeling Regulations; Words Norsk Brandvin " held unobjectionable when applied to imported Aquavit.

78. Obsolete.

79. Distilled Spirits Revised Labeling Regulations; Statements and reproductions appearing upon wholesaler's label and carton of such design as to convey impression that product distilled by wholesaler, condemned as misleading. 80. Distilled Spirits Revised Labeling Regulations; Disparaging statements contained upon labels or in advertisements of alcoholic beverages considered by Administration as improper and misleading. 81. Standards of Fill Regulations; Displacement caused by addition of small quantity of fruit to cordial or liqueur permitted as part of fill when presence visible through glass or indicated upon label. 82. Distilled Spirits Revised Labeling Regulations; Facsimile of award granted by Institute of Hygiene to English firm for quality of product made by it held to have no proper place upon label of domestically made gin; use thereof objectionable as misleading.

83. Distilled Spirits Revised Labeling Regulations; Labeling of distilled spirits imported in bulk and subsequently bottled by or for a person other than importer. 84. Distilled Spirits Revised Labeling Regulations; Use of distilled spirits acquired at Government sales permitted for blending purposes; proper labeling of completed product.

85. Applicable only to products of the Brewing Industry. 86. Applicable only to products of the Brewing Industry. 87. Applicable only to products of the Brewing Industry. 88. Applicable only to products of the Brewing Industry. 89. Domestic Distilled Spirits Label' Approval Regulations; One application containing cordial brand label and all strip labels used with such brand label, held acceptable. 90. Domestic Distilled Spirits Label Approval Regulations; One application containing several brand labels varying only in name and address of person for whom product bottled, held acceptable.

91. Imported Distilled Spirits Label Approval Regulations; Held applicable to withdrawal from customs custody of distilled spirits imported by importer whose ABI permit revoked before withdrawal or transfer in bond.

92. Imported Distilled Spirits Label Approval Regulations; Imported distilled spirits bearing labels differing from labels on General Release only in respect of importer's name and address, held entitled to release upon presentation of photostatic copy of such General Release and Importer's Affidavit.

93. Imported Distilled Spirits Label Approval Regulations; Transferee of distilled spirits in bond permitted to make application for release; Retailer transferee required to relabel in bond if relabeling necessary.

94. Distilled Spirits Advertising Regulations; Distilled spirits advertised as possessing curative or therapeutic properties. 95. Distilled Spirits Advertising Regulations; Invoices, sales receipts, delivery tickets, stationery, considered advertising media if containing statements, designs, and devices whose natural import tends to induce purchases of distilled spirits, wine, or brewery products.

1

Number of

Ruling

96. Distilled Spirits Advertising Regulations; Condition of permitted featuring of dealer or distributor's name in advertisements.

97. Distilled Spirits Advertising Regulations; Statement of class and type of advertised product considered sufficient where once prominently displayed in copy.

98. Distilled Spirits Revised Labeling and Advertising Regulations; Labeling and advertising of Absinthe substitutes permitted if consumer informed wherein substitute differs from genuine Absinthe.

99. Distilled Spirits Revised Labeling Regulations; Labels of British spirits permitted to indicate bottling in bond_under government supervision.

100. Distilled Spirits Revised Labeling Regulations; Labels of imported distilled spirits required to bear name of ABI permittee.

66

101. Distilled Spirits Revised Labeling Regulations; Fanciful names; When permitted. 102. Distilled Spirits Revised Labeling Regulations; Use of word Brand "held not to cure impression of foreign origin conveyed by brand name "Cream of Canada" applied to domestically manufactured article.

103. Distilled Spirits Revised Labeling Regulations; Certification by authorized foreign official of age and origin of Scotch, Irish, and Canadian whiskey, or of origin for Cognac, held appropriate although embodied in the same document.

104. Distilled Spirits Revised Labeling Regulations; Phrases "Pot Still", "Product of the Pot Still" permitted upon labels of Irish Whiskey produced by pot-still process. 105. Distilled Spirits Revised Labeling Regulations; Designation of type of cordial or liqueur permitted to be stated on separate label if affixed to same side of bottle as main label.

106. Distilled Spirits Revised Labeling Regulations; Labeling of Alcohol.

107. Distilled Spirits Revised Labeling Regulations; Computation of age of whiskey. 108. Distilled Spirits Revised Labeling Regulations; Manner of stating name of parent corporation when product distilled by one of several subsidiaries.

109. Distilled Spirits Revised Labeling Regulations; Procedure to obtain relabeling permission; Applicability of relabeling amendment.

110. Distilled Spirits Revised Labeling Regulations; Labeling of spirits acquired at government sale after seizure.

111. Distilled Spirits Standards of Identity and Revised Labeling Regulations; Labeling of Apricot Liqueur made by the use of brandy as entire or partial base.

112. Distilled Spirits Standards of Identity Regulations; Addition of 1% fusel oil to blend of straight whiskey and neutral spirits held to result in an "Imitation Whiskey."

113. Distilled Spirits Standards of Identity Regulations; Substandard proof products and appropriate qualifying designations.

114. Applicable only to products of the Wine Industry. 115. Applicable only to products of the Wine Industry.

APPENDIX C

1. ORIGINAL REGULATIONS RELATIVE TO THE LABELING OF DISTILLED SPIRITS (Misbranding Regulations, Series 1) 1

!

SECTION 1. Label Requirements.-Every bottle of distilled spirits sold, manufactured, bottled, rectified, blended, or purchased for sale except for export by any member of the Distilled Spirits Industry, the Distilled Spirits Rectifying Industry, the Alcoholic Beverages Importing Industry, or the Alcoholic Beverage Wholesale Industry, shall have affixed thereto a label conforming to the requirements of these regulations, and no member of any of such Industries shall purchase or sell any distilled spirits in bottles unless such label is affixed thereto; provided, however, that members of the Alcoholic Beverages Importing Industry, if otherwise duly authorized, may import distilled spirits not labeled in accordance with these regulations, provided such distilled spirits are properly labeled in accordance with these regulations prior to sale or other disposition thereof. SEC. 2. Definition of Label.-The term label as used in these regulations includes any statement, representation, legend, descriptive matter or pictorial or other design or device affixed to or appearing upon any bottle of distilled spirits, bottled domestically on or after March 7, 1934, or imported in bottles on or after April 7, 1934. The requirements of these regulations shall also apply to any circular, pamphlet, wrapper, individual container, or similar material other than case cartons which may be packed or go with such distilled spirits so bottled to the purchaser other than entirely unmarked material. SEC. 3. Definition of Distilled Spirits.-Distilled spirits, as used in these regulations, shall mean distilled spirits as defined in the Code of Fair Competition for the Distilled Spirits Industry.

Whiskey, as used in these regulations, includes straight whiskey, blended whiskey, spirit whiskey, and imitation whiskey.

Straight whiskey shall be deemed to be any alcoholic distillate from a fermented mash of grain commonly known as "whiskey," distilled at not exceeding 160° proof and withdrawn from the cistern room of a distillery between 110° proof and 80° proof and produced by the same distillery from the same type of materials and as part of the same season's distillation whether or not such proof is reduced prior to bottling.

1 These Regulations (Misbranding Regulations, Series 1) have been superseded by the Regulations relating to Labeling of Distilled Spirits which appear herein as Article III, and are no longer in effect except for the purpose of prosecuting or otherwise proceeding with respect to violations thereof occurring prior to the date of their repeal, viz, September 13, 1934.

Blended whiskey shall be deemed to be a mixture of straight whiskies, or of straight whiskey and neutral spirits, provided any such mixture contains at least 20% of 100° proof straight whiskey or whiskies by volume.

Spirit whiskey shall be deemed to be any mixture of whiskey and neutral spirits which contains at least 5% and less than 20% of 100° proof straight whiskey by volume.

Imitation whiskey shall be deemed to be any distilled spirits containing rye" or "bourbon essence or other similar whiskey flavoring materials and all other distilled spirits colored and/or flavored in simulation of whiskey; provided, however, that any person producing any distilled spirits which, as a result of treatment by a chemical or mechanical process, possess the taste, aroma, characteristics, and chemical composition of straight whiskey, may petition the Administration for permission to label such distilled spirits as straight, blended, or spirit whiskey or as whiskey of some new classification, and the Administration may take such action on such petition as it deems fair and reasonable.

The addition of harmless coloring and flavoring materials other than rye or bourbon essence or similar whiskey flavoring materials, or the filtration of any whiskey shall not alter the classification of any whiskey as herein set, forth.

SEC. 4. Contents of Label.-The label or labels on each container shall bear sufficient descriptive matter, and shall be so worded and designed as to indicate in a fair intelligi. ble, and accurate manner, the kind, type, nature, and general standard of the distilled spirits to which it refers. No such label shall be untrue in any particular or directly or by ambiguity, omission or inference, or the addition of irrelevant or scientific or technical matter tend to create a misleading impression as to the kind, type, nature, origin, comparative quality, standard, or value of such distilled spirits or to obscure or modify any statement required by these regulations.

SEC. 5. Qualification of Descriptive Matter.-If any representation (other than representation required by these regulations) is made as to the presence, excellence, or other characteristic of any ingredient in any distilled spirits, the said label shall state in the same size and kind of type or script the minimum percentage of such ingredient by volume contained therein. If such representation relates to the age of any distilled spirits, the age at the time of bottling or the year and season of distillation thereof shall be stated in the same size and kind of type or script as such representation. The volume percentage of any straight whiskey in any blended, spirit, or imitation whiskey shall be computed for the purposes of these regulations on the basis of the amount of such straight whiskey at 100 degrees proof. The use of words or devices in any brand name or mark shall be deemed a representation within the meaning of these regulations: Provided, however, That the use of the word "old" or other such word, without qualification, shall not be deemed a misrepresentation if the word "brand" appears in direct conjunction with such brand name in letters in equally conspicuous color and at least one-half the size of such brand name. SEC. 6. Use of More Than One Label.-All brand labels shall contain the brand name, type, proof, and quantity of the distilled spirits contained in the bottle to which such label is affixed, and such material as is required by Section 10 of these regulations. In the case of whiskey such brand label shall also contain the material required by Section 13 of these regulations. In the case of gin such label shall also contain the material required by Section 17 of these regulations. The brand label may also contain other material: Provided, however, That such material shall comply with the requirements of these regulations, and shall not conflict with, nor be contradictory to, nor in any manner qualify or be qualified by any of the material required by these regulations to be contained in any label and not also appearing on such brand label.

All material required by these regulations shall be contained in the usual brand label, if such brand label is the only label attached to the bottle.

If any material required by these regulations is not contained in the brand label, such material shall appear on an additional label affixed to the reverse side of the container from the brand label in such a manner that it cannot be removed without the thorough application of water or other solvent. Such additional label shall contain all of the material required by these regulations whether or not any of such material appears on the brand label, and such label shall contain no other material.

For the purpose of this section the brand label shall be deemed to be the label carrying in the usual distinctive design the brand name of the distilled spirits, or in the case of any individual container or similar material the face of such container on which such brand name appears in the usual distinctive design.

SEC. 7. Form of Labels.-All labels shall be so designed that all the contents thereof are readily legible under ordinary conditions, and all such contents shall be on a contrasting background. No script, type, or printing thereon shall be smaller than eight point, except in the case of labels on bottles having a capacity of less than one-half pint. SEC. 8. Language of Labels. All labels shall be in English except that brand, place, and proper names appearing on labels of distilled spirits need not be in English if the country where such distilled spirits were produced appears thereon. Translations of such labels in their entirety, but not in part, may also appear thereon in foreign languages. SEC. 9. Government Stamps and Permits.-No label shall be of such design as to resemble or simulate a governmental stamp, and no label other than stamps authorized or required by the Liquor Taxing Act of 1934 shall state or indicate that the distilled spirits contained in the labeled bottle are distilled, blended, made, bottled, or sold under or in accordance with any Municipal, State, or Federal Government permit, authorization, law, codes, or regulations, unless such statement is required; provided, however, that nothing in this section shall prohibit any statement that any distilled spirits were bottled in bond, or under similar governmental supervision, in accordance with the laws of any country if such label, in the case of foreign countries, indicates the country under whose laws such distilled spirits were so bottled. No label shall obscure any government stamp, or be obscured thereby,

SEC. 10. Name of Manufacturer and Contents.-All labels shall set forth plainly and conspicuously the net contents of the bottle in quarts or pints, or in fractions thereof, the alcoholic content thereof by proof, and the name and address of the distiller, blender, maker, or in the case of distilled spirits imported in bulk and bottled by the importer thereof, the name and address of the importer, except as hereinafter provided. In the case of straight whiskey, the name of such distiller shall be immediately preceded by the words "distilled by." In the case of blended whiskey, the name of the blender shall be immediately preceded by the words "blended by." In the case of spirit or