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TTB – $750,000 Fine For Slotting Fee Violations

by | Nov 18, 2016 | alcohol beverage law, Beer, Litigation, TTB

According to the Alcohol and Tobacco Tax and Trade Bureau (TTB), it accepted a
$750,000 offer in compromise from Craft Beer Guild, A MASS. distributor, for trade practice
violations. The TTB said, “this is the largest offer in compromise that TTB has recovered from a single industry member for trade practice violations.”

The offer in compromise is related to the distributor allegedly paying “slotting fees” to retailers in exchange for favorable product placement and shelf space.

And more is likely coming. As reported in the Boston Globe, “Robert Angelo, director of the bureau’s Trade Investigations Division, characterized the large settlement as a warning to beer distributors everywhere and vowed to take a “hard stand” against pay-to-play.”

Angelo told the Boston Globe, “this is not something I intend to walk away from. You’re going to see further investigations in this area…I don’t want industry members to consider getting caught the cost of doing business. I want them to realize there are significant consequences if we catch you.”

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