On November 1st, the Alcohol and Tobacco Tax and Trade Bureau (“TTB“) published Industry Circular 2024-1 which announced a new guidance for alcohol beverages with respect to social media. The new circular modifies and supersedes an earlier circular from 2022 (Industry Circular 2022-2).
The TTB treats content posted on social media by industry members as advertising subject to the FAA Act and relevant TTB regulations. This means that such publications must include all mandatory statements required under 27 CFR §§ 4.62, 5.233, and 7.233. Generally speaking, advertisements typically need to include the name and city and state (or other contact information) of the responsible advertiser, the class/type of the product, and, in some instances, may require the alcohol content. (Depending on specifics, additional information may be required.)
In the past, the agency has considered the entire social media page or site, including the “home” page and associated subpages or tabs, to be a single advertisement. Mandatory statements only need to be displayed once, either on the “home” page or a subpage, but they must be prominent, legible, clearly part of the advertisement, and visible to viewers. For reference, see 27 CFR 4.63, 5.234, and 7.234.
TTB encourages advertisers to consider placing mandatory statements in locations where consumers would logically expect to find key information, ensuring the statements are easy to locate and understand. Certain mandatory information could be found, for example, in the “about” or “bio” section of the industry member’s social media page whereas TTB may expect other types of mandatory information to be found on pages that advertise the actual product.
In 2024-1, the agency acknowledged that some social media profiles may limit the ability of an industry member to provide mandatory information on the social media profile. Accordingly, TTB has determined that a link directing consumers to a page with mandatory product information can fulfill regulatory requirements. This link should be clearly labeled (e.g., “Product Information”) and direct users to a page where the required details are visible, legible, and easy to find without extra steps such as account creation or additional searches. On social platforms with limited linking options, using a link-sharing service (like LinkTree) that prominently displays the product information link may be an alternative option.
If the required information is proved through a link, the advertisements on the industry member’s social media page must still contain sufficient information about the product to avoid misleading information.
TTB also reminds industry members in 2024-1 that the regulations at 27 CFR §§ 4.64, 5.235, and 7.235 apply to all advertising, including social media. Any content posted, shared, or even “liked” by an industry member on its own or a third-party site is considered advertising and is thus subject to prohibited practices guidelines. For instance, reposting an article or “liking” a post that causes it to appear in a follower’s feed would fall under these advertising rules and need to comply with regulatory standards for fair practices and statements.
This brings about a very important question that all industry members must ask: How familiar is your social media content manager with federal alcohol beverage advertising regulations? Have they been trained? If the answer is not at all or raises uncertainty, contact Lindsey Zahn P.C. to find out more about how the firm can assist. Contact us for an initial consultation at 929-924-6529 or by emailing info@zahnlawpc.com.