In the alcohol beverage industry, regulatory compliance is critical when it comes to labeling. The Alcohol and Tobacco Tax and Trade Bureau (“TTB”) oversees these regulations, ensuring that labels meet federal requirements before products reach the market. However, in some cases, businesses may find themselves with pre-printed labels that no longer comply with updated TTB regulations. When this happens, they may submit a TTB use-up request to seek temporary approval to continue using non-compliant labels under specific conditions.
Understanding a TTB Use-Up Request
A use-up request is submitted to the TTB asking for permission to use existing inventory of labels that no longer meet current regulatory requirements. Rather than discarding or reprinting large quantities of labels, businesses can request a temporary approval to use them up before transitioning to updated, compliant labels.
A company may request a use-up if, for example, they switch from one bottling company to another and have pre-printed labels that list the prior bottler’s name and address. Other times, an overseas supplier may have a new importer in the U.S. and may wish to use up pre-printed labels that list the prior importer’s name and address. There are other instances as well that may trigger a supplier to request a use-up from TTB.
The TTB considers use-up requests on a case-by-case basis and generally grants approval only if the non-compliant elements of the label do not mislead consumers or create compliance risks.
When Should a Use-Up Request Be Submitted?
Businesses may file a use-up request when:
- TTB regulations change, rendering pre-approved labels non-compliant
- A brand updates its formula or classification, affecting label accuracy
- A Certificate of Label Approval (“COLA”) requirement changes, making existing labels obsolete
- A company has excess inventory of outdated labels, and discarding them would cause significant financial burden
TTB typically approves of a use-up request for a specific period of time.
How to Submit a TTB Use-Up Request
1. Prepare a Formal Request
The request must include:
- A detailed justification explaining why the use-up is necessary
- The number of labels affected
- The expected timeline for phasing in compliant labels
- Confirmation that the supplier will avoid having non-compliant labels in the future and the means the supplier will take to avoid such
2. Submit the Request to TTB
Use-up requests are typically submitted through the TTB’s COLAs Online system or via the agency’s website, depending on the circumstances.
3. Await TTB Review and Decision
The TTB evaluates whether:
- The request is reasonable and does not compromise regulatory standards
- The labels in question does not pose a risk of consumer confusion
- The applicant has a clear plan to transition to compliant labels
If approved, the TTB will specify how long the business may continue using the labels.
Key Considerations for Businesses
- Plan ahead: If label regulations change, assess inventory early to determine if a use-up request is needed.
- Ensure transparency: The TTB is more likely to approve requests if labels are only minimally non-compliant and do not mislead consumers.
- Transition as soon as possible: The approval is temporary—businesses should prepare to comply with new labeling requirements promptly.
How can Lindsey Zahn P.C. Assist with a Use-Up Request?
A TTB use-up request allows alcohol beverage producers to continue using pre-printed, non-compliant labels under specific conditions, reducing waste and financial loss. However, approval is not guaranteed, and businesses must demonstrate that their labels remain truthful and do not violate consumer protection laws.
If your business is considering a use-up request filing and needs assistance navigating the process, working with a professional is ideal. Contact Lindsey Zahn P.C. to schedule an introductory meeting to discuss your needs and products and to learn more about how we can help: info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).