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Crown Imports settles with TTB for alleged trade practice violation

May 29, 2019Chris Crowell

ttb label penalty

The Alcohol and Tobacco Tax and Trade Bureau alleged that Crown Imports engaged in activities that violated 27 U.S.C. 205(b). The company submitted an offer of $420,000 as a compromise of the allegations, which the TTB accepted.

Details are scant, but the TTB alleges that Crown entered into certain agreements with retailers, indirectly through (1) an independent third-party or (2) an affilate of the retailer, wherein Crown sent payment to the third-party promotional company or affiliate, resulting in additional advertising, display and/or distribution services related to Crown’s brands.

Specifically, TTB alleges that Crown made the payments in part to secure tap handles and that this amounts to a slotting allowance. The alleged violation occurred on or around and between Jan. 1, 2016, and April 25, 2019.

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