Alcohol

C. Jarrett Dieterle | From the December 2024 issue

When the 21st Amendment was ratified in 1933, ending America's "noble experiment" with nationwide alcohol Prohibition, it supposedly meant the federal government was getting out of the business of regulating booze. But few governments willingly give up power, and even fewer give it up absolutely.

In 1935, Congress passed the Federal Alcohol Administration Act (FAA Act), allowing the feds to collect alcohol excise taxes, prevent unfair trade practices, and protect consumers. Determining which agency should administer the FAA Act has been quite a journey—the Internal Revenue Service; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and, for the last 21 years, the Alcohol and Tobacco Tax and Trade Bureau (TTB) have all taken turns. But one thing hasn't changed: The FAA Act still remains the main authorizing legislation empowering the federal government to regulate alcohol markets.

One of the TTB's main responsibilities is enforcing the FAA Act's unfair trade practice rules, which are intended to protect alcohol retailers from being controlled........

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