Department  of  Health  and  Human  Services 
I 
OFFICE  OF 
INSPECTORGENERAL 
YOUTH  AND  ALCOHOL: 
CONTROLLING  ALCOHOL  ADVERTISING 
THAT  APPEALS  TO  YOUTH 
Richard  P.  Kusserow 
INSPECTOR  GENERAL 
OET-09-91-00654  EXECUTIVE  SUMMARY  -
PURPOSE 
This  inspection  examined  (1)  the  Federal,  State,  alcohol  industry,  and  national 
television  networks  advertising  and  marketing  regulations  and  standards,  (2)  the 
monitoring  of  these  regulations  and  standards,  and  (3)  the  application  of the 
regulations  and  standards  to  five  current  alcohol  advertisements. 
BACKGROUND 
In  response  to  concerns  about  youth  alcohol  consumption,  Surgeon  General  Antonia 
Novello  requested  that  the  Office  of  Inspector  General  (OIG)  provide  information 
about  alcohol  advertising  practices  and  the  current  system governing  them.  These 
concerns  mirror  one  of  Department  of Health  and  Human  Services  Secretary  Louis 
Sullivans  goals,  which  is to  reduce  the  prevalence  of alcohol  problems  among  children 
and  youth. 
In  a national  survey  of junior  and  senior  high  school  students,  the  OIG  found  that 
students  notice  alcohol  advertisements  and  especially  like  those  that  spotlight  attractive 
people,  make  drinking  look  like  fun,  and  feature  attractive  or  exotic  settings.  Other 
researchers  have  found  that  alcohol  advertisements  can affect  youth  attitudes  about 
alcohol.  For  example,  one  study  found  that  students  exposed  to beer  commercials 
were  more  likely  to  think  beer  is cool  or  macho.  Recent  public  opinion  polls  show 
that  the  public  believes  alcohol  advertising  adversely  affects  underage  youth  and 
influences  them  to  drink.  Because  of alcohols  potential  for  abuse,  both  public  and 
private  sectors  have  placed  restrictions  on  its promotion  and  sale. 
In  this  study,  we  interviewed  Federal  agencies,  State  Alcoholic  Beverage  Control 
(ABC)  agencies,  alcohol  trade  associations  and  an industry-supported  organization,  an 
advertising  industry  organization,  and  the  three  largest  national  television  networks. 
We  asked  about  their  regulations  or  standards  for  alcohol  advertising  and  the 
enforcement  of  the  regulations  and  standards.  Using  a case study  approach,  we 
selected  five  current  print  and  television  advertisements  for  alcoholic  beverages  and 
asked  respondents  about  (1)  the  application  of  their  regulations  or  standards  to  the 
ads, (2)  the  likelihood  that  they  would  take  action  to change  the  ads, and  (3)  their 
suggestions  for  improving  the  ads.  We  asked  researchers  and  public  interest  groups 
who  study  alcohol  and  advertising  for  their  opinions  on  current  alcohol  advertising 
practices  and  their  specific  comments  about  the  five  selected  ads. 
i  FINDINGS 
FEDERAL  REGULATION 
t  Federal  jurisdiction  is fragmented  among  several  agencies. 
t  Federal  regulations  do not  specifically  prohibit  alcohol  advertisements  that 
appeal  to youth. 
b  The  Bureau  of Alcohol,  Tobacco  and  Firearms  enforcement  authority  is 
limited. 
STATE  REGULATION 
States  have  difficulty  adopting  legislation  to  control  alcohol  advertising. 
b 
t  State  regulations  are  limited  in their  application. 
ALCOHOL  INDUSTRY  CONTROLS 
Alcohol  industry  standards  do not  effectively  restrict  advertisements  that  appeal 
b 
to youth. 
b  Alcohol  industry  standards  are  unenforceable. 
TELEKWON  NETWORK  CONTROLS 
Network  enforcement  is based  on negotiation  with  advertisers. 
b 
CASE  STUDY 
Regulations  and  standards  have not  deterred  advertisers  from  using 
b 	
advertisements  that  appeal  to youth. 
ISSUES  FOR  CONSIDERATION 
Based  on  a review  of  the  findings  in  this  report,  the  OIG  developed  a list of issues for 
consideration  that  could  help  eliminate  alcohol  advertisements  that  appeal  to youth. 
ii  TABLEOF  CONTENTS 
INTRODUCTION..  ...............................................  1 

FINDINGS  ......................................................  6 

FEDERAL  REGULATION  .......................................  6 

STATE  REGULATION  .........................................  10 

ALCOHOL  INDUSTRY  CONTROLS  ...............................  13 

TELEVISION  NETWORK  CONTROLS  .............................  16 

CXSESTUDY  ................................................  18 

ISSUES  FOR  CONSIDERATION  ....................................  20 

APPENDICES 
Appendix  A:  Case Study  Advertisements  and  Responses  ...............  A-l 
Appendix  B:  Respondents  for  the  Case  Study  .......................  B-l  INTRODUCTION 
PURPOSE 
This  inspection  examined  (1)  the  Federal,  State,  alcohol  industry,  and  national 
television  networks  advertising  and  marketing  regulations  and  standards,  (2)  the 
monitoring  of these  regulations  and  standards,  and  (3)  the  application  of the 
regulations  and  standards  to  five  current  alcohol  advertisements. 
BACKGROUND 
In  response  to  concerns  about  youth  alcohol  consumption,  Surgeon  General  Antonia 
Novello  requested  that  the  Office  of  Inspector  General  (OIG)  provide  information 
about  alcohol  advertising  practices  and  the  current  system governing  them.  These 
concerns  mirror  one  of  Department  of Health  and  Human  Services  Secretary  Louis 
Sullivans  goals,  which  is to  reduce  the  prevalence  of alcohol  problems  among  children 
and youth.  This  report  is one  in a series  prepared  by the  OIG  related  to youth  and 
alcohol. 
In  a national  survey  of junior  and  senior  high  school  students,  the  OIG  found  that 
students  notice  alcohol  ads and  especially  like  those  that  spotlight  attractive  people, 
make  drinking  look  like  fun,  and  feature  attractive  or  exotic  settings.*  Other 
researchers  have  found  that  alcohol  ads can  affect  youth  attitudes  about  alcohol.  For 
example,  one  study  found  that  students  exposed  to beer  commercials  were  more  likely 
to  think  beer  is cool  or  macho.2 
Alcohol  Mark.dngs  Eflect  on  Youth 
The  public  has expressed  concern  about  the  marketing  of alcoholic  beverages  to youth. 
The  concern  about  alcohol  marketing  (which  includes  advertising,  labeling,  and 
promotions)  focuses  on youth-oriented  advertising,  promotional  items,  and  events 
sponsored  by the  alcohol  industry.  In  a recent  public  opinion  poll  conducted  on behalf 
of the  Century  Council,  an alcohol  industry-supported  organization,  the  Wirthlin 
Group  found  that  73 percent  of respondents  believe  that  alcohol  advertising  is a major 
contributor  to  underage  drinking.  Additionally,  the  majority  of Americans  think  the 
alcohol  industry  is on  the  wrong  track,  one  of  the  reasons  being  that  alcohol  ads 
U.S. Department of Health  and Human Services, OIG-OEI,  Youth  and Alcohol:  A National 
Survev--Drinking  Habits, Access, Attitudes,  and Knowledge, OEI-09-9140552,  June 1991. 
Lawrence  Wallack, Diana Cassady,and Joel Grube, T.V. Beer Commercials and Children: 
Exposure, Attention,  Beliefs, and Expectations About  Drinking  as an Adult,  AAA  Foundation  for 
Traffic Safety, Fall  1990. 
I  target  the young.3  In  an opinion  poll  conducted  for  the  Bureau  of Alcohol,  Tobacco 

and  Firearms  (BATF),  more  than  80 percent  of  respondents  believe  that  alcohol 

advertising  influences  youth  to drink  alcoholic  beverages. 

Because  of concerns  about  youth  alcohol  use and  lack  of knowledge  about  alcohol, 

Congress  proposed  the  Sensible  Advertising  and  Family  Education  Act  of  1990.  This 

legislation  would  not  restrict  the  content  of alcohol  ads, but  it would  require  a 

balanced  message  in  the  ads with  health  warnings  and  toll-free  numbers  for 

information  about  the  risks  associated  with  alcohol. 

Broadcasters  acknowledge  that  advertising  can  affect  youth.  According  to  the 

National  Association  of Broadcasters  (NAB),  the  impact  of  advertising  on  radio  and 

television  audiences,  particularly  kids,  cannot  be overstated.  Clever  jingles,  flashy 

lights,  fast  talking,  and  quick  pacing,  all  contribute  to the  message  of  commercials. 

While  alcohol  ads may  not  be aimed  at the  underage  youth  market,  according  to NAB, 

youngsters  still  absorb  the  message. 

Controversy  remains,  however,  over  the  effects  of alcohol  advertising.  While  studies 

have  not  consistently  shown  that  advertising  increases  adult  alcohol  consumption,  some 

researchers  believe  that  exposure  to  alcohol  advertising  affects  youths  attitudes  about 

alcohols  role  in society.  Researchers  have not  reached  consensus  on  the 

interpretations  of  these  findings. 

Concern  for  Certain  Advertking  Messages 

Concern  over  alcohol  advertising  arises because  much  alcohol  advertising  goes beyond 

describing  the  specific  qualities  of  the  beverage  to creating  a glamorous,  pleasurable 

image  that  may  attract  youth.  Research  indicates  that  youth  are  attracted  to  certain 

types  of alcohol  ads.6  Alcohol  advertising  critics  oppose  ads that  appeal  to youth  by 

3The Wirthlin  Group,  A National  Benchmark Survey of Public Attitudes  Toward Beverage 
Alcohol,  prepared for the Cenrury Council, Vol. 1, September1990,p. 13. 
40pinion  Research Corporation,  Final  Report of Findings of Research Study of the Public 
Opinion  Concerning  Warning  Labels on Containers of Alcoholic  Beverages, conducted for BATF, 
Vol.  1, December 1988, p. 14. 
NAB,  Kidsummit  Against Drugs, November 18, 1987. 
6P.P. Aitken,  et al., Television  Advertisements for Alcoholic  Drinks  j&  Reinforce Under-age 
Drinking,  British  Journal  of Addiction,  Vol. 83, 1958, pp. 1399-1419; Charles Atkin  and Martin  Block, 
Content  and Effects of Alcohol  Advertising,  prepared for BATF, Pub. No. PB82-123142, Springfield, 
Va:  National  Technical  Information  Sexvice, 1981; Lisa R. Lieberman and Mario  A  Orlandi,  Alcohol 
Advertising  and Adolescent Drinking,  Alcohol  Health  and Research World,  Vol.  12, No. 1, 1987, 
pp. 32-33; Kimberly  Neuendorf, Alcohol  Advertising  and Media Portrayals, Journal  of Studies on 
Alcohol,  Vol. 45, 1984, pp. 93-100. 
2  (1)  making  lifestyle  appeals,  (2)  making  sexual  appeals,  (3)  using  sports  figures,  and 
(4)  showing  risky  activities. 
Lifestyle  appeak  The  aim  of a lifestyle  ad  is to get  consumers  to  identify  with 
the  image  created.  According  to  one  report,  young  people  are  constantly 
seeking  role  models  and  attractive  lifestyles  to emulate.  These  ads associate 
wealth,  success, social  approval,  and  leisurely  life  with  drinking.  The  ads are 
emotional  rather  than  factual.  An  example  is an ad that  shows beautiful  men 
and  women  on  a tropical  island  with  no  cares in  the world. 
S-Z  appeals.  These  ads use sexuality  as a direct  appeal.  Ads  feature 
attractive  models  wearing  lingerie  or  couples  in an embrace.  The  ads usually 
make  little  or  no  mention  of the  products  contents  or  taste.  According  to  the 
Center  for  Science  in the  Public  Interest  (CSPI),  direct  sexual  appeals  in ads 
are  more  favorably  received  by young  people  than  by adults.  The  CSPI 
claims  that  advertising  with  sexual  appeals  plays  on  the  feelings  of sexual 
inadequacy  of young  people. 
Sportsfigz~c~  Many  alcohol  advertisers  concentrate  ads in sports  broadcasts, 
sponsor  athletic  events,  own  or  sponsor  professional  teams,  and  use athletes  in 
commercials.  Sports  figures  are  common  youth  heroes.  Youth  receive  a 
positive  message  about  alcohol  use through  sports  figure  promotion  of  alcohol 
products.  Examples  of sports  themes  are  ads featuring  former  professional 
athletes  and  ads showing  friends  getting  together  for  weekend  sports  such  as 
softball. 
Risky  activities.  These  ads may show  people  shooting  rapids,  climbing 
mountains,  boating,  skiing,  or  driving  race  cars.  Many  ads associate  alcohol 
with  the  exciting  activity  by interspersing  action  scenes and  shots  of the  prcduct 
or  by showing  alcohol  as a reward  for  the  activity.  Studies  by Atkin  and  Block 
find  that  people  interpret  more  than  an association  between  the  activity  and  the 
product;  many  believe  that  the  actors  have  consumed  the  product,  or  it is 
acceptable  for  people  to  drink  and  do  the  activity. 
7Michael Jacobson, Robert Atkins, and George Hacker, The Booze Merchants, Center for Science 
in the Public Interest,  1983, p. 104. 
George  A  Hacker, Ronald Collins, and Michael Jacobson, Marketing  Booze to Blacks, Center for 
Science in the Public  Interest,  1987, pp. 28-29. 
CSPI, Omnibus  Petition  for Regulation  of Unfair  and Deceptive Alcoholic  Beverage Advertising 
and Marketing  Practices, Submitted to the FTC, 1985, p. 11. 
OLieberman and Orlandi,  p. 32. 
Atkin  and Block, pp. 332-334.  Controls  on Alcohol  Advertising 
Because  of  alcohols  potential  for  abuse,  both  public  and  private  sectors  have  placed 
restrictions  on  its promotion  and  sale.  As  part  of these  efforts,  some  organizations 

have  placed  controls  on  alcohol  advertising  in an attempt  to  assure  that  alcohol  ads do 

not  target  young  people.  Restrictions  on  alcohol  advertising  come  primarily  from 

(1)  Federal  regulations,  (2)  State  regulations,  (3)  alcohol  industry  organization 

standards,  and/or  (4)  national  television  network  standards. 

At  the  Federal  level,  the  Federal  Alcohol  Administration  (FAA)  Act  gives primary 

responsibility  to  the  Department  of Treasurys  BATF.  The  BATF  regulates  the 

permits,  labels,  and  advertising  of wine,  distilled  spirits,  and,  to  some  extent,  malt 

beverages.  The  Food  and  Drug  Administration  (FDA),  in the  Department  of Health 

and  Human  Services,  has authority  over  labeling  of wine  beverages  containing  less 

than  7 percent  alcohol  and  can affect  the  content  of some  point-of-sale  advertising. 

The  Federal  Trade  Commission  (FTC)  has the  more  general  authority  to  regulate 

deceptive  or  unfair  commercial  practices.  This  authority  extends  to  alcohol  advertising 

and  marketing  activities,  such as student  spring  break  promotions. 

The  Twenty-First  Amendment  to  the  U.S.  Constitution  repealed  Prohibition  and  gave 

States  the  responsibility  for  regulating  alcoholic  beverages.  As  a result,  some  States 

have  regulations  that  permit  their  Alcoholic  Beverage  Control  (ABC)  agencies  to 

monitor  and  control  alcohol  advertising. 

The  Beer  Institute,  the  Wine  Institute,  and  the  Distilled  Spirits  Council  of the  United 

States  (DISCUS)  have  developed  separate  advertising  codes  and  standards  for  their 

members.  An  industry-supported,  non-profit  organization,  the  Century  Council,  has 

developed  advertising  standards  intended  to  apply  to all  three  sectors  of the  alcohol 

industry  (beer,  wine,  and  distilled  spirits)  effective  October  1, 1991. 

After  the  dissolution  of  the  NAB  Television  Code  in  1982, the  development  and 

administration  of advertising  standards  were  left  to  the  networks  and  stations-l3 

Three  major  national  television  networks  (ABC,  NBC,  and  CBS)  adopted  standards 

for  alcohol  ads, which  they  contend  uphold  their  commitment  to viewers  for  quality 

programming. 

More  information  about  the  Federal,  State,  alcohol  industry  organization,  and 

television  network  roles  is contained  in  the  Findings  section  of this  report. 

2Alcohol  industry organizationsand industry  organizations  refer to alcohol trade associations 
(the Beer Institute,  the Wine Institute,  and the Distilled  Spirits Council  of the United  States) and the 
Century Council. 
13George Gerbner, Stories that Hurt:  Tobacco, Alcohol,  and Other  Drugs in the Mass Media, 
Youth  and Drues:  Societvs Mixed Messages,Office of Substance Abuse Prevention  Monograph-6, 
1990, p. 65.  METHODOLOGY 
To  obtain  an  understanding  of the  government  regulations  and  voluntary  standards 
that  control  alcohol  advertising,  we  conducted  structured  in-person  and  telephone 
interviews  with  BATF,  FTC,  FDA,  State  ABC  agencies,  alcohol  trade  associations,  the 
Century  Council,  the  American  Association  of Advertising  Agencies,  and  three 
national  television  networks  (ABC,  NBC,  and  CBS).  We selected  the  three  television 
networks  because  they  have  national  advertising  standards.  During  the  interviews,  we 
asked  respondents  about  (1)  the  organizations  regulations  or  standards  for  alcohol 
advertising,  (2)  the  effectiveness  of these  criteria,  and  (3)  suggestions  for  improving 
the  system  of control  over  alcohol  advertising.  We  also contacted  researchers  and 
public  interest  groups  in the  fields  of alcohol  abuse  and  advertising  in order  to discern 
their  opinions  about  alcohol  advertising  practices. 
We  reviewed  Federal  laws,  regulations,  and  rulings  to determine  the  extent  of Federal 
authority  and jurisdiction.  We researched  State  liquor  laws  in the  Commerce 
Clearinghouse  Liquor  Control  Law  Reporter  to  determine  the  applicable  State  laws 
that  regulate  alcoholic  beverage  advertising.  We  also reviewed  alcohol  and  media 
organization  advertising  standards  to  compare  the  industries  codes  and  standards. 
To  understand  how  the  respondents  regulations  or  standards  apply  to specific 
advertising  practices,  we  selected  five  current  television  and  print  ads for  alcohol.  We 
asked  that  respondents  respond  as they  would  to  complaints  about  each of the  ads. 
Because  we wanted  to  focus  on how  regulations  and  standards  apply  to  alcohol 
advertising  practices  and  techniques,  rather  than  ads for  specific  products,  respondents 
were  asked  to  respond  to  all the  ads, even  those  for  which  they  do  not  have 
responsibility.  We  specifically  stated,  If  the  ad is for  a product  the  [organization] 
does  not  represent,  please  review  the  ad as if it were  for  [beer/wine/wine 
coolers/distilled  spirits].  We  asked  respondents  about:  (1)  the  application  of their 
regulations  or  standards  to  the  five  alcohol  ads, (2)  the  likelihood  that  they  would  take 
any action  to  change  these  ads, and  (3)  suggestions  for  changing  or  improving  the  ads. 
We  asked  interest  groups  if any aspects  of  the  ads might  be  particularly  attractive  or 
misleading  to youth.  Results  of the  case study  incorporate  both  comments  from 
interviews  and  written  responses.  Appendix  B lists the  individuals  and  organizations 
contacted  for  the  case study,  and Appendix  A  summarizes  their  responses. 
The  term interest groups will  be used throughout  the report to refer to researchers and public 
interest groups in the fields of alcohol abuse and advertising.  FEDERALREGULATION 
FEDERAL  JURISDICTION  IS FRAGMENTED  AMONG  SEVERAL  AGENCIES 
Several  Federal  agencies  have responsibility  for  regulating  alcoholic  beverages.  The 
BATF  regulates  the  permits,  labels,  and  advertising  of wine,  distilled  spirits,  and,  to 
some  extent,  malt  beverages.  The  FDA  has authority  over  labeling  of wine  beverages 
containing  less than  7 percent  alcohol.  The  FIG  prohibits  deceptive  and  unfair 
advertising  and  marketing  of all alcoholic  beverages.  It  has concurrent  jurisdiction 
with  BATF,  but  FTC  generally  defers  to BATFs  decisions.  The  following  chart 
outlines  how  responsibility  for  alcoholic  beverages  is divided  among  the  Federal 
agencies. 
THREE  FEDERAL  AGENCIES  SHARE  RESPONSIBILITY 
ADVERTISING  LABELING  ROMOTION:  ; 
0
0
MALT  BEVERAGES 
WINE  7%  AND  OVER 
!z 
WINE  BEVERAGES 
UNDER  7% 
c 
DISTILLED  SPIRITS 
FTC* 
0 
* 	 The  FTC  has  authority  over  all  alcohol  marketing  practices  (advertising, 
labeling,  and  promotions),  but  usually  defers  to  agencies  that  have  more 
specific  jurisdiction  (see  discussion  on  p.  7). 
1  For  malt  beverages,  BATFs  authority  is  limited  in  certain  States. 
2 	 The  BATF  requires  the  Surgeon  Generals  health  warning  on  all  alcoholic 
beverages  and  the  alcoholic  content  on  all  wines  containing  over  0.5  percent 
alcohol. 
While  BATF  has the  specific  responsibility  for  alcoholic  beverage  permits,  labels,  and 
advertising,  it  does  not  have  complete  control  over  all types  of  alcoholic  beverages. 
For  example,  Federal  law  does not  require  malt  beverage  producers  to  hold  a permit 
although  permits  are  required  for  wine  and  distilled  spirits  producers  and  importers. 
Federal  law  also  limits  BATFs  authority  over  malt  beverage  labeling  and  advertising 
6 
 in States  that  do  not  have  enabling  legislation  (see detailed  discussion  of BATFs 

jurisdiction  on  p. S).  Also,  wine  coolers  do  not  fall  entirely  under  BATFs  jurisdiction 

because  the  FAA  Act  definition  of wine  does  not  include  beverages,  such as wine 

coolers,  containing  less than  7 percent  alcohol  by volume.  The  BATFs  jurisdiction 

over  wine  coolers  is limited  to requiring  that  the  Surgeon  Generals  health  warning 

and  the  alcoholic  content  appear  on  the  labels. 

Since  wine  coolers  do  not  meet  the  definition  of wine,  they  are  treated  as a food  and 

come  under  FDAs  jurisdiction.  The  FDA  regulates  the  labeling,  but  not  the 

advertising,  of wine  coolers.  Although  the  FDA  has no authority  over  advertising 

practices  per  se, it  can affect  the  content  of point-of-sale  advertising,  such as posters 

that  accompany  the  product  or  advertising  tags placed  around  the  necks  of bottles. 

Congress  granted  FTC  general  authority  to  prevent  deceptive  and  unfair  business 

practices,  including  marketing  and  advertising.  While  FTC  has jurisdiction  over  the 

advertising,  labeling,  and  promotion  of all  alcoholic  beverages,  it will  defer  in 

individual  cases if BATF  or  FDA  has specific  regulations  or  makes  specific  decisions 

regarding  a product.  For  example,  if BATF  approves  a product  label  and decides  it is 

not  deceptive,  FTC  generally  defers  to  BATFs  decision.  Because  BATF  and  FDA 

regulations  do  not  address  wine  cooler  advertising,  FTC  has sole jurisdiction. 

One  alcoholic  beverage  illustrates  the  confusion  among  the  Federal  jurisdictions.  A 

drink  called  Passion  (available  in Purple,  Pink,  Peach,  and  Tropical  flavors)  contains 

grain  alcohol  in some  areas  of the  country  and  substandard  wine  in others.15  The 

BATF  has jurisdiction  over  the  grain  alcohol  version  of Passion.  The  FDA,  on the 

other  hand,  has jurisdiction  over  the  labeling  of the  substandard  wine  mixture,  which 

contains  less than  7 percent  alcohol.  The  FTC  can consider  questions  that  neither 

BATF  nor  FDA  address.  This  could  include  such  issues as whether  the  promotion  of 

a plastic  squeeze-bottle  that  accompanies  2-liter  bottles  of Passion  is an unfair  or 

deceptive  practice. 

FEDERAL  REGULATIONS  DO  NOT  SPECIFICALLY  PROHIBIT  ALCOHOL 

ADVERTISEMENTS  THAT  APPEAL  TO  YOUTH 

The  primary  goal  of  the  BATF  and  FTC  regulations  regarding  advertising  is to  ensure 

that  consumers  receive  truthful  and  accurate  information  about  products.  The  FDA 

does  not  have  regulations  that  specifically  address  alcoholic  beverages  or  advertising 

practices. 

The  BATF  regulations  prohibit  advertising  claims  that  are  deceptive,  misleading, 

disparaging  of a competitors  product,  obscene,  or  indecent.  They  do  not  specifically 

address  alcohol  advertising  and youth.  Although  one  BATF  ruling  prohibits  showing  a 

The  BATF  defines substandard wine in 27 C.F.R. 4.21(h)(2) as wine that fails to have the 
composition,  color, and clean vinous taste and aroma of normal wines, has an excessvolatile  acidity, or 
has excessadded water or sugar. 
7  prominent  athlete  consuming  a malt  beverage,  this  ruling  does  not  concern  the  issue of 
an athletes  appeal  to youth.  Instead,  BATF  is simply  concerned  with  misleading 
consumers  about  alcohols  effect  on  athletic  ability.  The  BATF  regulations  also do  not 
address  targeting  youth  or  promoting  alcohol  at events. 
The  FTC  prohibits  commercial  practices  that  are  deceptive  or  unfair.  An  example  of 
a practice  that  would  be unfair  to  underage  youth  is an offer  to  send  away for  a 
6-pack  of beer  without  having  to prove  age.  The  FIG  also  addresses  marketing  and 
advertising  that  affect  health  and  safety.  Recently,  FTC  (in  conjunction  with  BATF 
and  FDA)  investigated  the  Canandaigua  Wine  Company  that  produces  Cisco,  a wine 
with  20 percent  alcohol.  The  marketing  practices  for  Cisco  were  in question  because 
several  young  people  were  hospitalized  for  overdoses  of  Cisco.  In  this  case, the 
promotion  and  packaging  of  Cisco  misled  consumers  to believe  it was a wine  cooler. 
Generally,  the  FTC  is not  concerned  with  alcohol  ads that  use emotional  appeals  or 
lifestyle  themes  because  the  Commissions  jurisdiction  is limited  to  deception  and 
unfairness  and  does  not  extend  to issues of taste  and  public  mores. 
THE  BATFS  ENFORCEMENT  AUTHORITY  IS LIlHITED 
The  BATF  has faced  several  barriers  in  enforcing  its regulations.  Most  importantly, 
the  FAA  Act  limits  BATFs  authority  over  malt  beverage  marketing  practices, 
including  labeling  and  advertising.  Because  the  FAA  Act  does  not  require  basic 
permits  for  brewers,  BATF  lacks  an important  enforcement  tool. 
The  Penultimate  Paragraph  of the  FAA  Acti  limits  BATFs  jurisdiction  over  malt 
beverages  to States  that  have  enacted  legislation  similar  to  BATFs.  Without  State 
regulations  that  mirror  BATFs  regulations,  BATF  has no  ability  to  regulate  malt 
beverage  labeling  or  advertising.  The  25 States  that  have  adopted  the  FAA  Act  pose 
no  problems  for  BATF.  Also,  some  States  have  adopted  parts  of the  FAA  Act.  On 
the  other  hand,  BATFs  capability  is extremely  limited  in States  that  have no  laws 
concerning  alcohol  advertising. 
Because  Federal  law  does  not  require  malt  beverage  producers,  i.e. brewers,  to  hold 
basic  permits,  BATFs  ability  to  achieve  compliance  from  brewers  is compromised. 
Brewers  hold  no  permits  for  BATF  to  suspend  or  revoke  in  case of violations,  which 
means  that  BATF  must  resort  to criminal  prosecution.  According  to  a BATF  official, 
The  brewers  know  that  [BATF]  can only  take  limited  action  against  them. 
The  BATF  is seeking  ways  to expedite  enforcement.  An  enforcement  action  against 
the  Coors  Light  slogan  -- Wont  Slow  You  Down  -- continued  for  2 years  before 
BATF  sought  alternative  methods.  The  BATF  obtained  permission  from  the 
Department  of Justice  (DOJ)  to seek  an injunction  through  the  civil  courts.  The 
BATF  then  threatened  Coors  with  civil  court  action.  Within  a matter  of weeks,  Coors 
I627 U.S.C. 205. 
8  and  BATF  agreed  to  a settlement.  The  BATF  plans  to  use similar  civil  proceedings  in 
several  cases of  malt  liquor  ads that  refer  to  the  strength  of  the  product. 
Ihe  BATF  has limited  control  of the nations  No.  1 strongest  malt 

If you  want  to  see the  rap  singer  Ice Cube,  you  can go to  a movie  about 

Los  Angeles  gangs,  Bon  N the  Hood,  or  you  can simply  stay  tuned  and watch 

television  ads for  St. Ides  malt  liquor.  The  St. Ides  ads contain  overt 

references  to  street  gangs, sexual conquest,  and  the  malt  liquors  strength. 

Listen  closely  and  you  will  hear:  in a black  can,  why dont  ya grab  a &pack  and 

get your  girl  in  the mood  quicker  and get your  jimmy  thicker  with  St. Ides malt 

liquor. 

While  Federal  alcohol  advertising  regulations  forbid  practices  in  the  St. Ides  ad, 

such  as promoting  its alcoholic  strength  and  disparaging  a competitors  product, 

BATFs  authority  over  malt  beverages  is limited  in  certain  States.  Because 

California,  for  example,  has no law  that  prohibits  promoting  alcoholic  strength, 

BATF  cannot  act  against  the  St. Ides  campaign  in that  State.  A  BATF  official 

expressed  frustration  that  when  a State  like  California  does  not  have enabling 

legislation,  10%  of  the  American  population  is not  being  protected.  The 

St. Ides  ads are  currently  under  investigation  by BATF  in  other  States.  ..  

9 
 STATE  REGIJLATION 
STATES  HAVE  DIFFICULTY  ADOPTING  LEGISLATION  TO  CONTROL 
ALCOHOL  ADVERTISING 
Each  State  has the  authority  to regulate  alcoholic  beverage  advertising.  Twenty-nine 
out  of the  50 State  and  the  District  of Columbia  ABC  administrators  believe  that 
restricting  alcohol  ads can be effective  in reducing  advertisings  youth  appeal. 
However,  only  17 States  have regulations  that  prohibit  ads with  youth  appeal. 
Pressures  on State  legislators  from  vested  interests  can be a barrier  to  regulating 
alcohol  advertising.  According  to  one  State  official,  Passing  these  regulations 
[prohibiting  alcohol  advertising  and  promotions  on  college  campuses]  was a bloody 
battle.  Another  State  official  found  strong  lobbyists  opposing  legislation  that  would 
have  prohibited  alcohol  ads on television.  According  to  the  official,  representatives 
from  the  alcohol  industry  threatened  to  discontinue  the  television  broadcast  of  all 
sports  programming,  including  the  Super  Bowl.  In  the  face  of  this  pressure,  the 
legislation  did  not  pass. 
Disagreements  within  a State  also can inhibit  an ABCs  attempt  to  control  advertising. 
For  example,  the  Washington  State  Liquor  Control  Board  has been  very  active  in 
attempts  to  restrict  alcohol  advertising.  Early  this  year,  however,  a proposal  by the 
Washington  State  Medical  Association  to  restrict  ads that  imply  liquor  enhances.  . . 
professional  or  social  achievement  of any kind  failed  to gain  the  support  of the 
Board.17  Critics  of  this  legislation  claimed  there  was insufficient  evidence  of the 
effect  of alcohol  advertising  on consumption.  Additionally,  the  board  members 
decided  that  the  State  already  had  taken  enough  precautions  to  prevent  alcohol  ads 
from  appealing  to  youth. 
STATE  REGULATIONS  ARE  LIMITED  IN  THEIR  APPLICATION 
Problems  with  the  wording  of regulations  and  the  nature  of  short-term,  national  ad 
campaigns  diminish  the  effectiveness  of State  controls.  Narrow  definitions  limit  the 
application  of many  State  regulations  that  attempt  to prevent  the  appeal  of alcohol 
advertising  to youth.  For  example,  Utah  prohibits  ads or  promotional  schemes  that 
are  primarily  or  especially  appealing  to  underage  youth.  However,  an ad is not  in 
violation  of  the  law  if it appeals  to  25year-old  adults  just  as much  as it appeals  to 
13-year-old  adolescents.  This  means  alcohol  ads could  contain  themes  that  appeal  to 
youth  (such  as cartoons  or  youth-oriented  music)  as long  as at least  some  adults  also 
find  the  ad appealing. 
17JayMatthews, Washington State Rejects Ban on Alcohol  Advertising,  Washington Post, January 
31. 1991. 
10 
 In  other  States,  the  regulations  are  so unclear  that  it is difficult  to  agree  on  their 
interpretation.  Virginias  provision  reads,  No  advertising  shall  contain  any statement, 
symbol,  depiction  or  reference  that  would  tend  to  induce  minors  to drink.  Little 
consensus  exists on  which  ads violate  this  regulation.  According  to  a State  ABC 
official,  We  have  various  regulations  on  advertising,  and  for  the  most  part,  they  are 
completely  ineffective  because  of difficulties  with  definitions. 
Logistics  can cause  problems  with  enforcement,  even  if there  is a clear  violation  of 
State  law.  The  short  duration  of some  advertising  campaigns,  combined  with  the  time 
it  takes  for  the  State  ABC  to take  action,  can mean  an ad will  run  despite  the  fact  it  is 
in violation.  In  Texas,  the  Anheuser-Busch  Budman  campaign  violated  State  law 
that  bars  the  use of  contests  or sweepstakes  to induce  purchase  of alcoholic  products. 
When  State  officials  realized  Anheuser-Busch  had  continued  the  Budman  campaign 
in spite  of  the  law,  the  ABC  issued  a cease-and-desist  order  and  began  steps  to 
suspend  Anheuser-Buschs  license  to  sell beer  within  the  State.  However,  because  the 
campaign  was scheduled  to  end  on  Labor  Day,  the  matter  will  probably  be moot 
before  the  [ABC]  can  hold  a hearing.  The  campaign  has now  ended  and 
Anheuser-Busch  still  holds  its license  to sell beer  in Texas.  Additionally,  the  wide 
scope  of  national  campaigns  often  limits  a States  ability  to  control  advertising.  While 
States  can  regulate  the  content  of alcohol  advertising  originating  within  their 
boundaries,  they  cannot  restrict  advertising  originating  in other  States. 
18Marj Charlier,  Anheusers Budman Promotion  Creates Big Brouhaha  in Texas, Wall Street 
Journal, August  19, 1991, Bl. 
11  In  some cases, a State can be more  timely  and  eflective  than  the BATF 
The  BATF  and  the  New  York  Attorney  General  have  had  varied  success in 
seeking  discontinuance  of the  Coors  Light  Wont  Slow  You  Down 
campaign.  While  BATF  spent  2 years  corresponding  with  Coors  and  had  to 
obtain  DOJs  permission  to  seek an injunction,  the  State  Attorney  General 
filed  a suit  and  within  a year  was able  to  limit  Coors  future  advertising 
practices. 
In  1983, Coors  developed  the  slogans  Wont  Slow  You  Down  and  No 
Slowin  Down  as part  of an ad campaign  showing  active  men  and  women 
involved  in several  types  of athletic  activities.  This  campaign  suggests that 
Coors  Light  will  not  impede  a consumers  physical  abilities,  although  alcohol 
is a depressant  on  the  central  nervous  system. 
The  New  York  Attorney  Generals  Bureau  of Consumer  Frauds  and 
Protection  office  issued  an Assurance  of Discontinuance  to  Coors  for  the 
Wont  Slow  You  Down  campaign.  Coors  withdrew  its ads based  on the 
threat  of litigation,  since it appeared  that  the  ads violated  the  false  and 
misleading  provision  in  the  State  General  Business  Law.  Coors  agreed  to 
phase  out  the  slogan  by October  1, 1991, and  not  to use  the  Silver  Bullet  jet, 
race  car,  or  any  ads portraying  these  items  or  any sports  equipment  in the 
State  of New  York. 
New  York  States  action  against  Coors  was  independent  of BATFs 
involvement.  Greater  coordination  between  BATF  and  the States  Attorneys 
General  could  improve  effectiveness  in  the  future. 
12 
 ALCOHOLINDUSTRYCONTROLS 
ALCOHOL  INDUSTRY  STANDARDS  DO  NOT  EFFECIWELY  REXSTRICT 
ADVERTISEMENTS  THAT  APPEAL  TO  YOUTH 
Alcohol  trade  associations  (the  Beer  Institute,  the  Wine  Institute,  and  DISCUS)  have 
developed  separate  alcohol  advertising  codes  and  standards  for  their  members.  The 
Century  Council  provides  alcohol  advertising  standards  for  its members  in all  three 
sectors  of the  alcohol  industry  (beer,  wine,  and  distilled  spirits).  Each  of the 
advertising  codes  and  standards  has youth-related  provisions.  The  following  table 
compares  each  organizations  provisions  related  to youth  appeal: 
INDUSTRY  ADVERTISING  GUIDELINES: 

A COMPARISON  OF YOUTH-RELATED  PROVISIONS 

ALCOHOL  ADVERTISEMENTS  SHOULD  NOT  BEER  DISCUS  WINE  CENTURY 
BE  DIRECTED  TO  APPEAL  TO  YOUM  BY:  INSTITUTE  INSTITUIE  COUNCIL 
HAVING  A PARTICULAR  YOUfH  APPEAL  X  X  X 

ENCOURAGING  UNDERAGE  DRINKING  X 

SHOWlNG  UNDERAGE  MODELS  X  X  X 

SHOWING  UNDERAGE  DRINKING  X 

SUGGESTING  VIOLATION  Of  DRINKING  AGE  LAWS  X  X 

ALCOHOL  ADS  SHOULD  NOT  USE 
YOlJTH-ORIENlED  SUEtJECT  MATTER.  INCLUDING: 
MUSIC  X 

LANGUAGE  X  X 

GESTURES  X  X 

CARTOON  CHARACTERS  X  X 

OBJECTS.  e.g.  TOYS  X 

COMPARISON  WITH  YOUTH  PRODUCTS,  e.g.  CANDY  X 

ADS  SHOULD  NOT  USE  PERSONALmES 

TO  APPEAL  TO  YOUTH.  SUCH  AS:  I  I  I 

AT YOUTH-ORIENTED  EVENTS.  e.g.  CONCERTS  X 

NEAR  SCHOOLS  OR  IN COLLEGE  MEDIA  X 

ON  YOUTH  TEUS.  e.g.  TOYS,  GAMES  X 

a  DENOTES  -l-HAT  ME  ORGANIZATIONS  GUIDELINES  ADDRESS  THIS  lTEM 
Beer  Institute, Brewine Industrv Advertising Guidelines, 1984;Wine Institute, Code of 
Advertising Standards, 1987; DISCUS, Code of Good Practice, 1987; Century Council, The Centurv 
Council  Code of Responsible Marketine  and Advertising  Practices, draft, 1991. 
13  While  the  industry  advertising  standards  purport  to guide  alcohol  advertisers  towards 
responsible  behavior,  they  fail  to  prevent  advertising  considered  to  have youth  appeal. 
Several  factors  limit  the  alcohol  industry  standards  effectiveness  in preventing  ads that 
appeal  to youth.  They  include: 
(1)  vague  standards  that  do  not  specify  unacceptable  practices, 
(2) 	 narrow  standards  that  do  not  address  many  ads that  may mislead  or 
appeal  to youth, 
(3) 
inconsistency  in the  definitions  of youth  appeal,  and 
(4) 	
the  failure  of most  industry  organizations  to  address  marketing  and 
promotional  activities. 
Several  advertising  standards  are worded  vaguely.  Because  the  standards  do  not 
specifically  state  what  practices  are  unacceptable,  advertisers  are  left  with  little 
guidance.  The  DISCUS  Code  of  Good  Practice,  for  example,  covers youth  issues with 
the  broad  statement  that  ads should  not  be  in  any manner  directed  or  primarily 
intended  to  appeal  to persons  below  the  legal  drinking  age.  Although  DISCUS 
interprets  the  standard  to  discourage  promotional  activities  on  college  campuses,  this 
is not  evident  from  reading  its code.  Also,  the  terms  directed  or  primarily  intended 
to  appeal  are  difficult  to  define. 
Although  some  standards  spell  out  precisely  which  practices  are  unacceptable,  they  are 
extremely  narrow  in  scope.  For  example,  one  of the  Century  Councils  standards 
discourages  advertising  and  marketing  from  making  claims  that  persons  cannot  solve 
social,  physical,  or  personal  problems  without  consuming  the  product.  This  means 
ads that  state  alcohol  is essential  to solving  problems  are  not  allowed.  However,  ads 
that  indicate  alcohol  can help  a person  solve  problems,  such  as the  Bass Ale  campaign 
that  it  helps  you  get  to  the  bottom  of things,  are  not  prohibited  by the  standards. 
Furthermore,  the  Century  Council  stipulates  that  advertising  does not  violate  its 
standards  if it merely  portrays  attractive,  affluent  people  who  appear  to  be having  fun. 
These  stipulations  narrow  the  scope  of the  Century  Councils  effectiveness  in  limiting 
ads that  appeal  to  youth. 
Alcohol  industry  standards  are inconsistent  concerning  which  practices  have youth 
appeal.  The  Wine  Institute  and  Century  Council  recognize  that  a broader  scope  of 
advertising  practices  appeal  to youth.  For  example,  while  the  Wine  Institute  and 
Century  Council  standards  discourage  the  use of  cartoon  characters,  the  Beer  Institute 
and  DISCUS  standards  do  not.  The  Beer  Institute,  in fact,  likens  its use of cartoons 
to  the  use of cartoons  in  ads for  a variety  of adult  products,  including  life  insurance. 
Similarly,  the  Wine  Institute  and  Century  Council  discourage  any use of  amateur  or 
professional  sports  celebrities  because  of their  potential  appeal  to youth,  while  the 
DISCUS  and  Beer  Institute  standards  have  no  provisions  that  restrict  the  use of sports 
figures. 
14  Most  industry  organization  standards  do  not  address  promotional  activities.  The 

Century  Council  is the  only  industry  organization  that  discourages  promotional 

practices  that  primarily  appeal  to youth.  Besides  restricting  alcohol  companies  from 

promotions  at youth-oriented  events,  their  standards  also restrict  product  names  and 

logos  from  appearing  on  toys, game  equipment,  or  child-sized  clothing.  Other  industry 

organizations  do  not  address  these  practices  specifically.  Notably,  the  Beer  Institute 

does  not  prevent  promotional  items  such  as Spuds  MacKenzie  stuffed  animals  or 

model  race  cars carrying  the  Miller  logo. 

ALCOHOL  INDUSTRY  STANDARDS  ARE  UNENFORCEABLE 

Voluntary  provisions  and  persuasion  are  the  extent  of the  industry  organizations 

enforcement  of their  advertising  standards.  Once  an advertising  practice  has been 

brought  to  the  attention  of  the  Beer  or  Wine  Institutes,  resolution  of  the  issue is 

limited  to  nonthreatening  persuasion.  Members  have discretion  over  how  to  respond 

to  concerns  about  irresponsible  advertising.  The  DISCUS  Code  Review  Board 

clarifies  discrepancies  over  interpretation  of  the  standards  and  informs  the  advertiser, 

leaving  any  action  to  the  discretion  of the  advertiser.  The  Beer  Institute  simply  refers 

concerns  to  the  party  being  complained  about  to  see if they  want  to  do  anything.  In 

response  to  our  questions  about  several  beer  ads, the  Beer  Institute  refused  to get 

involved  and  referred  our  questions  to  the  advertisers,  most  of whom  did  not  respond. 

The  Century  Council  plans  to  have members  perform  self-evaluations  of their 

advertising  practices  vis-a-vis  the  standards.  A  Century  Council  representative 

explained  that  while  the  chairman  can persuade  members  to  change  their  advertising, 

the  Council  has gone  as far  as it  can according  to legal  counsel. 

Alcohol  industry  organizations  believe  they  cannot  penalize  members  for  advertising 

code  or  standards  violations,  because  of concerns  about  antitrust  laws.  In  a 1978 letter 

to  the  Wine  Institute,  FTC  stated  that  because  the  Wine  Institutes  standards  are 

strictly  voluntary  they  present  no antitrust  concern.  According  to  FTC,  antitrust  laws 

allow  some  voluntary  restrictions  of advertising  themes  considered  socially  undesirable, 

unless  an undue  restraint  of  trade  results  from  the  restriction.  The  Wine  Institute  is 

concerned  that  its standards,  when  enforced,  would  restrict  competition.  This  concern 

was reinforced  in  1982, when  DOJ  determined  that  the  NAB  Television  Code 

appeared  to  limit  advertising  artificially,  thereby  restricting  trade  and  violating  antitrust 

laws. 

15 
 TELEVISION  NETWORK  CONTROLS 
NETWORK  ENFORCEMENT  IS BASED  ON  NEGOTIATION  WITH 
ADVERTISERS 
While  networks  maintain  advertising  standards  to  ensure  quality  programming  for 
viewers,  they  also must  attract  advertising  revenues  to  stay in business.  Television 
networks  rely  solely  on  advertising  revenues,  and  a great  proportion  -- approximately 
$700  million  in  1989 -- comes  from  beer  and  wine  advertisers.20  Without  alcohol 
advertising,  many  networks  would  undergo  financial  problems  and be  forced  to  curtail 
programming,  especially  sports  programs.21  In  order  to walk  the  thin  line  between 
maintaining  responsible  advertising  and  revenues,  the  networks: 
(1)  negotiate  with  advertisers  concerning  the  content  of advertising; 
(2) 	 allow  their  standards  to be interpreted  by local  station  managers, 
enabling  them  to attract  more  local  advertising  revenue;  and 
(3)  are  gradually  loosening  their  interpretation  of  responsible  advertising. 
The  networks  negotiate  with  advertisers  concerning  the  interpretation  of their 

standards.  Negotiation  is fostered  because  advertisers  and  networks  need  each  other 

for  exposure  and  revenues,  respectively.  At  least half  of the  ads reviewed  by networks 

require  further  documentation  or  revision.  CBS  has found  that  ad agencies  are very 

cooperative  and  responsive  to suggestions  for  revisions.  In  one  case, they  asked  an 

advertiser  to  move  the  child  in an alcohol  ad into  the  background  to  make  any 

reference  to  children  incidental.  At  times  in  the  negotiation  process,  the  advertisers 

convince  the  networks  that  the  standards  do  not  warrant  changes  in  their  ads.  Overall, 

the  networks  reject  only  a very  small  percentage  of alcohol  ads.  Even  in the 

complaint  process,  the  networks  work  closely  with  the  advertisers  to  reach  a 

compromise.  The  network  wants  to  sustain  good  relations  with  its viewers  and 

advertisers.  It  is in the  best  interests  of the  network  to  act as a mediator  for 

resolution. 

Although  networks  have  national  standards  to  control  the  appeal  of alcohol  advertising 

to youth,  these  standards  do  not  apply  to  local  stations.  Network  standards  serve  as 

models  for  the  network-owned  stations,  affiliates,  and  independent  stations.  These 

stations  interpret  the  standards  in light  of local  interests  and  the  need  to attract  local 

advertisers. 

20Communicationwith  NAB, January 8, 1991. 
Statement  of Edward 0.  Fritts of NAB, before the Senate Subcommittee on Alcoholism  and 
Drug Abuse, Committee on Labor and Human Resources, February 7, 1985. 
16  The  current  trend  has been  to loosen  network  standards  even  further.  According  to 
an article  in  the  Wall  Street  Journal,  one  networks  standards  are weakening  in 
response  to  advertiser  pressure.22  The  ABC  network,  which  has lost  advertising 
revenue  due  to  the  recession  and  to  competition  from  independent  and  cable 
networks,  has decided  to  relax  its longstanding  standards  in order  to  attract  more 
advertisers.  So far,  these  revisions  to  the  alcohol  advertising  standards  have allowed 
advertisers  to  suggest  off-screen  drinking.  According  to  the  Wall  Street  Journal,  it 
appears  likely  that  the  other  large  networks  will  follow  ABCs  lead  to  loosen 
standards. 
2JoanneLipman, ABC to Relax Longstanding  Guidelines  for Ad Content,  Wall Street Journal, 
September 5, 1991, Bl. 
17  CASE  STUDY 

REGULATIONS  AND  STANDARDS  HAVE  NOT  DETERRED  ADVERTISERS 
FROM  USING  ADVERTISEMENTS  THAT  APPEAL  TO  YOUTH 
The  current  system  fails  to address  the  publics  concern  that  alcohol  ads appeal  to 
youth.  After  viewing  a selection  of five  current  ads for  alcoholic  beverages,  interest 
groups  cited  several  techniques  and  themes  that  appeal  to youth.  For  the  most  part, 
however,  government,  alcohol  industry,  and  network  respondents  made  no  reference 
to youth  appeal  in  the  ads.  Their  regulations  and  standards  do  not  prevent  these 
types  of ads from  reaching  the  public. 
Interest  groups  took  issue with  the  ads because  they  believe  the  ads use 
lifestyle  appeals, 
b 
b  sex, 
b  fantasy, 
b  fast  cars, 
t  cartoons, 
b  fast  music,  and 
b  current  slang 
which  all  appeal  to youth.  In  most  cases, interest  groups  believed  revisions  would  not 

improve  the  ads.  Whether  or  not  the  ads intentionally  appeal  to youth,  these 

respondents  suggest  that  these  elements  can be eliminated  by allowing  only 

tombstone  advertising.  Tombstone  advertising  restricts  ads to  depicting  the 

product,  its name,  the  price,  and where  it is available. 

Federal  agencies  did  not  comment  on  any issues of youth  appeal  in  the  five ads.  The 

BATF  cited  regulations  that  require  the  depiction  of  an approved  label  and  mandate 

the  disclosure  of  the  responsible  advertiser  and  class of  the  product.  The  BATF 

refused  to  comment  on  the  St. Ides  ad because  comments  might  interfere  with  a 

pending  investigation.  The  FTC  officials  said they  were  unable  to  comment  on  the 

specific  ads because  of  their  law  enforcement  authorities  and  ongoing  investigations. 

Representatives  of  the  alcohol  industry  did  not  find  that  any  of  the  ads appealed  to 

youth  or violated  advertising  standards.  Most  gave no  response.  The  Beer  Institute 

refused  to  respond  to  hypothetical  complaints  about  ads.  All  of the  alcohol  industry 

organizations  refused  to comment  on  the  ads for  products  not  advertised  by their 

members,  in spite  of  our  request  that  they  respond  as if the  ads were  for  members 

products. 

The  networks  raised  concerns  about  the  taste,  youth  appeal,  and  hazardous  activities 

in  the  ads, but  did  not  say they would  reject  them.  The  networks  did  not  reply 

formally  to  the  survey  because  of alleged  concerns  over  client  confidentiality. 

18 
 Appendix  A  contains  a description  of the  five  ads and  the  actual  responses  from 
interest  groups,  BATF,  the  alcohol  industry  organizations,  and  the  national  networks. 
Appendix  B lists  the  respondents  for  this  case study. 
19 
 ISSUES  FOR  CONSIDERATION 
Based  on  a review  of  the  findings  in this  report,  the  Office  of  Inspector  General  has 
identified  some  issues for  consideration  that  could  help  eliminate  alcohol 
advertisements  that  appeal  to youth.  While  this  list is not  comprehensive,  it should 
provide  a basis for  discussion  of alcohol  advertising  controls. 
Federal  Regulation 
1. 	 Should  the  Federal  Alcohol  Administration  (FAA)  Act  be amended  to  give  BATF 
more  authority  over  malt  beverage  producers  ?  For  example,  the  FAA  Act  could 
be  amended  to  require  that  brewers  hold  basic permits,  or  BATFs  jurisdiction 
could  be extended  to all States without  requiring  that  States  have  enabling 
legislation. 
2. 	 Should  the  FAA  Act  be amended  to  give BATF  regulatory  authority  over  wine 
beverages  containing  less than  7 percent  alcohol  by volume? 
3. 	 Should  the  FDAs  ingredient  labeling  requirement  be  extended  to  apply  to  all 
alcoholic  beverages? 
4. 	 Should  BATF  adopt  regulations  that  forbid  alcohol  advertising  that  appeals  to 
youth  including  specific  practices,  such  as the  use of cartoons? 
5. 	 Should  BATF  adopt  regulations  that  restrict  certain  types  of alcohol  promotional 
activities? 
6. 	 Should  BATF  consider  restricting  alcohol  advertising  to  tombstone  advertising 
(depicting  only  the  product,  its name,  its price,  and  where  it is available)  to 
prevent  alcohol  ads that  appeal  to youth? 
7. 	 Should  the  Federal  government  require  that  alcohol  advertisers  fund  counter-
advertising  to  promote  public  awareness  of the  dangers  of alcohol? 
8. 	 Can  the  Federal  government  ensure  that  enforcement  of  industry  codes  and 
standards  does  not  violate  First  Amendment  rights  and  antitrust  laws? 
9. 	 Can  the  Federal  government  work  in  cooperation  with  States,  the  alcohol  industry, 
the  advertising  industry,  national  television  networks,  and  other  media  to  eliminate 
alcohol  ads that  use lifestyle  appeals,  sexual  appeals,  sports  figures,  and  risky 
activities? 
20 
 State  Remlation 
1. 	 Should  the  25 States  and  the  District  of Columbia  that  have  not  yet  adopted  the 
FAA  Act  (or  portions  thereof)  do so in order  to increase  BATFs  ability  to 
enforce  Federal  malt  beverage  regulations? 
2. 	 How  can States  use their  authority  to  regulate  intra-State  advertising  in a more 
timely  and  effective  manner? 
3. 	 What  special  measures  must  States  take  to regulate  national  broadcast  advertising 
campaigns  aired  by stations  in their  States? 
4. 	 Is there  any way  that  States  can control  advertising  broadcast  by stations  outside 
the  State? 
5. 	 Should  States  adopt  clear  regulations  that  forbid  alcohol  advertising  that  appeals 
to youth  including  specific  practices,  such  as the  use of  cartoons? 
6. 	 Should  States  consider  restricting  alcohol  advertising  to  tombstone  advertising 
(depicting  only  the  product,  its name,  its price,  and  where  it is available)  to 
prevent  alcohol  ads that  appeal  to youth? 
Alcohol  Industry 
1.  Should  alcohol  industry  codes  and standards  be more  specific  about  what  is 
unacceptable  advertising? 
2.  How  can the  alcohol  industry  avoid  narrow  interpretations  of its standards? 
3.  Can  and  should  the  alcohol  industry  develop  one  uniform  advertising  code  for  all 
alcoholic  beverages? 
4.  Should  alcohol  industry  standards  be expanded  to include  promotional  activities? 
5.  What  else can  the  alcohol  industry  do  to  improve  standards  that  restrict  alcohol 
advertisings  appeal  to youth? 
6.  Should  the  alcohol  industry  be  responsible  for  self-policing  its advertising 
practices? 
7.  How  can  the  alcohol  industry  be held  accountable  to  the  public  for  its advertising 
practices? 
8.  How  can  the  alcohol  industry  make  its standards  enforceable? 
21 
 9. 	 Should  advertising  agencies  be held  accountable  to  their  trade  associations  for 
advertising  practices? 
Networks 
1. 	 Should  network-owned  stations,  independents,  affiliates,  and  cable  stations  have 
consistent  standards  for  all  alcohol  ads on  television? 
2. 	 Should  the  television  networks  consider  strengthening  their  standards  restricting 
alcohol  advertising  that  appeals  to youth? 
3. 	 Should  television  networks  consider  restricting  alcohol  advertising  to  tombstone 
advertising  (depicting  only  the  product,  its name,  its price,  and  where  it  is 
available)  to  prevent  alcohol  ads that  appeal  to youth? 
4.  Should  networks  be responsible  for  enforcing  advertising  standards? 
5. 	 Can  the  television  networks  work  in  cooperation  with  the  Federal  government, 
States,  the  advertising  industry,  and  other  media  to  eliminate  alcohol  ads that  use 
lifestyle  appeals,  sexual  appeals,  sports  figures,  and  risky  activities? 
22 
 APPENDIX  A 

CASE  STUDY  ADS  AND  RESPONSES 
This  appendix  contains  examples  of the  five  ads from  the  case study,  and 

responses  from  interest  groups,  BATF,  the  alcohol  industry 

organizations,  and  the  national  networks. 

We  obtained  the  storyboards  duplicated  here  from  Radio  TV  Reports. 

The  print  ad appeared  in  a June  1991 publication. 

A-l  ST.  IDES  MALT  LIQUOR  -- ICE  CUBE 
RESPOhTDENT  COMMIENTS 
Interest 
croups:  Interest  groups  point  out  the  use of a rap  celebrity: 
Ice  Cube,  a rap  artist  and  movie  star,  uses the  language  and  music  of 
inner-city  youth. 
St. Ides  promotes  heavy  consumption  with  40-ounce  bottles. 
b 
t  Ice  Cube  models  public  drinking,  which  is illegal  in many  urban  areas. 
BATF.- The  BATF  refused  to  comment  on  the  ad due  to a pending 
investigation. 
DISCUS:  Refused  to  comment. 
Beer 
Imtitute:  Refused  to  comment. 
Wm 
Institute:  Refused  to  comment. 
Century 
Cod  Refused  to  comment. 
Networks:  The  networks  might  consider  the  use of a rapper  as youth  appeal.  CBS 
has turned  down  one  ad with  a rap  group  because  the  members 
appeared  young,  yet  rap  music  in general  is not  prohibited.  NBC 
standards  do  not  allow  making  appeals  to youth  or  referring  to  the 
strength  of the  beverage.  NBC  also considers  the  specific  racial 
association  to  offend  general  taste  and  propriety. 
A-3  BUDWEISER  -- BUDMAN  4TH  OF  JULY 
RESPONDENT  COMMENTS 
Interest 
Group- Interest  groups  decry  Budweisers  use of  a superhero: 
As  a superhero,  Budman  embodies  strength,  courage,  and  manhood, 
which  capitalize  on youths  sense of invulnerability. 
c  The  contest  encourages  consumption.  If you  buy  more  of the  product, 
you  increase  the  likelihood  of winning. 
The  bright  comic  book  colors  attract  childrens  attention. 
b 
The  context  is a treasure  hunt,  a childrens  game. 
BAlF.- The  BATF  finds  the  ad in compliance.  As  long  as the  ad contains 
information  about  the  responsible  advertiser  and  class of product  and 
portrays  a true  reproduction  of  an approved  label,  the  ad is in 
compliance  with  BATF  regulations. 
DISCUS:  Refused  to  comment. 
Beer 
Institute:  Refused  to  comment. 
Wme 
Institute:  Refused  to  comment. 
Century 
coluld- Refused  to  comment. 
Netwods:  Refused  to  comment. 
A-5  MILLER  GENUINE  DRAFT  --  RUSTY  WALLACE 
RESPONDENT  COMMENTS 
Interest 
Groups:  Interest  groups  warn  that  the  ad links  drinking  with  hazardous  driving: 
This  commercial  mixes  drinking,  driving,  and  the  high-risk  setting  of 
b 	
racing  through  town  on wet  streets. 
t 	 Rusty  Wallace,  a racing  celebrity,  has been  noticed  by everyone  in  town 
depicting  his high  status  and  use as a role  model. 
BAlF.-	 The  BATF  is concerned  only  about  the  class of  the  product,  and  this  ad 
does  not  appear  to state  the  class of the  product  as regulations  require. 
DISCUS:  Refused  to  comment. 

Beer 

Imtitule:  Refused  to comment. 

Wm 

Institute:    Refused  to  comment. 

Century 

CounciL- Refused  to comment. 

Networks: 	 Two  networks  are  concerned  with  the  use of race  car  drivers  in alcohol 
ads.  While  NBC  does  not  allow  active  athletes  or  the  association  of 
drinking  and  driving  in  alcohol  ads, they  do not  consider  race  car  drivers 
to  be  athletes  and  find  it acceptable  for  a company  to  tout  its 
sponsorship  of a race  car.  Although  CBS  forbids  ads that  intersperse 
actual  race  footage  with  product  shots,  they  aired  this  ad in  1990. 
A-7 
 MALIBU  --  DUNCAN 
RESPONDENT  COMMENTS 
Interest 
Groups:  Interest  groups  criticize  the  use of a cartoon  and  outlandish  humor: 
The  cartoon  reflects  the  popular  Far  Side  (Gary  Larson)  type  humor 
and  drawing. 
t  The  characters  are  at the  beach  surfing  and  windsurfing,  two  high  risk 
activities  that  have  a youthful  appeal. 
The  slogan  that  the  taste  is slightly  off  the  map  appeals  to notions  of 
independence  and  rebellion  among  youth. 
BATF.- The  BATF  finds  the  ad in compliance. 
DISCUS:  DISCUS  finds  the  ad consistent  with  its standards.  The  DISCUS  Code 
Review  Board  notes  the  characters  in  the  ad do  not  appear  to be 
underage.  It  considers  surfing  and  windsurfing  to be  sports  enjoyed  by 
persons  of  all  ages and  points  out  that  the  average  age of  a Nobel  prize 
winner  for  the  last 30 years  is 59 years. 
Beer 
hstitute:  Refused  to  comment. 
Wm 
Ikdu.te:  Refused  to  comment. 
Century 
Counc~  Refused  to  comment. 
Nehvorkx  NBC  considers  animation  or  cartoons  in ads to  have youthful  appeal  and 
believes  this  ad has insufficient  disclosure  that  Malibu  is an alcoholic 
beverage. 
A-9  COORS  LIGHT  -- JOGGING  MAN 
RESPONDENT  COMMENTS 
Interest 
Groups:  Interest  groups  take  issue with  the  sexual images  and  beach  scenes: 
.  The  ad presents  women  in an overly  sexual  and  demeaning  way. 
.  The  language  of the  ad tells  viewers  that  drinking  is right  anywhere, 
anytime. 
The  setting  of the  ad at the  beach  is inappropriate  since 
30  to  50 percent  of drownings  are alcohol-related.23 
BATF:  The  BATF  finds  the  ad in compliance  as long  as the  ad contains 
information  about  the  responsible  advertiser  and  class of product  and 
portrays  a true  reproduction  of an approved  label. 
DISCUS:  Refused  to  comment. 
Beer 
Institute:  Refused  to  comment. 
Coors:  Coors  maintains  the  ad is in compliance  with  regulations  and  industry 
standards. 
wine 
Institute:  Refused  to  comment. 
Century 
Counc~  Refused  to  comment. 
Networkx  CBS  considers  hazardous  activities  to include  running  in the  surf  or 
swimming  with  alcohol.  CBS  will  not  allow  models  standing  in the  water 
with  alcohol. 
Source:  Marin  Institute  interview  held July 30, 1991. 
A-11  APPENDIX  B 

RESPONDENTS  FOR  THE  CASE  STUDY 
Federal  Agencies  Networkr 

Bureau  of Alcohol  Tobacco  and  ABC  Network 

Firearms  (BATF)  CBS  Network 

Federal  Trade  Commission  (FTC)  NBC  Network 

Food  and  Drug  Administration  (FDA) 
Interest  Groups 

Alcohol  Industry  Organizations 

Advocacy  Institute 

Beer  Institute 
 Center  for  Science  in the  Public 

Century  Council 
 Interest  (CSPI) 
Distilled  Spirits  Council  of  the  United 
 Dr.  Jean  Kilbourne 
States  (DISCUS)  Marin  Institute 
National  Wine  Coalition  National  Council  on Alcoholism  and 
Wine  Institute  Drug  Dependence 
National  Council  for  Drug-Free 
Schools 
Advertking  Association  National  Families  in Action 
National  Parent  Teacher  Association 
American  Association  of Advertising  Prevention  Research  Center 
Agencies  (AAAA)  Dr.  Lawrence  Wallack 
B-l