The information provided in response to the Special Report will assist the Commission
in preparing a report requested by Congress on the alcohol industry’s self-regulatory
efforts with respect to alcohol advertising and underage drinking.(1)
The Special Report is required to be subscribed and sworn to by an official of the
company who has prepared or supervised the preparation of the Special Report from books,
records, correspondence, and other data and materials in the company’s possession or
control. The person who signs the Special Report must give his or her full name, business
address, and official capacity.
The Special Report should restate each item of this Order with which the corresponding
answer is identified. If any question cannot be answered fully, give the information that
is available and explain in what respects and why the answer is incomplete. For purposes
of this Special Report, the words “the company” include any parent, subsidiary
or affiliated companies.
1. State: a) the full name of the company, its official address, and its date and state
of incorporation; b) whether the company is a subsidiary company, and if so, the name of
the parent company; c) whether the company has any subsidiary or affiliated companies, and
if so, the names of the subsidiary and affiliated companies; and d) for each parent and
subsidiary, the same information specified in a) above.
2. The Code of Good Practice for Distilled Spirits Advertising and Marketing
(hereinafter “Spirits Code”) provides that "(d)istilled spirits advertising
and marketing should not be placed in any communication intended to appeal primarily to
individuals below the legal purchase age." Provide a copy of all written policies of
the company in place during any part of calendar years 1997 and 1998, referring or
relating to the implementation of or compliance with this section of the Spirits Code.
State the date on which the company first adopted and last amended each of these policies.
To the extent not reflected in the above requested policies, state how the company defines
“intended to appeal primarily ” for purposes of complying with this section of
the Spirits Code.
3. Guideline 3(c) of the Code of Advertising Practices of the Wine Institute
(hereinafter “Wine Code”) provides that wine and wine cooler advertising should
not “(a)ppear in children or juvenile magazines, newspapers, television programs,
radio programs or other media specifically oriented to persons below the legal drinking
age.” Provide a copy of all written policies of the company in place during any part
of calendar years 1997 and 1998, referring or relating to the implementation of or
compliance with this section of the Wine Code. State the date on which the company first
adopted and last amended each of these policies. To the extent not reflected in the above
requested policies, state how the company defines "specifically oriented” for
purposes of complying with this section of the Wine Code.
4. Describe in detail the steps taken by the company during calendar years 1997 and
1998 to ensure that an advertisement for a distilled spirit is not placed “in a
communication intended to appeal primarily to individuals below the legal purchase
age” or that an advertisement for a wine or wine cooler is not placed in media or on
programs “specifically oriented to persons below the legal drinking age.”
Include in that response a detailed description of: a) what information the company
possesses on the demographics of the expected audience before each ad is placed; b) what
information the company obtains on the actual demographics of the audience that viewed or
heard the ad; and c) what instructions the company gives to its media buyers, brokers,
advertising agencies and others who place the company’s advertisements, including
cooperative advertisements using the company’s trademark, regarding the audience
demographics for media or programs in which ads are to be placed.
5. Identify, describe and provide a copy of all company policies in place during any
part of calendar years 1997 and 1998 that limit or specify the size of an underage
audience for programming in which advertisements are to be placed (e.g., policies stating
that no more than “x percentage” of the audience may be below the legal purchase
age) and state the date on which the company first adopted and last amended each of these
policies.
6. The Spirits Code provides that "(t)he content of distilled spirits advertising
and marketing materials should not be intended to appeal primarily to individuals below
the legal purchase age.” Provide a copy of all written policies of the company in
place during any part of calendar years 1997 and 1998 referring or relating to the
implementation of or compliance with this section of the Spirits Code. State how the
company defines "appeal primarily” for purposes of this section of the Spirits
Code.
7. Guideline 3 of the Wine Code provides that “(a)ny advertisement which has
particular appeal to persons below the legal drinking age is unacceptable” and that
“wine and wine cooler advertising ... shall not” “b. (u)se music, language,
gestures or cartoon characters specifically associated with or directed toward those below
the legal drinking age.” Provide a copy of all written policies of the company in
place during any part of calendar years 1997 and 1998, referring or relating to the
implementation of or compliance with these sections of the Wine Code. State how the
company defines “particular appeal,” and “associated with or directed
toward” for the purpose of complying with these provisions of the Wine Code.
8. Describe in detail the steps the company takes to ensure that the content of an
advertisement for its distilled spirits products is not “intended to appeal
primarily” to persons below the legal purchase age, or that an advertisement for its
wines or wine coolers does not have “particular appeal to persons below the legal
drinking age” and does not contain “music, language, gestures or cartoon
characters specifically associated with or directed toward those below the legal drinking
age.” Identify, describe and provide copies of all copy tests and other consumer
research performed or obtained by the company since January 1, 1989 or in the
company’s possession or control addressing whether any advertising theme or technique
employed in or considered for an ad, including “music, language, gestures or cartoon
characters,” appeals or does not appeal to those below the legal purchase age.
9. Identify, describe and provide a copy of any advertisement or advertising theme or
technique, including any symbol, language, music, gesture or cartoon character, that the
company has rejected since January 1, 1989 for inclusion in an advertisement because of
its appeal to persons below the legal purchase age.
10. Describe in detail the enforcement mechanism(s) available under the Code to file
and resolve complaints regarding possible violations of Code provisions by a Spirits Code
or Wine Code member. Identify any instance(s) since January 1, 1989 where Code authorities
notified the company about a complaint regarding the company's advertising or marketing.
Describe how that complaint was resolved.
11. Describe in detail how the company responds to complaints and inquiries about
whether the company’s advertisements appeal to those under the legal purchase age.
Include copies of all such complaints or inquires received by the company during calendar
years 1997 and 1998, and all responses thereto by the company.
12. The Spirits Code provides that “(d)istilled spirits web sites should contain a
reminder of the legal purchase age on such web pages as the home page, access sites for
the purchase of distilled spirits or brand-logoed consumer merchandise, and access sites
depicting consumption of beverage alcohol, for example, a ?virtual bar.’”
Provide a copy of all written policies of the company in place at any time during calendar
years 1997 and 1998, referring or relating to the implementation of or compliance with
this section of the Spirits Code. State the date on which the company first adopted and
last amended each of these policies.
13. Identify by web address and product brand all World Wide Web sites operated by the
company for one or more of its beverage alcohol products. Describe in detail the steps
taken by the company during calendar years 1997 and 1998 to prevent or limit persons under
the legal purchase age from accessing the company’s web sites. Include in that
response all company policies or practices: a) to verify that persons under the legal
drinking age are not accessing its web pages; b) to monitor postings in chat rooms or
bulletin boards in its web pages; and c) to remove postings made by users who identify
themselves as underage or who, by the names used or messages left, appear to be below the
legal purchase age. Identify and provide copies of all studies, research or other data
performed or obtained by the company or in the company’s possession or control that
indicate the extent to which those under the legal purchase age are accessing alcohol
beverage web sites and web pages for the company’s beverage alcohol products.
14. Describe in detail the steps taken by the company in calendar years 1997 and 1998
to ensure that the content of the company’s web site(s) does not appeal primarily or
have particular appeal to persons below the legal purchase age. Identify, describe and
provide a copy of all copytests or other consumer research performed or obtained by the
company or in the company’s possession or control on the content of its web pages,
including any contests, games, bulletin boards or chat rooms, to assess its appeal to
persons below the legal purchase age. Identify and provide copies of any proposed content
for its web site(s) that the company rejected because it might “appeal
primarily” or “have particular appeal” to those under the legal purchase
age, and any revisions the company made to then existing content of its web site(s) during
calendar years 1997 and 1998 because of concerns that such content might otherwise
“appeal primarily” or “have particular appeal” to those under the
legal purchase age.
15. Identify and describe all company polices in place during any part of calendar
years 1997 and 1998 that set out the steps taken by the company to discourage underage
drinking. State the amount of company expenditures on public service announcements (PSAs),
separately specifying costs for production and dissemination during calendar years 1997
and 1998. Identify and provide a copy of all studies, research or other data performed or
obtained by the company since January 1, 1989 or in the company’s possession or
control that evaluate the effectiveness of the company’s efforts to discourage
underage drinking of beverage alcohol products.
16. Identify each product placement (an appearance or mention of the trademark, product
name, or product) of the company’s beverage alcohol products in motion pictures and
in television (cable or broadcast) programs during calendar years 1997 and 1998, by brand
name of the product, and name, date and time of the production’s first airing.
Indicate how the company determined that a majority of the audience for the motion picture
or television (cable or broadcast) program containing these product placements would be
above the legal purchase age. Identify and provide a copy of all studies, research or
other data performed or obtained by the company or in the company’s possession or
control that set out the actual audience demographics for each of the motion pictures and
television (cable or broadcast) programs containing these product placements.
17. Describe in detail the methods used by the company during calendar years 1997 and
1998 to advertise, market or promote its products in college or university media, on
college or university campuses, at college or university sponsored events, at off-campus
events advertised in college or university media, and to fraternities, sororities, and
other clubs and organizations whose members are predominately college or university
students. Indicate in that response any company practices or written company policies in
place at any time during calendar years 1997 and 1998 intended to ensure that such
advertising, marketing or promotion by the company or by its wholesalers, distributors or
other sellers: a) is not directed to an underage audience; b) is not included in college
or university publications read by a majority underage audience; and c) is not presented
at events attended by a majority underage audience.
18. Describe in detail the methods used by the company between March 1 and April 30, in
calendar years 1997 and 1998, to advertise, market or promote, or sell its beverage
alcohol products at beaches, hotels and resorts during spring break. Include in that
response a detailed description of any company practices and copies of any written company
policies in place at any time during that period to ensure that such advertising,
marketing or promotion by the company or by its wholesalers, distributors, or other
sellers is not directed to persons below the legal purchase age.
19. Identify any alcohol brands targeted by the company at any time during calendar
years 1997 and 1998 to consumers below the age of 26, including any brands for which
target description includes one or more of the following terms: “21 [years of
age]”; “legal drinking age”; “LDA”; “younger”;
“college”; “beginner”; and/or “beginning drinker.” Identify,
describe and provide a copy of any consumer research, report or study performed or
obtained by the company since January 1, 1989 or in the company’s possession or
control referring or relating to the purchase or consumption of, or preferences for,
alcohol beverages by persons below the legal purchase age.
20. Provide the dissemination schedules and the demographics of the viewing audience
for all television (cable or broadcast), radio and print advertisements disseminated
during the weeks of February 2-8, 1997, June 15-21, 1997, February 1-7, 1998 and June
7-13, 1998. Include in the company’s response a copy of each different advertisement
and a breakdown of the audience demographics for each separate publication, television
showing or radio broadcast for the following three age categories: under 21, 21- 25, and
over 25.
Penalties may be imposed under applicable provisions of federal law for failure to file
Special Reports or for filing false reports.
The Special Report called for in this Order is to be filed on or before ____________.
By direction of the Commission.
The Special Report required by this Order, or any inquiry concerning it, should be
addressed to the attention of:
Richard F. Kelly or Janet M. Evans
Division of Advertising Practices
Federal Trade Commission
Washington, D.C. 20580