The Alcohol and Tobacco Tax and Trade Bureau (TTB) recently issued Industry Circular 2024-1, providing updated guidance for alcohol industry members (manufacturers, importers and wholesalers) on social media advertising practices. This new guidance clarifies permissible actions and advertising regulations on platforms like Instagram, Facebook, and TikTok, marking an important update to the previous 2022 circular.
The circular highlights essential points for ensuring compliance on social media. A summary is provided below, but the circular should be read in its entirety:
Placement of Mandatory Information: Advertisers must include key information about their products, such as brand names and alcohol content, clearly and accessibly on social posts. This mandatory information, commonly required on traditional advertising mediums, must now be seamlessly integrated into digital formats. Importantly, this information needs to appear only once on a “home” page or a sub or tabbed page associated with the home page.
Use of Linked Content: The TTB now specifies that mandatory information can be included on linked pages but requires that the link must lead directly to the necessary details, without requiring multiple clicks or requiring the creation of a login, etc. This adjustment allows advertisers to adapt their posts to platform constraints while maintaining transparency with consumers.
Prohibited Practices: The guidance reiterates that third-party content “liked” or reposted by an industry member must itself comply with TTB regulations.
Influencer Marketing and Third-Party Content: Recognizing the role of influencer partnerships, the TTB specifies that companies are responsible for ensuring influencers and third-party content adhere to these regulations. This responsibility extends to both formal partnerships and casual mentions by influencers, meaning brands must take a proactive role in compliance, even with user-generated content.
Visual and Interactive Elements: As social media increasingly favors video content and interactive posts, the circular addresses multimedia compliance ranging from mobile websites to social network services, media sharing sites, blogs, microblogs, crowdfunding sites, mobile apps and linked content. In short, use of these platforms requires the platform itself to comply with TTB requirements.
Social Media Influencers: The circular clarifies that influencer posts that directly or indirectly advertise an industry member, their brand or a specific product may be considered advertisements and subject to TTB regulation depending on factors such as whether or not the influencer was compensated by the industry member and if the industry member disseminated the influencer post in some way. Industry members must ensure that all influencer posts contain all mandatory advertising statements, which may be achieved via provision of a link.
To read the full Industry Circular 2024-1 and understand its detailed requirements, visit TTB’s official website. This resource provides a comprehensive outline of the TTB’s expectations, ensuring alcohol brands can make informed decisions when engaging with consumers online.