FTC Refuses to Restrict Alcoholic Beverage Ads

The Federal Trade Commission on Tuesday rejected a petition from consumer groups to restrict the advertising of alcoholic beverages, but its chairman warned industry officials that the agency is “looking over their shoulder.”

By a 4-1 vote, the FTC discounted arguments from the Center for Science in the Public Interest, a private organization, and 28 other groups that the advertising and promotion of alcoholic beverages should be banned or limited.

The groups petitioned the FTC in November, 1983, to take action against alcohol advertisers, contending that many of the industry’s marketing and advertising practices contribute to alcohol abuse.

But the FTC said it found “no reliable basis on which to conclude that alcohol advertising significantly affects alcohol abuse.”

“Absent such evidence, there is no basis for concluding that rules banning or otherwise limiting alcohol advertising would offer significant protection to the public,” the FTC said in a letter to the center.

FTC Chairman James C. Miller III told reporters that his agency will continue to monitor alcohol advertising and marketing practices but will deal with the issue on a case-by-case basis.

However, Miller acknowledged that some ads are “close to the margin” and said the advertisers responsible for them “should clean up their act.”

“I want to put the alcohol advertisers on notice that we are looking over their shoulder,” he said.

At present, all alcohol products can appear in print ads. Beer and wine ads are broadcast on radio and TV, but ads for hard liquor have been kept off the air by the industry.

The petitioning groups sought an industrywide investigation of alcohol advertising and specifically asked the FTC to curb ads aimed at children, teen-agers and heavy drinkers.

Michael Jacobson, executive director of the center, said that he was disappointed but not surprised by the FTC’s decision, adding that it underscores the need for congressional action.

“The agency’s reaction proves that the fierce government watchdog is not just sleeping but dead,” he said.