FTC Launches Review of TV Liquor Ads

The Federal Trade Commission has launched an inquiry into alcoholic beverage advertising on television, focusing initially on ads run by Seagram Co. and Stroh Brewery Co.

The probe into ads by distiller Joseph E. Seagram & Sons Inc. and by Stroh will scrutinize where and when the companies are advertising and how the ads affect underage viewers.

“Alcohol beverage advertising that may be directed to underage consumers is a cause of concern to the FTC, and the agency has in the past and will in the future review such advertising” to determine whether it violates current federal laws banning deceptive ads and unfair trade practices, FTC spokeswoman Victoria Streitfeld said Wednesday.

The FTC, as the federal enforcer of advertising laws, can investigate whether liquor ads are endangering children, which would fall under its unfair trade practice law. The agency also regulates and monitors tobacco advertising, another contentious subject, though that oversight role was created by special legislation.

Montreal-based Seagram didn’t return calls for comment. Detroit-based Stroh, which recently purchased G. Heileman Brewing Co., said the company hasn’t received a subpoena from the FTC asking for information about its advertising.

“Stroh absolutely does not market its beers to people under 21,” said Stroh spokeswoman Lacey Logan. “Our advertising content and placement is clearly targeted to legal-age consumers.”

In June, Seagram was the first to break the liquor industry’s long-standing voluntary ban on TV advertising when it began airing ads for its Chivas Regal Scotch and Crown Royal whiskeys on local TV stations in Texas, New Hampshire and New York.

The liquor industry contends its voluntary ban gave consumers the mistaken impression that distilled spirits are more harmful than beer and wine, both of which are advertised on TV and radio. Opponents counter that televised liquor ads reach a large number of children and teenagers and could cause more minors to drink.

Last year, beer and wine companies spent more than $800 million on print and broadcast advertisements, according to a survey by Advertising Age magazine. Liquor companies spent about $230 million, almost all on print ads.