The Alcohol and Tobacco Tax and Trade Bureau alleged that Crown Imports engaged in activities that violated 27 U.S.C. 205(b). The company submitted an offer of $420,000 as a compromise of the allegations, which the TTB accepted.
Details are scant, but the TTB alleges that Crown entered into certain agreements with retailers, indirectly through (1) an independent third-party or (2) an affilate of the retailer, wherein Crown sent payment to the third-party promotional company or affiliate, resulting in additional advertising, display and/or distribution services related to Crown’s brands.
Specifically, TTB alleges that Crown made the payments in part to secure tap handles and that this amounts to a slotting allowance. The alleged violation occurred on or around and between Jan. 1, 2016, and April 25, 2019.
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