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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION ALLIED DOMECQ SPIRITS WINE COMPLAINT ALCOHOL FEDERAL TRADE COMMISSION WINE AMERICAS REPRESENTATION HIRAM WALKER BEVERAGE D/B/A HIRAM ACT VIOLATION SUCCESSORS THEREAFTER BUREAU CONSUMER PROTECTION AGREEMENT JURISDICTION ADVERTISING BEVERAGE ALCOHOL PRODUCT TERMINATE APPEALING PRACTICES CONSENT JURISDICTIONAL FACTS MATTER PURSUANT PRINCIPAL OFFICE |
9823050
B252786
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
Commissioners:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
ALLIED DOMECQ SPIRITS & WINE AMERICAS, INC., and ALLIED DOMECQ SPIRITS
& WINE USA, INC. d.b.a. HIRAM WALKER corporations
DOCKET NO. C-3858
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondents named in the caption
hereof, and the respondents having been furnished thereafter with a
copy of a draft of complaint which the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which,
if issued by the Commission, would charge the respondents with
violation of the Federal Trade Commission Act; and
The respondents, their attorney, and counsel for the Commission having
thereafter executed an agreement containing a consent order, an
admission by the respondents of all the jurisdictional facts set forth
in the aforesaid draft complaint, a statement that the signing of the
agreement is for settlement purposes only and does not constitute an
admission by respondents that the law has been violated as alleged in
such complaint, or that the facts as alleged in such complaint, other
than jurisdictional facts, are true, and waivers and other provisions
as required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondent has
violated the Act, and that complaint should issue stating its charges
in that respect, and having thereupon accepted the executed consent
agreement and placed such agreement on the public record for a period
of sixty (60) days, and having duly considered the comments filed
thereafter by interested persons pursuant to § 2.34 of its Rules, now
in further conformity with the procedure prescribed in § 2.34 of its
Rules, the Commission hereby issues its complaint, makes the following
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2
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COMPLAINT
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EXTRACTED KEY WORDS
WINE ALLIED DOMECQ SPIRITS RESPONDENTS ALCOHOL TRADE COMMISSION ACT KAHLUA WHITE RUSSIAN WINE AMERICAS ALCOHOL BEVERAGE HIRAM WALKER CORPORATIONS ADVERTISEMENTS D/B/A HIRAM ALLEGES PRACTICES COMPLAINT AFFECTING COMMERCE LOW ALCOHOL VIOLATION PRINCIPAL OFFICE BUSINESS SOUTHFIELD PARAGRAPH REPRESENTATION OUNCE WINE COOLERS DRINKING IMPAIR NORMAL FUNCTIONS REPRESENTATION SET MISLEADING |
9823050
B252786
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
ALLIED DOMECQ SPIRITS & WINE AMERICAS, INC., and ALLIED DOMECQ SPIRITS
& WINE USA, INC. d.b.a. HIRAM WALKER, corporations
DOCKET NO. C-3858
COMPLAINT
The Federal Trade Commission, having reason to believe that Allied
Domecq Spirits & Wine Americas, Inc. and Allied Domecq Spirits & Wine
USA, Inc. d/b/a Hiram Walker, corporations ("respondents"), have
violated the provisions of the Federal Trade Commission Act, and it
appearing to the Commission that this proceeding is in the public
interest, alleges:
1. Respondent Allied Domecq Spirits & Wine Americas, Inc. is a
Delaware corporation with its principal office or place of
business at 3000 Town Center, Southfield, MI 48075.
2. Respondent Allied Domecq Spirits & Wine USA, Inc. d/b/a
Hiram Walker is a Michigan corporation with its principal
office or place of business at 3000 Town Center, Southfield, MI
48075. Allied Domecq Spirits & Wine USA, Inc. d/b/a Hiram
Walker is a wholly owned subsidiary of Allied Domecq Spirits &
Wine Americas, Inc.
3. Respondents have advertised, offered for sale, sold, and
distributed beverage alcohol products to the public, including
Kahlua White Russian, a pre-mixed cocktail. Kahlua White
Russian is a "food" within the meaning of Sections 12 and 15 of
the Federal Trade Commission Act.
4. The acts and practices of respondents alleged in this
complaint have been in or affecting commerce, as "commerce" is
defined in Section 4 of the Federal Trade Commission Act.
5. Respondents disseminated or caused to be disseminated
advertisements for Kahlua White Russian, including but not
necessarily limited to the attached Exhibits A and B. These
advertisements contain the following statement: "LOW ALCOHOL
BEVERAGE."
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3
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ANALYSIS
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EXTRACTED KEY WORDS
BEVERAGE BEVERAGE ALCOHOL PRODUCT ADVERTISING KAHLUA WHITE RUSSIAN REPRESENTATION LOW ALCOHOL CONSENT ORDER AGREEMENT COMPLAINT COMMISSION WINE PUBLIC RECORD POLICY ALLIED DOMECQ SPIRITS CORPORATIONS RUSSIAN PRE-MIXED COCKTAIL ACCORDING OUNCE BEERS MALT LIQUORS BUREAU TOBACCO FIREARMS PURPOSES PROVISIONS AMOUNT ACTS MISREPRESENTATION DESCRIPTIVE TERMS |
_________________________________________________________________
Analysis of Proposed Consent Order
to Aid Public Comment
_________________________________________________________________
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from Allied Domecq Spirits
& Wine Americas, Inc. and Allied Domecq Spirits & Wine USA, Inc. d/b/a
Hiram Walker, Delaware and Michigan corporations, respectively
(hereinafter collectively referred to as Allied).
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
The Commission's complaint in this matter concerns two nearly
identical television advertisements for Allied's Kahlua White Russian
pre-mixed cocktail. According to the complaint, these ads falsely
represented that the product was a "LOW ALCOHOL BEVERAGE." Allied has
ceased making this representation.
Paragraph seven of the complaint sets out several reasons why the
Kahlua White Russian pre-mixed cocktail should not be represented as a
low alcohol beverage. It has a significant alcohol content, 11.8 proof
(5.9% alcohol by volume), equal to or greater than numerous other
alcohol beverages. For example, a Kahlua White Russian has
substantially more alcohol ounce for ounce than many beers, malt
liquors and wine coolers. For some people, drinking as few as two or
three Kahlua White Russians will begin to impair normal functions,
such as driving. It is also pertinent that the Bureau of Alcohol,
Tobacco and Firearms has limited use of the term "low alcohol," for
the purposes of beer and malt liquor, to products with less than 2.5%
alcohol by volume. The alcohol content of a Kahlua White Russian is
substantially higher, with 5.9% alcohol by volume. Accordingly, the
complaint alleges that the low alcohol beverage representation was
false or misleading.
The consent order contains provisions designed to remedy the
violations charged and to prevent Allied from engaging in similar acts
in the future. Part I of the order prohibits any representation that
any beverage alcohol product containing 5.9% alcohol by volume is a
low alcohol beverage, as well as any misrepresentation, through
numerical or descriptive terms, or any other means, of the amount of
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4
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
ALLIED DOMECQ SPIRITS WINE COMMISSION COMPLAINT PROPOSED RESPONDENTS ALCOHOL FEDERAL TRADE COMMISSION WINE AMERICAS HIRAM WALKER AGREEMENT REPRESENTATION D/B/A HIRAM WALKER BEVERAGE DRAFT COMPLAINT COUNSEL ACCEPTANCE SUCCESSORS ADVERTISING ACTS PRACTICES FACTS PURSUANT VIOLATION BEVERAGE ALCOHOL PRODUCT TERMINATE MANNER BUREAU CONSUMER PROTECTION APPEALING |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
ALLIED DOMECQ SPIRITS & WINE AMERICAS, INC., and ALLIED DOMECQ SPIRITS
& WINE USA, INC. d.b.a. HIRAM WALKER corporations
FILE NO. 982 3050
AGREEMENT CONTAINING
CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of Allied Domecq Spirits & Wine Americas, Inc. and
Allied Domecq Spirits & Wine USA, Inc. d/b/a Hiram Walker,
corporations ("proposed respondents"). Proposed respondents, having
been represented by counsel, are willing to enter into an agreement
containing a consent order resolving the allegations contained in the
attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between Allied Domecq Spirits & Wine
Americas, Inc. and Allied Domecq Spirits & Wine USA, Inc. d/b/a Hiram
Walker, by their duly authorized officer, and counsel for the Federal
Trade Commission that:
1.a. Proposed respondent Allied Domecq Spirits & Wine Americas,
Inc. is a Delaware corporation with its principal office or place
of business at 3000 Town Center, Southfield, MI 48075.
1.b. Proposed respondent Allied Domecq Spirits & Wine USA, Inc.
d/b/a Hiram Walker is a Michigan corporation with its principal
office or place of business at 3000 Town Center, Southfield, MI
48075. Allied Domecq Spirits & Wine USA, Inc. d/b/a Hiram Walker is
a wholly owned subsidiary of Allied Domecq Spirits & Wine Americas,
Inc.
2. Proposed respondents admit all the jurisdictional facts set
forth in the draft complaint.
3. Proposed respondents waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge or
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