Responsible Advertising

Photo by striatic

The Federal Trade Commission (“FTC”) recently criticized A-B’s “fan can” promotion of Bud Light beer. While there may be facts not reported about the “fan can” campaign, it appears that the promotion was to sell cans in college team colors (no logos or other college identifiers, just 27 color combinations) through retailers, which may only sell to people over the age of 21. A-B was not running an ad campaign on college campuses.

The FTC’s task is to protect consumers by enforcing the FTC Act, which prohibits unfair and deceptive trade practices and advertising. The FTC takes the position that advertisements that may encourage underage or irresponsible drinking are a violation of the FTC Act. How that kind of advertising is deceptive or unfair, is another issue. But, no alcohol advertiser has challenged the FTC’s position.

The Beer Institute and the Brewers Association have developed industry advertising and marketing codes, which the FTC looks to in enforcing its policies. One of the beer industry advertising requirements is that the audience for a beer advertisement be 70 percent over the legal drinking age. This audience requirement is often very difficult to determine.

The concern of the FTC and some colleges is that the Bud Light “fan can” promotion encourages underage and irresponsible drinking, and that the audience for the marketing efforts is not 70 percent over the age of 21. If A-B was not running the campaign on college campuses, and the advertising is the can itself (which can only be purchased by someone of legal drinking age), how should A-B determine the audience for the “fan cans” which can be seen by anyone in a grocery store?

Does the simple fact that the can is in college team colors encourage underage drinking? How does the Bud Light “fan can” encourage an underage college student to drink any more than a regular can does? Are there more underage college students than people of legal drinking age purchasing college team paraphernalia?