When launching a new wine, beer, or spirits product in the U.S., many brand owners breathe a sigh of relief when their Certificate of Label Approval (“COLA”) is issued by the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). And while securing a COLA is an important regulatory milestone, it is not a comprehensive determination that every aspect of a product, brand, or marketing program complies with applicable law.
A COLA confirms that TTB has approved a particular label for use under the circumstances reflected in the approval. It does not eliminate other federal, state, or legal considerations that may apply to the product or company. TTB itself notes that alcohol beverage companies remain responsible for complying with applicable requirements beyond the COLA process.
So, what does a TTB COLA not protect you from? (Not an exhaustive list.)
1. Federal Trade Commission (“FTC”) Enforcement
TTB is the primary federal agency responsible for regulating alcohol beverage labeling and advertising under the Federal Alcohol Administration Act and TTB’s implementing regulations. The Federal Trade Commission (“FTC”) also has authority under the Federal Trade Commission Act over unfair or deceptive acts or practices, including advertising and marketing claims.
As a result, obtaining a COLA does not necessarily resolve every issue associated with how a product is marketed. Claims made in advertising, websites, social media, promotional materials, or other marketing communications may raise separate regulatory considerations.
For example, brands using claims such as “natural,” “clean,” “hangover-free,” or “gluten-free” should consider whether those claims are accurate, appropriately substantiated, and consistent with applicable requirements. Under the FTC’s advertising substantiation principles, advertisers are generally expected to have a reasonable basis for objective claims before they are disseminated.
A COLA should not be viewed as approval of every marketing claim a company may make about its product.
2. State Labeling and Advertising Rules
A federal COLA does not necessarily mean that a product can be sold in every state without further review. States may impose their own requirements concerning alcohol beverage labeling, advertising, registration, and sales.
State requirements can be particularly important when a label contains claims, descriptors, geographic references, or other language that may receive different treatment under state law. A label that has received federal approval may therefore still require additional state-level analysis before a brand begins selling the product in a particular market.
For alcohol brands planning a multi-state launch, federal label approval should be viewed as one part of the compliance process rather than a substitute for state-by-state review.
3. Trademark Infringement Risks
TTB’s issuance of a COLA does not constitute trademark clearance.
A brand name, logo, design, or other identifying element may receive TTB approval while still creating potential trademark or other intellectual property concerns. TTB’s label approval process is focused on compliance with applicable alcohol beverage labeling requirements; it is not a comprehensive trademark clearance search.
This means that a company could invest in packaging, marketing, inventory, and distribution of a product only to discover that another company claims rights in a similar name or design.
TTB approval is therefore not a substitute for conducting appropriate intellectual property due diligence before adopting a brand name or committing to packaging.
4. Misleading or Unsubstantiated Claims
A COLA does not provide a blanket defense against concerns regarding claims made about a product.
Alcohol brands increasingly use language relating to ingredients, production methods, nutritional characteristics, sustainability, health, lifestyle, and other product attributes. Depending on the claim and where it appears, additional requirements concerning accuracy, substantiation, or consumer perception may apply.
For example, claims such as “low sugar,” “all-natural,” “keto-friendly,” or other functional or health-related representations should be evaluated carefully before they are used in connection with a product.
5. Failure to Match the Formula
If a formula was submitted to TTB as part of the product approval process, the finished product needs to remain consistent with the applicable approved formula and regulatory requirements.
Changes to ingredients or manufacturing processes may affect a product’s classification or labeling requirements and, depending on the nature of the change, may require a new or superseding formula and/or a new COLA. TTB specifically notes that certain formulation changes can trigger additional filing requirements.
This can become particularly important when a brand changes suppliers, flavors, ingredients, production methods, or other aspects of a product after the initial regulatory approvals have been obtained.
Before implementing a formulation change, companies should determine whether the change affects their existing formula approval, COLA, or other regulatory obligations.
Post-Approval TTB Compliance Issues
Obtaining a COLA is not necessarily the end of TTB’s involvement with a product. A COLA authorizes the use of the approved label for the product described in the approval, subject to applicable requirements and any conditions or limitations. TTB maintains a public registry of COLAs that includes approved, expired, surrendered, and revoked certificates.
Alcohol beverage companies also remain responsible for ensuring that the products they manufacture, import, and sell continue to comply with applicable federal requirements. For example, if a company changes its formulation, certain changes may require a new or superseding formula approval and, depending on the change, a new COLA. Similarly, not every change to an approved label requires a new COLA; TTB has a specific list of allowable revisions, but those revisions must still comply with applicable regulations.
A COLA also does not necessarily resolve issues outside TTB’s labeling authority. TTB expressly notes that a COLA or formula approval does not constitute a determination that a product complies with requirements administered by the FDA, including requirements concerning food ingredients and food additives.
In other words, COLA approval should be viewed as one component of a broader compliance program—not as a one-time determination that the product is legally compliant in every respect. Companies should continue to monitor their formulations, labels, marketing materials, and distribution plans as products evolve.
The Bottom Line
A TTB COLA is an important regulatory approval, but it is not a comprehensive compliance review of your brand, product, or business.
A COLA does not necessarily address:
- advertising and marketing claims;
- state-specific requirements;
- trademark or other intellectual property concerns;
- the substantiation of product claims;
- subsequent formulation changes;
- changes to approved labels; or
- regulatory requirements administered by agencies other than TTB.
For alcohol beverage companies, the work should therefore not necessarily stop once the COLA arrives. As products evolve, companies should continue to evaluate their formulations, labels, marketing materials, intellectual property, and distribution plans to ensure that the product remains compliant as it moves from development to the marketplace.
Need a Label Review or Compliance Audit?
At Lindsey Zahn P.C., we help alcohol beverage brands look beyond the COLA process and identify broader regulatory considerations associated with launching and marketing their products. Depending on the project, this may include reviewing proposed label language and claims, evaluating formula-related issues, considering state-specific requirements, and identifying other compliance considerations that may warrant further review.
Whether you’re launching a new product, modifying an existing label, or expanding into new markets, contact Lindsey Zahn P.C. to discuss your proposed label or current compliance needs.
📩 Email us at info@zahnlawpc.com
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Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Because every situation is unique, you should consult qualified legal counsel regarding your specific circumstances.
This post is for general information purposes only and is not legal advice. Reading it does not create an attorney-client relationship.