|Drinks giants in $1.9m fines for "slotting fee" violations in Las Vegas|
|Written by Richard Siddle|
|Wednesday, 11 May 2011 11:27|
Multinational drinks companies, including Diageo, Pernod Ricard and Gallo, have agreed to pay fines of up to $1.9 million after The Alcohol and Tobacco Tax and Trade Bureau (TTB) in the US accused them of violating the tied house "slotting fee" provisions of the Federal Alcohol Administration Act (FAA Act).
In all the settlement refers to six drinks companies and is the largest set of offers in compromise ever accepted by TTB for trade practice violations.
The companies and their offers in compromise are: Diageo North America, Inc, which is having to pay $650,000; Pernod Ricard USA, - $300,000; Moet Hennessey USA, -
As a part of the settlement agreements, each company denied violating any laws or regulations.
"TTB remains committed to maintaining a fair and competitive alcohol beverage marketplace where companies can do business on an equal and lawful basis and will continue to vigorously enforce the trade practice sections of the FAA Act."