The Federal Alcohol Administration Act Reshapes the US Beer Market

On August 29, 1935, President Franklin D. Roosevelt signed the Federal Alcohol Administration Act, creating a permanent federal framework for regulating the alcoholic-beverage industry after the repeal of National Prohibition. The law required producers and importers operating in interstate or foreign commerce to obtain federal permits and authorized rules governing the labeling and advertising of beer, wine, and distilled spirits. The Act also targeted unfair trade practices between producers, wholesalers, and retailers, including exclusive outlets, tied-house arrangements, commercial bribery, and consignment sales. It did not replace the authority retained by individual states under the Twenty-first Amendment, but added a lasting layer of federal oversight to the post-Prohibition alcohol market. Important parts of the Act remain the basis for federal regulation enforced by the Alcohol and Tobacco Tax and Trade Bureau.