AB-37 – Advertising and Restricted Label Violations
What wholesalers need to know about common violations and how to stay compliant
Maryland continues to identify recurring compliance issues related to advertising signs and restricted product sales, and this guidance highlights common violations, updated requirements, and enforcement actions to help wholesalers avoid penalties.
What you need to know
- Advertising signs must meet updated brand visibility requirements
- Restricted labels cannot be sold to select retailers
- Violations have resulted in fines
- Ongoing compliance requires reviewing current practices
Who This Applies To
This guidance applies to:
- Alcohol wholesalers in Maryland
Issue 1: Advertising Sign Requirements
Advertising signs must meet updated requirements:
- Brand identification must be equal to or greater than the personalized portion
- Brand identification must be at least one-third (1/3) of the total sign
Signs that exceed personalization limits are not compliant.
Common Violations (Signs)
Recent enforcement actions found:
- Signs with 75–80% personalization
- Signs that failed to meet minimum brand visibility requirements
Penalties:
- Fines of approximately $3,000 per violation
Issue 2: Restricted Labels
A restricted label occurs when:
- A product is sold only to certain retailers or types of accounts
This is not allowed unless the product qualifies as:
- A private label, or
- A properly documented allocated product
What Is NOT Allowed (Restricted Labels)
Wholesalers may not:
- Offer products only to select retailers
- Limit availability without meeting defined exceptions
Once a product is selectively offered:
- It may be considered a prohibited restricted label
Allowed Exceptions
Products may be limited only if they meet definitions for:
- Private labels
- Allocated or limited availability products
Proper documentation must be maintained.
Common Violations (Restricted Labels)
Recent enforcement included:
- Sale of restricted labels not meeting exemption criteria
Penalty example:
- $6,000 fine for non-compliant restricted label sale
What This Means for Businesses
Wholesalers should:
- Review all advertising signage for compliance
- Ensure brand visibility meets required thresholds
- Review product distribution practices
- Confirm all products are offered fairly unless exempt
Important Notes
- These issues have been previously addressed but continue to occur
- Enforcement actions are ongoing
- Compliance requires regular internal review
Need Help?
For questions about compliance, contact the ATCC: 410-260-7314 ext. 2 or [email protected]