The TTB recently issued a 2016-1 Ruling “in response to complaints from a number of industry members who expressed concerns over potential abuse of the narrow Tied-House exception provided for in 27 CFR 6.99(b), which removes only the act of providing a recommended shelf plan or shelf schematic from the prohibited means to induce enumerated in 27 U.S.C. 205(b)(3).” As a result of these complaints, TTB investigated and found that “there is a misunderstanding about what activities are permitted under the § 6.99(b) exception. Ruling 2016-1 is an attempt to clarify what is and is not exempted under the exception. Now, the TTB has issued FAQs that seek to further clarify its 2016-1 Ruling. See a few examples below but see the FAQs for for more. Q: Does TTB Ruling 2016-1 prohibit industry members from acting as “category captains” or from engaging in “category management” activities? A: The terms “category management” and “category captain” are not defined in the TTB regulations and can mean different things to different industry members. TTB Ruling 2016-1 reminds the industry what is exempted by 27 CFR 6.99(b); specifically, providing a recommended shelf plan or shelf schematic, and nothing further. TTB considers additional services or things of value not specifically exempted by a subpart D exception, whether or not referenced as “category management services,” as inducements under 27 CFR 6.41 of the TTB regulations. Many of the common services given under the term “category management/category captain” may be considered things of value and, as such,…