History
From 1920 to 1933, the manufacture and sale of alcohol was illegal in the United States due to an act called prohibition. The lack of legal liquor led to a rise in underground distilleries and moonshine operations. Therefore the need for glass bottles for alcohol transport was necessary for business, but the government was unable to forbid the resale of spirit bottles because there was no legal spirit manufacture. Liquor bottles from this time period in the United States are extremely rare.
Federal Law
After prohibition, the government attempted to exert stronger control over the alcohol industry. Therefore, bottles made in the United States between 1935 and 1964 bear the imprint "Federal Law Forbids Sale or Reuse of This Bottle." To discourage the reuse of liquor bottles by illegal distilling operations, the federal government passed a 1935 law requiring this notice on all machine-made liquor bottles. Wine and beer bottles were not included in this law. This law was repealed in 1964, and since then machine-made glass liquor bottles in the United States have not bore this message.
Selling Bottles
Some sellers may question this notice and wonder if the sale of these bottles is still illegal. Selling bottles made between 1933 and 1964 with this statement is not illegal, and the bottle is subject only to laws regarding the sale of objects in a particular setting, such as state taxes or antique stall fees. Today this notice is used by collectors as a benchmark in glass bottle dating.
Modern Bottles
Some states such as Wisconsin require contemporary liquor store owners to deface or destroy empty liquor bottles to prevent them from being reused in home distilling operations and marketed as a name brand. Personal sale of modern collectors edition liquor bottles that are not defaced is legal as long as the bottles are not used to make or sell liquor.