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On June 2, 2014, the United States District Court for the District of Columbia approved an agreement (the “Revised Consent Order”) between the federal government and Philip Morris, R.J. Reynolds and Lorillard Tobacco, which resolved a dispute that has been ongoing for over a decade.  The federal government sued the three tobacco companies, alleging, among other things, that the tobacco companies had engaged in deceptive marketing and advertising practices.  In 2006, after finding that the tobacco companies had made false and deceptive statements, the District Court entered a Final Judgment and Remedial Order #1015 (“Remedial Order”).  The Remedial Order required the tobacco companies to publish corrective statements covering five topics where court determined that the tobacco companies had made deceptive statements. 

Under the Patient Protection and Affordable Care Act (the “Affordable Care Act”) (also known as “ObamaCare”), which became law in 2010, health insurance companies may charge smokers and tobacco users more than those who do not smoke or use tobacco.  Specifically, smokers and tobacco users may be charged up to 50 percent more.

Nonparticipating manufacturers, wholesalers, and distributors that do business in Oklahoma will be subject to substantial additional requirements if House Bill 2363 currently pending in the Oklahoma State Legislature is enacted.   The bill has passed both houses of the Legislature and appears to be headed toward approval.

The television arm of the Washington Post, Post TV, recently ran a news report on electronic cigarettes titled “E-cigs: The battle happening on nicotine’s next front”. The report discusses the recent popularity of e-cigarettes, and speaks of concerns regarding both the impending regulation of the product by the FDA as well as the restrictions that are already beginning to be imposed by major cities on the product. 

On April 7, 2014, legislators from California, Connecticut, Illinois, Iowa and Massachusetts wrote joint letters to the head of the Federal Trade Commission (the “FTC”) and the Food and Drug Administration (the “FDA”).  The legislators’ letters urged the FTC and FDA to take action against manufacturers of electronic cigarettes that purportedly make false or unsubstantiated claims in their advertising and marketing.

In December 2013, the New York City Council approved and Mayor Bloomberg signed into law a bill to ban the use of electronic cigarettes in public places.  The ban was added to the City’s 2002 Smoke-Free Air Act (the “SFAA”).  The SFAA was initially enacted to ban the use of cigarettes in public places, and various sources indicate that the purpose of the SFAA is to protect the public from involuntary exposure to second-hand smoke. 

An article by the Troutman Sanders tobacco practice appears in the February issue of Smokeshop Magazine.  The article, titled “E-Cigs at the Forefront,” discusses the growing momentum for state-level regulation of tobacco product alternatives, with e-cigarettes attracting the most attention. The full text of the article can be found here.

On February 26, 2014, the European Parliament approved the revised Tobacco Products Directive (the “Revised Directive”), which governs the manufacture, presentation and sale of tobacco and related products in the European Union.  This Revised Directive was passed by the European Parliament more than ten years after approval of the Tobacco Products Directive (the “Directive”).  Prior to approval by the European Parliament, the Revised Directive was recommended by the European Union Member States.  The Revised Directive will now be reviewed by the European Council, and is scheduled to take effect in 2016.