On Monday, U.S. District Judge Richard Leon issued a preliminary injunction blocking implementation of FDA’s new graphic warnings requirements, which would have required, beginning September 22, 2012, all cigarette packages to display one of nine new textual warnings showing the dangers of smoking, graphic images on the top fifty percent of both the front and rear panels.
Significant Cases
California Increases Efforts to Regulate Tobacco Sales on Tribal Lands to Non-Native Americans
Earlier this week, the California Attorney General’s Office filed a lawsuit against Huber Enterprise Smoke Shop, a tribal tobacco shop located on the Wiyot Table Bluff Reservation, and its owner, Ardith Huber, claiming the tobacco shop’s sales of untaxed, non-fire-safe-certified, off-directory cigarettes to non-Native Americans beyond the reservation’s boundaries violates California law, including California’s Unfair Competition Law.
FDA Issues Guidance for Small Businesses Regarding Compliance with New Required Warnings for Cigarette Packages and Advertisements
Earlier this week, FDA published guidance to help small businesses understand and comply with FDA’s regulations regarding the new required cigarette warnings. These regulations take effect on September 22, 2012 and, as previously reported, require all cigarette packages and advertisements to contain one of nine new textual warning statements, a corresponding graphic image, and a specified toll free smoking cessation assistance resource phone number. Roll-your-own and cigarette tobacco are not covered by the regulations. Further, small advertisements of less than 12 square inches need not comply with the smoking cessation assistance resource requirement.
Trial Court Denies PACT Act Challenge
In August, we reported on a different lawsuit, brought by Genuine Tobacco, challenging the constitutionality of the PACT Act. Unlike the New York lawsuit brought by merchants on the Seneca Nation of Indians, in which the trial court enjoined the PACT Act provision requiring out-of-state sellers to collect taxes for remote sales, the Pennsylvania-based federal court denied all of Genuine Tobacco’s challenges to the Act. The court issued its decision on September 26, 2011.
Court of Appeals Maintains Injunction Against PACT Act
On September 20, 2011, the U.S. Court of Appeals for the Second Circuit affirmed a New York federal court’s order enjoining portions of the Prevent All Cigarette Trafficking Act.
Lawsuit Challenging D.C.’s Cigar Wrappers Ban Lives to See Another Day
In June, we reported that National Tobacco Company (“NTC”), the nation’s fourth largest producer of roll-your-own tobacco products, including the popular Zig-Zag brand, had filed a lawsuit against the District of Columbia challenging the constitutionality of the city’s statutory ban on cigar wrappers.
Second Warnings Suit Filed Against FDA by Big Tobacco
In early July, we reported that the four leading tobacco companies were threatening legal action against the Food and Drug Administration (FDA) over the nine new graphic cigarette health warnings that must appear on each cigarette package beginning in September 2012.
Lawsuit Challenges Constitutionality of PACT Act
In August of last year, Musser’s Inc. t/d/b/a Genuine Tobacco Co. (“Genuine Tobacco”) filed a lawsuit in the Eastern District of Pennsylvania challenging the constitutionality of certain provisions of the Prevent all Cigarette Trafficking Act (the “PACT Act”). Genuine Tobacco operates two “brick and mortar stores” in Pennsylvania, as well as an online retail store that sells tobacco products through the Internet and telephone to consumers throughout the country.
General Tobacco Seeks Supreme Court Review
Earlier this month, General Tobacco requested that the United States Supreme Court review a decision from the Arkansas Supreme Court that General Tobacco must pay Arkansas $2.45 million under the Master Settlement Agreement. The State’s response to General Tobacco’s request for review is due early next month.
Massachusetts Appellate Court Upholds Ban on Sale of Cigar Wraps in Boston
On July 26, the Massachusetts Appeals Court upheld a lower court’s dismissal of a lawsuit filed by RYO Cigar Association, Inc. (“RYO”) and New Image Global, Inc. (“New Image”) seeking an injunction against enforcement of a regulation issued by the Boston public commission banning the sale of cigar wraps in Boston.