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.
State Regulatory
Maryland Attorney General Questions E-Cigarette Companies
Posted in State Regulatory
Last week, Maryland Attorney General Douglas Gansler wrote to ten e-cigarette companies raising issues regarding potential nicotine poisoning and purported marketing to minors.
Oklahoma Bill Would Impose Greater Obligations upon Nonparticipating Manufacturers, Wholesalers and Distributors
Posted in Legislation, State Regulatory
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.
Employers Consider E-Cigarette Restrictions
Posted in State Regulatory
As federal and state regulators consider whether and how to regulate electronic cigarettes, some private employers are considering their own restrictions. A recent NPR article explores this trend.
Troutman Sanders Smokeshop Magazine Article Regarding State Regulation of E-Cigarettes
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.
Missouri Reintroduces the Allocable Share Bill After the Arbitration Panel’s Decision on MSA “Diligent Enforcement” Disputes
Posted in Legislation, State Regulatory
Missouri, the last remaining state in which nonparticipating manufacturers (“NPMs”) can obtain allocable share releases from their escrow payments, has again introduced legislation to repeal the release mechanism. The bill, House Bill 1242, was introduced on January 8, 2014 and has been referred to and is pending before the House Budget Committee.
Pending FDA Regulation, Lobbyists Push for E-Cigarette Clarity in Washington
Troutman Sanders tobacco team partner Bryan Haynes was quoted in a February 26th NPR article titled “Lobbyists Amp Up Efforts To Sell Washington On E-Cigarettes.”
States Seek to Increase Tobacco Tax Revenue by Taxing E-Cigarettes
Troutman Sanders tobacco team partner Bryan Haynes was quoted in a February 24th Law360 article titled “States Acting Hastily In Pushing E-Cigarette Taxes.”
Lawmakers Attempt to Force Electronic Cigarettes into the MSA
Posted in Legislation, State Regulatory
On February 12, 2014, congressmen from California, Iowa and Vermont sent a joint letter to the Attorneys General in those states, urging them to classify electronic cigarettes as cigarettes under the Master Settlement Agreement (“MSA”). The MSA was adopted in 1998 and applies to cigarette and roll-your-own tobacco manufacturers. In the letter, the lawmakers stated that classifying electronic cigarettes as cigarettes would be a “bold step” in the battle against tobacco use.
State Attorneys General Ask to Exclude Tobacco from All Future Trade Agreements
Posted in State Regulatory
On January 27, 2014, the National Association of Attorney Generals (“NAAG”) sent a letter, signed by 45 state attorneys general, to the United States Trade Representative (the “USTR”), requesting that all future United States trade agreements explicitly provide that they do not apply to tobacco or tobacco products.