On June 18, 2014, the United States District Court for the Southern District of New York upheld a New York City ordinance that effectively prohibits all promotional marketing and discounts for cigarettes and tobacco products.  The District Court found that there was no First Amendment violation and that the newly enacted city code, which bans any sale of cigarettes or tobacco products below the “listed” or “advertised” price, was not preempted by federal or state law.

Members of the Troutman Sanders tobacco practice will attend the 82nd International Premium Cigar and Pipe Retailers Association Annual Convention & International Trade Show from July 19-23 in Las Vegas, Nevada. We will be at the Smokeshop Magazine booth, and look forward to seeing those of you attending the show…

Earlier this week, the Tobacco Merchants Association hosted a conference on the FDA’s proposed tobacco product deeming regulations, which would subject a host of new products — including e-cigarettes, cigars and pipe tobacco — to the FDA’s regulatory authority.  The Troutman Sanders tobacco team participated in the discussion regarding how the industry can best contribute to the ongoing debate as to how these products should be regulated, if at all.

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. 

In a case that has been ongoing since May 2008, on June 10, 2014, the Oklahoma Supreme Court upheld the trial court’s award of $47.7 million in favor of the State of Oklahoma for alleged violations of the Oklahoma Master Settlement Agreement Complementary Act.  The sole question on appeal was whether the State was entitled to summary judgment as a matter of law.  That means, the Oklahoma high court decided whether the trial court erred in finding for the State by not sending the case to a jury for a trial.

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.