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.

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.

A unit of local government in West Virginia, the Wheeling-Ohio County Health Board, is currently holding hearings on whether to ban the use of electronic cigarettes (“e-cigarettes”) in certain areas.  The proposed Wheeling-Ohio County Clean Air Regulation would change the definition of “smoking” to “include[] the use of an e‐cigarette which creates a vapor, in any manner or in any form, or the use of any oral smoking device.”

In a letter to the industry dated August 16, 2011, the FDA announced that it will begin inspecting every factory engaged in the manufacture or processing of cigarettes, cigarette tobacco, roll-your-own tobacco and smokeless tobacco.  The inspections will begin in October 2011, and pursuant to the Tobacco Control Act, inspections will be conducted at least once every two years.

On the heels of FDA’s surprising determination that dissolvable tobacco products, such as Star Scientific’s Stonewall and Ariva and R.J. Reynolds’ Camel “Orbs,” are not considered smokeless tobacco products currently subject to regulation under the Tobacco Control Act, the FDA’s Tobacco Products Scientific Advisory Committee convened its first meeting to evaluate these products.

We have previously written about New York’s recent effort to collect taxes for cigarette sales on Native American reservations.  We have also written about the ongoing arbitration between the states and the major tobacco companies regarding allegations that the states have not “diligently enforced” their state escrow statutes.