As reported in the Wall Street Journal this week, the 46 state-signatories to the 1998 Master Settlement Agreement are negotiating a settlement of claims by the signatory-manufacturers that the states have failed to “diligently enforce” escrow requirements applicable to the non-signatory nonparticipating manufacturers. The signatory-manufacturers are attempting to recoup as much as two billion dollars from the states.
FDA Announces New Cigarette Health Warnings
This week, the FDA announced the nine new cigarette health warnings that, as of September 2012, must be placed on the top fifty percent of both the front and rear panels of each cigarette package. The new warnings are larger, more prominent and include images that correspond to each warning. The new warnings must also be placed in the upper portion of each cigarette advertisement, occupying at least 20 percent of the area of the advertisement.
Lawsuit Challenges Law Banning Blunt Wraps
In February, National Tobacco Company, the fourth largest manufacturer and marketer of roll-your-own tobacco products in the United States, filed a lawsuit against the District of Columbia seeking a declaration that certain provisions of the Prohibition Against Selling Tobacco Products to Minors Amendment Act of 2009 (the “Act”) are unconstitutional and an injunction prohibiting the District from enforcing the provisions.
Nevada Nonparticipating Manufacturer Legislation
The Nevada legislature recently enacted a law addressing nonparticipating manufacturers’ escrow requirements.
Model Nonparticipating Manufacturer Legislation Passes in Nebraska
On April 16, we reported on a bill pending in the Nebraska legislature dealing with, among other things, nonparticipating manufacturers’ escrow obligations and tribal sales.
Proposed Legislation Weakens FDA’s Ability to Regulate Cigarettes
Recently, Rep. Denny Rehberg (R-Montana) proposed an amendment to the 2012 agriculture appropriations bill that would, among other things, curb FDA’s authority to regulate tobacco products by limiting the factors FDA can consider in regulating these products.
FDA Says Restrictions on Free Samples Inapplicable to Cigars and Pipe Tobacco
In March, FDA released Draft Guidance for the Industry advising that it will not regulate cigars, little cigars, and pipe tobacco under the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act).
#3 Cig Manufacturer Sees Volume Growth
While cigarette tobacco volumes are somewhat declining across the industry, and majors are looking at or entering alternative markets such as smokeless and cigars, Lorillard has made it clear that for the time being they are going to concentrate on their core products–Newport, which has approximately 35% of the menthol market, and a non-menthol Newport, recently introduced in view of the FDA’s advisory panel’s review of the impacts of menthol cigarettes.
FDA Requests Tours of Tobacco Farms and Factories
FDA has asked tobacco companies to allow the agency to tour farms and factories that grow or process tobacco. Specifically, FDA would like to tour large and small cigarette factories, a smokeless tobacco plant, tobacco farms, a rolling-paper factory, and a tobacco warehouse.
FDA Will Regulate E-Cigarettes as Tobacco Products
On April 25, FDA announced that it will regulate smokeless electronic cigarettes as tobacco products and not as drug-delivery devices, which are subject to more stringent regulation.