Tobacco

Better to Burn Out

FDA targets tobacco use by minors, while Congress tackles Internet sales
WASHINGTON -- Just as Congress approved an initiative to regulate Internet tobacco sales, the U.S. Food & Drug Administration (FDA) announced a final tobacco ruling Wednesday that further limit the ways tobaccos products can be sold and advertised. The ruling is designed to "help our kids stay healthy by making it harder to target them," according to U.S. Health & Human Services (HHS) Secretary Kathleen Sebelius.

The regulations secure cooperation of manufacturers and retailers and establish a uniform federal standard for sales, distribution and marketing of cigarettes [image-nocss] and smokeless tobacco, according to HHS Assistant Secretary for Health Howard K. Koh.

"The regulations also strengthen enforcement, and the FDA will become responsible for ensuring that retailers are in compliance as part of its growing public health mission," Koh said during a press conference.

According to Sebelius, every day nearly 4,000 kids under age 18 try their first cigarette, and 1,000 of those children become daily smokers. "Part of the reason is that despite a ban on direct marketing to young Americans, tobacco companies have still found ways to reach out to them," she claimed. "I don't think it's any accident that the three brands that spend the most on advertisingMarlboro, Camel and Newportare preferred at higher rates by children than adults." FDA commissioner Margaret Hamburg outlined the rules, which give the FDA the authority to: Prohibit the sale of cigarettes or smokeless tobacco to people younger than 18. Prohibit the sale of cigarette packages with fewer than 20 cigarettes. Prohibit the sale of cigarette and smokeless tobacco in vending machines, self-service displays or other impersonal modes of sales, except under very limited conditions. Restrict free samples of cigarettes or smokeless tobacco products. Hamburg said the ruling also means the FDA has additional authority over marketing and merchandising of tobacco-related products.

The ruling:
Prohibits tobacco brand name sponsorship of any athletic, musical, or other social or cultural event, or any team or entry in those events. Prohibits gifts or other items in exchange for buying cigarettes or smokeless tobacco products. Requires that audio ads use only words with no music or sound effects. Prohibits the sale or distribution of items, such as hats and tee shirts, with tobacco brands or logos. Hamburg said the FDA will contract with states to carry out tobacco retailer inspections, issue a small business compliance guide and an action plan to help enforce restrictions, and embark on a large outreach effort to further educate audiences about changes in the sales, distribution and marketing of cigarettes and smokeless tobacco. "So these are all important new activities that will make a real and enduring difference, and importantly address the deep concerns about the problem of youth smoking in this country."

As for enforcement, Lawrence Deyton, director of the FDA's Center for Tobacco Products said the FDA will participate in inspection of retail establishments and will work with states to assist in inspections and enforcement. "Violations of these rules could engender warning letters, civil money penalties, seizure, non-tobacco sale orders, injunctionseven criminal penalties, of course depending upon the severity of the infraction," he said.

The final rule is effective on June 22. Click hereto view the FDA "Protecting Kids from Tobacco" webpage.

Meanwhile, Congress has passed legislation to ensure that Internet tobacco retailers are held to the same high standards as convenience retailers, said NACS. By a 387 to 25 vote, the U.S. House of Representatives passed on Wednesday the Prevent All Cigarette Trafficking (PACT) ACT, which addresses the long-standing convenience store industry concern of tax evasion via remote sellers of tobacco products.

With the Senate passing the legislation on March 13, the bill now will be sent to President Obama, who is expected to sign the bill into law.

"Our industry is one step away from ending a 10-plus-year battle to close loopholes that placed significant competitive disadvantages on convenience retailers," said NACS senior vice president of government relations Lyle Beckwith. "The PACT Act allows our industry to compete on equal footing for not just the sale of individual products, but for customers." The PACT Act will: Expressly require Internet sellers pay state and local taxes before they send tobacco products to consumers. Impose federal age verification requirements for online sales. Broaden the reporting requirements of the Jenkins Act and upgrade violations from a misdemeanor to a felony. Empower federal prosecutors and the states to bring actions in federal court to prevent and restrain violations. Bar the U.S. Postal Service from serving as the delivery service for online cigarette and smokeless sellers. "We applaud Congress for standing up for Americans taxpayers and small businesses and look forward to working with the administration to get this bill signed into law," said Beckwith.

The Coalition to Stop Contraband Tobacco praised the House for the PACT Act. Sponsored in the House by Representative Anthony Weiner (D-N.Y.), this legislation will help combat online cigarette sales that have robbed hundreds of millions of dollars in tax revenues from the states and that undermine state laws that prevent youth access to tobacco products.

"In passing the PACT Act, Congress has made a definitive statement about its commitment to help eliminate underage access to tobacco on the Internet, curtail associated illegal activities and capture lost state excise tax revenues," said Scott Ramminger, AWMA president and CEO and coalition spokesperson. "We applaud the House...for its action today and thank Congressman Weiner for his leadership in combating contraband tobacco sales."

A broad coalition of more than 180 groups, individuals and other stakeholders worked with House and Senate leaders through the years to pass the PACT Act. The PACT Act closes gaps in current federal laws regulating Internet and other remote sales of cigarettes and smokeless tobacco products.

"This bill is a win for law enforcement, retailers, state tax advocates and public health groups," added Ramminger. "We hope that President Obama will act swiftly to sign this common-sense legislation into law so that we can put an end to the illegal sale of tobacco products."

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