A U.S. ban on promoting cigarettes as "light," "mild" [image-nocss] or "low" takes effect on Tuesday. The ban is a key provision of a new federal law that gives the FDA authority to regulate tobacco products.
A PM USA onsert that drew FDA attention reads: "Your Marlboro Lights pack is changing. But your cigarette stays the same. In the future, ask for 'Marlboro in the gold pack'."
The FDA said, "By stating that only the packaging is changing, but the cigarettes will stay the same, the onsert suggests that Marlboro in the gold pack will have the same characteristics as Marlboro Lights, including any mistaken attributes associated with the 'light' cigarettes."
It added, "Although the onsert includes some disclaimer language, Congress found that disclaimers have been ineffective in eliminating mistaken beliefs regarding 'low tar' and 'light' cigarettes."
(Click here to read the full FDA letter to PM USA;click here to read the FDA's general letter to tobacco manufacturers.)
Richmond, Va.-based Altria must submit by July 30 all materials related to the marketing or sale of Marlboro Lights, including themes, creative recommendations and dissemination strategies, the FDA said.
Altria spokesperson Bill Phelps said, "We received the letter...and we're reviewing it and we will respond."
Credit Suisse analyst Thilo Wrede said in a research note to investors, "We think that [PM USA] should be allowed to communicate packaging changes to its smokers, but the FDA request serves as a reminder that the regulatory pressure is maybe bigger than initially expected."
The FDA noted in a separate letter to retailers of tobacco that the "new legal restrictions apply only to manufacturers; they do not prohibit retailers from selling tobacco products with the descriptors 'light,' 'low,' 'mild,' or similar descriptors that were manufactured before June 22, 2010."
(Click here to read the full FDA letter to retailers.)
"As the FDA acknowledges in the letter to retailers, there is no time limit for retailers to sell through their existing inventory of these tobacco products labeled with these descriptive terms. Retailers should simply continue to use good retailing practices of rotating stock which will reduce the length of time after June 22 that these tobacco products labeled with descriptive words remain on store shelves," said the National Association of Tobacco Outlets in its most recent issue of NATO E-News.
(Click here to view this week's CSPTV segment featuring NATO's Thomas Briant: "Tobacco Realities": A year after SCHIP and regulation, where do tobacco retailers stand? And are there any bright spots?)
Other tobacco regulatory activity: The U.S. Postal Service announced that it will no longer accept packages containing cigarettes starting June 29, thereby following its obligations under the Prevent All Cigarette Trafficking (PACT) Act. Other delivery services like FedEx, UPS and DHL are also no longer making cigarette shipments, which significantly limits the legal shipping options for online cigarette sellers.
"Since the PACT Act does not regulate pipe tobacco or cigars, these tobacco products can continue to be mailed by retailers to consumers. The PACT Act prohibits retailers from mailing cigarettes, roll-your-own tobacco and smokeless tobacco products," NATO said.
"Online sales are only a tiny fraction of the total tobacco sales in the U.S., but this event is another example for the increasing pressure on the industry from Washington," said Wrede.
And the FDA advisory panel will have its next meeting on menthol on July 15 and 16. At that meeting, the industry is expected to present its view on menthol and provide the data that was requested at the March meeting.
"We expect a much more intense debate about the industry's intentions for adding menthol to cigarettes, which could lead to a more general discussion of menthol's role in underage smoking initiation. We continue to see the underage initiation argument as the most promising angle of attack for proponents of a menthol ban," Wrede added.
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