Wednesday, June 09 2010
FDA Issues Draft Guidance Report on Sell Through Question
On Saturday, June 5th, the FDA’s Center for Tobacco Products issued a document titled “Draft Guidance for Industry: Use of “Light,” “Mild,” “Low,” or Similar Descriptors in the Label, Labeling, or Advertising of Tobacco Products”. This Draft Guidance states that wholesalers and retailers may distribute or sell tobacco products in their possession for which the label, labeling, or advertising contains the descriptors “light,” “low,” or “mild,” or any similar descriptor after July 22, 2010. There is no time limit or time period for wholesalers and retailers to sell out their inventory of these tobacco products with descriptors. This regulation on descriptor terms does not affect cigars or pipe tobacco.
Postal Service Issues Final Rule to Implement PACT Act
On Friday, June 4th, the U.S. Postal Service issued the Final Rule to implement the provisions of the PACT Act prohibiting the mailing of cigarettes, roll-your-own tobacco and smokeless tobacco. A copy of the Final Rule accompanies this NATO E-News Bulletin. The Final Rule takes effect on June 29, 2010 and will prohibit the mailing of cigarettes, roll-your-own tobacco and smokeless tobacco in the continental United States. Any of these tobacco products deposited into the mail are subject to seizure and forfeiture and the sender of the tobacco products is subject to criminal fines, imprisonment and civil penalties. There are limited exceptions to allow packages of these tobacco products to be mailed within the States of Alaska and Hawaii and for mailing of these products between tobacco industry businesses. Pipe tobacco and cigars are not regulated by the PACT Act and can continue to be mailed.
New York City Warning Signs Challenged
Altria Group, Lorillard, Inc., Reynolds American, Inc., two retailers and two retail trade associations have filed a lawsuit in U.S. Federal District Court challenging the New York City Board of Health’s ordinance requiring graphic anti-tobacco health warning signs be posted in retail stores that sell tobacco products. The lawsuit includes claims that the federal government warning label regulations preempt this action by New York City’s Board of Health and that the ordinance infringes on the right to communicate with consumers about lawful tobacco products. This litigation will be monitored and NATO members will be updated regarding further developments in this case.
State Legislative Updates
Connecticut: A proposal that would increase taxes on other tobacco products from 48.59% to 65.03% passed the Connecticut Senate, but the Connecticut House did not concur. The proposal is in conference committee. An earlier version of this bill included a proposal to raise cigarette taxes by 20 cents per pack was defeated.
Illinois: The Illinois legislature concluded its session last week without raising the state excise tax on cigarettes. A bill would have raised the cigarette tax rate by $.50 per pack for each of the next
two years.
Source: National Association of Tobacco Outlets
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