Senators Press Altria, Reynolds Over Lobbying

Six U.S. senators, including Democratic whip Dick Durbin and Elizabeth Warren, sent public letters to  Reynolds American and Altria asking questions about donations to and lobbying of the Trump administration, saying the companies had enjoyed a “lucrative payday” after spending millions to curry favor with the president. The letters followed the FDA’s new “enforcement discretion” policy, under which it will allow some manufacturers to sell vapes and nicotine pouches without the legally required license, a move that could unleash hundreds or more vapes onto the market and that came after White House pressure for change. It also followed political donations from both Reynolds, the U.S. subsidiary of British American Tobacco, and Altria as recently as April, and a May meeting between President Trump and tobacco executives.

Calling the spending “money well spent,” the June 4 letters argued the donations and lobbying had enabled tobacco makers to circumvent federal laws to sell addictive vapes while harming the FDA’s independence, describing the outcome as a lucrative payday after years of unsuccessful efforts to weaken federal tobacco oversight. The senators requested details on donations, meetings, and the products that will benefit from the change. White House spokesperson Kush Desai responded that the FDA’s regulatory treatment of nicotine pouches and vapes is rooted in recent evidence that the products can help adults quit smoking. An Altria spokesperson called the guidance an important step toward addressing the illicit market by pairing enforcement with expansion of a legal, regulated marketplace for smoke-free products, saying the company is reviewing the implications for its product strategy and will continue competing within the FDA-regulated marketplace.

Reuters notes the companies have “complained for years” that FDA policy helped fuel a booming market for unlicensed devices mostly from China, which Reynolds estimates is worth some £7 billion ($9.41 billion). They have launched lobbying campaigns and court cases, put sales targets on hold, and threatened to launch their own unlicensed products to compete, and have already announced plans for new launches following the enforcement-discretion policy. The letters were signed by Democratic senators Durbin of Illinois, Warren and Edward Markey of Massachusetts, Jeff Merkley of Oregon, Richard Blumenthal of Connecticut, and Jack Reed of Rhode Island.