Category: News This Week

Senate Bill Bans Online E-Cig Sales to Minors

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The U.S. Senate on July 1 approved a bill to stop internet sales of vapor products to minors, reports NASC.
Passed unanimously, the Preventing Online Sales of E-Cigarettes to Children Act seeks to close the online loophole of e-cigarette sales to minors by applying the same measures that are required when traditional cigarettes are purchased online. The House passed its version of the bill last year.
The legislation would require online sellers of e-cigarettes to ensure the carrier verifies the age of the recipient upon delivery. It would also require online sellers to collect and remit the appropriate state and local taxes.
These measures are already in place for cigarettes and smokeless tobacco products purchased over the internet because of the Prevent All Cigarette Trafficking (PACT) Act, which Congress enacted in 2010. E-e-cigarettes were uncommon in the marketplace when the law was passed.
The internet is the most common retail source of e-cigarettes to minors, according to a study published in 2018 by the American Journal of Health Promotion.
“According to a report last year, more than a quarter of all high school students and one in 10 middle school students had vaped in the previous 30 days, despite the fact that they are underage and should not have legally been able to buy e-cigarettes,” said Senator Feinstein, one of the sponsors of the Senate bill.
“Age verification for purchasing e-cigarettes online remains practically nonexistent, and it’s time we start regulating these products at least as much as we do traditional cigarettes.”
Last October, the House passed its version of the same bill on suspension. Given that the Senate bill is slightly different than the House version, the House will need to pass the Senate’s version before it can become law.
July 7, 2020
Philippines Mull Ban on Online Cigarettes Sales

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The Philippine Department of Finance (DOF) wants to ban internet sales of cigarettes and alcoholic beverages.
The proposal comes at a time when more Filipinos are using more online transactions to buy products, especially with community quarantines in place to contain the Covid-19 outbreak.
E-commerce platforms have been offering cigarettes for sale at discounts of up to 50 percent, raising concerns about illicit trade.
The government’s excise tax collections from alcohol and tobacco products from January to May decreased by 39 percent from with the same period last year due to restrictions on nonessential items.
Citing data from the Bureau of Internal Revenue, Finance Undersecretary Gil Beltran said cigarette factory shipments contracted by 72 percent to 376.3 million packs in the period January-April.
In July last year, the Philippines increased excise taxes on tobacco products and introduced a new tax on e-cigarettes. In January, President Rodrigo Duterte signed off on legislation raising the e-cigarettes taxes.
The DOF expects the additional revenues from these taxes to reach PHP13.2 billion this year and PHO73.1 billion from 2020 to 2022.
July 7, 2020
Panelists Discuss Diversity and Inclusion

Women make up roughly half of the population, yet they remain underrepresented in many industries, especially among the senior echelons. In the tobacco industry, for example, women account for only 30 percent of the workforce, 21 percent of management and 20 percent of boards.
That represents a missed opportunity, not only for the individuals involved, but also at the corporate level. Research carried out by the FP Analytics Division of the U.S.-based Foreign Policy Group reveals that companies with more women in executive management and on boards outperform those with fewer women in such positions.
Companies with higher shares of women in senior management are not only more profitable, they also are more transparent and have significantly higher environmental, social and governance ratings. According to a 2019 report by the International Labour Organization, enterprises that promote gender diversity are 59 percent more likely to achieve greater creativity, innovation and openness than their more homogenous counterparts.
In the tobacco industry, women are helping drive the much-needed transformation to a more sustainable and inclusive future. Among other things, they are pushing their companies to focus on harm reduction, promoting greener farming practices among tobacco growers and advocating for equal pay.
During TMA’s 2020 virtual conference, an expert panel moderated by Regulation Strategy’s Patricia Kovacevic examined the barriers facing women throughout the employment pipeline and explored possible solutions. Drawing on research and personal experiences, the panelists agreed that the goal should not be to ‘fix’ women but rather to change the way people think about the workforce and leadership.
They also stressed the importance of mentorship, gender pay gap reporting and accountability. And they called on industry leaders to signal that gender equality and inclusivity matters to them—not just because it is ethical but also because it is good for business.
Click here to view this inspiring discussion.
July 6, 2020
Germany to Curb Tobacco Advertising

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The German government plans to limit the outdoor advertising of tobacco products, reports DW. Germany is the only EU state that still allows tobacco companies to broadly advertise their products.
Under the new rules, advertising of tobacco products will be authorized only in tobacco shops. In cinemas, commercials for tobacco products may be shown only in films aimed at adult (18+) audiences. Distribution of free tobacco samples will also be prohibited outside of specialist stores.
The restrictions on outdoor advertising will be implemented in stages. They will apply from Jan. 1, 2022, for tobacco products, from Jan. 1, 2023, for tobacco-heating devices and from Jan. 1, 2024, for e-cigarettes. The new rules for tobacco advertising in movie theaters are expected to come into force at the turn of the year.
Anti-smoking activists have long pushed for tighter restrictions on advertising but met with fierce opposition. An attempt to pass similar legislation in 2016 failed to garner the required support. After resisting tighter laws for many years, Chancellor Angela Merkel’s CDU/CSU coalition changed its position at the end of 2019.
Tobacco companies expressed concern about the new legislation. Philip Morris International Managing Director Claudia Oeking suggested that, without advertising, it would be difficult to inform smokers about less-harmful products.
The tobacco industry spent an estimated €100 million ($112 million) a year on cinema and outdoor advertising in Germany.
July 6, 2020
Chowdhery to Head INNCO

Samrat Chowdhery
The International Network of Nicotine Consumer Organizations (INNCO) has appointed Samrat Chowdhery as its president, reports APN News.
A former journalist, Chowdhery has been spearheading tobacco harm reduction activities in India as the founder of the Council for Harm Reduced Alternatives and the director of the Association of Vapers India.
Chowdhery was honored with the “Advocate of the Year” award at the Global Forum for Nicotine in Warsaw in June 2018. In May, Chowdhery spoke to Tobacco Reporter about the vapor business in India.
“While harm reduction is a well-accepted intervention strategy in many fields, from addiction treatment to pandemic response, it is finding uncharacteristic opposition in tobacco use, which kills 8 million people every year,” said Chowdhery. “Our goal is to ensure consumers have a say in the framing of global tobacco policies as they are affected the most by them.”
A global body of 34 national advocacy groups with UN observer status, INNCO represents consumers of low-risk, alternative nicotine products, and promotes tobacco harm reduction at the global stage.
July 5, 2020
Turkey Bans Sale of Hand-Rolled Cigarettes

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Turkey has banned the sale of hand-rolled cigarettes as part of a crackdown on illegal cigarettes. Violators risk prison terms ranging from three to six years, reports Daily Sabah.
In response to rising cigarette prices, Turkish smokers have been turning to roll-your-own cigarettes, which are considerably less expensive than factory-made smokes.
Authorities suspect at least some of these products to have avoided tax; it is difficult to trace the contents of hand-rolled cigarettes that are sold in packs without official brands.
According to media reports, Turkey is now home to more than 25,000 tobacco shops whose earnings mostly depend on the sale of hand-rolled cigarettes and raw tobacco. Illegal online sales of hand-rolled cigarettes also proliferated in recent years, complicating efforts to track down illegal sales.
Studies show hand-rolled cigarettes illegally sold in tobacco shops contain a high level of cadmium and lead and other materials harmful to the health.
Yuksel Denli, deputy head of the Ministry of Agriculture and Forestry’s department of tobacco and alcohol hopes the new regulations will prevent a yearly tax loss of about TRY9.5 billion ($1.4 billion).
Turkey has taken stricter measures against smoking in recent years. The percentage of smokers in the country is 28 percent, according to official figures.
July 5, 2020
UKVIA Wants Tax Parity With NRTs for Vapor

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The U.K. Vaping Industry Association (UKVIA) is calling on the U.K. government to treat vapor products as nicotine replacement therapies (NRT) when calculating value-added tax (VAT).
The call comes amid reports that the Chancellor of the Exchequer considering reducing the VAT rates to stimulate the economy in the wake of the coronavirus.
In a letter to the Chancellor of the Exchequer, the UKVIA urges the government to consider a level playing field for NRT and vapor products to help adult smokers who would otherwise not quit smoking switch to vaping.
The letter points to the recent Public Health England report that found that when vapor products were used to quit, either alone or with licensed medication, success rates were comparable to, or higher than, when using NRTs alone.
John Dunne, director at UKVIA, said the vapor sector has been a major retail success story this century and is playing a major role in getting smokers to quit, thereby helping cut the annual cost of healthcare associated with smoking.
“Yet according to research nearly one in 10 smokers do not switch to e-cigarettes because they considered them to cost too much,” he said. “Ensuring that the price of vaping products remains much lower than cigarettes is vitally important in continuing to encourage the some 7 million smokers in the U.K., who otherwise do not quit, to make the switch.”
July 5, 2020
Hawaii Sues Juul for Misleading Marketing

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Hawaii Attorney General Clare E. Connors has filed a lawsuit against Juul Labs seeking penalties, damages and injunctive relief for violations of the state’s Unfair and Deceptive Acts and Practices Law.
The complaint alleges that, for a period of more than five years, the defendants misleadingly marketed Juul e-cigarettes, intending to hook users on the product in the same manner used by tobacco companies in the marketing of cigarettes.
According to the attorney general, the defendants used marketing strategies that targeted teenagers, making Juul products seem desirable, all while falsely understating the nicotine content of the product and its addictiveness.
“In marketing their e-cigarettes to Hawaii’s children, these companies ripped pages directly out of the tobacco company playbook and resurrected Joe Camel for a 21st Century audience,” said Connors. “By misrepresenting nicotine content and by presenting their products as healthy alternatives to cigarettes, they deceived the public and created a new generation of nicotine addicts.”
The state seeks civil penalties of up to $10,000 per violation and damages along with an injunction requiring the defendants to halt their deceptive advertising practices and fund mitigation programs, including vaping-cessation programs.
July 1, 2020
Altria Veteran Brian Quigley Joins Respira

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Brian Quigley has joined Respira Technologies as chief operating officer.
Quigley spent 16 years at Altria Group where he was CEO of the smokeless tobacco business from 2012 to 2018.

“We are thrilled to have Brian join the Respira team as we prepare to enter the commercial phase of our company’s growth,” said Mario Danek, Respira’s Founder and CEO. “Brian’s vocal leadership for responsible industry practices and harm reduction combined with his impressive track record of driving business performance in FDA-regulated businesses make him the perfect leader for the next phase of growth for our unique product platforms.”

Respira has developed two proprietary drug delivery platforms designed for safe aerosol-based delivery of drugs to patients and end users, without the creation of harmful byproducts and compounds. According to Respira, the platforms have applications in nicotine-replacement therapies, reduced-harm tobacco products and pharmaceutical drug delivery.

“I am excited to be joining Respira Technologies at this critical moment in the company’s journey,” said Quigley. “I look forward to working with our team, investors and partners as we prepare to commercialize our proprietary drug delivery platforms.”
July 1, 2020
Spain to Toughen Tobacco Law

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The Spanish government is drafting a new tobacco law to replace outdated legislation that has not been amended since 1998, reports EuroWeekly.

Minister of Health Salvador Illa wants to increase taxation and bring taxes for different types of tobacco on an equal footing. For example, cigarettes are currently more heavily taxed than roll-your-own tobacco.

To avoid hoarding, the price increases will be made without notice.

The Health Department also intends to extend smoke-free areas, and smoking could be banned in private cars, especially if there are children onboard.

Meanwhile, the Ministry of Finance wants to tighten the regulatory framework to meet World Health Organization and EU standards—in particular, the regulations governing the import or sale of cigarettes and electronic devices.

In addition, there are plans to increase sanctions on importers to reduce illegal trafficking of tobacco.

The aim is to have a draft ready by September so that the changes can be presented to the Congress of Deputies before the end of the year.

Smoking currently generates €9 billion ($10.09 billion) in tobacco taxes for the Spanish treasury each year.
June 30, 2020