Author: Timothy Donahue

PMI Lobbies Nevada Lawmakers for Lower IQOS Tax

Credit: Aidman
Representatives from Philip Morris International (PMI) have begun pitching the benefits of its IQOS heated tobacco device to Nevada state lawmakers. The cigarette maker hopes Silver State legislators will pass a bill next year to tax heated tobacco at a lower rate than traditional cigarettes.
PMI is preparing to launch IQOS in the United States. As part of those efforts, PMI has hired lobbyists in multiple states, including Nevada, according to media reports. The company has postponed the test launch of IQOS in the U.S. to the fourth quarter. The company declined to say why. The pilot was earlier scheduled to run in Austin, Texas, in the second quarter.
Anti-tobacco activists have been seeking to derail the U.S. introduction of IQOS, arguing among other things that PMI exaggerates the number of people who have quit smoking regulator cigarettes using IQOS.
PMI director of Scientific Engagement Brian Erkkila explained how IQOS works in a presentation on Tuesday to Nevada’s Joint Interim Standing Committee on Revenue. While no specific legislative asks were made Tuesday, Eddie Ableser of Tri-Strategies — the Nevada-based government affairs firm working with PMI — told lawmakers the company is looking to start a conversation about how the product should be taxed.
“The intent is not a complete absolution of harm,” he told the lawmakers. “It’s harm reduction. How do we move and target the current cigarette smokers in Nevada? How can we move them onto a harm reduction product that helps them?”
He added, “We develop tax policy generally to motivate consumers one way or the other.”
Nevada tax policy does not consider heated tobacco products such as IQOS as other tobacco products (OTPs), which includes vaping devices, and they are taxed at 30 percent of the wholesale price. However, most tax codes generally consider heated tobacco products to be traditional cigarettes.
In Nevada, cigarettes are taxed the equivalent of $1.80 per pack. According to the anti-nicotine nonprofit Truth Initiative, Nevada is in the middle of the pack (25th highest) when it comes to tax rates for cigarettes.
According to the Organized Crime and Corruption Reporting Project, PMI has successfully lobbied at least 10 countries to tax heated tobacco products at a lower rate than traditional cigarettes, using the argument that the product is far less harmful and less worthy of any kind of “sin tax.”
PMI launched IQOS in Japan a decade ago and has since expanded into dozens of other countries. According to Alexandra Wich, a senior manager of state regulatory and public policy at PMI, intellectual property litigation has kept the product out of the U.S. market, but those issues have been resolved.
The U.S. Food and Drug Administration gave PMI permission to market their products as reducing exposure to the harmful chemicals produced by combustible cigarettes, concluding that “the net population-level benefits to adult smokers outweigh the risks to youth.”
September 1, 2024
Texas Police ‘Traumatize’ Store Staff in Hemp Raids

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Police in Allen, Texas, secured up evidence and marched out business owners in handcuffs for selling what attorneys for the vape shops say are legal products. In a coordinated raid, police invaded nine locations simultaneously.
Allen police chief Steve Dye told media that the stores involved, more than a third of the vape shops within Allen city limits, were all caught marketing and selling products with illegal levels of THC. The THC compound can be derived from marijuana and hemp (both members of the cannabis family).
“We did multiple rounds of undercover operations, including sending minors in, and many of them were able to buy the THC underage. And then we started testing those products and we found that the vast majority of those products were well over the .3 percent,” he said.
Early Wednesday morning, an attorney representing some of the vape shops in a federal lawsuit against the DEA called the raids “legally questionable.”
“These local, family-owned businesses are operating legally. The Allen, Texas Police Department and the DEA overstepped their authority by destroying products, taking point-of-sale systems and records, and confiscating personal computers belonging to employees,” said David Sergi of San Marcos-based Sergi & Associates.
Pictures provided by the U.S. Drug Enforcement Administration, which assisted with the raid, show a bag of chips labeled “Doweedos”, cookies labeled “Trips Ahoy” and candy labeled “Medicated Skittles.”
“We’ve seen percentages of THC in the high teens, upwards of 60, 65 percent. That is almost toxic levels of THC when you think about it. And is that what somebody is expecting to get?” asked DEA Special Agent In Charge Eduardo Chavez.
The raids left owners and employees “traumatized,” according to Sergi, who also represents the Allen Hemp Coalition as well as eight of the nine shop owners. “We think it’s absolutely horrendous,” he told a media oulet.
Sergi said that when police sent a letter to businesses in May raising concerns, the stores voluntarily removed the products mentioned from their shelves. This time, he said, police chose a different approach.
“Rather than getting guidance and partnership from the Allen Police Department, we have gotten arrested, we have had clients whose stores have been destroyed, we have employees whose computers have been taken,” he said.
Sergi said that while there’s no law against selling hemp products to minors, many shops voluntarily choose not to.
When asked about the attorney’s comments, a spokesperson for Allen police said the department tried working with store owners, offering to provide advice about which products might pose a problem. Not all, he said, took them up on it.
August 31, 2024
Minnesota Attorney General Warns Illegal Vape Sellers

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The Minnesota Attorney General’s Office is sending thousands of letters to smoke shop retailers warning them to cease selling deceptive vaping products.
Attorney General Keith Ellison states that some of the products are indistinguishable from everyday highlighters and other school supplies.
Ellison states that once the rules are known, retailers will be fined up to $25,000 per device sold for violating them.
State law prohibits tobacco products from being advertised to children; however, new products like “highlight” disguise themselves as everyday school supplies. And that makes it easier for students to smuggle devices into school, according to media reports.
Ellison stated that the objective is to encourage voluntary compliance, but he also emphasized that his office will take legal action against businesses that choose to violate the law.
August 30, 2024
New Jersey Fines 19 Retailers for Illegal Vape Sales

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Sellers were allegedly violating the state’s consumer protection laws and were fined $4,500 each.
New Jersey Attorney General Matthew Platkin and the state’s division of consumer affairs told media that 19 New Jersey retailers were issued notices of violation and assessed civil penalties of $4,500 each. The retailers were allegedly violating the state’s consumer protection laws by offering and selling flavored vapor products that are banned for sale in New Jersey, according to the attorney general’s office.
The enforcement actions are the result of an investigation launched in June 2024 into the unlawful offer and sale of flavored vaping products, which research has shown to be appealing to teens and children, the attorney general’s office said.
Through undercover buys and in-store inspections, investigators identified smoke shops, convenience stores, and gift and novelty retailers in five counties offering and selling the banned products. The attorney general said that “many” of these retailers were close to schools and parks or on or near shore town boardwalks.
“As students across the state head back to school, we’re sending a message of deterrence to retailers. If you are caught selling these dangerous, banned products, you will be held accountable,” Platkin said.
In 2020, New Jersey Gov. Phil Murphy signed legislation prohibiting the sale and distribution of all vapor products with a flavor, taste, or aroma other than tobacco.
“The ban on flavor vaping devices is in place to protect New Jersey consumers—especially our youth—from the harmful effects of electronic cigarettes, nicotine, and tobacco,” said Cari Fais, acting director of the division of consumer affairs. “By identifying and taking enforcement action against merchants who illegally sell these products, we are protecting public health and fulfilling our responsibility to safeguard consumers from unlawful business practices.”
August 30, 2024
FDA Issues Final Rule to Raise Minimum Sales Age

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The U.S. Food and Drug Administration announced a final rule raising the minimum age for certain restrictions on tobacco product sales. The requirements are in line with legislation signed in December 2019, which immediately raised the federal minimum age for the sale of tobacco products in the United States from 18 to 21.
Once implemented, the requirements are expected to help decrease underage tobacco sales.
Beginning Sept. 30, retailers must verify with photo identification the age of anyone under the age of 30 who is trying to purchase tobacco products, including e-cigarettes. Previously, this requirement applied to anyone under the age of 27. It’s important for retailers to request and examine photo IDs to verify age from anyone under 30, regardless of appearance, as research has shown that it is difficult for retailers to accurately determine the age of a customer from appearance alone.
Additionally, starting Sept. 30, retailers may not sell tobacco products via vending machines in facilities where individuals under 21 are present or permitted to enter at any time. Previously, this prohibition applied to facilities where individuals under 18 were present or permitted to enter at any time.
These changes, and the other changes made by the final rule, aim to maximize the public health impact of the original December 2019 legislation, according to an agency press release.
“Today’s rule is another key step toward protecting our nation’s youth from the health risks of tobacco products,” said Brian King, director of the FDA’s Center for Tobacco Products. “Decades of science have shown that keeping tobacco products away from youth is critical to reducing the number of people who ultimately become addicted to these products and suffer from tobacco-related disease and death.”
The Further Consolidated Appropriations Act, signed into law on Dec. 20, 2019, increased the federal minimum age for selling tobacco products from 18 to 21 across the United States. Since then, it has been illegal to sell tobacco products, including e-cigarettes, to anyone under 21. The law also directed the FDA to take action today, increasing the age of certain requirements for tobacco product sales, as explained above.
The agency also continues to provide retailers with resources to improve compliance with tobacco laws and regulations, including age of sale restrictions. For example, the FDA has developed a voluntary education program, “This is Our Watch,” which offers free resources to assist retailers in calculating the age of customers, including a digital age verification calendar and an age calculator app. Retailers can also find information on tobacco products that may be legally marketed in the United States through the Searchable Tobacco Products Database. Updated resources, including further information on these latest requirements, will be made available on the FDA’s website in the near future.
August 29, 2024
Altria, Njoy Disagree With ITC Determination

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Altria Group, and its operating company, Njoy, disagree with the U.S. International Trade Commission (ITC) Administrative Law Judge’s (ALJ) initial determination regarding Juul Labs’ patent infringement complaint against NJOY.
Last week, the ALJ provided notice of their initial determination supporting Juul Lab’s allegations in its complaint and recommending an exclusion order prohibiting the importation of Njoy ACE into the United States.
“Altria and NJOY respectfully disagree with the ALJ’s initial determination, and NJOY looks forward to presenting its position to the full ITC, which is expected to issue a final decision by December 23, 2024,” a press release states.
In August 2023, Njoy filed a similar, independent patent infringement complaint against Juul Labs with the ITC seeking a ban on importing and selling JUUL products in the United States. A hearing before the ALJ was held in June 2024, and an initial determination is expected in late September. A positive outcome in this case would not preclude an exclusion order against ACE from taking effect.
“We continue to work to bring this issue to resolution. The parties have engaged with a mediator to attempt to negotiate a resolution of these disputes,” the release states. “In addition, Njoy recently filed Substantial Equivalence (SE) Exemption requests with the FDA to allow Njoy to market an already-developed ACE product with minor modifications that we believe avoid three of the four [Juul Labs] patent claims at issue in the case.”
ACE is the first pod-based vaping product and the only pod-based menthol vaping product authorized by the U.S. Food and Drug Administration as appropriate for the protection of public health. “An exclusion order banning the importation of ACE would severely limit FDA-authorized choices for adults and undermine public health,” the release states.
August 29, 2024
Keller and Heckman Announces Vapor Symposium
Keller and Heckman will hold its nineth Annual E-Vapor and Tobacco Law Symposium Jan. 27-28, 2025, in Las Vegas, right before the Total Product Expo. This two-day seminar is designed to provide in-depth knowledge on legal, regulatory and scientific issues that are essential for tobacco, nicotine and CBD/hemp product manufacturers, suppliers, distributors and retailers.
Registration for this seminar, which will be held at the Hilton-Conrad Resorts World Las Vegas, will launch in September 2024.
August 29, 2024
Retailers Move to Reinstate Challenge of Registry Law

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Kentucky vape retailers plan to appeal the dismissal of their challenge to a 2024 state ban on selling some vaping products. A Franklin Circuit judge in late July dismissed their lawsuit challenging the 2024 law.
Greg Troutman, with the Kentucky Smoke-Free Association representing vape retailers, filed a notice of appeal with the Kentucky Court of Appeals last week.
Troutman, on behalf of the retailers, had sued Allyson Taylor, commissioner of the Kentucky Department of Alcoholic Beverage Control and Secretary of State Michael Adams, arguing the new law did not pass constitutional muster, according to media reports.
Franklin Circuit Judge Thomas Wingate disagreed in a July 29 opinion. He dismissed the challenge, saying the law did not violate the state Constitution.
House Bill 11, which passed during the 2024 legislative session, goes into effect Jan. 1. Backers of the legislation said it aims to curb underage vaping by limiting sales to “authorized products” or those that have “a safe harbor certification” based on their status with the U.S. Food and Drug Administration (FDA).
Opponents have said it will hurt small businesses, lead to a monopoly for big retailers and could drive youth to traditional cigarettes.
According to Legislative Ethics Commission records, Altria, the parent company of tobacco giant Phillip Morris, lobbied for the Kentucky bill. Based in Richmond, Virginia, the company is pushing similar bills in other states. Altria, which has moved aggressively into e-cigarette sales, markets multiple vaping products that have FDA approval.
August 28, 2024
UK Medical Group Wants Tougher Rules for Vapes

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E-cigarettes and other vaping products should only be sold from behind the counter, like cigarettes, and not be on display in shops, according to the British Medical Association (BMA). In a report published on Wednesday, the doctors’ union called on ministers to introduce legislation to tackle the “growing epidemic” of vaping in the UK.
The report is the first comprehensive paper laying out BMA’s policy on vaping since 2017. It is also the first time the organization has explicitly called for restrictions on all forms of advertising and marketing of e-cigarettes.
It follows a 2023 conference resolution for the BMA to review the dangers of vaping. Wednesday’s report, “Taking our breath away: why we need stronger regulation of vapes,” calls on the government to legislate to ensure that vapes are kept behind the counter and not on display in shops and retail outlets, according to media reports.
“More must be done to restrict advertising of [vapes] and reduce their visibility, so children and young people are not encouraged to use them,” the report states. “Removing the visibility of vapes in shops will help to reduce exposure and awareness of the product, and in turn, their use.”
It also recommends banning the sale of disposable vapes and the use of any non-tobacco vape flavors. Vapes should only be sold in plain packaging, with any imagery, coloring, and branding for both the packaging and vape device prohibited, as is the case for cigarettes.
Responding to the report, Deborah Arnott, chief executive of Ash, said: “In order for tougher regulations to curb youth vaping to be put in place, the tobacco and vapes bill must be fast tracked on to the statute book.
“We support strict regulation of the display and promotion of vapes and prohibiting use of sweet names, bright colours and cartoon imagery. However, vapes are a highly effective quitting aid for smokers, and it is important that they continue to be so.”
John Dunne, director general of the UK Vaping Industry Association (UKVIA) agrees that stronger measures are needed to cut off the supply of youth vaping and illicit products, however, actions laid out in the BMA report would “sooner supercharge the black market and push the nation’s smokefree ambitions further out of reach” by deterring adult smokers from making the switch and driving current vapers towards the black market or back to combustible cigarettes.
“The BMA undersells the quitting power of vapes when it says the reduced risk alternative ‘can be useful in helping some people to stop smoking,” Dunne said. “The latest data from leading public health charity Action on Smoking and Health UK found more than half of ex-smokers in Great Britain who quit in the past five years used a vape in their last attempt – ASH also reports that current and ever use of vapes amongst 11-17-year-olds has decreased since last year.
“A ban on all non-tobacco flavors, as advocated by the BMA, would be counter-productive, with the Royal College of Physicians recently warning flavors are an ‘integral part’ of the effectiveness of vaping as a quit aid – this is also reinforced by the findings of a Freedom of Information investigation conducted by the UKVIA. The soon-to-be-released data reveals that, of 31 surveyed stop-smoking services across England, more than nine in ten provide flavored vaping products as a quitting tool and that fruit options were most often recorded as, or amongst, the most popular choices for adult smokers.
“The industry does recognize that action should be taken to prevent youth-appealing products from ever making it to the shelves and has long campaigned for the government to adopt a balanced set of flavor names, descriptors, and packaging guidelines.
“If the BMA wants to see underage and illicit vape sales stopped, it should join the industry in calling for the introduction of a first-of-its-kind licensing scheme which would prevent inappropriate businesses – including sweet shops – from selling these products, bring into play stronger penalties for those caught flouting the law and generate upwards of £50 million in annual, self-sustaining funding which could be used to empower under-resourced Trading Standards.
“With regards to future public education campaigns, the BMA should be supporting initiatives that raise awareness of how adult smokers can benefit from considerably less harmful alternatives to conventional cigarettes, such as compliant vapes, which will save the NHS millions of pounds in not having to care for those suffering from smoking-related conditions, a cost which is estimated to be some £2.6 billion a year.”
August 28, 2024
UKVIA Warns Against Illegal ‘Spice’ Vape Devices

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The U.K. Vaping Industry Association (UKVIA) has cautioned consumers about an increase in illegal “Spice vapes” and called for urgent government action to protect young people.
The warning follows reports of people misusing “open” vape devices—which allow consumers to add e-liquid—to deliver synthetic cannabinoids such as Spice and the psychoactive chemical THC, which is found in cannabis. Spice is a nickname for a substance containing one or more synthetic cannabinoids.
The trade UKVIA the regulated nicotine vape industry is in no way connected with the trend of using open vape devices as a delivery mechanism for illegal drugs.
“Consumers can feel confident that when they buy regulated products from any reputable vape supplier, that they will be getting nicotine vapes which are designed to help them transition from cigarettes,” said UKVIA Director General John Dunne in a statement.
“I am worried, however, that there are vape devices available from unofficial sources which may contain illegal drugs and that those who buy them may have no idea what is contained in these products.”
According to Office for Health Improvement & Disparities statistics, of the 12,418 young people under 18 in contact with alcohol and drug services between April 2022 and March 2023, cannabis was the most common substance (87 percent) for which young people sought treatment. While 10,837 young people reported having a problem with cannabis only 1,737 said they had a problem with nicotine.
“We need the government to step on now with a nationwide education campaign in traditional and social media to highlight the dangers of obtaining vape devices from unofficial sources and explaining the differences between legal and illegal vape products,” said Dunne.
“Unless a clear distinction is made between the regulated vape market supplying adult smokers with products which are 95 percent less harmful than cigarettes and the unofficial supply of illegal products, then people will become wary of all vapes with the potential to drive smoking rates back up again.”
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August 28, 2024