Category: News This Week

  • NY state poised to ban e-cigarette flavors

    NY state poised to ban e-cigarette flavors

    The US state of New York is moving toward becoming one of the first states to ban the sale of flavored e-cigarettes with nicotine, according to a bill with strong sponsors in the State Legislature, according to a story in Newsday.

    The bill notes that a U.S. surgeon general report found that people 18 to 24 years old are much more likely to use flavored e-cigarettes than people over 25 years old, according to the bill’s sponsor, Assemb. Linda Rosenthal (D-Manhattan). The report stated these younger smokers erroneously believe flavored e-cigarettes are less of a health hazard than traditional cigarettes.

    The bill easily passed the Assembly and Senate health committees and could reach the Senate floor for a vote as early as this week, according to the story.

    Flavored e-cigarettes with nicotine are already prohibited for people under 18 years old. A bill passed by the legislature this year would raise the smoking age to 21 years old and awaits Gov. Andrew M. Cuomo’s signature to become law.

  • Saudi Arabia adds 100% tax to vapor products

    Saudi Arabia adds 100% tax to vapor products

    Saudi Arabia has imposed a special tax on electronic cigarettes, extending similar taxes introduced in 2017 as it seeks to reduce a budget deficit caused by low oil prices, according to a story published by Reuters.

    The General Authority of Zakat and Tax said a 100 percent tax would be levied on electronic cigarettes and products used in them, including e-liquids. Saudi Arabia, the Arab world’s largest economy, already had a 100 percent tax on cigarettes and tobacco products.

    The authority took the decision on May 15 and it became effective from Saturday after publication in the official gazette, according to the story.

    The taxes fall under the category of selective taxes on products deemed harmful to public health.

  • Bill could raise vaping age to 21

    Bill could raise vaping age to 21

    U.S. Senate Majority Leader Mitch McConnell and Senator Tim Kaine have filed a bill to raise the nationwide age to buy tobacco products to 21, reports USA Today.

    “The latest threat … is an epidemic among teenagers and even middle school students using tobacco products and vaping,” McConnell said. “It includes nicotine and runs the risk of hooking these children at a very early age to a lifetime of using tobacco products.”

    McConnell initially had said he would exempt members of the military from the bill but reconsidered after discussions with constituents and public health advocates.

    “On further reflection, I decided the military carve-out made no sense,” McConnell said.

    His bill also does not preclude state or local governments from enacting tougher laws.

    McConnell had previously announced his intent to sponsor the Tobacco 21 legislation at a news conference in Kentucky, citing his concern about rising youth rates of e-cigarettes that contain high doses of nicotine.

    Additionally, Louisiana’s House committee approved yesterday a Tobacco 21 plan that is now heading to the House floor for debate. The Louisiana plan, however, includes a military exemption. Fourteen states have already raised the tobacco buying age to 21.

  • Global vapor market to reach $53.4 billion by 2024

    Global vapor market to reach $53.4 billion by 2024

    The global e-cigarette market is expected to grow at a CAGR of 21.4 percent during the forecast period with its market size predicted to reach $53.4 billion by 2024, according to an article on globenewswire.com.

    Increasing cancer cases related to smoking cigarettes, technological advancements in e-cigarettes, increasing disposable income, increasing awareness programs regarding the harmful effects of cigarette are the major factors leading to the high demand of e-cigarettes in the global market.

    Based on product the market is categorized into cig-a-like, vaporizer and vape mode. Of all the products, the highest growth in the demand for the vape mod has been observed over the last five years which is anticipated to remain the highest among all e-cigarette products during the forecast period. The research and development leading to the product innovation have led to the development of highly differentiated vape mod, thus creating huge traction among consumers, according to the article.

    Cig-a-like accounted for almost half of the revenue generated by the market players in 2018. The comparatively lower cost of these e-cigarettes makes them a popular choice among consumers. Cig-a-like e-cigarette market is further segmented into disposable and rechargeable cig-a-like. Among the two types, the market size for disposable cig-a-like is larger across the globe. The vaporizer market is categorized into open tank and closed system vaporizer.

  • Guam seeks ban on vaping in public places

    Guam seeks ban on vaping in public places

    Guam could see a ban in the use of vapor products in public places if a bill to be introduced on Monday becomes law, according to on article published by the Pacific Daily News.

    Marijuana was legalized for recreational use among adults in April, but use in public places remains illegal under Guam law, and the U.S. Centers for Disease Control and Prevention says e-cigarettes can be used to deliver marijuana and other drugs, according to the article.

    Sen. Amanda Shelton, D-Asan, said there are currently no laws on Guam to prohibit using e-cigarettes in public places.

    Shelton said she is introducing Bill 138 on Monday, with the rest of the 35th Legislature as co-sponsors, that would amend the Natasha Protection Act of 2005, to include the use of electronic smoking devices, according to the article.

    The 2005 law bans the smoking of tobacco products in public establishments like bars, restaurants, and workplaces.

    Shelton’s new bill would add electronic smoking devices or e-cigarettes, which were not commonly used when the current law was written more than a decade ago.

  • Critical mass

    Critical mass

    A petition to legalize heat-not-burn tobacco products in Taiwan and subject them to the same health and welfare surcharges as other tobacco products has garnered more than 5,000 signatures on the government’s public policy participation platform, reports The Taipei Times.

    The petition, titled “legalize heat-not-burn tobacco products, but include them in the health and welfare surcharge of tobacco products” was proposed on the National Development Council’s online policy platform on April 27. It was approved two days later and entered the signature collecting period.

    When a petition receives more than 5,000 signatures, the government is required to issue a public response on the platform within two months.

    There is currently no law regarding the bringing heated tobacco products into Taiwan, so the petition states the products should be subject to the health and welfare surcharge on tobacco products to improve regulation.

    Taiwan Tobacco Harm Reduction Association chairperson Danny Wang said the health and welfare surcharge is the main source of funding for the government’s long-term care services, so the president should create new revenue sources for it.

    “Hopefully, the Executive Yuan would perform its administrative duty,” Wang said.

  • Illinois seeks vapor tax

    Illinois seeks vapor tax

    In an effort to balance the Illinois state budget, Gov. J.B. Pritzker has set his sights on vapor products.

    Specifically, Pritzker is calling for a 36 percent tax to the wholesale price of e-cigarettes, the same rate the state taxes the wholesale price of tobacco products other than cigarettes, according to an article in the The State Journal-Register.

    The administration is projecting the tax on e-cigarettes will generate $10 million a year. How reliable the revenue source will prove to be is still to be determined. There are only nine states that apply an excise tax to e-cigarettes now, although a number of others have bills pending this year to tax them, according to the article.

    The Smoke Free Alternatives Coalition of Illinois, which represents e-cigarette makers, said a tax on the devices will be a blow to public health.

    “The governor’s proposed tax would do nothing more than create another hurdle for adults who are trying to quit smoking,” said coalition president Victoria Vasconcellos. “Studies have shown vaping products are among the most useful tools to help adult smokers quit traditional cigarettes. With vaping products proven to be 95 percent less harmful than traditional cigarettes, it seems unethical to tax a person for making better, healthier choices.”

    The American Lung Association in Illinois works to get people to quit smoking and is supporting a bill this year to raise the age to 21 to legally buy tobacco and vaping products, according to the article.

    Kathy Drea, vice-president of the association, said the organization supports taxing e-cigarettes.

    “E-cigarettes are classified as a tobacco product,” Drea said. “Very recently the surgeon general and the FDA released information about the fact that e-cigarette use among youth is now at epidemic levels. E-cigarette use in Illinois is virtually unregulated. We would 100 percent support taxing e-cigarettes and licensing the retailers.”

    The cumulative effect is that people will be enticed to go across state lines to find cheaper products, the article states.

    Jon Sharp, operations manager of Upper Limits Midwest, which sells e-cigarettes and vaporizers, said the possibility of an e-cigarette tax was something the store expected, but still not something the store was super excited about.

    “We’d prefer to see the government implement policies to encourage small businesses,” he said. One concern he has is the possibility of losing business to online and out-of-state stores.

    “You’re further driving business out of Illinois while we’re already losing people,” he said. “I can’t see how this will solve Illinois’ problems; it seems to me we should be trying to attract more jobs and more revenue to the state, not driving out people already here.”

    Sharp said the store is planning on negotiating with vendors to make prices lower for customers, in addition to offering a rewards programs to counteract the effect if the tax were to be put into place.

  • PMTA extension annulled

    PMTA extension annulled

    U.S. Judge Paul Grimm has ordered the Food and Drug Administration (FDA) to begin reviewing thousands of e-cigarettes on the U.S. market

    According to Grimm, the FDA exceeded its authority when the agency in August 2017 extended the premarket tobacco application (PMTA) deadline for e-cigarettes to August 2022. The decision removes the extension granted to the industry, and essentially renders all e-cigarettes on the market illegal.

    The FDA has said that both staff and manufacturers need more time to prepare for regulation.

    The American Academy of Pediatrics, Campaign for Tobacco-Free Kids and other groups filed a federal lawsuit contesting the deadline extension in Maryland last year. The groups say the lack of FDA oversight has led to an explosion in underage vaping by teenagers, threatening to hook a generation of Americans on nicotine.

    “It is now the FDA’s responsibility to take immediate action to protect our kids and require manufacturers to apply to the FDA if they want to keep their products on the market,” the groups said in a statement.

    Grimm called the FDA’s delay “so extreme as to amount to an abdication of its statutory responsibilities.”

    FDA spokesman Michael Felberbaum said in an emailed statement that the agency is reviewing the court decision and “will continue to tackle the troubling epidemic of e-cigarette use among kids.”

    The court ordered plaintiffs to suggest a solution to the FDA within the next two weeks. The FDA will have the option of appealing the decision.

  • Juul being sued

    Juul being sued

    North Carolina Attorney General Joshua Stein filed a lawsuit on May 15 against Juul Labs, reports The Washington Post.

    The suit alleges that Juul caused addiction in consumers by “deceptively downplaying the potency and danger of the nicotine” and employed advertising campaigns that targeted people under the legal smoking age.

    Currently the Food and Drug Administration (FDA) guidelines restrict the sale of fruit or candy flavors in stores, allowing menthol, tobacco and mint to be sold. North Carolina’s request would take mint off the market, in addition to other popular flavors like mango and cucumber.

    North Carolina is also asking the court to apply a marketing and advertising ban that mimics that of the Tobacco Master Settlement Agreement. It would prevent Juul from creating emails, advertising or social media marketing aimed at minors. It would also block Juul from advertising outdoors and near schools or playgrounds, sponsoring “sports, entertainment, or charity events,” offering free or discounted samples, or promoting products with fashion or media outlets that primarily target consumers under 30.

    “Addicting a new generation of teenagers is unacceptable, illegal and that’s why I’m taking action,” Stein told The Washington Post. “This is about a company that is selling its product predominantly to [youth]. There has to be some limitation on the way they do business.”

  • Juul Labs to expand into South Carolina

    Juul Labs to expand into South Carolina

    Juul Labs plans to invest more than $125 million in its new assembly facility in Lexington, South Carolina. The factory is expected to create more than 500 new jobs to support assembly operations, according to a release from the South Carolina Department of Congress.

    “We are excited to work with community leaders to support the creation of high-quality American jobs for a diverse and inclusive workforce drawn from across the Midlands as we continue to invest in helping adult smokers switch from combustible cigarettes and combating youth usage,” said Juul Labs CEO Kevin Burns.

    The Lexington County operations will assemble and package Juul products using advanced production techniques. Operations are expected to come online this summer, the release states.

    “Today, we celebrate Juul Labs’ investment in Lexington County … South Carolina’s pro-business environment continues to attract companies to our borders, and I’m excited to see what the future holds for this innovative company,” said Governor Henry McMaster.