Entries Tagged 'Regulations: FDA etc.' ↓

NEW YORK: Seneca Nation Against Tax Collection On Their Cigarette Sales

 

Representatives of the Seneca Nation on August 14th urged the administration of New York Gov. David Paterson to veto a bill that would require tax collections on cigarettes currently sold tax-free by tribal retailers.  On August 8th, the New York Senate passed a bill aimed at ending tax-free cigarette sales on Indian reservations as a way to collect hundreds of millions of dollars in cigarette taxes that currently remain uncollected every year. The bill would ban manufacturers from selling tobacco products without a State tax stamp to any wholesaler that does not certify that the cigarettes will not be resold tax-free. Untaxed cigarettes can still be sold by tribal stores to Native Americans. Seneca leaders claim that the tax collections would harm the western New York economy. Gov. Paterson’s aides declined to say what he might do with the bill. Meanwhile, new legislation introduced on August 13th would make wholesalers pay cigarette excise taxes and allow Indian tribes to seek refunds for the taxes paid on any cigarettes that were sold to other Indians (AP 8/15). 

 

So what do you think? Should the State of NY collect the taxes or should the Seneca Nation continue to maintain their soveriegnty? Or is this just a by product of taxing tobacco? Let folks know what you think about this issue!

Menthol & FDA regulation - just another flavor?

Should menthol be banned as a flavor under proposed FDA regulations?

How does this affect consumers?

Is it really just another flavor like strawberry or peach?

Does this start kids smoking or is this a myth?

FDA Regulation - good or bad?

This week, The house passed by a large bipartisan majority, the Bill regulating tobacco under the control of the FDA.

What are your thoughts - will it pass, and if so when?

If you don’t think it will pass - do you think this is good?

A Tobacco-Free County: Could It Ever Happen?

A Tobacco-Free County: Could It Ever Happen?

 

Regulation of the industry’s most popular in-store program will affect the convenience store channel in a profoundly negative way.

I remember it clearly. It was an overcast day in June 2002 in Lancaster County, Pa., when I attended a meeting that has always left me with a lasting impression. As the tobacco buyer for a major oil company, I quietly sat (not something I’m known for) and I listened to the discussion that one day would make Lancaster County tobacco free! Quite frightening was this agenda, as it would make it illegal to grow any tobacco, market tobacco or use any form of tobacco within the county boundaries. Could this ever happen?

Today, convenience stores are faced with a future that will be greatly affected by future FDA regulation. The bill imposes major regulatory obstacles in the marketing of any new tobacco products. It treats tobacco products like medical devices. However, most of the regulatory provisions make no sense for application to tobacco products. Product changes which fueled the recent unprecedented growth of the “other tobacco” portion of the convenience channel will now need to go through cumbersome review.

Approval or denial will be given based on whether the product or its changes are deemed “in the best interests of public health.” The standards are broadly defined in the bill with the goal of reducing overall tobacco consumption. This bill will not allow the FDA to ban the product or reduce nicotine to zero but its provisions will allow for the FDA to impose any requirements or prohibitions it sees fit.

It is clear from my understanding that the FDA would have broad authority to make tobacco products highly unattractive to adult smokers and highly inaccessible to the public. All of these factors will most definitely affect the convenience store channel in a negative way.

 

Know the “Risks”

Another area of the bill that will affect the convenience channel of trade is that the bill prevents the communication about significant differences among the levels of risk presented by different types of tobacco products. The convenience store channel needs to address this lack of good practice and realize that not all tobacco products are the same in the spectrum of risk, or in other words, some are riskier than others.

At a recent conference on “Harm Reduction” many attendees were extremely concerned that this message is being squashed by those who deny this truth and ultimately want to ban the use of all tobacco products.

If moist smokeless tobacco is safer than cigarettes why must it post the following: “Warning: This product is not a safe alternative to cigarettes”? If, like I proposed in an earlier article, “Who Said Tobacco Can’t Be Safer?” (CSD, May 2008) that one day in the future a brilliant mind cracks the code and finds a way to make tobacco safer would this legislation allow for this claim? I think not.

Would not the convenience channel of trade benefit the most from the sales of a tobacco product that truly was a safer or safe product? Wouldn’t you want to be able to communicate that message?

H.R. 1108 eliminates federal preemption of marketing and advertising which would allow states or local governments to set its own standards. They would be able to enact any restriction “that is in addition to, or more stringent than,” those in the bill. One can only imagine the nightmare this would present to national distributors and the convenience channel of trade.

A bill that one would assume would create uniformity in the industry most likely will lead to chaos. Is it not possible that a local government could one day decide to enact a much more stringent law that banned tobacco from being grown, marketed or used within its boundaries?

As I look to the past is there a glimpse of the future? The foundation of a movement was evidenced back in June 2002. If the movement succeeded and you operated a convenience store in Tobacco Free Lancaster County would your business survive? How would you replace the lost sales and profits from tobacco sales that are no longer allowed? H.R. 1108 as it is currently written puts your business at risk. H.R. 1108 needs to be opposed.

This article was recently published in the July 08 Convenience Store Decisions magazine. I’d be interested in hearing your opinions! Do you think that this could ever happen? What are you doing as a retailer today to oppose potential legislation like this that would seriously affect your business? If your a manufacturer or wholesaler what are your thoughts?

 

Low tar

These days you almost can’t talk about lower tar cigarettes without the ensuing argument of compensatory smoking and the misleading intent of the cigarette manufacturers deliberately producing lower tar products and misleading the public.

But the debate raises a fundamental flaw in the public health community’s argument for low tar cigarettes.

Why is it that the original surgeon general’s findings in the US and UK both concluded there were health risks with smoking and that the evidence was the more you smoked the higher the risk?

Assuming this is correct - and if you want further evidence read my post on menthol cigarettes - then smoking lower tar cigarettes or fewer must have advantages. Right?

Some governments appear to agree. The EU, Canada, Brazil and Saudi Arabia all have tar ceilings.

Elements of the WHO and CDC and many public health advocates choose mostly to ignore this key point.

Again it is the consumer who bears the brunt of this  - surely they should benefit (albeit not as much as using other tobacco products) from lower tar or less harmful cigarette developments?

Where is the constructive debate on lower tar products and reduced risk in cigarette smoking? Would FDA regulation help drive this?