Regulation of tobacco

Menthol Cigarette and graphic warnings: these were the three regulatory UBS senior analyst Nik Modi predicted tobacco tobacco industry will say in 2012. “There’s no real urgency,” by the U.S. Food and Drug Administration (FDA), Modi said during last week’s tobacco update CSPNetwork CyberConference about the lack of movement of the agency to regulate menthol.

Although the position to regulate menthol and expected for some time, the only key to thinking the government is still going through their response to the World Trade Organization (WTO) complaint against clove cigarettes. U.S. State Department has justified the prohibition of cloves, menthol, but not because the two are not “like products”.

“What I found interesting about the reaction from the Obama administration was it basically confirmed their concerns to ban menthol,” Modi said. Such problems include the fact that menthol cigarettes clove and attract different consumers - a picture in pink beginners, menthol cigarettes to be popular among smokers created - and the possible emergence of black market menthol cigarettes were banned. The basis of that answer, does not expect Modi menthol decision to come soon.

On the other hand, Modi expects to see a lot of movement on the roll of its own (RYO) regulation. As of last Wednesday, when Modi presented, Arkansas, South Dakota, Virginia and Wyoming laws were passed, all RYO retail classification of the machine as a producer and Tennessee adopted a law requiring retailers RYO machine operating pay an annual fee for licensing and collecting the state tax excise tax in the store rolled cigarettes.

Only one day later, Tobacco E-News and NATO has learned that Iowa, Washington and Oklahoma have passed all the RYO control over a 24-hour period (see Related Content below the previous coverage, including video-on-RYO).

Modi was quick to note that this is not only the state that go down to the Cigarette, Congress is currently debating a bill that would classify RYO retail operation of the machine as producers, forcing them to pay the $ 1.01 federal tax cigarettes in a package, in addition to State taxes.
“It looks like it is coming to an end,” Modi said the success of large machines Cigarette. “It’s a trend that is likely to disappear.”

 Last on the schedule

Graphic warning labels debate continues to rage on with the FDA with a request for a joint ruling as to the size of warning labels and stimulated calls for the question. While Modi confident this issue will eventually reach the Supreme Court, he pointed out many interesting aspects of this fight.
“I think everyone knows tobacco is a harmful product at this time,” Modi said. “The issue from a legal point of view is” how far is too far? “

Modi referred to Judge Janice Rogers Brown, who went on to record a question: “Can the government mandate of cigarette warning that said” Stop! If you buy this product you idiot? Where is this stop? ” If the graphic health warnings be upheld by the Supreme Court, Modi did not see having a big impact. Countries that have used similar warning labels have not seen significant changes in cigarette sales.

 One possible explanation? “There is a part of the brain (nucleus accumbens) that when a warning about the dangers of tobacco use, in fact, the brain stimulates the desire to smoke,” said Modi. Since the solution is unlikely in the near future, and data from other countries, which indicates a lack of real influence, Modi sees no reason for concern on the graphic warning labels. “I do not think it will happen, but if it happens, I’m not really worried.”

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