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December 15th, 2016:

ACCC proposes to deny authorisation for tobacco companies

The Australian Competition and Consumer Commission has issued a draft determination proposing to deny authorisation to British American Tobacco, Imperial Tobacco, and Philip Morris (the tobacco companies) to jointly stop supply to retailers or wholesalers they believe are supplying illicit tobacco.

http://www.accc.gov.au/media-release/accc-proposes-to-deny-authorisation-for-tobacco-companies

The ACCC considers that having the three dominant tobacco companies working together, sharing information, and making decisions about whether or not to supply particular retailers raises competition concerns.

“The ACCC is concerned about the potential for the sharing of information broadly, and that, for example, the proposed arrangements could be used to selectively target retailers that stock competing brands. This could result in detriment to businesses that may be wrongly or mistakenly subject to a joint decision of the applicants to cease supply, without any opportunity for independent review of that decision,” ACCC Chairman Rod Sims said.

These three tobacco companies are the major suppliers of legal tobacco products in Australia. They have proposed the arrangements to reduce the supply of illicit tobacco in Australia.

“While we agree that reducing illicit tobacco sales is in the public interest, we are not satisfied these proposed arrangements would reduce trade in illicit tobacco sufficiently to offset the likely detriments,” Mr Sims said.

The ACCC expects to release its final decision in February 2017.

Further information about the application for authorisation is available on the ACCC Authorisations Register.

Estonian govt planning to ban display of tobacco products in stores

The Estonian government is planning on Thursday to approve a draft legislation of Health and Labor Minister Jevgeni Ossinovski which would substantially increase sales restrictions of tobacco products, including restricting the display of tobacco products and their brands at points of sale, reports LETA/BNS.

http://www.baltic-course.com/eng/markets_and_companies/?doc=126223

The changes to the Tobacco Act would expand the regulation sphere of the law to prevent and reduce the spread of addiction and health damage as a result of tobacco and tobacco products, it is written on Thursday’s agenda of the government.

Among the biggest changes are banning the display of tobacco products and their brands at points of sale. The exceptions are specialized retail stores, ships sailing on international routes as well as stores located in the closed territories of the airport and port.

The bill also seeks to reduce the accessibility and consumption of e-cigarettes. For instance, in the future the use of e-cigarettes would be banned, in addition to children’s institutions, also in all places where smoking is banned, like restaurants and stores. In addition, it would not be possible to buy tobacco products or e-cigarettes online or from a catalogue.

Vaping horror: 4 in NJ say they were badly burned by exploding e-cigs

http://nj1015.com/vaping-horror-4-in-nj-say-they-were-badly-burned-by-exploding-e-cigs/#photogallery-1=4

Greg Burdash, a married father of two living in the Camden County borough of Berlin, said he gave vaping a chance in order to quit smoking cigarettes and save his health.

But on Sept. 29, during a break at work, the e-cig battery he had in his pocket exploded. Burdash was rushed to the hospital suffering from debilitating third-degree burns over 20 percent of his body.

“I was in complete shock,” he said Thursday during a news conference in Princeton. “I heard a hissing sound, and then the explosion and then the pain. I looked down and my leg was on fire and I started running.”

“I have had incredible pain since then. I’ve not been able to return to work. It not only hurts you financially, it hurts you mentally and physically, I still have bleeding, and my doctor has told me nerve damage is expected to be permanent.”

Burdash said he was speaking out because “I want people to be aware of the dangers of vaping and how harmful this can be and I don’t anyone to suffer the way I have.”

Burdash is one of four recent plaintiffs in New Jersey filing lawsuits against the retailers that sold them the e-cigs that they say left them with serious injuries.

The two underage and two adult plaintiffs are represented by the Lawrenceville firm Stark & Stark, which has partnered with Bentley & More, a California firm that has litigated e-cig complaints across the nation.

“These and other cases involve horrific injuries suffered by wonderful people who were simply using a product the way it was intended to be used,” said attorney Greg Bentley.

He said people are being injured just about every day by defective e-cigarette lithium ion batteries.

“They are just randomly exploding in people’s faces. Batteries in people’s pockets causing significant life changing injuries,” he said.

E-cigs or electronic vaporizers are an alternative to tobacco smoking. They emit a vapor that is said to be less harmful than smoking tobacco products. Users can choose to vape liquid cartridges containing nicotine, which can help some users end their cigarette addictions.

The e-cig industry insists their products are safe.

Bentley claims the problem is 90 percent of e-cigarette products are manufactured in China, and the companies making them understand it’s almost impossible to hold them responsible for the defective lithium ion batteries that are in the e-cigs.

“It’s an industry that’s literally exploding, both in dollar numbers, in consumers that are using it, and in the products that are exploding randomly,” he said.

He noted more than 31 million American adults have tried e-cigarettes, and 9 million are regular users. Last year Forbes estimated the e-cigarette industry was worth $3.7 billion, and it continues to increase.

Bentley claims the e-cig industry is targeting teenagers, offering e-cig liquids with fruity flavors and silly names.

“Studies show 16 percent of high school students have used an e-cig product,” he said.

The Food and Drug Administration this year banned sales of e-cigs to minors.

“We know the problem is going to continue unless this industry checks itself and makes sure the product is safe,” Bentley said.

The FDA this year implemented new rules to regulate the industry, forcing manufacturers to seek government approval for the liquid nicotine products that they sell.

But the lawsuits are putting the spotlight on the safety of the hardware.

Bentley says that the lithium ion batteries used in e-cigarettes are flammable and combustible, and they can explode if they’re defective.

He said based on the 100 cases they’re handling so far, e-cig battery explosions are random and unpredictable.

One underage victim in New Jersey had an e-cig explode in her mouth in May. The explosion caused her to lose four teeth and suffer severe face and mouth burns as well as corneal abrasions that have damaged her vision, lawyers said.

William Grant was hospitalized twice after a March 2015 accident with an e-cig device. The incident left him with third-degree burns to his leg, requiring skin grafts to his right foot, lawyers said.

Another New Jersey teen suffered second-degree burns to his chest and upper arm and minor burns on his left arm, chest and neck, his lawyers said.

Bentley stressed “no one has exact jurisdiction over this industry so no one really knows how many of these e-cig explosions have taken place.”

He described the e-cig industry as “staying under the radar, hoping people won’t notice what’s going on. So by filing these lawsuits, our goal is to bring attention to the problem, to let the industry know they need to do something about these defective, dangerous products so consumers can use them in their intended fashion.”

He pointed out the vaping industry has so far resisted regulatory control efforts. Bentley added e-cig products are still being sold without any type of warning or notice.

“How many more people are going to have this product explode, causing significant injuries, until the industry says enough is enough? We’re going to warn about it. We are going to continue to push, fight and seek full compensation, holding everybody in the supply chain accountable. We will be looking toward the retail stores, because they sold the product that’s defective, they’re responsible for the harm that’s caused.”

Contact reporter David Matthau at David.Matthau@townsquaremedia.com

Sneaky tobacco companies use mystery shoppers to exploit ciggie loophole

TOBACCO companies are offering gift cards, flights and hotel stays to retailers to try and encourage them to push their brand onto customers.

http://www.adelaidenow.com.au/business/companies/sneaky-tobacco-companies-use-mystery-shoppers-to-exploit-ciggie-loophole/news-story/34d79da234e20b409cfa210739fb4e6d

TOBACCO companies are offering gift cards, flights and hotel stays to retailers to try and encourage them to push their brand onto customers.

With the battle for Australia’s $2.6 billion tobacco industry fiercer than ever, manufacturers are fighting to lure the nation’s dwindling number of smokers.

And while advertising bans and plain packaging laws have hit their profits, tobacco companies have found a sneaky legal loophole around them.

Marketing reps are sent to hotels, supermarkets, petrol stations, tobacconists and newsagents to train sales assistants in how to promote their brands to customers.

If they do as they are instructed, staff can win points and prizes such as gift cards, flights, hotel stays and vouchers for spa and beauty packages.

That’s where mystery shoppers come in: they keep tabs on staff, awarding points to those who recommend one cigarette brand over another.

It’s called “trade marketing”, and is one of the only legal ways cigarette makers can promote their wares under the highly restrictive regime that governs the sale and use of tobacco.

Health advocates say the scheme threatens to undermine the government’s plan to slash the rate of smoking to 10 per cent of the population by 2018.

But the loophole may soon be closed, with NSW Health Minister Jillian Skinner vowing to clamp down on the practice after being contacted by news.com.au.

‘WHAT WOULD YOU RECOMMEND?’

Mystery shoppers hired by Imperial Tobacco are sent to retailers with a very specific script.

“I normally smoke Winfield 30s but I am looking for an alternative, what would you recommend instead of Winfield 30s?” the shoppers are instructed to ask, in a job summary seen by news.com.au.

When asked how much they want to spend, the mystery shopper says “maybe something a little cheaper”.

If asked about their preferred cigarette’s strength, the shopper replies: “I usually smoke the blue ones.”

Then it’s over to the staff member who says the magic words and steers the “customer” towards John Player Special, a brand imported by Imperial. If the staff member does not mention any other brand, they score points towards the company’s incentive program.

At this point, the mystery shopper identifies him or herself and informs the staff member that the results will be tallied at head office and prizes awarded to those with the top scores.

mystery

The script given to mystery shoppers.

‘PUSHING THE ENVELOPE’

Scott Walsberger, the head of tobacco control and prevention at Cancer Council NSW, said mystery shopping was central to tobacco companies’ marketing strategies.

“Trade marketing as they call it is a significant part of their work,” Mr Walsberger said, adding that building relationships with retailers was one of the only legal methods to promote cigarettes after successive law reforms.

He said tobacco companies were desperate to make their products attractive to consumers after being banned from advertising in print and on television, and having the distinctive imagery and colour in their packaging replaced with drab, dark brown.

“Every time we’ve brought in legislation, you see the tobacco industry push the envelope, continually trying to make their product attractive and market them as much as possible,” he said.

“They’re always focused on selling more cigarettes, more people getting addicted and they go to all lengths to do that — so it’s not surprising that, as we tighten up regulations of how they market their products in some ways, that they’ve sought out the channels where they’re not regulated and exploit them to continue to promote their product.”

He called for new laws to better regulate how tobacco products are sold and marketed and made available through retail outlets, and rejected the argument that trade marketing only targeted customers who were already smokers.

“They say they’re not marketing to new customers, just getting people to switch brands or building brand loyalty; we know that’s not true,” Mr Walsberger said.

“Two out of every three smokers will die from their smoking habit. If that’s your consumer base, your target audience and you’re losing two out of every three of those, you need to be recruiting new smokers. So that has to be a key part of their marketing strategy.”

MINISTER PROMISES REFORM

Health Minister Jillian Skinner vowed to crack down on the mystery shopping scheme after being contacted by news.com.au.

“The NSW Government will seek to amend the Public Health (Tobacco) Act 2008 with the intention of tightening the law to prohibit this practice,” Ms Skinner said. “I am proud of this government’s record in reducing smoking in this state.”

A spokesman for Imperial Tobacco Australia said the company sold a legal product and defended its trade marketing practices.

“We work with a range of retail partners to have adult consumers of tobacco products choose our brands — including Peter Stuyvesant and JPS — over those of our competitors,” the spokesman said.

“The program in question sees shoppers specifically identifying themselves as adult consumers of tobacco products who are seeking a brand recommendation from a retailer.

“This clearly neither ‘circumvents legislation’ nor has any bearing on the choice of an adult to consume tobacco. It simply addresses which brand that adult consumer might choose.”

He said “anti-tobacco zealots” should look at the billion-dollar illicit tobacco trade and “focus their attention on serious problems rather than attempting to undermine legitimate and legal competition for no apparent purpose”.

Estonian govt planning to ban display of tobacco products in stores

The Estonian government is planning on Thursday to approve a draft legislation of Health and Labor Minister Jevgeni Ossinovski which would substantially increase sales restrictions of tobacco products, including restricting the display of tobacco products and their brands at points of sale, reports LETA/BNS.

http://www.baltic-course.com/eng/markets_and_companies/?doc=126223

The changes to the Tobacco Act would expand the regulation sphere of the law to prevent and reduce the spread of addiction and health damage as a result of tobacco and tobacco products, it is written on Thursday’s agenda of the government.

Among the biggest changes are banning the display of tobacco products and their brands at points of sale. The exceptions are specialized retail stores, ships sailing on international routes as well as stores located in the closed territories of the airport and port.

The bill also seeks to reduce the accessibility and consumption of e-cigarettes. For instance, in the future the use of e-cigarettes would be banned, in addition to children’s institutions, also in all places where smoking is banned, like restaurants and stores. In addition, it would not be possible to buy tobacco products or e-cigarettes online or from a catalogue.

They took on the tobacco industry — and won

Miami Beach lawyers Robert Grover, Norman Ciment, Marvin Weinstein and Sherwin Stauber have accomplished much in their 53 years on both sides of the bench.

http://www.miamiherald.com/news/local/community/miami-dade/miami-beach/article121246018.html

As the four founding members of Grover, Ciment, Weinstein & Stauber, (now Grover & Weinstein, P.A.), they tried several groundbreaking multimillion-dollar personal injury cases. And as judges and mayors in Miami Beach and Surfside, they made an impact on their communities.

But it was their landmark courtroom victories against Big Tobacco, from which they secured more than $55 million in five separate cases (with more in the process), that cemented their place in history. In particular, one case was the first — and only — time that a jury awarded damages against a tobacco company for ailments stemming from secondhand smoke.

In my more than 50 years of practice, including the four years I served on the bench, I have never seen such egregious defendants [as Big Tobacco].

Miami Beach attorney Robert Grover, whose firm won the only secondhand smoke case against the tobacco industry

“In my more than 50 years of practice, including the four years I served on the bench, I have never seen such egregious defendants [as Big Tobacco],” said Grover, who with his three partners was honored recently by hundreds who gathered to commemorate the firm. “Back in 1959, they said, ‘Our deep research finds no connection between smoking and cancer, respiratory disease or anything else.’ They knew even back then, and they lied for half a century. [Weinstein] and I said, ‘These are bad people. Let’s go get them.’”

The firm’s first strike against the tobacco industry came in January 2002, when Marvin Weinstein and former firm partner Adam Trop co-counseled French v. Philip Morris. The case stemmed from a 1991 class-action lawsuit, Broin v. Philip Morris, in which Miami husband-and-wife lawyer team Stanley and Susan Rosenblatt initially represented seven nonsmoking flight attendants who developed lung cancer and other illnesses after inhaling tobacco smoke while working on airplanes.

Though the cigarette makers agreed to provide $349 million to set up a research foundation on behalf of the plaintiffs and pay the Rosenblatts $49 million, the flight attendants received no damages. They were, however, granted the right to sue individually.

Lynn French, who developed chronic sinusitis while working for Trans World Airlines for 14 years, was the first of several individual flight attendants to sue Big Tobacco.

The firm represented her. A six-person Miami jury awarded her $5.5 million in compensatory damages — five times the amount asked.

Three months later, 11th Circuit Court Judge Fredricka G. Smith cut the amount to $500,000 — a 91 percent reduction.

“It was the largest reduction remitted in the state’s history,” Grover said. “[Judge Smith’s] conscience, I think, was shocked by the size of that verdict and said, ‘Take it or we’re granting a new trial.’ [French] didn’t want to go through another trial, so she took the $500,000.”

Another groundbreaking case heard in Miami was Engle v. R.J. Reynolds Tobacco Co., the first smokers’ class action suit to come to trial in a U.S. courtroom, filed by the Rosenblatts in 1994. Dr. Howard Engle was a longtime Miami Beach pediatrician who had treated the children of both the Rosenblatts and the Grovers. Engle, who had been addicted to smoking since college, when tobacco companies doled out free cigarettes to students, lent his name to the suit, filed on behalf of about 700,000 smokers nationwide.

A Miami-Dade jury, after hearing 157 witnesses in two years, decided the tobacco companies intentionally misled smokers about the dangers of cigarettes. The jury awarded $145 billion in damages, the largest punitive damages award in U.S. history.

The tobacco companies immediately appealed the decision, which Florida’s 3rd District Court of Appeal set aside in 2003. In 2006, the Florida Supreme Court upheld the lower court’s decision to reverse punitive damages, but allowed for 8,000 individual plaintiffs to pursue damages separately—4,000 at the state level and 4,000 at the federal level. The federal cases accepted a settlement en masse. The state-level cases, however, have only recently begun to reach the verdict stage.

“All the trial lawyers in Florida owe a debt of gratitude to the Rosenblatts,” said Trop, the co-counsel on the TWA case. “They really took down a giant and made it much easier for us to represent the little guy, these victims of tobacco. They may not have slain the dragon, but they certainly knocked it to its knees.”

In 2009, Grover & Weinstein was co-counsel in the first of the 4,000 cases at the state level to successfully recover damages, Hess v. Philip Morris. Since the verdict, the firm has recovered damages for four more state-level cases, more than $55 million in total.

Going after the big guys is what the four lawyers at Grover & Weinstein pride themselves on.

“What makes their story remarkable is the people they are,” said Jeannie Fernandez, the firm’s controller. “If they see a little guy come in and he has a problem, they’ll work days, weeks and months to help him. Even if they’re technically not going to get any money — even if they have to waive their fees — they didn’t deny anyone.’’

The firm opened for business in 1963 as Grover & Ciment, P.A. out of a small house purchased in Miami Beach by the two college roommates who had reunited after Ciment returned from a European backpacking trip. Two years later, Weinstein, their former University of Miami School of Law classmate, joined the practice.

As their caseloads increased, the partners agreed they needed to bring on an additional member and in 1967 they invited Stauber, another classmate who had become a rabbi shortly after graduation, to join the firm.

“In law school, we were all wet behind the ears and Stauber would give us the background on complicated tort and contract law,” Grover said. “Why was it so easy for him?

Because he knew the origins of the law, which was in the ancient Jewish law more than 3,000 years ago. That’s why we asked him to join our firm; we remembered how smart he was.”

Over the following half-century, the four founding members of the firm, all now over 80, indelibly impacted South Florida:

▪ After being appointed to a judgeship in 1969, Grover, a former Air Force serviceman, helped decriminalize alcoholism and assisted Florida in designing a plan to provide treatment to those suffering from alcohol addiction. As president of the Miami Beach chapter of B’nai B’rith, he founded a Big Brother program, in which he participated, and created a program that facilitated visits to the mentally and physically ill at Veteran’s Hospital.

▪ Weinstein, a former member of the U.S. Coast Guard who attained the rank of lieutenant commander during the Korean War, served as a judge in Surfside in 1969 and completed one term as mayor between 1970 and 1972.

▪ In 1967, Ciment became the youngest Miami Beach commissioner at age 31. He was elected Miami Beach mayor in 1981 and served a single term. During that brief period, he was instrumental in the creation of Miami Beach’s Art Deco District, the Miami Beach Boardwalk and the Miami Beach Eruv Council. In 2010, he and his wife founded the Norman and Joan Ciment Charitable Foundation, a program that sends refrigerators and ovens to poor Israeli families.

▪ Stauber, who served as a municipal judge in Surfside in 1971, was the first rabbi at Young Israel of North Miami Beach. He continues to work at Grover & Weinstein as a consultant.

FDA Makes Statements on Synthetic Nicotine

During NICOPURE vs. FDA lawsuit the agency confirms products not made from tobacco are not regulated tobacco products under recent deeming rule.

http://www.cstoredecisions.com/2016/12/15/fda-makes-statements-synthetic-nicotine/

Next Generation Labs, the makers of proprietary TFN Nicotine – a non-tobacco derived synthetic nicotine liquid and crystals – has noted statements made to the court by the U.S. Food and Drug Administration (FDA) in the Nicopure vs. FDA lawsuit that confirms products not made or derived from tobacco are not regulated tobacco products under the recent Deeming Rule.

In a response brief to the Court dated Nov. 1 2016, the FDA stated that: “Not all nicotine-free e-liquids (NFLs) are subject to the deeming rule. Assuming an NFL is not made or derived from tobacco, it is subject to the rule only if it meets the definition of a ‘component or part’ —that is, if it is ‘intended or reasonably expected’ either…(1) To alter or affect [a] tobacco product’s performance, composition, constituents, or characteristics; or (2) To be used with or for the human consumption of a tobacco product; and is not an accessory.”

The FDA’s Deeming Rule was designed to extend the agency’s regulatory authority over a variety of tobacco products, which greatly impacts the vape industry. However, the recent clarification from FDA attorneys appears to confirm that the Deeming Rule does not extend to e-liquids that are either nicotine-free, or not made or derived from tobacco, when marketed and sold appropriately.

TFN Nicotine is not made or derived from tobacco, nor is it a component or part of any tobacco product; as such Next Generation Labs does not believe e-liquids made with TFN Nicotine are required to list their product as a tobacco product with the FDA, or prepare a Pre-Market Tobacco Application (PMTA) submission before launching a new vape liquid brand in the USA.

Vincent Schuman, CEO of Next Generation Labs, commented: “The FDA’s statements to the Court seem to confirm our long-held position: TFN Nicotine products cannot be regulated under the Deeming Rule as they simply are not tobacco products. In order to comply with the FDA, the onus is on e-liquid manufacturers to consider how their TFN Nicotine product is marketed, distributed and positioned to adult consumers to ensure a complete disassociation from tobacco and tobacco devices.”

In addition to this recent statement, the FDA has also extended the deadline for the registration and product listing requirements of the Deeming Rule, stating: “U.S. manufacturers of newly-regulated tobacco products who first manufactured those products prior to Aug. 8, 2016, the FDA does not intend to enforce the submission deadline for establishment registration and product listing as long as submissions are received by the FDA on or before June 30, 2017. However, companies which begin manufacturing newly regulated tobacco products in a domestic establishment on or after the Aug. 8 effective date of the deeming rule must register and list immediately with the FDA.”

Despite nearly $1B in tobacco funds, NJ will spend zero on prevention programs

New Jersey ranks dead last for the money it devotes to tobacco prevention and cessation programs.

http://nj1015.com/despite-nearly-1b-in-tobacco-funds-nj-will-spend-zero-on-prevention-programs/

According to a new report from several anti-smoking and health advocacy groups, the Garden State is spending nothing on these programs out of the $944.5 million it will receive this fiscal year from taxes on tobacco products and the 1998 tobacco settlement. Connecticut is the only other state that spends absolutely no tobacco-related revenue on anti-smoking causes.

The report finds 13.5 percent of New Jersey adults smoke, and 8.2 percent of high school students. Smoking causes 11,800 deaths per year in the state, the report said.

“Failure to fund tobacco prevention programs is not only bad health policy, it’s bad fiscal policy,” said Vince Willmore with the Campaign for Tobacco-Free Kids, one of the organizations that issued the report. “Because tobacco use costs New Jersey over $4 billion a year in health care bills.”

The Centers for Disease Control and Prevention recommends that New Jersey spend more than $103 million a year on tobacco prevention.

“That leaves plenty for other purposes,” Willmore said.

The state does use more than $2.2 million in federal funds on services related to prevention and quitting programs, such as NJ Quitline (1-866-657-8677).

According to the New Jersey Department of Health, the state’s adult smoking rate has declined significantly since 1990, and both the adult and youth smoking rates are below national averages.

“The Department of Health strongly encourages everyone to quit smoking and there are many ways to do that including medication, patches, gum and counseling available through employer-sponsored health benefits – including Medicaid, the State Health Benefits Plan and NJ FamilyCare,” a department spokeswoman said.

Approved by the full New Jersey Assembly in November, and referred to a Senate committee, is a measure that would dedicate 1 percent of tobacco tax revenues to anti-smoking initiatives. The proposal originally called for a 5 percent share but was scaled back.

In January, Gov. Chris Christie vetoed a measure that would have banned the sale of tobacco and vaping products to anyone under the age of 21. Willmore said he hopes to see the bill advance again with a different outcome.

It was passed by the Senate in May but hasn’t seen action in the Assembly.

Nationwide, the report said, states will collect $26.6 billion in tobacco-related revenue. Less than 2 percent of it will be spent on programs to prevent kids from smoking and help smokers quit.