Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
18TOBACCOOUTLETBUSINESSJANUARYFEBRUARY2012NEWSTRENDSJANUARYFEBRUARY2012Untilnowelectroniccigarettescouldbeusedwherevertradi-tionalcigarettesarebanned.ButinBostonthatx19snolongerthecasethankstotheBostonPublicHealthCommissionx19sBoardox8Healthwhichrecentlyapprovedaproposaltotreate-cigarettesliketobaccoproductsincludingmakingthemsubjecttoworkplacebans.Ex8x8ectiveim-mediatelytherulesrestrictthesaleox8e-cigarettestoadultsonlyandrequireretailerstogetapermittosellthem.Toselle-cigarettesoranyothernicotineproductnotap-provedbytheFDAasnicotinereplacementtherapyinBos-tonretailersmustnowapplyx8orapermitthroughtheBostonPublicHealthCommissionx19sTo-baccoControlOx8x8ice.Thenewregulationsalsorequirethate-cigarettesbeplacedbehindthestorecounterliketobaccoprod-uctsandthattheynotbesoldtominors.E-cigarettesalsowillnotbeallowedintheworkplacewhichincludesrestaurantpatiosanddecksandloadingdocks.Theboardalsoapprovedare-latedrequirementthatasox8Jan-uary31cigarsbesoldintheiroriginalmanux8acturerpackagingox8atleastx8our.Thatmandateisintendedtopreventsingle-salesmarketingtoyouthandtherebydiscouragetheirinitiationintocigarettesmoking.Finallythex8inesx8orretailersx8oundinviola-tionox8Bostonx19stobaccocontrolregulationshavedoubledrisingx8rom100x8orthex8irstox8x8enseand400x8orthex8ourthox8x8ensein12monthsto200x8orthex8irstox8x8enseand800x8orthex8ourthox8x8ensein24months.HARmReductionUPDATx19BostonBansx19-CigUseE-cigaretteswillbetreatedlikeothertobaccoproducts.StatenIslandN.Y.-basedIslandSmokesisconcedingtopressureandgivingupitsex8x8orttoox8x8erin-storeroll-ingmachinestoRYOcustomers.Judg-ingthatthelawsuitfledagainsttheshopbyNewYorkCitywouldbetoocostlytofghtthestoresx19ownershavedecidedtoshuttheirstoredown.AtissuewasIslandSmokesbusi-nessmodelox8sellingcustomersloosetobaccoandtubesandthenallowingthemtousethestorex19sequipmenttoproducetheirowncigarettes.Accord-ingtothecityx19slawsuitthestorewastakingadvantageox8ataxloopholebychargingtaxesattheratesetx8orloosetobaccowhichissmallerthanthetaxrateonamanux8acturedciga-rettepack.InDecembertheownersox8thestoreandthecitysignedaconsentordercallingx8orIslandSmokestox1cwinddownx1ditsbusinessliquidateitsinven-toryandx1cceaseallbusinessopera-tionsx1dunderitscurrenttradename.Undertheordertheownersagreetostopx1cmanux8acturingpossessingadvertisingox8x8eringx8orsalesellingandordistributingcigarettesthatdonotbearNewYorkStateandCitytaxstampsorwhicharenotcertix8iedasx8ire-sax8easrequiredbyNewYorklawincludingbutnotlimitedtobysell-ingloosetobaccoandpre-x8ormedcigarettepapertubesandprovidingcustomerswithaccesstomachinesthatproducex8inishedcigarettes.x1dIslandSmokesx19legalrepresentationtoldTheStatenIslandAdvancethattaxrevenuemoneywasattheheartox8thecityx19sactionagainstIslandSmokes.Whatremainstobeseeniswhetherstoresox8x8eringsimilarserviceswillbandtogetherandpooltheirresourc-esix8threatenedorwillalsoshutdown.ManyintheindustryarealsocloselywatchingalegalbattlebetweenRYOMachineRentaloneox8themakersox8RYOmachinesandtheU.S.Depart-mentox8TreasurynowpendingintheU.S.SixthCircuitCourtox8Appeals.RYOShopWonx19tFightTaxChargeFacedwithonerouslegalbattleIslandSmokesisshuttingdown.