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THE FDA’S DEEMING REGULATIONS are now in

full swing, and several deadlines have come and gone

since its implementation on August 8, 2016. Current-

ly, the tobacco industry is working hard to comply with

the imminent deadlines in connection to the FDA’s new

labeling requirements. Manufacturers/importers of ci-

gars are required to submit a rotational warning plan in

compliance with FDA regulations by May 10, 2017, and

the new labels must be implemented and in commerce

no later than May 10, 2018.

The material aspects of the new FDA warning plan

are fairly straightforward. Manufacturers and importers

of cigars must rotate six warnings:

1.

WARNING:

Cigar smoking can cause cancers of the

mouth and throat, even if you do not inhale;

2.

WARNING:

Cigar smoking can cause lung cancer

and heart disease;

3.

WARNING:

Cigars are not a safe alternative to

cigarettes;

4.

WARNING:

Tobacco smoke increases the risk of

lung cancer and heart disease, even in nonsmokers;

5.

WARNING:

Cigar use while pregnant can harm you

and your baby; or SURGEON GENERAL WARNING:

Tobacco Use Increases the Risk of Infertility, Stillbirth,

and Low Birth Weight; and

6.

WARNING:

This product contains nicotine. Nicotine

is an addictive chemical.

These rotated warnings must be permanently af-

fixed to the cigar packaging and advertisements. For

packaging, the warning must encompass no less than

30 percent of the two principal display panels of the

product’s packaging (a principal display panel being

defined by the Deeming Regulations as the panels of

the package that are most likely to be displayed, pre-

sented, shown or examined by the consumer) and no

less than 20 percent of the total display area of the

advertisement, with the caveat that the warning on

advertisements appear in the upper portion of the ad-

vertisement within the trim area of the advertisement.

The warnings have some other requirements such as

font size, capitalization and color.

The Law

on Labels

Noah Steinsapir, general counsel for Kretek

International, offers a legal look at what

the FDA’s new warning label requirements

mean for manufacturers and retailers.

For packaging,

the warning

must encompass

no less than 30

percent of the

two principal

display panels

of the product’s

packaging.

Although the rule is relatively straightforward, the

industry still remains confused in connection with two

looming issues: First, how will this warning coalesce with

California’s current Proposition 65 warning require-

ments? Second, how will the timing of selling through

products with older warnings on them work?

PROP 65 VS. FDA WARNING

For Prop 65, certain industry groups are working to de-

vise a plan. The purpose of California’s Proposition 65

is to warn the consumer and the public at large that to-

bacco products contain toxic chemicals. The new FDA

warning plan achieves California’s objective and does

so in a meaningful manner such that 30 percent of the

principal display panels of the product’s packaging will

notify the consumer of the health warnings of the tobac-

co product. In terms of size and visibility, the FDA’s rule

goes above and beyond what is required by California’s

Proposition 65. Therefore, a proposed and reasonable

outcome is that California determines that the addi-

tional Prop 65 warning is unnecessary, duplicative and

may cause customer confusion in light of the new feder-

al guidelines that require such a clear and conspicuous

warning. In either event, hopefully the State of Califor-

nia will provide clarity in connection with this issue.

PRODUCTS ALREADY IN

THE RETAIL PIPELINE

Another common concern is that the May 10, 2018

deadline for implementing the new warning scheme may

create challenges in light of the fact that product can sit

in a warehouse or on a retail shelf for extended periods

of time. This may result in the sale of product without

the adequate warning to the consumer after the May 10,

2018 deadline, which would not be the fault of the man-

ufacturer/importer or the retailer. While the answer is

not crystal clear yet, the Deeming Regulations appear to

have considered this issue and provide a safe harbor to

both the manufacturer/importer, as well as to the retailer.

The manufacturer and importer appear to be allowed to

introduce product without the current warning require-

ments into commerce up until May 10, 2018. They then

have an additional 30 days after this deadline as a safe

harbor to continue selling the last of the product.

In addition, retailers appear to be provided a safe har-

bor as long as the retailer purchased the product from a

licensed manufacturer, the packaging contains some type

of health warning, and the retailer has not altered the

packaging. Both the FDA and the industry want to pro-

vide clear and conspicuous warnings so that consenting

adults may make informed decisions. With time, the new

FDA warning plan will be further clarified

.

TB

LEGAL MATTERS

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TOBACCO BUSINESS

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