The U.S. FDA Orders Rectification in the E-Cigarette Market; Products From 5 Brands May Be Forced Of
This Wednesday, U.S. federal regulators issued a warning that if emerging manufacturers cannot curb the spread of e-cigarettes among teenagers, all e-cigarette products may be removed from the market. After observing the rapid rise of e-cigarette use amon
On Wednesday, U.S. federal regulators issued a warning that if emerging manufacturers cannot control the rampant use of e-cigarettes among teenagers, they will remove all e-cigarettes from the market.
After observing the surge of e-cigarette use among teenagers, the U.S. Food and Drug Administration (FDA) is reconsidering its stance on e-cigarettes, which were introduced to the market as a way for adults to quit smoking.
FDA Commissioner Scott Gottlieb stated in a press release on Wednesday that the increase in e-cigarette use among teenagers is an epidemic: "E-cigarettes are almost ubiquitous among youth, which is very dangerous," he said. "We are seeing an alarming acceleration in use among young people and the resulting pathways to addiction, and this must end." The FDA cannot tolerate the cost of an entire generation of young people becoming addicted to nicotine to help current adults quit smoking.
After years of declining smoking rates in the U.S., the e-cigarette craze has driven the largest increase in nicotine use among teenagers in decades. Teenagers who have never smoked cigarettes are eager to inhale e-cigarettes flavored like cream, cucumber, and mango, often unaware of the nicotine content.
This action by the FDA specifically targets five e-cigarette brands: Juul, Vuse, MarkTen, Blu E-cigs, and Logic. The manufacturers of these five brands are required to submit plans within 60 days detailing how they will prevent youth from using their products. The FDA may require companies to modify their sales and marketing practices, stop distributing products to retailers that sell to kids, and halt the sale of some or all flavored e-cigarette products until the issues are resolved.
As a result of this news, traditional tobacco stocks surged on Wednesday, with Philip Morris up 3.4%, Altria up 6.6%, and British American Tobacco up 6%.
As the largest action ever taken by the FDA against illegal sales, it has issued warning letters to over 1,100 retailers selling e-cigarettes to minors and has penalized 131 retailers.
Across the entire e-cigarette category, the FDA is considering restricting the sale of flavored nicotine liquids or subjecting related products to agency review. Products that were on the market before August 8, 2016, should begin undergoing review this year.
At the same time, the FDA is investigating whether manufacturers' online stores are being used for resale, with qualified buyers reselling products to minors. If the FDA finds issues, it can take civil and criminal action.
"Let me be clear, everything is on the table, including all of our civil and criminal enforcement tools," FDA Commissioner Gottlieb stated. "If companies are unaware, or do not want to know, that these resale phenomena are occurring, we will help them identify it."
E-cigarettes are a key component of the FDA's comprehensive tobacco plan, which includes seeking to reduce the nicotine content in traditional cigarettes to minimally or non-addictive levels. For adults who cannot or do not want to quit smoking (to continue receiving nicotine), e-cigarettes are considered a less harmful alternative. However, the surge in youth use casts a shadow over any potential benefits for adults.
When Congress passed the "Tobacco Control Act" in 2009, lawmakers authorized the FDA to regulate tobacco products. In 2016, the agency expanded its jurisdiction to include e-cigarettes, determining that existing products on the market needed to undergo review and that new products must apply for approval first.
According to data compiled by Wells Fargo analyst Bonnie Herzog, privately held Juul dominates the market, accounting for about 72% of sales. Most of its e-cigarettes contain as much nicotine as a pack of cigarettes. It offers eight flavors, including cream.
Gottlieb stated on Wednesday that he believes certain flavors "are one of the primary drivers of youth use." "We know these flavors play an important role in driving youth appeal," Gottlieb said. "Given the trends that are occurring, we may take action to restrict the marketing and sale of flavored products. We are actively evaluating how to implement such policies."
After observing the surge of e-cigarette use among teenagers, the U.S. Food and Drug Administration (FDA) is reconsidering its stance on e-cigarettes, which were introduced to the market as a way for adults to quit smoking.
FDA Commissioner Scott Gottlieb stated in a press release on Wednesday that the increase in e-cigarette use among teenagers is an epidemic: "E-cigarettes are almost ubiquitous among youth, which is very dangerous," he said. "We are seeing an alarming acceleration in use among young people and the resulting pathways to addiction, and this must end." The FDA cannot tolerate the cost of an entire generation of young people becoming addicted to nicotine to help current adults quit smoking.
After years of declining smoking rates in the U.S., the e-cigarette craze has driven the largest increase in nicotine use among teenagers in decades. Teenagers who have never smoked cigarettes are eager to inhale e-cigarettes flavored like cream, cucumber, and mango, often unaware of the nicotine content.This action by the FDA specifically targets five e-cigarette brands: Juul, Vuse, MarkTen, Blu E-cigs, and Logic. The manufacturers of these five brands are required to submit plans within 60 days detailing how they will prevent youth from using their products. The FDA may require companies to modify their sales and marketing practices, stop distributing products to retailers that sell to kids, and halt the sale of some or all flavored e-cigarette products until the issues are resolved.
As a result of this news, traditional tobacco stocks surged on Wednesday, with Philip Morris up 3.4%, Altria up 6.6%, and British American Tobacco up 6%.
As the largest action ever taken by the FDA against illegal sales, it has issued warning letters to over 1,100 retailers selling e-cigarettes to minors and has penalized 131 retailers.
Across the entire e-cigarette category, the FDA is considering restricting the sale of flavored nicotine liquids or subjecting related products to agency review. Products that were on the market before August 8, 2016, should begin undergoing review this year.
At the same time, the FDA is investigating whether manufacturers' online stores are being used for resale, with qualified buyers reselling products to minors. If the FDA finds issues, it can take civil and criminal action.
"Let me be clear, everything is on the table, including all of our civil and criminal enforcement tools," FDA Commissioner Gottlieb stated. "If companies are unaware, or do not want to know, that these resale phenomena are occurring, we will help them identify it."
E-cigarettes are a key component of the FDA's comprehensive tobacco plan, which includes seeking to reduce the nicotine content in traditional cigarettes to minimally or non-addictive levels. For adults who cannot or do not want to quit smoking (to continue receiving nicotine), e-cigarettes are considered a less harmful alternative. However, the surge in youth use casts a shadow over any potential benefits for adults.
When Congress passed the "Tobacco Control Act" in 2009, lawmakers authorized the FDA to regulate tobacco products. In 2016, the agency expanded its jurisdiction to include e-cigarettes, determining that existing products on the market needed to undergo review and that new products must apply for approval first.According to data compiled by Wells Fargo analyst Bonnie Herzog, privately held Juul dominates the market, accounting for about 72% of sales. Most of its e-cigarettes contain as much nicotine as a pack of cigarettes. It offers eight flavors, including cream.
Gottlieb stated on Wednesday that he believes certain flavors "are one of the primary drivers of youth use." "We know these flavors play an important role in driving youth appeal," Gottlieb said. "Given the trends that are occurring, we may take action to restrict the marketing and sale of flavored products. We are actively evaluating how to implement such policies."
