In an effort to reduce the incidence of smoking, particularly among minors, and to improve the safety of tobacco products, Congress passed a law giving the Food and Drug Administration regulatory authority over the manufacturing and retailing of tobacco. The June 22, 2009, enactment of the Family Smoking Prevention and Tobacco Control Act capped a 12-year effort that was begun in 1997.
According to the NACS State of the Industry Report of 2010 Data, sales of cigarettes and other tobacco products constituted nearly 40 percent of the average in-store sales at NACS member retail locations. While controversial, tobacco is a legal product and one that is important to the economic viability of the convenience store industry.
The new law providing FDA the authority to regulate the manufacture and retail of tobacco products could have a significant effect on convenience retailers in the form of advertising and marketing restrictions, new gruesome warning label requirements, and other provisions.
During consideration of the legislation that was signed into law, NACS was able to negotiate several provisions that will lessen the burden on convenience retailers and help level the playing field with other retail channels of trade, such as Internet vendors and Native American tribes. The following NACS priorities are included in the new law:
- Create a level playing field by applying the bill’s provisions to all tobacco retailers, including Native Americans and Internet vendors
- Grant procedural safeguards to ensure a fair regulatory process
- Provide incentives for retailers to adopt good compliance and training practices
- Protect against the imposition of double fines for the same conduct
- Set fair boundaries for retailer liability
NACS is engaged in the rulemaking process and will be diligent in advocating for the rights of its members under the new regime.
The FDA is continuing to work to implement the new law including carrying out inspections of retailers and issuing warning letters for alleged violations. NACS is working with FDA to ensure retailer concerns are properly considered.
As information becomes available, NACS is posting details online and hosting compliance webinars for NACS members. Applicable resources are available at nacsonline.com/compliance.