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30/5/2019 0 Comments

The impact on cigar retailers of FDA regulations Part 2

​The Change In Age Requirements:
 
As of 2016, it was ruled illegal to sell tobacco products of any kind, including cigars, to anyone under the age of 18.  From that point on, retailers have been required to ask for identification from anyone under the age of 26.
 
Online Retailers are falling under these regulations as well. The FDA has not set down how online retailers can get accurate identification through various methods.  There are many online cigar retailers who have been using e-verify software while others are requiring a copy of a customer's ID. These options might well become the industry standard with added guidelines from the FDA.
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​Free Samples Are Now Prohibited:
 
Due to new rules, retailers and manufacturers are no longer allowed to hand out free samples.  Customers will be allowed to touch and smell the cigars but no longer allowed to light a cigar or leave the establishment with a cigar.
 
There is an opinion floating around that the practice of offering consumers bags that are full of cigars might change.  Prepackaged bags could be considered unique packaging but would be subject to filing a product application.
 
Prepackaged sampler bags offered at events would appear to violate the intentions of the FDA.  That said, at events where consumers can exchange tickets for cigars will be acceptable under the guidelines as long as the cigars are from approved boxes or bundles with warning labels.
 
The FDA does not intend to regulate the practice of customers selecting individual cigars from boxes in an airtight container as long as the boxes have the required warning labels.
 
Note:  Manufacturers will need to provide boxes vs bundles for any promotional product unless the manufacturer has the approval of the FDA to sell these cigars in bundles.  Most manufacturers will not bother with the extra cost to apply for a bundle approval, instead just sell them out of boxes.
 
Requirements For Advertising:
 
The FDA has stated that all advertising found in direct mail, emails, and social media are subject to the warning labels that are required.  It is not clear if warning labels would have to appear on every page of a catalog or website that sells cigars.  The agency has stated it would provide further guidelines on unique forms of advertising at a later time.
 
While warning label restrictions are annoying, retailers have been subject to submitting their advertising plans since August 8, 2017.  This made it even more difficult than in years before.
 
Manufacturers and retailers are constantly aware of changes made by the FDA about their tobacco products, including cigars.  One of the biggest issues is the decline in smoking that has been going on for some time now leading to less production and higher costs that are passed on to the consumer.  Only time will tell if costs and productions will continue to affect consumers.
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23/5/2019 0 Comments

The Impact On Cigar Retailers From FDA Regulations Part 1

​There have been many changes, over the years, regarding regulations for manufacturers and retailers who sell tobacco products.  We are going to address the various regulations that have continually changed since 2016.
 
For some time now, FDA regulations have fallen on manufacturers but with new regulations, retailers are going to start feeling the impact.
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About Warning Labels:
 
One of the biggest changes in warning labels has applied to retailers, manufacturers, and distributors alike. New FDA requirements have required cigar boxes displaying warning labels that cover at least 30% on the top and 30% on the front of the boxes.
 
Retailers are required to post a sign that is not smaller than 8-1/2 x 11 which lists all 5 warning labels and a declaration that cigars are addictive products.  This sign must appear within 3-inches of each cash register.  The restrictions will also prevent retails from changing boxes by removing the warning labels or removing the lids with these warning labels.
 
The FDA has also suggested that online retailers shipping individual cigars to customers should have an additional warning label on the shipping boxes.
 
Note:  All tobacco products are subject to the FDA and Cosmetic Act.
 
The Cost Of Products On The Consumer:
 
There is no doubt the added costs and user fees will be passed on to the retailer.  Also, the number of cigars available on the market is decreasing.  This will have an impact on limited edition cigars, especially those that are under 50,000 in production.  The fact is, the financial burden cannot be spread out among all productions.
 
Previously, the FDA estimated there are 7,500 SKUs on the market but is now believed to be underestimated.  The underestimated levels are from the data collected from the obsolete 2010 Perelman's Pocket Cyclopedia of Cigars, the Cigars International website, the sister site Pipes & Cigars, and the Cigar Geeks databases.  It's believed that none of these sources have provided accurate information regarding smaller and limited cigar brands that are on the market.
 
In 2014, the FDA estimated that approximately 10% to 50% of cigars would be removed from the market.  Those estimates were based on a smaller percentage of cigars being grandfathered.  Now, it's estimated that 60% of cigars are grandfathered.  To date, the FDA has declined on the actual amount of cigars removed from the market.

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16/5/2019 0 Comments

Cigar Advertisement Requirements Set Down By The FDA In 2018

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All cigar advertisements are required to carry one of five warning labels.  Also, these warning labels must cover 30% on two parts of the box but only 20% need to be shown on the advertisements. Furthermore, advertising warning labels must be changed on a quarterly basis as stated by the FDA guidelines.
Even though the FDA did not respond to what defines advertising, they did say that advertisements would appear in the following:

​Promotional Materials
Billboards and/or Posters
Magazines and newspapers
Published Journals
Placards
Catalogs
Brochures
Television
Internet Websites
Electronic Mail Correspondence
 
Electronic mail correspondence includes mobile phones, smartphones, social media or other forms of communication.
 
Websites and applications that allow the sharing of audio, video, or photo files along with video and audio promotions and other items that are not subject to the sale or distribution. Tobacco products are subject to the FDA and Cosmetic Act.
 
That said, the FDA stated they would issue more guidelines for effectively providing warning labels for some of these mediums.
 
In 2017, the FDA required that manufacturers and retailers who planned on advertising must have submitted their advertising plans.  The opinion of this guideline, retailers and manufacturers would not be punished for not supplying their advertisement plans until 2018.  The FDA continually encouraged those who were under the advertising requirements should have submitted their plans before August 2018.  This would allow the agency to work with companies to help them become compliant.
 
The agency did not believe submitting advertising plans for compliance would delay production as long as manufacturers followed the guidelines which would be released over the following 12 months. The FDA went on to say they had received a higher than expected number of advertising plans and therefore would extend the compliance period so no manufacturer would be forced to wait to advertise because of delays from the FDA.
 
To date, these guidelines and requirements are in place and the FDA has stated that it does not know of any situation in previous regulations where a company was delayed by the FDA's requirements.
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9/5/2019 0 Comments

Caution Labels of Cigar

​According to the new guidelines, cigars will be required to contain one of five cautioning labels. These notice names must be attached to no less than 30% of two vital display boards (likely the top and front of the crate) and should be in dark textual style on a white foundation. The requirement of cautioning names will be on Aug. 8, 2018. 
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Following are the five cigars’s cautioning labels:

Warning 1: Cigar smoking can cause tumors of the mouth and throat, regardless of whether you don't breathe in.
Warning 2: Cigar smoking can cause lung cancer growth and coronary illness.
Warning 3: Cigars are not a protected option in contrast to cigarettes.
Warning 4: Tobacco smoke expands the danger of lung malignant growth and coronary illness, even in nonsmokers.
Warning 5: Cigar use while pregnant can hurt you and your child.
​
Seven cigar producers have recently consented to a different arrangement with FTC that has expected them to utilize littler cautioning marks. FDA trusts that by practically using these warning marks, it will fulfill the FTC necessity. Considering Tobacco Products To Be Subject to the Federal Food, Drug, and Cosmetic Act…, 371-372, FDA is giving those seven manufacturers the choice to utilize an elective cautioning instead of the previously mentioned fifth cautioning with respect to pregnancy:
​
As per the surgeon’s general warnings, Tobacco consumption increases the Risk of Infertility, Stillbirth and Low Birth rate. (Regarding Tobacco Products To Be Subject to the Federal Food, Drug, and Cosmetic Act… , 329) Cautioning marks for boxes must be uniformly disseminated for a specific item. So if a maker sells 1,000 boxes of a specific SKU in a given year, they should guarantee the five cautioning names each show up on 200 boxes. It's hazy how carefully FDA will uphold the even dissemination. Those five cautioning marks are likewise subject to show up in all cigar commercials. Retailers are likewise required to put a sign with every one of the five cautioning marks, just as an extra cautioning proclamation.
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2/5/2019 0 Comments

Nuts and Bolts of Cigars

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According to the FDA, 9,000 lives have been finished early as a result of cigar smoking. While it doesn't determine whether those are premium cigars, the office contends it doesn't need to. Or maybe, on the grounds that it doesn't acknowledge any investigation on the sound influences exclusively premium cigars to be substantial—generally because of little example sizes—it decides to argue that all cigars are a threat to health. FDA has made a decision to control all the cigar centers on the basis of three major arguments which are,

  1. All cigars have a genuinely negative influence on health, as suggested by the FDA.
  2. FDA does not trust that top-notch cigar adequately diminish the harmful effect on health.
  3. Smoking of Premium Cigars by teenagers and young adults is getting common, according to FDA

FDA's clarification for underage people smoking premium cigars is maybe less grounded. It refers to an examination that demonstrates that 3.8 percent of youth matured 12 to 17 showed they smoked premium cigars, yet then talks about in detail, smoking rates for two lawful age bunches 18 to 25 and 18 to 29. (Regarding Tobacco Products To Be Subject to the Federal Food, Drug, and Cosmetic Act… , 187-188) It at that point states "FDA does not trust is essential for the meaning of premium cigars in this investigation to coordinate precisely the definitions in the NPRM so as to draw surmising about the utilization of various sorts of cigar items. (This information) obviously, demonstrate that adolescent and young grown-ups are utilizing premium cigars."
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FDA clarifies that it trusts its command calls for not just extraordinary concentration towards underage, illicit tobacco use, yet in addition lawful use among youthful grown-ups. As justifies all through the remainder of this guide, all cigars will presently be liable to an assortment of administrative measures, including FDA endorsement of all cigars sold, Warning names on all crates and commercials,  Disclosure of ingredients and publicizing plans to FDA and prohibition on free samples.
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"Mr. Molina has always been there for us with timely, reliable and competent advice. He is an important and valuable part of our team."  Corporate Client Eric Delgado, President of American International Export, Inc., a worldwide importer and exporter of brand name appliance parts.
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"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC.  In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP.  As in, the very next day!  I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo.  I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered.  I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!).  I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"