I know that everyone is focused on Iran, but there are, of course, other things going on in the world — like tobacco regulation.
As of Friday, June 12, both houses of Congress had passed the Family Smoking Prevention and Tobacco Control Act. This timing may reflect no more than the fact that Democrats now control both the legislative and executive branches of the federal government, but I suspect it has something to do with which particular Democrat now occupies the Oval Office. President Obama is a former Senator who sponsored tobacco control legislation when in Congress, and a former (?) smoker who has publicly acknowledged the difficulties faced by smokers attempting to quit a habit driven by physical addiction.
The health rationale for exerting government control over the marketing of tobacco products to Americans has been a no-brainer for decades. The CDC notes that tobacco products kill more than 400,000 people every year in the US. The significance of this number can be lost when considering a continent-sized nation with a population of close to 300 million people, but the following number is more intuitive: tobacco products eventually kill half of their regular users from smoking-related diseases.
The significance of this moment should not be underestimated. For the first time in history, the Food and Drug Administration (FDA) has statutory authority to regulate tobacco products, even though the surgeon general announced tobacco’s deleterious effects almost half a century ago. Until now, cigarettes were less regulated than cosmetics or pet food (h/t to The New York Times for that observation, though it was no more supported there than I am supporting it here).
The legislation does not allow for outlawing smoking or banning nicotine, which would be politically impossible. However, FDA can set product standards with respect to impact on human health, thereby forcing changes in existing products and controlling the marketing of new products. These powers will permit FDA to ban some chemicals deemed hazardous to human health, and possibly reduce nicotine content. It allows for the ban of most flavorings except menthol, the most politically sensitive flavor due to its widespread popularity with users. FDA may now regulate tobacco marketing: no ads within one thousand feet of schools and playgrounds, and producers can’t claim products are “light,” “mild,” or “low tar,” as such ads are deemed misleading. And soon more graphic labels, similar to those already required for sales in Canada, will be required in the US marketplace. While this may seem like a lot to ask, I would argue that it is less than what is demanded of the pharmaceutical industry, where there is obvious, significant consumer benefit to the product.
Why has this happened now? Likely for two reasons: Democratic control of Congress and executive branch, and the market leader Philip Morris detected a comparative advantage over its competitors that it would like to solidify. It doesn’t take a rocket scientist to guess that the FDA unlikely to approve new tobacco products, or at least any new smoked tobacco products. Thus the restriction on marketing, plus likely lack of new products, will solidify Philip Morris’ market-leading position. With over $3 billion in annual profits, Philip Morris has been able to spend hundreds of millions of dollars on a modern R&D infrastructure that, in addition to situating the company to respond to new government demands for proof of various technical points under this legislation, could develop novel, smokeless products that don’t involve burning tobacco. The other, smaller, less profitable tobacco companies can’t afford to do this, and since these are the types of new products that would be most likely to be approved under the new regulatory structure, Philip Morris’ market-share lead over its competitors will only increase. Finally, all corporations like certainty, which tremendously simplifies planning. Comprehensive federal regulation governing a marketplace is far better than state-by-state regulations and lawsuits in that respect.
Of course, there are critics of this legislation, but I am not one of them - at least not in the same way. The generic sentiment that the government should have gone further seems unrealistic to me. One out of every five Americans is still a smoker, and it isn’t obvious to me how more could have been done without undulying taxing or restricting the legitimate consumer options of this group. And I think it should emphasized just how big a step this legislation represents. It took twenty years after the surgeon general’s report in the early Sixties to ban smoking on airplane flights in the Eighties, and another twenty years for widespread bans in most public spaces. Restricting smoking has some appeal now, but that is a fairly recent phenomenon, and not universal.
If I worry about anything, I worry about the ability of the FDA to handle several new large mandates at once: