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Congress members ask e-cigarette makers to stop ads; retailers to pull tobacco

Members of Congress have asked four e-cigarette companies to stop advertising their products and called on large retailers to halt sales of all tobacco products as an outbreak of mysterious vaping-related illnesses continues.

In letters released Sept. 26, House Subcommittee on Economic and Consumer Policy Chairman Raja Krishnamoorthi, D-Ill., asked Fontem Ventures BV, Japan Tobacco International USA Inc., Reynolds American Inc. and NJOY LLC to stop all print, broadcast and digital advertisements of e-cigarettes in the U.S.

Separately, several Democratic senators on Sept. 26 sent letters to Walgreens Boots Alliance Inc., Rite Aid Corp., Dollar General Corp. and Walmart Inc. urging them to stop selling all tobacco products. The senators sent similar letters to the same retailers in February, the group said.

The two series of letters follow Juul Labs Inc.'s recent decision to stop advertising amid growing scrutiny of the vaping industry over a rise in youth e-cigarette use and reports of deaths and illness linked to the products. The federal government has also urged consumers to stop using e-cigarettes, though public health officials have not determined the exact cause of the outbreak.

In letters to retailers, senators urged the companies to pull all tobacco products, though the letters focused on e-cigarettes and the rising use of the devices by minors.

"E-cigarettes have never been proven effective at helping people quit smoking. They do not have technology in place to ensure proper use. And they are being used primarily by children under the age of 18, in part because your company is either unwilling or unable to keep these products out of the hands of children who frequent your stores," the senators said.

Sens. Dick Durbin, D-Ill., Sheldon Whitehouse, D-RI, Richard Blumenthal, D-Conn., Sherrod Brown, D-Ohio, Jack Reed, D-RI, and Jeff Merkley, D-Ore., sent the letters to the retailers.

A spokesperson for Rite Aid said the company had no comment, while the others did not immediately respond to requests for comment. Walmart previously announced plans to stop selling e-cigarettes in its U.S. stores, including Sam's Club.

E-cigarette makers called upon to stop US ads

Meanwhile, subcommittee chairman Krishnamoorthi told e-cigarette makers that U.S. consumers should not be subject to the vaping industry's "misleading" marketing.

"I ask that you please notify me whether you will halt all television, radio, print, and digital advertising for your e-cigarette products," Krishnamoorthi said in the letters.

SNL Image

Imperial Brands sells the e-cigarette brand Blu through subsidiary Fontem Ventures.

Source: Imperial Brands PLC

Fontem Ventures is a subsidiary of Imperial Brands PLC, which sells the e-cigarette Blu. Reynolds is a subsidiary of British American Tobacco PLC and its brand of e-cigarettes in the U.S. is called Vuse. Japan Tobacco's brand of e-cigarettes sold in the U.S. is called Logic. Njoy is a private company that sells e-cigarettes branded with the company's name. Altria Group Inc. took a 35% stake in Juul for $12.8 billion in December.

As of Sept. 26, none of the targets of Krishnamoorthi's request have publicly said they would comply.

Fontem Ventures and Japan Tobacco each said they support efforts to prevent youth vaping.

"We strongly support initiatives to prevent youth access to vaping products and efforts to ensure advertising reaches only our intended adult audience," Kelly Cushman, a Fontem Ventures spokesperson, said in an email. "As both a manufacturer and retailer of vaping products, we take our responsibility in this respect very seriously."

Imperial Brands slashed its fiscal 2019 guidance on Sept. 26 because the backlash against e-cigarettes is crimping sales of its Blu e-cigarettes.

Imperial sold $236.1 million in e-cigarettes at retailers in the 52 weeks through Sept. 7, according to a Sept. 17 Wells Fargo report citing Nielsen data. Total U.S. retail sales of e-cigarettes hit $4.62 billion during the same time, with Juul recording $3.35 billion in sales, followed by $537.4 million for Reynolds' Vuse brand and $109.1 million for Japan Tobacco's Logic brand, according to the report.

The focus from Congress is "very much on Juul activity," Michele Maron, a Japan Tobacco spokesperson, said in an email.

"We believe our limited and responsible advertising plays an important role in communicating to adult smokers the differences between Logic capsule products and other pod-based products, including Juul," Maron said. "We look forward to continuing our dialogue with lawmakers on this issue."

Reynolds American is giving Krishnamoorthi’s letter "careful consideration," Kaelan Hollon, a company spokesperson, said in an email. The company is closely following the reports of illnesses that may be related to vaping, and government investigations are ongoing while "many questions remain unanswered."

Njoy and Juul did not respond to requests for comment.

Juul announced Sept. 25 that it would stop advertising its products in the U.S. and cease lobbying the Trump administration around e-cigarette rules as officials mull a ban on non-tobacco-flavored vaping products. U.S. media companies also have largely pulled the plug on advertisements for e-cigarettes.

Krishnamoorthi leads the same subcommittee that threatened Juul with a subpoena on Sept. 17 if it does not turn over documents related to its products and marketing practices.