Latest news with #tobacco
Washington Post
4 hours ago
- Business
- Washington Post
R.J. Reynolds wins at Supreme Court on how to challenge FDA vape rulings
The Supreme Court on Friday rejected government effort to narrow options for challenging Food and Drug Administration denials of applications to market e-cigarettes, including flavored products that health officials say have led to a youth vaping epidemic. In a case that centered on questions of venue-shopping, the justices ruled 7-2 that tobacco giant R.J. Reynolds was allowed to ask a conservative appeals court far from its North Carolina home to examine an FDA rejection of its bid to market menthol cigarettes. The FDA told the justices that R.J. Reynolds and other e-cigarette manufacturers were gaming court system rules by filing the vast majority of product-denial appeals in the U.S. Court of Appeals for the 5th Circuit, based in New Orleans, which is widely seen as more sympathetic to their arguments. The FDA said the tactic was hindering the agency's ability to regulate vapes that are used by hundreds of thousands of teenagers. In the case before the justices, the 5th Circuit overturned the FDA's denial of an R.J. Reynolds application. 'In 2024, by our count … about 75 percent of e-cigarette cases were filed … in the 5th Circuit, all of them by out-of-circuit applicants trying to use the tactic,' Vivek Suri, an assistant to the solicitor general who is representing the FDA, said at oral arguments in January. Under the 2009 Family Smoking Prevention and Tobacco Control Act, manufacturers must get FDA approval to sell some existing products, as well as new products, that are marketed in more than one state. The Vuse line of menthol vapes are the ones in question in the R.J. Reynolds case. Ryan J. Watson, who is representing R.J. Reynolds, told the justices at oral arguments that the company was permitted to file a challenge in the 5th Circuit because the act allows 'any person adversely affected' by a denial to file a challenge in the District of Columbia Circuit or the 'circuit in which such person resides or has their principal place of business.' R.J. Reynolds partnered with a Texas vape store and the Mississippi Petroleum Marketers and Convenience Stores Association to bring the challenge to the FDA ruling. The 5th Circuit covers Texas and Mississippi, while R.J. Reynolds is in the 4th Circuit. Suri, arguing on behalf of the government, said Congress never meant for retailers to be parties to such litigation when it passed the act. He pointed out that retailers aren't notified when the FDA rejects manufacturers' applications to market vaping products and said the tactic defeats the venue restrictions laid out in the law. In a separate case decided in April, the high court ruled unanimously that the FDA properly rejected applications to market fruit- and dessert-flavored liquids for electronic cigarettes that the agency says are popular with young people and risk them getting hooked on nicotine. The products had names such as 'Jimmy the Juice Man Peachy Strawberry,' 'Suicide Bunny Mother's Milk and Cookies,' 'Iced Lemonade' and 'Killer Kustard Blueberry.' An e-cigarette or vape is a battery-powered device that heats a nicotine-infused liquid, turning it into a vapor that is inhaled. E-cigarettes are generally considered less harmful than traditional cigarettes but still carry health risks. The FDA has moved aggressively to regulate flavored vapes in recent years because of their popularity with young people. A 2024 Centers for Disease Control and Prevention survey found that e-cigarettes were the most common tobacco product used by middle-schoolers and high-schoolers. About 1.6 million students use e-cigarettes, according to the survey, which amounts to about 6 percent of the middle and high school population. Nearly 90 percent of those who vape prefer the flavored liquids, according to the survey. Overall, youth vaping has declined significantly after reaching a peak in 2019. This is a developing story. It will be updated.
BBC News
4 hours ago
- BBC News
Dog sniffs out illegal vapes and tobacco in Leighton Buzzard
A shop has been shut after a stash of illegal vapes, cigarettes and tobacco pouches were sniffed out by a detection Bedfordshire Council said Maustin helped sniff out the hidden items at L&B Market in Leighton Buzzard on 13 June, after "persistent concerns" were raised by residents, schools and other businesses. They were also warned that items had been sold to minors in the last year, the council said.A three-month closure order was approved at Luton Magistrates' Court. The council said the closure order "makes it a criminal offence to enter the premises". "It was granted in response to persistent concerns from residents, schools, and businesses about the shop's ongoing sale of illegal tobacco and vapes, including sales to minors over the past year," the authority total 451 vapes, 758 cigarette packets, and 175 tobacco pouches were sniffed councillor John Baker, the executive member responsible for public protection, said: "This action sends a strong message that we will not tolerate the sale of illegal or harmful products in our communities. "Businesses that break the law and put young people at risk have no place in Central Bedfordshire."We're grateful to residents and local partners who helped us gather the evidence needed to take strong enforcement action, and we will continue working together to keep our neighbourhoods safe."The council says anyone who suspects the sale of illegal or counterfeit tobacco products or vapes can report it anonymously to them directly. Follow Beds, Herts and Bucks news on BBC Sounds, Facebook, Instagram and X.
Washington Post
8 hours ago
- Business
- Washington Post
Trump's tax bill has become a battlefield for tobacco giants
Two of the largest tobacco firms in the United States are waging a lobbying battle over a key provision in the GOP's massive tax and spending bill. The version of the legislation that the House passed last month included language to claw back a $12 billion tax break that tobacco producers — most of them in North Carolina — use to make their products cheaper to export. The version of the legislation the Senate is considering would leave the tax break untouched. Now cigarette manufacturers and their allies in Congress are wrestling over the final fate of the provision — with Sen. Thom Tillis (North Carolina), a Republican whom Democrats hope to unseat in midterm elections, stuck in the middle. Industries from finance to health care to clean energy are pouring millions of dollars into Washington to influence the One Big Beautiful Bill Act, the legislative centerpiece of President Donald Trump's second-term agenda. Programs or tax laws worth hundreds of billions of dollars to various companies are at stake. The lobbying effort over the tobacco tax could be one of the most expensive ones this year. The 'duty drawback' tax policy at issue makes it easier for U.S. firms to export their leaf. Some companies buy tobacco from farmers, ship it overseas to be assembled into cigarettes, cigars and other products, then import the finished product. Because final assembly of the product did not take place domestically, the companies receive a rebate on federal taxes and certain import duties. Companies that manufacture tobacco products in the United States, such as Altria, which largely does not sell finished products outside the country, do not receive the same tax rebates. 'This has ended up being quite an arm-wrestling competition between one of our domestic companies and everybody else,' said Ray Starling, general counsel for the North Carolina Chamber of Commerce. Altria, the parent company of Philip Morris USA and the firm pushing to end the tobacco tax treatment, has spent nearly $5 million lobbying Congress on this legislation and other issues through the first two quarters of 2025, according to federal disclosures. The two firms that benefit the most from the tax break — British American Tobacco, which owns RJ Reynolds, and Japan Tobacco International — have each spent $170,000 on lobbying in the same period. During Trump's first term, his administration attempted through executive action to eliminate the drawback program tobacco companies and some other exporters use, but that policy was blocked in court. At Tillis's urging, the Senate Finance Committee eliminated the drawback provision from its version of the tax bill, which would preserve the tax rebate. Now each chamber of Congress is competing over the legislation's final form. Budget hawks in each chamber are wary of the price tag of the legislation — it could add $3.3 trillion to the national debt over 10 years when factoring in its effect on the wider economy, the Congressional Budget Office reported Tuesday. That makes any provision that could reduce the legislation's cost increasingly attractive. New polling from The Washington Post and Ipsos found Americans broadly oppose the measure, and especially dislike proposals to cut anti-poverty and anti-hunger programs to offset the bill's tax cuts. Tillis told The Post that 'we have to' find a new policy to replace the $12 billion in revenue that ending the rebates bring in. But eliminating the subsidy would harm farmers in his state, he said, which is why he wants to keep the rebates in place. The tobacco industry contributes $31 billion annually to North Carolina's economy, according to the John Locke Foundation, a conservative think tank. 'They have a disagreement on this policy, but they're partners. It's classic 'coopetition,'' said Tillis, using a term that describes when two competing companies rely on a shared infrastructure. For tobacco firms, many contract with the same growers for various types of leaf. 'At the end of the day, it's the impact on growers I have the concern with.' An Altria spokesperson said in a statement that the drawback amounts to 'the U.S. government providing a direct cash subsidy to tobacco companies,' and said firms could more aggressively take advantage of the rebate if Congress does not close the 'loophole.' An RJ Reynolds spokesperson said the provision 'poses a serious threat to North Carolina's economy, with potentially devastating consequences for farmers.' That's because tobacco growers rely on the plant to help financially support a host of other crops, said Kimberly Foley, executive director of Tobacco Associates, a grower-run trade group. Tobacco is aggressive to grow and can be disease-prone if not rotated with other crops, so growers frequently group tobacco with sweet potatoes, corn, fruits and vegetables, said Starling, who grew up on a tobacco farm. Without the tax rebate, which helps tobacco companies afford to buy the crop at higher prices, that multi-crop farming framework can make it so farms struggle to turn a profit. 'Tobacco is what's carrying everything else,' Foley said. 'Losing volume for tobacco either takes away their primary income opportunity on the farm and their most reliable income opportunity on the farm … or we lose the functionality and the logistical capabilities of the farm.' The issue could resonate in North Carolina's closely watched 2026 Senate race, which could help determine control of the upper chamber after the midterm elections. Democrats are recruiting former governor Roy Cooper to jump in the race to try to unseat Tillis. Democratic Rep. Wiley Nickel has already declared his candidacy. PACs and individuals associated with Altria and British American Tobacco are significant Tillis donors, according to OpenSecrets, which tracks corporate spending and political influence. Altria's political finance arm and people associated with the company gave more than $77,000 to Tillis and his PACs between 2019 and 2024; BAT contributed more than $44,000. But beyond the manufacturers, tobacco growers — and the regional cachet the plant holds — are a potent force and sympathetic symbol in Tar Heel State politics. 'Tobacco is still very culturally relevant in North Carolina,' said Starling, who was a senior adviser to Tillis in the state House of Representatives and later his Senate chief of staff. 'There's a big contingency of tobacco alumni, people who grew up around it, and it helped them buy their first pair of tennis shoes. I think there's a lot of respect for the industry and the hard work and work ethic that people engaged in the industry have shown.'
Daily Mail
12 hours ago
- Business
- Daily Mail
Travers 'The Candyman' Beynon 'sued' by his Free Choice tobacco founder stepfather in $55 million legal battle - as notorious playboy drops off the radar
Notorious Gold Coast playboy Travers 'Candyman' Beynon is being sued by his stepfather Trevor in an explosive multimillion-dollar legal stoush. Trevor Beynon, 79, is the founder of the Free Choice tobacco store empire, and was married to Travers' mother, Sandra, when the couple founded the cigarette chain. Now, according to court documents, Trevor is alleging that Travers, 53, used 'sham' documents in an effort to gain more control over the group's assets - which is at odds with what Trevor intended in his will. The Gold Coast Bulletin recently reported that Trevor ceased his role as director of two 'key' Free Choice companies in March. Court documents indicate he is now alleging that he was removed from the position against his will. From A-list scandals and red carpet mishaps to exclusive pictures and viral moments, subscribe to the DailyMail's new showbiz newsletter to stay in the loop. The publication reported that documents lodged before the Supreme Court of Brisbane allege that Trevor met with Travers in 2007 to discuss the future of Free Choice Tobacco. As alleged in those documents, they agreed that Travers would take control of the business on the condition that siblings received a percentage of profits from some of the businesses. It was also claimed that two years after Sandra Beynon died in 2015, Travers enlisted lawyer Matthew Burgess to draw up documents preventing siblings from challenging Travers to a larger cut of the estate. They allege in the documents that they, along with accountant Richard Hoult, created estate planning documents which stated Trevor would gift $55 million to one of Travers' companies - Free Choice Master Holdings - and then loan it back. A separate deed also purported to secure the loan against Trevor's assets, according to the court documents. According to court filings, it allegedly came to a head in January this year, after Trevor and Travers had a disagreement over the management of Free Choice, which resulted in Travers enforcing the interest repayments on the alleged $55 million loan. Trevor claimed in the court documents that he had never paid or received the $55 million, alleging the figure was 'made up'. Trevor also argues the documents had shifted control of his assets to Travers and would prevent his estate from servicing debts after he died. He alleges that he had never signed documents to allow his shares in free Choice companies to be transferred from his ownership, and that he was removed from company directorships without due process. Trevor is asking the court to declare the $55 million a gift and the loan declared fake as well as seeking reinstatement as director of Free Choice companies and that his shares be placed back in his hands. Daily Mail Australia has reached out to Travers' lawyer for comment. Questions started to swirl this week following Travers' apparent internet exit. The flamboyant businessman was certainly not shy about sharing glimpses of his lavish lifestyle to social media. His Instagram account, which enticed a million followers to fawn over posts of luxe parties and high-end living, has been apparently deleted. It's the same story for Travers' Candyshop Mansion website which as been offline since May this year. His Facebook and TikTok pages are still active, however they have not seen some action in quite some time. Travers' last post on Facebook was back in April 2023, while his last TikTok post occurred in August 2019. It's apparently a similar story for the Beynon family tobacco empire with the main Free Choice Tobacco site also currently offline. While its string of franchise stores are still operating, the Gold Coast Bulletin reported that Free Choice vacated its Gold Coast head office in February, with the space, owned by one of Beynon's companies, now leased to a new business. It comes amid what appears to be a period of upheaval for Travers with the playboy recently having another crack at offloading his Candyland mansion. Travers first listed the property back in 2023 and, at one stage, it had an eye-watering $25 million price tag attached The Gold Coast Bulletin reported in May that Travers had enlisted another agent to give the property the push it needs to get it over the line. He had engaged the services agents Ivy Wu and Isaac Kim from Ivy Realty to run an expression of interest campaign for the lavish property. Travers originally purchased the property, located in the northern Gold Coast suburb of Helensvale, in 2010. He later purchased neighbouring land, effectively tripling the footprint of the compound. The property sits on a substantial 1.4 acres with 175 metres of private water frontage. The house itself is set across an expansive 2,230 square-metre floorplan and boasts mosaic murals and hand-painted frescos throughout. The opulent home, which has hosted many wild parties over the years, sits behind large two-ton crested gates and features a gorgeous sandstone driveway and marble-clad majestic courtyard. Its highly desirable location is close to a variety of amenities including world renowned Surfers Paradise shopping centres, restaurants and beach. The listing came after Travers welcomed his fifth child, Santiago, back in June last year. He took to his Instagram Stories to confirm that he and wife of 14 years Taesha had welcomed a baby boy as he shared sweet snaps of the little one. Welcome to the world son,' Travers wrote alongside a video of him holding his newborn son's hand. Travers also shares two daughters Velicia, 12, and Serafina, 11, with his wife Taesha and has two other children - Valentino, 24, and Luciana, 22 - from his previous marriage to Ninibeth Leal.
The Sun
a day ago
- Business
- The Sun
Cigarette taxes blow £1.4BILLION black hole in Treasury coffers – as smokers turn to black market
PUNITIVE tobacco taxes have blown a £1.4 billion black hole in Treasury coffers, as smokers turn to black market cigs. A whopping £3.1bn in excise tax from a range of goods was lost last year to smugglers, counterfeiters, and illegal sellers as Brits ditch official shops for cheap, dodgy goods. That's enough cash to pay the wages of over 60,000 nurses or hand out Winter Fuel Payments to every pensioner in the UK. The biggest tax gap came from fags, followed by beer, which had hole of £700m. Stephen Rooney from Imperial Brands said: "These concerning figures expose the size and scale of Britain's growing, illegal tobacco black market, which is now depriving the Treasury of billions in lost tax every year. " Smoking rates are not falling, and ever increasing duties are instead pushing customers to the lawless black market, which doesn't pay a penny in tax.' One in four fags in the UK now comes from the black market, where a pack can cost as little as £5, over three times cheaper than a legal pack of Marlboro Gold in British supermarkets. In just three years, duty-paid cigarette sales have plunged nearly 45 per cent, from 23.6 billion in 2021 to just 13.2 billion now. Rolling tobacco sales have also been slashed almost in half. Yet smoking rates aren't falling and have instead crept up in some parts of England for the first time in nearly 20 years, according to University College London research. Reform Deputy Leader Richard Tice said: 'Hard working Brits, feeling the squeeze in their pockets, are turning to under the counter options, and who can blame them? 'The government's tax policy is pricing them out of legitimate goods. 'Labour chooses not to partner with above board businesses, but with organised criminal gangs instead.'
