Reynolds Tries to Bully Small Retailers

American tobacco giant R. J. Reynolds has issued threats of lawsuits to small e-cigarette retailers if they do not stop selling flavored e-cigarettes, according to a report by StatNews on May 3rd. The threats were found in letters sent by Reynolds to the retailers in March.

"Long Arm Regulation"

The report suggests that this is the latest example of Reynolds's aggressive crackdown on illegal e-cigarette products. In one of the letters to a retailer, Reynolds Tobacco pointed out that the store was selling ELFBAR disposable e-cigarettes, which the FDA has not yet taken any enforcement action against.

In February, the company filed an application with the U.S. Food and Drug Administration (FDA) to ban flavored disposable e-cigarettes and supported similar legislation in Congress.

The letters also indicate Reynolds Tobacco's growing frustration with the FDA's enforcement approach, particularly regarding flavored e-cigarettes. Although these products are currently illegal, the FDA has only issued warning letters to some manufacturers.

Despicable Tactics Condemned

Industry researchers criticized Reynolds's actions. Eric Lindblom of Georgetown University's O'Neill Institute questioned the company's approach, stating that the FDA could resolve the issue. Independent consultant and tobacco harm reduction advocate Clive Bates also criticized Reynolds Tobacco, arguing that it should pressure federal agencies to do their jobs better, rather than targeting small retailers.

A spokesperson for Reynolds claimed that removing illegal products from store shelves demonstrates the company's commitment to consumers.

In the letters, Reynolds threatened that selling illegal products could lead to consequences, "including the termination of cooperation with Reynolds."

No Actions Yet

According to StatNews, it appears that Reynolds Tobacco has not yet sued any e-cigarette retailers. However, if the company does pursue litigation, it would likely be based on state unfair competition laws.

In the letters, Reynolds Tobacco's lawyers argue that the sale of flavored tobacco products violates relevant laws and "has harmed and will continue to harm" Reynolds's e-cigarette business. Reynolds may also contend that being forced to compete with illegal products undermines its legitimate business. However, this argument seems to contradict statements made by the CEO of its parent company, British American Tobacco, who told investors that the growth of disposable products in the U.S. has not negatively impacted the company's business. In a February 2023 earnings call, he stated that Vuse is the fastest-growing nicotine product in the U.S.