Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC seeks comments on e-cigarette marketing, sales study, (Oct 19, 2015)
By Greg Hammond, J.D.
The FTC is seeking public comments on proposed information requests that will be sent to e-cigarette marketers, which will then be used to publish reports on e-cigarette sales and marketing expenditures by major manufacturers.
According to the Commission’s notice, which will be published shortly, the FTC has previously issued similar marketing and sales expenditure reports on major cigarette and smokeless tobacco manufacturers. However, given the increasing use of e-cigarettes over recent years, the Commission finds it necessary to begin collecting information from e-cigarette marketers concerning their sales and marketing activities. In particular, the FTC intends to issue information requests to approximately five large and ten small industry members, consisting of the ultimate U.S. parents of e-cigarette marketers.
The information requests will likely seek information concerning: (1) sales and “give-aways” of e-cigarettes and related products; (2) marketing expenditures; (3) product placements in TV, movies, magazines, and other publications; (4) efforts such as age-screening mechanisms to prevent youth from being exposed to e-cigarette advertising, promotions, and free samples; (5) expenditures on advertising to deter minors from purchasing or using e-cigarettes; and (6) data collection activities.
In general, the Commission seeks comments on whether participation in the study is necessary; the accuracy of the FTC’s burden estimates; methods to enhance quality, utility, and clarity of information to be collected; and ways to minimize the burden of the collection of information. The Commission also invites comments on:
whether the Commission should seek data differentiated according to: types of products sold or given away; various flavors and nicotine strengths; various sizes and liquid capacities; and whether companies sell directly to consumers or to wholesalers;
whether the Commission should collect data on product sales separately from data on product give-aways;
if an e-cigarette is sold with multiple cartridges, should all of the cartridges be considered part of the initial sale;
whether the FTC should seek information concerning sales and give-aways;
what other information the FTC should seek from companies concerning sales and give-aways;
whether companies are actually capable of producing the kinds of data sought; and
whether the FTC should collect data for each e-cigarette flavor sold by companies, or whether the Commission should identify flavor categories.
Comments may be submitted online or by mail. Written comments should be labeled “Electronic Cigarettes: Paperwork Comment, FTC File No. P114504” and should be mailed to: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue, NW, Suite CC-5610 (Annex J), Washington, DC 20580.
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