Antitrust Law Daily Wrap Up, ADVERTISING NEWS: U.S. Senators praise FTC plans to scrutinize e-cigarette marketing practices, (Oct 23, 2015)

By Greg Hammond, J.D.

U.S. Senators Richard Blumenthal (D-Conn), Barbara Boxer (D-Cal), Dick Durbin (D-Ill), Sherrod Brown (D-Ohio), and Edward J. Markey (D-Mass) commended the FTC for its efforts to collect data to publish a report on the sales and marketing of electronic cigarettes, or “e-cigarettes.”

“E-cigarette makers are adopting the deplorable marketing tactics once used by Big Tobacco to entice children and teenagers into using their addictive product,” stated Sen. Durbin. “With fruit and candy flavors and glossy celebrity ads, e-cigarette makers are undeniably targeting young people. Collecting evidence of these marketing practices is a critical step towards stopping manufacturers of these candy-flavored poisons from making deceptive claims and targeting our children.”

The five senators originally sent a letter to the Commission in December 2013, requesting that the FTC provide an annual marketing disclosure report and investigate the marketing practices of e-cigarette manufacturers. “[M]any e-cigarette companies are claiming therapeutic and health benefits from their products,” the letter stated. “These claims may be false, misleading, and deceptive—as they state or seem to imply that these products have been found safe and effective in helping smokers quit. Using the Federal Trade Commission Act, 15 U.S.C. §46(a), the FTC should investigate companies that are conducting such advertising.”

In its notice seeking public comments, the FTC divulged that it intends to issue information requests to approximately five large and ten small industry members, consisting of the ultimate U.S. parents of e-cigarette manufacturers. 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.

“While a welcome move, this step is long overdue,” stated Sen. Blumenthal. “I’m heartened to see the Commission turn its attention to this threat to our young people, but the lack of definitive deadlines is troubling. Swift and effective action is necessary to prevent another generation already in danger of nicotine addiction. I will continue to push aggressively to ensure the Commission completes this work expeditiously—the more quickly they act the more potential we have to save young lives.”

News: Advertising FederalTradeCommissionNews