Forty
states have asked the U.S. Treasury Department to bar tobacco
companies from marketing products they say are identical
to cigarettes as "little cigars," a designation
the states say lets the firms evade taxes and target younger
consumers.
Attorneys
general from the 40 states, including Maryland, want the
department's Alcohol and Tobacco Tax and Trade Bureau to
reverse decades-old rules that permit products the size,
shape and weight of cigarettes, but have brown rather than
white wrappers, to be labeled as little cigars.
"If
it looks like a cigarette, smokes like a cigarette and is
being marketed like a cigarette, then the federal government
should classify it as a cigarette," said Bill Roach,
spokesman
for Iowa Attorney General Tom Miller, co-chairman of the
National Association of Attorneys General tobacco committee.
The attorneys general also said the "little cigars"
appeal to young smokers because they cost less than cigarettes
and come with flavorings such as chocolate and raspberry.
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This
is just a cigarette in a brown wrapper. (National Association
Of Attorneys General) |
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Smoking
is Up
with
little-cigar consumption:
- 2003
2.3 billion
- 2004
2.7 billion
- 2005
3.8 billion
SOURCE:
National Association of Attorneys General
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The "little cigar" label
allows the companies to pay lower federal and state taxes, and
to avoid payments and advertising restrictions required
for cigarettes under the 1998 master agreement between tobacco
companies and all 50 states, according to the petition for rule
changes.
The request was
filed last month with the backing of 23 states, but the National
Association of Attorneys General didn't announce it until yesterday,
by which 17 more states had signed on.
Since 1998, the number of little
cigars sold in the United States has doubled, to about 4 billion
a year, according to the Cigar Association of America, the industry
trade and lobby group.
"We think that
is no accident," Roach said. "We think these are being
marketed in a way to get around the tax and marketing restrictions
on cigarettes."
A spokesman for the
Tax and Trade Bureau said the agency can write rules so there is
a "bright line" drawn between cigarettes and little cigars
but that the release of the rules is months away at best.
Several tobacco companies
and the cigar trade association also have asked the bureau to clarify
the definition of the two products, industry and government officials
said yesterday. Makers of "little cigars" want to make
sure they are not subject to legal attacks that they are really
marketing cigarettes.
Both sides agree
that there is a legitimate category of cigars known as little cigars
and that a clearer line has to be made between those products and
cigarettes. They differ, however, on how to do that.
Norman F. Sharp,
president of the Cigar Association of America, said the attorneys
general are confused on many facts. "Little cigars are not
cigarettes and, over the long term, they have never been substitutable
for cigarettes," he told New Jersey legislators at a hearing
this month. "They represent the cigar industry's attempt to
give satisfaction to cigar smokers, not an attempt to attract cigarette
smokers."
Representatives of
four nonprofit groups -- the American Heart Association, Americans
for Nonsmokers Rights, the American Lung Association and the Campaign
for Tobacco-Free Kids -- disagreed. "Many of these 'little
cigars' are blatantly aimed at our children," they said in
a joint statement in support of the 40 states' filing. "They
are cheaper and more affordable to kids than regular cigarettes
because they have lower excise tax rates, and they are often sold
individually rather than in packs because their classification exempts
them from state laws setting minimum pack sizes for cigarettes."
Cigars are harmful,
said Matthew Myers of the Campaign for Tobacco-Free Kids, but they
generally are smoked less frequently than cigarettes and their smoke
often is not inhaled. The products being marketed as "little
cigars" are often smoked frequently and the smoke is inhaled
like that from cigarettes, he said.
The little-cigar
industry's retail value is about $360 million a year, Sharp said.
In contrast, 380 billion cigarettes are sold each year, with retail
value of more than $80 billion.
Miller, the Iowa
attorney general, said that while the sales of little cigars are
low compared with those of cigarettes, their growth rate in recent
years, if it continues, could undo the reduction in overall smoking
that the 1998 agreement achieved.
By Kathleen
Day, Washington Post
Staff Writer
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