Tobacco companies may litigate

| May 6, 2016

Cigarette manufacturers will likely litigate against the FDA’s final deeming rule, given the breadth of the regulation and the burden small manufacturers would face in complying, according to Well Fargo Securities.

The litigation could prolong the “uncertainty plaguing the entire industry,” the financial services firm said.

Wells Fargo says the deeming rule will raise the barriers to market entry, further entrenching Big Tobacco.

Its main concern is that the final rule could stifle innovation and slow industry growth by “dis-incentivizing” consumers to convert from combustible cigarettes to vapor products, thereby ultimately having a net negative impact on public health.

Category: Breaking News

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