The Senate voted 79-17 Thursday to give the Food and Drug Administration regulatory authority over tobacco, giving Uncle Sam oversight of a product that kills 440,000 Americans each year.
And joining the chorus of hurrahs from more than 1,000 public health groups: the Marlboro Man.
"We believe that consumers could be the primary beneficiaries of such regulation," says Bill Phelps, a spokesman for
Their reasons for cheering aren't all so high minded. The bill, already passed by the House of Representatives, will change the face of the tobacco industry by giving the FDA the authority to restrict tobacco product ingredients, impose nicotine caps and limit advertising campaigns. It solidifies the position of the producer with the greatest market share--Altria--which makes 50% of all cigarettes in the U.S.
Because the domestic cigarette market is shrinking every year, manufacturers are competing fiercely for customers. Companies like R.J. Reynolds and Lorillard Tobacco argue that under FDA regulation, they'll have trouble convincing people to switch to their brands because of stringent advertising restrictions. That means no more sponsorship of sports and entertainment events, color or photo ads in publications with significant teen readership, or free gifts with tobacco products.
"Bringing new products to market will be extremely difficult," says Maura Payne, a spokeswoman for Reynolds America, which owns R.J. Reynolds, maker of Camel, Winston, Doral and other cigarette brands.
Lorillard in particular has much at stake because its advertising strategies have helped boost sales of its popular Newport cigarettes and menthol brands. Lorillard officials were not immediately available for comment after Thursday's vote.
The bill will ding Altria in at least one regard: Tobacco regulation will be funded by fees levied on tobacco companies in proportion to market share. An Altria spokesman declined to comment on how much the new regulations will cost the company.
Congress' passage of the bill settles a decades-old dispute over how to regulate tobacco products, and it exposes makers of all tobacco products to higher standards. Tobacco foes and public health groups like the American Cancer Society and American Heart Association hailed the legislation.
It "attacks tobacco marketing, strengthens health warnings, eliminates misleading terms like 'low tar,' and prohibits unsubstantiated claims that some products are safer than others," argues Matthew L. Myers, president of the Campaign for Tobacco-Free Kids. Tobacco products will be prohibited from carrying an FDA logo to prevent them from appearing "safe," and will require large, graphic warnings covering 50% of the front packaging.
But the new oversight authority also raises a question about the FDA's ability to handle more oversight. Critics like Wyoming Sen. Mike Enzi, the top Republican on the Senate's health committee, argue that that the FDA is already overburdened with regulation of food, cosmetics, drugs and medical devices.
Not so, retorts Sen. Edward Kennedy, D-Mass., who sponsored the bill. "Not a single dollar will be diverted from FDA's existing responsibilities," he says. The Obama administration's budget proposal for fiscal year 2010 expands funding for the FDA by 19% to $3.2 billion--the largest increase in the agency's history.