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HomeMy WebLinkAbout2019/09/24 Public Comments - Rapp CNN Business 9.22.19 Nathaniel Meyersohn, Walmart will stop selling e-cigarettes as backlash spreads New York(CNN Business) Walmart said Friday it will stop selling e-cigarettes as the number of deaths tied to vaping grows and public officials crack down on the industry. The decision by America's largest retailer may influence other stores and marks another setback for the vaping industry. Walmart said it's exiting the business because of regulatory flux. CBS, Viacom and CNN parent company WarnerMedia also announced this week they would prohibit e-cigarette advertisements on their networks. "Given the growing federal, state and local regulatory complexity and uncertainty regarding e-cigarettes, we plan to discontinue the sale of electronic nicotine delivery products at all Walmart and Sam's Club US locations,"the company said in a statement. "We will complete our exit after selling through current inventory." For Walmart,the move is another illustration of the company's willingness to wade into controversial issues. Earlier this month, Walmart announced it would stop selling handgun ammunition and ammunition commonly used in military-style assault weapons, as well as discourage customers from openly carrying guns at stores. Halting the sale of e-cigarettes is also Walmart's latest major decision in restricting the availability of tobacco. Earlier this year, Walmart raised the minimum alZe to buy tobacco to 21. The changes took effect July 1 at all US Walmart and Sam's Club locations. The company said at the time that it would stop selling sweet-flavored e-cigarettes, which have become popular among teenagers. The vaping industry has experienced rapid growth. Euromonitor International, a research firm, estimated it will be worth $34 billion globally by 2021, up 176% from 2016. Last year, Altria, America's preeminent cigarette company, took a 35% stake in e-cigarette maker Juul, worth $12.8 billion. Vaping industry in turmoil. Walmart's decision to step away fully from e-cigarettes comes as more states restrict the products. New York state health officials voted Tuesday to carry out Gov.Andrew Cuomo's executive action to ban sales of most flavored e-cigarettes. This ban would stand for 90 days as a piece of emergency legislation.It would need to be renewed to continue. Last week,Michigan became the first state to ban the sale of flavored e-cigarettes. President Donald Trump said last week that the FDA would be putting out "some very strong recommendations" regarding the use of flavored e-cigarettes. The eighth person in the United States died Thursday from lung disease related to vaping,according to Missouri health officials. There have been 530 confirmed and probable cases of lung injuries related to e-cigarettes as of September 17,the Centers for Disease Control and Prevention said Thursday. The US Centers for Disease Control and Prevention, the Food and Drug Administration and state health departments have been investigating this outbreak. Still, health officials said they haven't Bund a detinitive cause or a clear connection between cases,and they warned that patients worried about becoming ill from vaping should refrain from using e- cigarettes. One of the nation's biggest pharmacy chains,Rite Aid, halted sales of e-cigarettes earlier this year,but it too continues to sell traditional tobacco cigarettes. CVS made headlines five years ago when it stopped all sales of all tobacco products,including regular and electronic cigarettes. Anti-tobacco groups urged Walmart to follow CVS's lead. "Walmart has taken a responsible step given the worsening youth e-cigarette epidemic and the growing number of severe lung disease cases associated with e- cigarette use," Matthew Myers,president of the Campaign for Tobacco-Free Kids,said in a statement. "We urge them to make this policy permanent and to go further by ending sales of all tobacco products,including cigarettes," Myers said. Written Communications Item #/IName The Verge 9.19.19 Nick Statt CBS, Viacom, and WarnerMedia ban e-cigarette advertisements amid vaping health crisis Following a similar CNN ban last week. Viacom,and WarnerMedia have all decided to ban advertisements for Juul and other e-cigarette makers amid global health concerns over a mysterious vaping-related lung disease that has claimed the lives of seven people and hospitalized hundreds of others.The decision, reported first this afternoon by CNBC,follows a similar ban from WarnerMedia-owned CNN announced last week. CBS tells CNBC it will consider allowing vaping ads once research can show definitively that the products are not harmful. WarnerMedia, which has run ,luul ads in recent weeks on cable channels it owns like TBS and TNT, will no longer accept such ads, which have spiked, in particular from Juul, since news of the vaping-related lung disease cases came under heightened scrutiny last month. Researchers believe the disease may be caused by an oil derived from Vitamin E found in some vaping products, some of which are bootleg vapes or contain other contaminants not regularly found in mainstream nicotine or THC products. "WarnerMedia reserves the right to withdraw advertising from its platforms at its discretion,"a WarnerMedia spokesperson told CNBC. "Given warnings from the CDC, the AMA and the American Lung Association to consumers, our company has revised its policies regarding e-cigarette advertising, and will no longer accept ads ertising for thi; category. We will continue to monitor the investigations by relevant medical agencies and may re-evaluate our position as new facts come to light." "After reviewing the recent reports regarding the potentially serious health threats posed by e-cigarettes,Viacom has revised its policies regarding e-cigarette advertising,and will no longer air ads in this category effective immediately," a Viacom spokesperson said in a statement given to The Verge. Viacom recently announced plans to merge with CBS Corporation, after spending the last 14 years as separate entities following a 2005 split that put the broadcast networks and other media and publishing assets under C IIS and entertainment channvk and I'ar<unuunt I' ,tu,. under Viacom. Pressure has been mounting worldwide against the vaping industry,which includes nicotine and marijuana-based devices, since the first vaping;related death occurred in late August and the US Centers for Disease Control (CDC)reported hundreds of related cases of lung disease caused by va in . Since then, the CDC has advised against using vaping,devices, President Donald Trump has called the Food and Drug Administration to ban all flavored e- ciaarettes, and swells of anti-Juul social_media sentiment have begun sweeping young nicotine users. Earlier today,the entire counter of India banned any and all forms of e-cigarettes, in a move that will lock Juul and other vape makers out of one of the largest markets on the planet.In the US,Michigan became the first US state to ban flavored e-cigarettes earlier this month, and New York announced its ban on the flavored variant of the devices earlier this week, leaving just tobacco-flavored and menthol variants available. Update,September 18th, 10:34PMET:Added statement from Viacom indicating it too is banning ads for e-cigarette companies. The headline has been updated to reflect this f,ct. 0