E-Cigarettes Target Youth With Festivals, Lawmakers Say

Photographer: Timothy Fadek/Bloomberg

Six of nine e-cigarette companies surveyed had sponsored or provided free samples at 348 events in the last two years, including the Bonnaroo and Coachella music festivals and Grand Prix races. Close

Six of nine e-cigarette companies surveyed had sponsored or provided free samples at... Read More

Close
Open
Photographer: Timothy Fadek/Bloomberg

Six of nine e-cigarette companies surveyed had sponsored or provided free samples at 348 events in the last two years, including the Bonnaroo and Coachella music festivals and Grand Prix races.

E-cigarette makers aim to hook youth on their products using music festivals, free samples and candy-flavored versions, U.S. Democratic lawmakers said.

The findings, in a survey released today by members of Congress, should prod U.S. regulators to curb the industry, the lawmakers said. While e-cigarettes currently are unregulated, the Food and Drug Administration is working on a plan that would extend its tobacco oversight to the products.

Six of nine companies surveyed had sponsored or provided free samples at 348 events in the last two years, including the Bonnaroo and Coachella music festivals and Grand Prix races. Six companies including Green Smoke, acquired April 1 by Altria Group Inc. (MO) and Lorillard Inc. (LO), also offer flavors such as cherry crush and vanilla dreams.

“These are the same tactics that were used by major cigarette manufacturers before they were banned,” said U.S. Representative Henry Waxman, a Democrat from California, on a conference call. “Our findings demonstrate the FDA regulation of e-cigarettes is necessary to prevent manufacturers from targeting youth with aggressive marketing practices.”

E-cigarettes are battery-powered tubes that simulate the effect of smoking by producing nicotine vapor. E-cigarette smokers are sometimes referred to as vapers. The FDA found there isn’t enough information on the products to determine if they’re less harmful than traditional cigarettes, according to a study published today in the journal Tobacco Control.

In October, the agency submitted a proposal to oversee the industry to the White House’s Office of Management and Budget that authorizes all regulations. The proposal is still under review at OMB, according to the office’s website.

‘Prod to Act’

“This report we’re issuing today should be a prod for them to act,” Waxman said.

The use of e-cigarettes by middle school and high school students in the U.S. doubled to 10 percent in 2012 from 2011, the Centers for Disease Control and Prevention found in September. The agency has also said e-cigarette-related calls to poison centers rose to 215 a month in February, compared with one a month in September 2010.

Waxman and U.S. Senator Richard Durbin, a Democrat from Illinois, led the investigation. Durbin called e-cigarettes a gateway to smoking rather than a cessation tool as some studies have asserted.

Regulation Urged

The congressional report calls on the FDA to assert its authority over e-cigarettes and companies to immediately prevent the sale of the products to anyone younger than 18 and refrain from television and radio advertising. The FDA should ban flavored e-cigarettes that appeal to youth and companies should stop selling them as well, the report said.

Altria has expressed support for FDA regulation, David Sutton, a spokesman for the Richmond, Virginia-based company, said by telephone.

“Obviously, we think that the agency should include an appropriate set of marketing regulations,” Sutton said. “Those regulations should allow the companies to communicate to adult vapers.”

Sutton declined to specify the type of marketing regulation the FDA should impose.

NJOY “has long supported sensible regulations,” Whit Clay, a spokesman for the company at Sloane & Co., said in an e-mail.

Reynolds American Inc. (RAI) backs “strengthening and updating state youth tobacco control laws to prohibit youth purchase” of tobacco products, Jane Seccombe, a spokeswoman for the Winston Salem, North Carolina-based company said.

$7.5 Billion in Sales

Bloomberg Industries estimates global e-cigarette sales may reach $7.5 billion in 2015, compared with $3.5 billion last year. The sales projection almost cuts in half an October estimate of $14 billion in 2015 sales based in part on expected advertising restrictions.

Six e-cigarette companies spent $59 million in 2013 to market their products, double the amount spent the year before. Seven of the manufacturers including NJOY and Reynolds have used radio or television advertisements, some featuring celebrities such as Jenny McCarthy. Seven companies also used social media sites such as Facebook and Twitter to market their products.

Twenty-eight states have prohibited the sale of e-cigarettes to minors while most companies had some type of restriction on youth sales.

“Given the varied scope and company oversight of these policies, their effectiveness at restricting sales to minors is unclear,” according to the congressional report.

To contact the reporter on this story: Anna Edney in Washington at aedney@bloomberg.net

To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net Angela Zimm, Andrew Pollack

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.