nder Option 1, all cigars—regardless of price, weight, flavor or size—will be subject to regulations similar to that of cigarettes. Some of these regulations will take effect 30 days after the introduction of the legislation into the Federal Register, others will take up to two years before they are fully implemented.
The impacts however, will be both immediate and everlasting.
FDA disclosure & approval would be required.
The FDA is very slow to act.
Compliance will cost money.
New cigars will be put on hold.
Cigars will be more expensive.
Health warnings would be required on boxes.
Free samples would become illegal.
In addition, the FDA will also establish two other restrictions.
First, the new law will mandate that all tobacco products--including cigars, e-cigarettes and pipe tobacco--will require the purchaser to be at least 18-years of age. The agency argues that currently, no federal law establishes the minimum age to buy tobacco products and discrepancy in state laws is not only inconsistent, but in some cases has unintentionally allowed minors access to tobacco.
Secondly, the new law will prohibit the sale of tobacco products in electronic vending machines unless they are placed in adults only establishments where identification is checked upon entry.
Specifically, there are a lot of companies, many of them smaller as far as sales go and many with much larger portfolios of products. Unlike other industries, the product used is a natural leaf that is not homogenized like many other tobacco products. There are many questions as to how detailed, constant and consistent regulation might be.
Regardless, the clear path for a healthy premium cigar industry is one where the FDA enacts option two, which you can read about below.