Market & legal data in the tobacco alternatives sector in California

28th November 2024: US - California: The California Department of Tax and Fee Administration has released comprehensive tax guidance on tobacco products, outlining new laws that become effective on 1st January 2025. The guidance includes details on the seizure of flavoured tobacco products, the establishment of an unflavoured tobacco list, and the penalties for violations.
5th September 2024: US - San Francisco: San Francisco city attorney David Chiu is bringing a lawsuit against four online tobacco retailers for selling flavoured nicotine pouches to consumers in San Francisco, alleging that violates city law. Chiu said: “These products are not welcome here, and we are taking decisive action against these online retailers.” Fahad Qurashi, chief programme officer of the Youth Leadership Institute, said: “Youth leaders across San Francisco are prepared to support any action against the aggressive and pervasive marketing of a new generation of tobacco products to youth.”
1st July 2024: US - California: A new tax rate on tobacco products comes into force today. The tax will change from 56.32% of the wholesale cost to 52.92%, and runs until 30th June 2025.
29th May 2024: US - California: The California Department of Tax and Fee Administration (CDTFA) has published a notice with a new tax rate for tobacco products, which will apply from 1st July 2024 to 30th June 2025. Currently, the tax on tobacco products is 56.32% of the wholesale cost and will be changed to 52.92%. “Tobacco products” are defined to include any nicotine-containing products, including synthetic nicotine.
2nd May 2024: US - California: Attorney general Rob Bonta has announced that the California Department of Justice is now accepting proposals for the 2024-2025 Tobacco Grant Program, which aims to reduce the illegal sale of tobacco products by providing approximately $28.5m in grant funding to eligible local agencies. The programme aims to reduce childhood addiction to tobacco products by supporting local partners who enforce the statewide retail flavour ban and similar local ordinances, and prosecute and penalise retailers who sell or market tobacco products to anyone under the age of 21.
19th February 2024: US - California: Assembly Bill 3218 has been introduced, which would require the attorney general to establish and maintain a list of tobacco product brand styles that lack a characterising flavour on their website. The list would be known as the Unflavored Tobacco List (UTL). This bill would prohibit a distributor from selling any tobacco product that is not listed on the UTL. Currently, only cigarettes are listed in the tobacco directory.
9th January 2024: US - Federal: Yesterday (8th January), the US Supreme Court declined to hear tobacco company RJ Reynolds' challenge to a California law banning the sale of flavoured tobacco products, thus leaving the ban in place, Reuters reports. This comes after many unsuccessful attempts to prevent this law coming into effect.
14th September 2023: US - California: Bill AB 935 has passed the Senate after amendments, which have been concurred in by the House, and has now been sent for the governor to sign. The bill would provide for the enforcement of violations of the flavoured tobacco prohibition in a manner similar to the Stop Tobacco Access to Kids Enforcement (STAKE) Act. Instead of an infraction, the provisions of the flavoured tobacco ban would be punishable by civil penalties.
16th March 2023: US - California: A US federal judge has granted a motion to dismiss a lawsuit brought by RJ Reynolds and other tobacco companies against California’s statewide ban on the sale of flavoured tobacco and vaping products. Judge Cathy Ann Bencivengo said: “SB 793 does not control the retail sales of these products in other states, nor does it control the ability of manufacturers in or outside of California to continue manufacturing flavoured tobacco products. In fact, manufacturers are still permitted to manufacture flavoured tobacco products in California.” Reynolds and others brought the suit after California’s voters approved the ban in a November referendum. They claimed the law violated both the federal Tobacco Control Act (TCA) and the commerce clause in the US Constitution.
28th February 2023: US - California: The US Supreme Court has declined to hear a petition from RJ Reynolds Vapor and two other companies seeking to overturn Los Angeles County’s ban on flavoured tobacco products. Reynolds sued over the ban shortly after it took effect in 2020, arguing that only the federal government has the legal authority to regulate tobacco products.
24th February 2023: US - California: Assembly Bill 935 has been introduced, which would prohibit tobacco product sales to anyone born after 1st January 2007. The bill includes penalties for violations, including escalating civil fines and the suspension or revocation of the seller's licence. The bill may have a committee hearing on 17th March.
20th December 2022: US - General: The Clinton Foundation announced a funding plan for Tobacco Free Portfolios (TFP), with a total value of $5.5m over approximately five years. The foundation has partnered with the state of California, Truth Initiative, BNP Paribas, and Ing Bank Slaski, among others. The primary goals of the funding plan to be reached by December 2023 are to increase the committed assets by at least $3tn and engage with at least 20% of the leading US financial institutions. TFP is a nonprofit organisation with a mission to promote tobacco-free finance across financial institutions.

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