FTC to Study E-Cigarette Manufacturers’ Sales, Advertising, and Promotional Methods

The Federal Trade Commission has issued orders to six e-cigarette manufacturers seeking information to study the companies’ sales, advertising, and promotional methods. The orders were sent to: JUUL Labs, Inc.; R.J. Reynolds Vapor Company; Fontem US, Inc.; Logic Technology Development LLC; Nu Mark LLC; and NJOY, LLC.

The FTC study will complement similar FTC studies on cigarettes and smokeless tobacco products. The orders will collect information about e-cigarette sales, advertising, and promotional practices in the U.S. for the calendar years 2015, 2016, 2017, and 2018. The goal is to assist the Commission, policy makers, and the public to better understand the rapidly growing e-cigarette market.

Among other things, the Commission orders seek: annual data on the sales and give-aways of e-cigarette products; information about the characteristics of the companies’ e-cigarette products, such as product flavors; annual amounts the companies spent on advertising and promoting e-cigarette products; and information about e-cigarette product placement, the websites and social media accounts used to advertise or sell e-cigarettes, affiliate programs, influencer marketing, and college campus programs.

The Commission is authorized to issue the Orders to File a Special Report by Section 6(b) of the FTC Act. The Commission vote to issue the orders announced today was 5-0.