Proposed Bans on Menthol Cigarettes & Flavored Cigars
A prohibition of menthol cigarettes and flavored cigars would push sales from legal sellers to the illicit market.
The Issue
When Congress passed the Tobacco Control Act in 2009, it gave the Food & Drug Administration (FDA) regulatory authority over the manufacturing and sale of tobacco products.
In 2021, the Biden Administration announced its intention to ban menthol cigarettes and flavored cigars from the market. In April 2022, FDA published proposed rules to ban menthol cigarettes and flavored cigars, which was followed by a notice-and-comment period for stakeholders and the public to weigh in on the proposals.
NACS filed formal comments opposing the prohibition on behalf of the convenience store industry and met with the Office of Management and Budget to advocate against the prohibition.
In January 2025, the FDA withdrew its proposed rules ending the rulemaking process. Either proposal could be revived under a future administration.
Retail Impact
Tobacco products are an important source of revenue for the convenience store industry. Menthol cigarettes account for 34% of cigarettes sales and flavored cigars account for 51% of cigar sales in convenience stores today. Adult smokers purchasing these products also purchased $10.7 billion in other non-tobacco products during their visits to convenience stores.
Given the current user base for these products, prohibition will not rid these products from society but instead push current users to the illicit market. Prohibition would also undermine the compliance efforts and investments made by responsible retailers of age-restricted products.
An influx of these products on the illicit market and illicit sellers open the door to underage sales. Convenience retailers selling tobacco and nicotine products invest resources and time to ensure they comply with federal, state and local laws. These types of protections are not in place on the burgeoning illicit market.
Moreover, illicit sellers sell unregulated products often imported from outside of the U.S. and containing more harmful ingredients. The tobacco products sold in convenience stores today are all authorized by the FDA, meaning they have undergone intense scrutiny by the agency to ensure they meet appropriate standards under The Tobacco Control Act.
Counterfeit cigarettes avoid this scrutiny at the cost of the purchaser. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) states, “While all cigarettes are dangerous and are known to cause disease, counterfeit cigarettes often contain higher levels of tar, nicotine and carbon monoxide than genuine cigarettes, and may contain contaminants such as sand and packaging materials. Counterfeit cigarettes pose a greater health risk to consumers and cost taxpayers millions in lost revenue.”
Bans of these products would place unnecessary economic burdens on legal sellers who would lose sales to the illicit market.
NACS Position
NACS supports the Trump Administration’s action to withdraw these proposed bans, and will oppose any proposed bans should they re-emerge in the future.
Margaret Hardin Mannion
Director of Government Relations
NACS
(703) 518-4292
Margaret Hardin Mannion is Director of Government Relations for the National Association of Convenience Stores (NACS). In her role, Margaret focuses on key issues such as retail crime, public safety, SNAP, food traceability, and credit card swipe fees, advocating for the interests of the convenience and fuel retailing industry. Margaret joined the NACS government relations team in 2019 as Grassroots Manager, overseeing NACS’ grassroots initiatives, including Day on the Hill and NACS In Store.