FEDERAL APPEALS COURT DECISION A VICTORY FOR THE CIGAR INDUSTRY
Washington, DC, Jan. 24—The U.S. Court of Appeals for the District of Columbia issued a decision this morning in the court case Cigar Association of America et al. v. United States Food and Drug Administration et al. on the premium cigar rule.
The Court affirmed the substance of the district court’s “well-reasoned” ruling that FDA’s decision to regulate “premium” cigars was arbitrary and capricious because the agency was presented with evidence bearing directly on the risk profile for premium cigars that it ignored; meaning “premium cigars” are not subject to FDA regulation under the Deeming Rule.
The Court further held that the defincieies in FDA’s rulemaking were “serious,” requiring vacatur of the rule. The Court remanded back to the district court for the limited purpose of determining the scope of the vacatur order after allowing supplemental briefing on the proper regulatory definition of a “premium cigar.”
“This is a great victory for the cigar industry,” said CAA Chairman Javier Estades. “CAA is very proud to have led as the named plaintiff in this case and to have worked alongside our partners at the Premium Cigar Association and the Cigar Rights of America for this outcome.”
CAA President Scott Pearce shared Estades’ enthusiasm for the Court’s decision and expressed his optimism for the opportunity to address the premium definition. “After so many years of hard work, it is a wonderful day for the cigar industry,” Pearce said. “CAA has long argued that a proper definition will yield the stable – and fair – regulatory environment that manufacturers, retailers and consumers deserve.”
The action will not return to the district court until the mandate issues, which will likely be in March.
