FDA CASAA Blog - copy of letter to OMB/OIRA re PRA & FDA Reg Proposal

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Gato del Jugo

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"That estimate of 25 applications is approximately the number of e-cigarette products currently sold by the major traditional tobacco companies. Since these are the only companies that have the resources to comply with the paperwork burdens, this equivalence is clearly more than coincidence."

:pop:



"Due to these gross and fundamental flaws in the calculation and reporting of the paperwork burden, we believe that it would be appropriate for the Office of Management and Budget to void the proposed regulation as it relates to e-cigarettes and other smoke-free products. FDA offers basically no concrete claims about how the paperwork burdens would create or facilitate substantive benefits, and yet the burden would do enormous damage."

:headbang:
 

2coils

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Many folks (from our industry) have already met with OMB. They cant be blind to the fact, that just about all e-cig products, essentially, would be removed from the market. How was with proposal even allowed to be published as it is currently written? I thought the cost vs benefit analysis was part of their (OMB) function??

CASAA has made it abundantly clear (by their comments), this is a defacto ban. Actually, the FDA HAS MADE IT ABUNDANTLY CLEAR, and CASAA is putting it on the record! IMO, considering the spirit of the act and the function of OMB, not only should this proposed rule be pulled immediately, I think this makes for a great court challenge if it comes to that. The FDA has already acknowledged what they are up to, just by stating their expectation of only 25 applications. I just dont see how this can stick. I don't want to sound naive, but last time I checked we still live in America. This sort of thing isn't supposed to be allowed:confused::facepalm:
 

tombaker

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Re: CASAA: CASAA's Comment to OMB/OIRA regarding Paperwork Reduction Act and FDA Deeming Regulation

Utilizing only to the FDA source document and method of its calculations, I am concerned resultant numbers from the OP doc, are based on estimates outside of the document. Those outside numbers are flowed onto the source, and then recalculated as if these outside numbers, and subsequent apples and oranges appraisal was, was the intention of the FDA source estimates.

Source Document: http://www.fda.gov/downloads/AboutFDA/ReportsManualsForms/Reports/EconomicAnalyses/UCM394933.pdf


Specifically the "upper end" of the PMTA application is estimated at 80
However the entire upper end of the entire universe of products defined as 1676.
So 80/1676= .0477 or 4.8%

The commentary document uses 100,000 total products, and 25 as the PMTA number
That would seem to be the calculation of 99.99% of all products, cited throughout
So 25/100,000 = .00025 or 2.5/100th of 1%


I am only speaking to the means of deriving the numbers, and differences between. If the FDA is saying only 1676 exist, we have to use that number, when attempting to understand what their 80 PMTA (or 25) means.
 

AgentAnia

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....I am only speaking to the means of deriving the numbers, and differences between. If the FDA is saying only 1676 exist, we have to use that number, when attempting to understand what their 80 PMTA (or 25) means.

We do not, however, have to accept the numbers FDA uses as valid, relevant, or representative of the real world.
 

Kent C

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I am only speaking to the means of deriving the numbers, and differences between. If the FDA is saying only 1676 exist, we have to use that number, when attempting to understand what their 80 PMTA (or 25) means.

I used the numbers from that doc to make the case. The 1675 number is only 'products' and there's a UPC number 1717 as well as 'accessories'. I know there's more and so do they in the note 22 regarding myvaporstore. I also use the argument I put forth in the Economic Impact Analysis thread as a 'solution' to reduce paperwork and as a 'preview' of one of my arguments coming up on the deeming doc, which will include a charge on Zeller for 'lying to Congress' IF his comments to Sen. Alexander about how the regulatory alternatives are still open, were actually closed by the deeming doc that preceded his comments. Here's my comment:

Re: The Food and Drug Administration Deems tobacco Products To Be Subject to the
Federal Food, Drug, and Cosmetic Act, as Amended by the Family Smoking
Prevention and Tobacco Control Act; Regulations Restricting the Sale and
Distribution of Tobacco Products and Required Warnings for Tobacco Product
Packages and Advertisements.

I am writing to comment as an individual consumer on the Paperwork Reduction Act
aspects of the proposed regulation. I expect to file a separate comment on
other aspects of the proposed regulation later.

The FDA has estimated that there will be only 25 applications for premarket
review of new tobacco products filed in connection with e-cigarette products.
Yet in their own document, which actually address the impact: Preliminary
Regulatory Impact Analysis Initial Regulatory Flexibility Analysis Unfunded
Mandates Reform Act Analysis

http://www.fda.gov/downloads/AboutFDA/ReportsManualsForms/Reports/EconomicAnalyses/UCM394933.pdf

... they contradict by multiples, their estimate of how many products will be
involved. From page 25 of that doc:

"This proposed rule would also extend the FD&C Act tobacco authorities to tobacco
products that do not fit into traditional product categories, such as electronic
cigarettes or nicotine gels. Current estimates in the press indicate that sales
of electronic cigarettes are expected to be between $1.0 billion and $1.7
billion in 2013. Cigar sales are forecast to be about $8.1 billion in 2013 (Ref.
49, [Euromonitor, 2012]). Therefore, forecasted sales for electronic cigarettes
are 12 to 21 percent of forecasted cigar sales. Using 15 percent as our best
estimate of the size of the electronic cigarette market relative to the cigar
market, and assuming the number of products and UPCs is proportional to dollar
sales, we estimate there currently are *******1,675 e-cigarette formulations and
1,717 electronic cigarette UPCs.******22" (my emphasis in asterisks).

Note 22: "A single online retailer, myvaporstore.com, claims to sell over 1,000
unique products <http://www.myvaporstore.com/aboutus.asp>. FDA analysts counted
over 150 unique products among just the top 5 brands.

However, there is a solution available upon which I will be making further
comment but it is operative here as well. IF you truly want to reduce paperwork,
I offer this solution:

In the same 'impact analysis' doc on pg. 67:

'C. Additional Flexibility'

'4.Change New Product “Grandfather Date” to the Date of Issuance of a Final
Deeming Regulation [Regulatory Alternative 3]' is pg 69

"The table shows the reduced burden for cigar manufacturers but ******this
alternative would provide even greater relief for small businesses producing
electronic cigarettes.***** (my emphasis)

And on pg. 69:

"4. Change New Product “Grandfather Date” to the Date of Issuance of a Final
Deeming Regulation [Regulatory Alternative 3]

This alternative would change the grandfather date for determining which
products are new from February 15, 2007, to the date this rule is finalized.
Therefore, new product submissions would not be required for products introduced
between February 15, 2007, and the date of a final rule. As shown in Table 56,
upfront costs would fall. "

So this is one way to reduce paperwork. And according to Mr. Zeller, in his
Senate HELP committee testimony, those alternatives are still open:

Zeller to Sen. Alexander: "We've proposed regulatory options on cigars, and
****one of the options is to exempt premium cigars. *****Another one is to
include them. And we are in a rule making period now and we need to wait for all
the comments to come in and we will then consider our regulatory options in
large part informed by the information (he gets interrupted) that comes in
(assuming 'from those comments'). " (my fill in in parentheses, and emphasis in
asterisks - showing alternatives are still in play since the committee hearing
was after (May 15, 2014) the deeming doc Apr. 24 2014)

While this was addressing cigars, the options for those are the same options as
applied to ecigarettes, as stated in the above by how each different product
would be affected.

That said, the intent of this comment is to make the point that the FDA's own
documents belie the "25 products" that they estimate will need applications, and
everything that affects my vendors, affects me as well.
 
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tombaker

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Yes I read this again when I picked up the PDF again, I had seen it before and forgot about it, because the main deeming says that they thought they did not have the authority to do it. However, in the fiscal document it clearly shows it should and can be on the table. They do not put in an option like that, if they were NECESSARILY stopped from doing it.

After reading it last night again, I was going to start a thread for it, after more double checking.


In the same 'impact analysis' doc on pg. 67:

'C. Additional Flexibility'

'4.Change New Product “Grandfather Date” to the Date of Issuance of a Final
Deeming Regulation [Regulatory Alternative 3]' is pg 69

"The table shows the reduced burden for cigar manufacturers but ******this
alternative would provide even greater relief for small businesses producing
electronic cigarettes.***** (my emphasis)

And on pg. 69:

"4. Change New Product “Grandfather Date” to the Date of Issuance of a Final
Deeming Regulation [Regulatory Alternative 3]

This alternative would change the grandfather date for determining which
products are new from February 15, 2007, to the date this rule is finalized.
Therefore, new product submissions would not be required for products introduced
between February 15, 2007, and the date of a final rule. As shown in Table 56,
upfront costs would fall. "
 

Kent C

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Yes I read this again when I picked up the PDF again, I had seen it before and forgot about it, because the main deeming says that they thought they did not have the authority to do it. However, in the fiscal document it clearly shows it should and can be on the table. They do not put in an option like that, if they were NECESSARILY stopped from doing it.

After reading it last night again, I was going to start a thread for it, after more double checking.

I call that the "impact doc" and it is at odds with the "deeming doc" - however as I point out in the impact doc thread - Zeller's comments after the deeming doc, said that those alternatives are still open at the Senate HELP hearing.

It would seem to me, that with the impact doc, there should have been a comment period regarding the different alternatives given in THAT doc. It's all about 'flexibility' and the different paths they could take and yet the 'deeming doc' seem to close that door. However, Zeller's comments puts them in play OR knowing Sen. Alexander's interest in premium cigars, that he just lied to the Senator by saying that those options still exist when they don't. My guess, and it's just a guess, is that they leaped over the 'impact doc' when they got a letter from the 5 (expanded to about 9) Senators "demanding action" just before the publishing of the 'deeming doc'.

At any rate, I think Zeller has to explain his comments to Alexander in light of the 'deeming doc's' comments regarding the grandfather date and that they had no power to change it, when that is not evident in his comments at the hearing.

"Lying to Congress" is a felony.
 
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aikanae1

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I hope you sent a copy over to Sen. Alenxander's office. I'm sure he'd be interested if he'd been lied to.

I call that the "impact doc" and it is at odds with the "deeming doc" - however as I point out in the impact doc thread - Zeller's comments after the deeming doc, said that those alternatives are still open at the Senate HELP hearing.

It would seem to me, that with the impact doc, there should have been a comment period regarding the different alternatives given in THAT doc. It's all about 'flexibility' and the different paths they could take and yet the 'deeming doc' seem to close that door. However, Zeller's comments puts them in play OR knowing Sen. Alexander's interest in premium cigars, that he just lied to the Senator by saying that those options still exist when they don't. My guess, and it's just a guess, is that they leaped over the 'impact doc' when they got a letter from the 5 (expanded to about 9) Senators "demanding action" just before the publishing of the 'deeming doc'.

At any rate, I think Zeller has to explain his comments to Alexander in light of the 'deeming doc's' comments regarding the grandfather date and that they had no power to change it, when that is not evident in his comments at the hearing.

"Lying to Congress" is a felony.
 

Kent C

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Honorable Senator Alexander,

<snip the stuff already posted>

The Regulatory Flexibility documents and the Executive Order 12866 address attempts to reduce the impact of regulation on businesses and jobs.

Yet the deeming doc would virtually eliminate all ecigarette vendors other than perhaps the Tobacco companies divisions that have recently purchased cigalikes companies.

It seems to me that Mr. Zeller was referring to the choices given in the 'impact doc' when in fact, 2 weeks before the committee meeting, the 'deeming doc' took those choices away.

I wonder if he was just patronizing your obvious concern for premium cigars by saying that those choices still existed when they according to the 'deeming doc' they don't.

Given the fact that this was two weeks after the date (and hence the choices/options) had been established, I also wonder if he was 'lying to Congress'.

I also understand that the deeming doc is still a "proposed rule" but perhaps you might at some point have Mr. Zeller explain this apparent conflict in what he told you, two weeks after the deeming doc had established the 'alternative' from which they intend to proceed.
 

DC2

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That is a great letter and summation of the banning attempt by our government to hand the new market over to their deep pocketed friends in BT. Each of these points should be addressed by the FDA, but will they even read it?
They are required to read it, and they are required to consider it.
And they disregard those requirements at their own peril, under threat of legal action.
 

AgentAnia

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As of midnight last night, the FDA has received 9,891 comments (of which they've posted a whopping 854, but that's a whole other issue). I'm wondering *who* exactly is going to read them. Zeller? I doubt it. Who's going to be communicating the content to the honchos? Who's going to do the "considering"? Yes, I'm a cynic (though that won't stop me from commenting!).

I wonder if "they" realize to what extent we vapers share info and our comments. If in the end they effectively ignore the substance of our comments, I do hope they realize what a pile of caca they've made for themselves!
 

NorthOfAtlanta

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I wonder if "they" realize to what extent we vapers share info and our comments. If in the end they effectively ignore the substance of our comments, I do hope they realize what a pile of caca they've made for themselves!

I've said it before, I don't think "They" have a clue how many of us have moved to activists who write emails, letters and make phone calls from one of those who don't pay attention. I personally have sent a few emails on other things that would affect me and my business that I would not have done before being on here and learning how to do it.

They kicked a bigger hornets nest than they thought we were and now they're finding out what it is to live with it.

:D:vapor:
 
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