Besides nicotine replacement therapies, a realistic alternative for smoking cessation or for smoking substitution may come from electronic cigarettes (ECs), whose popularity has been steadily growing. As for any emerging behaviour associated with exposure to inhalational agents, there is legitimate cause for concern and many health organizations and policy makers have pushed for restrictive policy measures ranging from complete bans to tight regulations of these products. Nonetheless, it is important to reframe these concerns in context of the well-known harm caused by cigarette smoking. In this article, we discuss key public health principles that should be considered when regulating ECs. These include the concept of tobacco harm reduction, importance of relative risk and risk continuum, renormalization of smoking, availability of low-risk product, proportionate taxation, and reassessment of the role of non-tobacco flavours. These public health principles may be systematically scrutinized using a risk assessment matrix that allows: (1) to determine the measure of certainty that a risk will occur; and (2) to estimate the impact of such a risk on public health. Consequently, the ultimate goal of responsible ECs regulation should be that of maximizing the favourable impact of these reduced-risk products whilst minimizing further any potential risks. Consumer perspectives, sound EC research, continuous post-marketing surveillance and reasonable safety and quality product standards should be at the very heart of future regulatory schemes that will address concerns while minimizing unintended consequences of ill-informed regulation.
In the United States, the manufacture, distribution and marketing of tobacco products is regulated by the US Food and Drug Administration (FDA), pursuant to authority extended to the agency in 2009 with the enactment of the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act). While that law initially gave FDA authority over certain categories of tobacco products (e.g., cigarettes, smokeless tobacco and roll-your-own tobacco), in August 2016, FDA's "Deeming Rule" extended that authority to all products that are made from or contain tobacco-derived substances, such as nicotine. Now, products such as cigars, pipe tobacco, shisha/hookah and electronic cigarettes (e-cigarettes) are subject to the Tobacco Control Act and FDA's authority. But regulators have struggled to keep up with the evolving technology and are still grappling with the public health consequences-both pro and con-and continue to adopt policies and regulations to address new issues that emerge (i.e., underage use and flavors).
PurposeThe purpose of this paper is to summarize and analyze SEC guidance to companies and issuers of securities on the use of company web sites to disclose information to investors, as published in an interpretive release, Release 34‐58288, Commission Guidance on the Use of Company Web Sites.Design/methodology/approachThe Release provides guidance to public companies posting information on their web sites, including: when information posted on their web site is considered “public” for purposes of the “fair disclosure” requirements of Regulation FD; the application of the antifraud provisions of the federal securities laws to information posted on company web sites; the types of controls and procedures advisable with respect to posting information; and the appropriate format of the information presented on the web site.FindingsWhile the Release sanctions web site‐only disclosures in some cases, companies should continue to file particularly important or time‐sensitive information with the SEC and also issue a press release. To avoid liability for “republishing” historical information, companies should organize their web sites so that previously posted statements and materials are separately located and identified. Companies should make the context of hyperlinked information clear; a company will not be shielded from antifraud liability for hyperlinking information it knows, or is reckless in not knowing, to be materially false or misleading. To avoid liability, companies should clearly identify summary information as such and alert readers to the location of more detailed disclosure. If a company chooses to post certain information such as non‐GAAP financial measures, committee charters, and amendments to codes of ethics on its web site in lieu of filing it with the SEC, that information should be subject to the same disclosure controls and procedures that apply to information filed with the SEC. Acknowledging that information on company web sites is becoming increasingly interactive and not static, the SEC will not require information appearing on company web sites to satisfy printer‐friendly standards unless already specifically required by SEC rules.Practical implicationsIn view of the principles suggested in the SEC's guidance, each issuer should carefully review its disclosure policy and web site.Originality/valueThe paper offers practical guidance by experienced securities lawyers
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