Letter To Cleveland City Council Against Flavored Tobacco Ban
Letter To Cleveland City Council Against Flavored Tobacco Ban
Letter To Cleveland City Council Against Flavored Tobacco Ban
Re: Deep Concerns that Emergency Ordinance in its Current Form Would Have a
Devastating Economic Impact on Both the Local Small Business Ecosystem and
the City of Cleveland’s Economy
While we understand the concerns that have led to this proposed ordinance, we
collectively believe that a blanket ban is not the most effective means through which the City
can achieve its important public health objective. By the same token, we strongly support the
City's continued effort in pursuit of harm reduction policies through emphasizing education for
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City Record - 2-10-23rev.pdf (clevelandcitycouncil.org)
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adults and minors, encouraging the cessation of smoking, and funding healthcare facilities for
communities of color, etc. Measures that disincentivize and dissuade tobacco use are proven to
be successful at curbing tobacco use and nicotine dependency without the corresponding effect
of financially straining small businesses and guaranteeing their inevitable closure.
For the reasons set forth below, these proposed measures are not only ineffective and
extreme but will also have profound, unanticipated consequences that will disrupt years of
economic growth.
Emergency Ordinance Number 184-2023 will have a Negative Economic and Safety
Impact on the Local Community
1. Sales Decline. The ban will cause a significant, negative economic impact on local
businesses, including convenience stores and tobacco shops. Impacted businesses will
suffer a devastating loss of sales revenue and potential customers will shop elsewhere
for banned products. This places local small businesses at a competitive disadvantage
compared to businesses that are unaffected by the ordinance a short distance away in
the surrounding suburbs.
2. Incidental Sales Decline. If traditional flavored tobacco products are not removed from
the proposed sales ban, law-abiding adult customers will be forced to drive outside of the
City to the surrounding suburbs to buy their preferred products. A loss of foot-traffic
ensures a loss of customers that also purchase gasoline, grocery items, beverages, and
other products incidental to their tobacco purchase. It is unmistakable that these mom
and pop businesses have borne the burden of declined gasoline use and the strain of
competition with big-box chains that are able to absorb such regulatory constraints. The
overwhelming loss of incidental sales will render these small businesses as a relic of the
past.
3. Job Losses. When businesses lose their competitive advantage, their revenue will
decrease thereby abridging the businesses’ workforce. Indeed, employee employment,
retention and promotion depend on a business’ revenue. The ban will deplete jobs in
retail establishments, wholesale, tobacco industry, and related businesses.
4. Customer Loyalty / Promotions. As alluded, the businesses will shed many of their
loyal legal-aged customers because of the ban. Customer loyalty is founded on the
familiar and consistent provisions of products to customers by a business. There will be
a loss of customer loyalty, as loyal customers will be forced to shop elsewhere.
5. Business Valuation. This proposed ordinance will severely diminish the value of
operable businesses.
6. Real Estate Diminution. This proposed ordinance will certainly cause businesses—
especially smaller retail and boutique establishments—to shutter due to the impact of the
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ban. Many of these businesses may be abandoned and not maintained. Small business
owners who have been lifelong community members will become prey to predatory
offers for under their current market value.
8. Community Reinvestment. The closure of small businesses and mom and pop shops
will have a ripple socio-economic effect on the community in which these businesses are
located. True enough, small businesses support community schools and centers, local
athletic fundraisers, religious institutions, youth engagement efforts, and homeless
shelters.
9. Tax Revenue. Local and state taxes, including county sin taxes paid per pack of these
tobacco products, help fund local police, firefighters, neighborhood parks, and sports
stadiums.
10. Black market. Banning flavored tobacco products will have the unintended
consequence of creating black-market demand for these products. Because such
markets are unregulated, the circulation of such products in the market creates
precarious health and safety aftereffects. To be sure, black market transactions will open
the doors wide open to increased risks for consumers—especially vulnerable minors
using products deceptively marketed as flavored tobacco but containing alternative,
more harmful ingredients than regulated products.2
11. Age Verification / Control. Currently, the most effective means by which the vendors
can verify a customer’s age is at the point of sale at the retail establishments. Banning
the sale of flavored traditional tobacco products could shift sales of these products from
law-abiding retailers to illicit and illegal sources, which will not employ ID verification
methods.
12. Public Safety / Law Enforcement Resources. This proposed action will certainly
cause an increase in loitering, especially in the cases of the unlawful sale of these
products. Such illicit sales will, in turn, cause an increase in law enforcement interactions
with consumers and illicit sellers.3 Increased tobacco-related interactions will certainly
deplete law enforcement resources desperately needed to address crime in the City.
13. Tobacco Use Among Youth. Survey data from the latest National Institutes of Health
(NIH) Monitoring the Future report shows that usage rates of traditional tobacco products
are at historic lows, and further studies suggest that banning flavored tobacco products
leads to an increase in cigarette smoking by underage individuals and young adults.
2
Report Shows Negative Results of Massachusetts Flavored Tobacco Ban | NACS (convenience.org)
3
ACLU Statement on FDA Menthol Cigarette Ban | American Civil Liberties Union
3
14. Compliance / Enforcement. Impacted businesses will have to make costly
expenditures, such as those associated with the licensing fee, to ensure their
compliance with the ban. There will be increased paperwork requirements for retailers in
order to comply with licensing and inspections. There is a fear that excessive fines or
penalties will be imposed onto retail establishments for non-compliance despite the fact
that there is no evidence to show an increase of violations among retail establishments,
namely related to age verification. The proposed action has the duplicative effect of
prohibiting more activity and increasing the fines with the associated activity—in effect
guaranteeing the imposition of excessive fines and penalties.
Emergency Ordinance Number 184-2023 is Ineffective and Less Restrictive Means Exist
for Achieving the Desired Objective
4. Less Restrictive Means. There are certainly less restrictive means available to
accomplish this objective, such as awareness and educational campaigns, which have
been proven effective in combating other public health concerns. For example:
● A study published in the Journal of Environmental Psychology found that an
awareness campaign on energy conservation in households was effective in
reducing energy consumption by up to 10%. The campaign used social norms and
personalized feedback to encourage households to reduce their energy use.
● In a study published in the Journal of Environmental Management, an educational
campaign on recycling and waste reduction was found to be effective in increasing
4
Report Shows Negative Results of Massachusetts Flavored Tobacco Ban | NACS (convenience.org)
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Illegal Tobacco Task Force Annual Report 2023 (mass.gov)
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recycling rates in a university setting. The campaign used educational materials,
social media, and a competition among dormitories to promote recycling.
● According to a survey by the National Campaign to Prevent Teen and Unplanned
Pregnancy, teens who received comprehensive sex education were 60% less likely
to become pregnant or to impregnate someone than those who received
abstinence-only education.
● A study published in the Journal of Community Health found that an educational
campaign on HIV prevention was effective in increasing knowledge and awareness
of HIV and promoting condom use among young adults in Nigeria.
Again, the small businesses in the City of Cleveland proudly and vehemently support the
City's effort in continuing the implementation of harm reduction policies. These businesses
believe that education and awareness campaigns are more effective in addressing this issue.
Banning flavored tobacco products will not prevent young people from accessing tobacco
products; instead, it will harm our businesses and our ability to serve our adult customers.
The retail establishments are not the root cause of underage tobacco usage as the
proposed ordinance purportedly suggests, and, in fact, we are the first line of defense. THE
RETAIL ESTABLISHMENTS ARE A PARTNER IN THE FIGHT AGAINST UNDERAGE USE
OF TOBACCO AND VAPOR PRODUCTS.
It is also very important to note that this letter is strictly proffered from a retail
establishment perspective. Aside from the economic impact, there are critical social elements
attendant to this matter that are not discussed. The American Civil Liberties Union (ACLU) has
previously taken a position on this issue. In 2021, the Food and Drug Administration moved
forward with a plan to ban menthol cigarettes; the ACLU highlighted serious concerns that a ban
on menthol cigarettes will disproportionately impact Black and Brown communities.6
Thank you for your attention to these critical concerns. For more information or to coordinate a
meeting, please contact Mohammad A. Faraj ([email protected]).
Respectfully Submitted,
6
ACLU Statement on FDA Menthol Cigarette Ban | American Civil Liberties Union
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LETTER SIGNATORIES WARD
Harvard Convenient 1
Race Fuel 1
Chillies 2 2
Habibi INC 2
Hargur INC 2
Miles Supermarket 2
Turney Deli 2
Union Petro 2
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Zone 2
Blue Erie 3
Collinwood Beverage 3
Downtown Liquor 3
Hype 3
One Wireless 3
Rite Shop 73 3
St Clair Sunoco 3
Trippies 3
American Food 4
Chillies 4
Genes 113th 4
7
Kinsman Market 116 4
Moe's Center 4
Carnegie BP 5
East 40th 5
McLain's Market 5
Metro by T mobile 5
Midview Smoke 5
Paul Rite 5
Quincy Gas 5
Seaway Wholesale 5
Warrensville Marathon 5
Woodland Supermarket 5
Abes Market 6
8
Carnegie Gas INC 6
Cedar Finest 6
Genes89 6
Hu&Na LLC 6
Shaker Gas 6
Sunoco 93rd 6
C Town Beverage 7
Cleveland Wholesale 7
Magic Flash 7
Mr. C's II 7
Rapid Stop 7
Simply Food 7
Speedy Gas #6 7
Superior Food 7
AJD Gas 7
Mobil 8
Sunoco 8
9
Waterloo Gas N Go 8
BP Gas 8
Al's Deli 9
Circle Convenience 9
Savvy Smokes 9
USA Foodmart 9
A&S Distributors 10
AM FoodMart 10
Quick N Easy 10
BP W117th 11
Dairy Mart 11
Gas USA 11
Jabco Petroleum 11
Khalaf Star 11
10
Mega Mart 11
Shell Gabriels 11
Smoke FX LLC 11
Sky Fuel 11
Zt Gabriel INC 11
Denley Market 12
Open Pantry 12
Quick Shop 12
Substation 12
All Puffs 13
Adam Corp 14
11
Dalal INC 14
Fulton Beverage 14
Layannoor INC 14
Royal Gas 14
Shop Express 14
Smokology 14
Suleymans Market 14
Tony’s Market 14
Aa 1385 INC 15
HP Gas 15
Smoke Factory 15
12
OTG Distributors 16
Supreme Wireless 16
Engle Smoke 17
Speedy Gas 17
Warren Beverage 17
33 Building Blocks
4 The Culture
Altria Group
AZ Jordan LLC
Big Bs Beverage
13
BP Shop
BP Union Mart
Broadway Marathon
Convenient Mart
East 49 Gas
Eco Smoke
Ez Go Food Mart
Food Plus
FTR Wireless
Gas N Go
14
Harvard Gas INC
Heights Beverage
Hookah Tales
Marcs
Northfield Sunoco
Riyadiya INC
Ross Beverage
RSM Wholesale
Shore Sunoco
15
SkyStone Fuel
Smokerz Drip
Snappys
Speedy Broadway
Speedy Elyria
Speedy Garfield
Speedy Gas #2
Speedy Harvard
Speedy Lakewood
Speedy Lorain
Speedy Middleburgh
Speedy Northfield
Speedy Puritas
Speedy Wickliffe
Sunoco Bedford
Sunoco Gas
Sunoco Puritas
Super Genie
16
The Valley Smoke Shop Kent
Twisted Heads
Twisted Minds
Vape Escape
Westpark Shell
Zkpk INC
17