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 See Corrections & Amplifications item below. 
  
 The Food and Drug Administration has been in discussions with the e-cigarette industry about a possible online-sales ban of the product, as it prepares a package of proposed regulations for the increasingly popular devices, people familiar with the matter said. 
  
 The FDA, which warned in 2009 that e-cigarettes could pose health risks, has been meeting with e-cigarette makers in recent weeks to hear their views on regulations for the industry. The agency is expected to formally unveil its proposals in October, after several delays. 
  
 The "listening sessions" at FDA headquarters in Silver Spring, Md., ... ||||| Regulation 
  
 (Corrects fourth paragraph reference to products that face normal sales taxes.) 
  
 Apparently, the nicotine business never changes—with smoke or without. Big Tobacco fought government overseers for decades, but eventually traditional cigarettes became heavily regulated products. Now the Food and Drug Administration is working on a package of regulations for e-cigarettes devices, which vaporize liquid nicotine with heat, rather than burning it via tobacco leaves. Among other things, the FDA is considering a ban on online sales of e-cigarettes to cut down on sales to minors, and discussing whether to curtail advertising. A roster of proposed rules is expected in October. 
  
 The regulatory chatter comes as the e-cigarette market is finally expected to top $1 billion this year. Tobacco giant Altria Group (MO) is just this month rolling out its e-cigarette, dubbed “MarkTen.” Reynolds American (RAI) is also rushing to ship its VUSE product. Meanwhile, Lorillard (LO) booked $57 million in e-cigarette revenue in the first three months of the year. 
  
 Bloomberg Industries estimates that at their current pace, e-cigarette sales will top that of traditional smokes by 2047. The estimate comes with a big caveat: the assumption that politicians won’t heap a bunch of new taxes on e-cigarettes—levies that have served as a sort of emphysema to the body of the cigarette business. 
  
 Currently, e-cigarettes are subject to ordinary sales taxes—just like, say, pencils. Big Tobacco loves that. Here’s why: In the average state, 11 percent of cigarettes are smuggled, according to a recent report by the Mackinac Center for Public Policy, a Michigan think tank. “Smuggled” in this case has a few meanings. It includes smokes that are illegally ferried from states and countries with lower taxes, as well as counterfeit cigarettes. 
  
 “Once a tax gets too high, it acts in the same way that Prohibition did: You get substantial black-market activity,” says Scott Drenkard, an economist at the Tax Foundation. 
  
 Meanwhile, the preponderance of smuggled cigarettes is alarming and the Mackinac Center says counterfeits—often stuffed full of sawdust and “human excrement”—are a growing problem. Here’s a look at the share of cigarettes that are smuggled in the top five states: 
  
 • New York 61 percent ($4.35 taxes per pack) 
  
 • Arizona 54 percent ($2.00) 
  
 • New Mexico 53 percent ($1.66) 
  
 • Washington 49 percent ($3.03) 
  
 • Rhode Island 40 percent ($3.46) 
  
 As tobacco giants roll out their e-cigarette offerings, the new smokeless devices are where they’ll focus their efforts. And as long as the government doesn’t burn them with a bunch of new taxes, they will probably be happy to keep e-cigarettes off billboards or Web stores or whatever requirements regulators throw their way. |||||

Write a summary.
– The American e-cigarette business is booming: It's expected to make more than $1 billion this year, and sales are projected to overtake those of real cigarettes by 2047. Big tobacco is probably fine with this, reports BusinessWeek, and the reason why is surprising. According to a recent report, an average of 11% of cigarettes sold in each US state are smuggled in, and that figure is way higher in states like New York (61%), Arizona (54%), and New Mexico (53%). "Smuggled" smokes can be anything from those brought in from other states with lower taxes to counterfeit cigarettes—which are sometimes stuffed with sawdust and "human excrement." "Once a tax gets too high, it acts in the same way that Prohibition did: You get substantial black-market activity," says an economist. E-cigs, on the other hand, are only subject to regular sales taxes, so the black market incentive isn't there. Tobacco giants are now moving their focus to the e-cig market and launching products of their own. Of course, now the FDA is looking to start regulating the industry, as the Wall Street Journal reports. But bans on online sales or advertising restrictions probably won't bother them that much, the BusinessWeek report suggests—so long as they're not hit with taxes.
Dow Jones Reprints: Denna kopia är endast för personligt, icke-kommersiellt bruk. För att beställa presentationsklara kopior för distribution till dina kollegor, kunder eller kunder, använd verktyget Order Reprints längst ner i någon artikel eller besök www.djreprints.com Se Korrigeringar & Förstärkningar nedan. Food and Drug Administration har varit i diskussioner med e-cigarettindustrin om ett eventuellt online-försäljningsförbud för produkten, eftersom det förbereder ett paket med föreslagna regler för de allt populärare apparater, människor som känner till saken sagt. FDA, som varnade 2009 för att e-cigaretter kan innebära hälsorisker, har träffat e-cigaretttillverkare under de senaste veckorna för att höra deras åsikter om regler för branschen. Myndigheten förväntas formellt presentera sina förslag i oktober, efter flera förseningar. Den "lyssnande sessioner" på FDA huvudkontor i Silver Spring, Md., ... ^_______________________________________ Tydligen förändras inte nikotinbranschen – med rök eller utan. Big Tobacco bekämpade regeringstillsyningsmän i årtionden, men så småningom blev traditionella cigaretter kraftigt reglerade produkter. Nu arbetar Food and Drug Administration på ett paket av regler för e-cigaretter enheter, som förångar flytande nikotin med värme, snarare än att bränna det via tobaksblad. FDA överväger bland annat ett förbud mot onlineförsäljning av e-cigaretter för att minska försäljningen till minderåriga, och diskuterar om man ska begränsa reklamen. En förteckning över föreslagna regler väntas i oktober. Reglering pladdret kommer då e-cigarettmarknaden slutligen förväntas toppa 1 miljard dollar i år. Tobak jätte Altria Group (MO) är bara denna månad rulla ut sin e-cigarett, dubbade “MarkTen.” Reynolds American (RAI) är också rusa för att skicka sin VUSE produkt. Under tiden bokade Lorillard (LO) $57 miljoner i e-cigarettintäkter under årets tre första månader. Bloomberg Industries uppskattar att i sin nuvarande takt kommer e-cigarettförsäljningen att vara högre än den traditionella rökens 2047. Uppskattningen kommer med ett stort förbehåll: antagandet att politikerna inte kommer att stapla en massa nya skatter på e-cigaretter – avgifter som har fungerat som en sorts emfysem till kroppen av cigarettbranschen. För närvarande är e-cigaretter föremål för vanliga omsättningsskatter – precis som till exempel pennor. Big Tobacco älskar det. Här är varför: I genomsnitt 11 procent av cigaretterna smugglas, enligt en färsk rapport från Mackinac Center for Public Policy, en Michigan tankesmedja. “Smugglad” i detta fall har några betydelser. Det omfattar rök som olagligt transporteras från stater och länder med lägre skatter, samt förfalskade cigaretter. – När en skatt blir för hög agerar den på samma sätt som Förbudet gjorde: Man får en betydande svart-marknadsaktivitet, säger Scott Drenkard, ekonom på Skattestiftelsen. Under tiden är den övervägande andelen smugglade cigaretter alarmerande och Mackinac Center säger att förfalskningar – ofta fyllda med sågspån och ”mänsklig avföring” – är ett växande problem. Här är en titt på andelen cigaretter som smugglas i de fem bästa delstaterna: • New York 61 procent (4,35 dollar i skatt per förpackning) • Arizona 54 procent (2,00 dollar) • New Mexico 53 procent (1,66 dollar) • Washington 49 procent (3,03 dollar) • Rhode Island 40 procent (3,46 dollar) När tobaksjättar rullar ut sina e-cigaretterbjudanden, de nya rökfria apparater är där de kommer att fokusera sina ansträngningar. Och så länge regeringen inte bränner dem med en massa nya skatter, kommer de förmodligen att vara glada att hålla e-cigaretter från affischtavlor eller webbbutiker eller vad som helst krav tillsynsmyndigheter kasta sin väg. Skriv en sammanfattning.
Dow Jones Reprints: This copy is for personal, non-commercial use only. To order ready copies for distribution to your colleagues, customers or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See Corrections & Reinforcements below. The Food and Drug Administration has been in discussions with the e-cigarette industry about a possible online sales ban for the product, as it is preparing a package of proposed rules for the increasingly popular appliances, people who know the matter said. The FDA, which warned in 2009 that e-cigarettes can pose health risks, has met with e-cigarette manufacturers in recent weeks to hear their views on rules for the industry. The Agency is expected to formally present its proposals in October, after several delays. The "listening sessions" at FDA headquarters in Silver Spring, Md., ... <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk> Apparently the nicotine industry does not change – with smoke or without. Big Tobacco fought government overseers for decades, but eventually traditional cigarettes became heavily regulated products. Now the Food and Drug Administration is working on a package of rules for e-cigarettes units, which vaporize liquid nicotine with heat, rather than burning it via tobacco leaves. Among other things, the FDA is considering a ban on online sales of e-cigarettes to reduce sales to minors, and is discussing whether to restrict advertising. A list of proposed rules is expected in October. Regulation the chatter comes as the e-cigarette market is finally expected to top $1 billion this year. Tobacco giant Altria Group (MO) is only this month rolling out its e-cigarette, dubbed “MarkTen.” Reynolds American (RAI) is also rushing to send its VUSE product. Meanwhile, Lorillard (LO) booked $57 million in e-cigarette revenue in the first three months of the year. Bloomberg Industries estimates that at its current rate, e-cigarette sales will be higher than the 2047 of traditional smoke. The estimate comes with a big reservation: the assumption that politicians will not stack a lot of new taxes on e-cigarettes – fees that have served as a sort of emphysema to the body of the cigarette industry. Currently, e-cigarettes are subject to ordinary turnover taxes – just like pens, for example. Big Tobacco loves it. Here is why: On average 11 percent of cigarettes are smuggled, according to a recent report from the Mackinac Center for Public Policy, a Michigan think tank. “Smuggled” in this case has some meanings. It includes smoke illegally transported from states and countries with lower taxes, as well as counterfeit cigarettes. “When a tax becomes too high, it acts in the same way as the Prohibition did: You get a significant black-market activity,” says Scott Drenkard, economist at the Tax Foundation. Meanwhile, the predominantly proportion of smuggled cigarettes is alarming and the Mackinac Center says that counterfeits – often filled with sawdust and “human feces” – are a growing problem. Here is a look at the percentage of cigarettes smuggled in the top five states: • New York City 61 percent ($4.35 in tax per pack) • Arizona 54 percent ($2.00) • New Mexico 53 percent ($1.66) • Washington 49 percent ($3.03) • Rhode Island 40 percent ($3.46) As tobacco giants roll out their e-cigarette offers, the new smoke-free appliances are where they will focus their efforts. And as long as the government doesn't burn them with a lot of new taxes, they'll probably be happy to keep e-cigarettes from billboards or online stores or whatever demands regulators throw away. Write a summary.
– Den amerikanska e-cigarettbranschen blomstrar: Den förväntas tjäna mer än 1 miljard dollar i år, och försäljningen beräknas gå om de riktiga cigaretterna fram till 2047. Stor tobak är förmodligen bra med detta, rapporterar BusinessWeek, och anledningen är överraskande. Enligt en färsk rapport smugglas i genomsnitt 11 procent av de cigaretter som säljs i varje amerikansk stat in, och den siffran är mycket högre i delstater som New York (61 %), Arizona (54 %) och New Mexico (53 %). "Smugglade" cigaretter kan vara allt från de som förs in från andra stater med lägre skatter till förfalskade cigaretter – som ibland fylls med sågspån och "mänsklig exkrement". "När en skatt blir för hög agerar den på samma sätt som Förbudet gjorde: man får en betydande svart-marknadsaktivitet", säger en ekonom. E-cigaretter å andra sidan är bara föremål för regelbundna omsättningsskatter, så svarta marknadens incitament finns inte. Tobaksjättar flyttar nu sitt fokus till e-ciggmarknaden och lanserar egna produkter. Nu är FDA ute efter att börja reglera branschen, som Wall Street Journal rapporterar. Men förbud mot försäljning på nätet eller reklamrestriktioner kommer förmodligen inte att störa dem så mycket, föreslår BusinessWeek rapporten-så länge de inte drabbas av skatter.
“The American e-cigarette industry is booming: It is expected to earn more than $1 billion this year, and sales are expected to overtake the real cigarettes by 2047. Big tobacco is probably good with this, reports BusinessWeek, and the reason is surprising. According to a recent report, on average 11 percent of cigarettes sold in each U.S. state are smuggled in, and that figure is much higher in states such as New York (61%), Arizona (54%) and New Mexico (53%). "Smuggled" cigarettes can be anything from those brought in from other states with lower taxes to counterfeit cigarettes – sometimes filled with sawdust and "human excrement". "When a tax gets too high, it acts in the same way as the Prohibition did: you get a significant black-market activity," an economist says. E-cigarettes, on the other hand, are subject only to regular turnover taxes, so black market incentives do not exist. Tobacco giants now move their focus to the e-cigg market and launch their own products. Now the FDA is looking to start regulating the industry, as the Wall Street Journal reports. But prohibition of online sales or advertising restrictions will probably not bother them so much, the BusinessWeek report suggests—as long as they do not suffer taxes.