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Month: March 2022

Legislation would ban flavored tobacco and vapes in Illinois

A consumer advocacy group says a measure that would ban flavored tobacco products in Illinois, including vapes, could do more harm than good.

State Sen. Julie Morrison, D-Lake Forest, has been a steadfast supporter of banning flavored tobacco products, which she said are intentionally targeted to children with candy-like names. She has introduced Senate Bill 3854, which would prohibit the sale of all flavored tobacco products, including cigarettes, e-cigarettes and chewing tobacco. The measure remains in a Senate committee.

Elizabeth Hicks, U.S. Affairs analyst with the Consumer Choice Center, said enacting a flavor ban for vaping products will push adult consumers to switch back to smoking combustible tobacco at a time when smoking cigarettes has been trending down in Illinois.

“About 12% of adults in 2020 reported smoking, however, if this bill passes, we can certainly expect that number to increase,” Hicks said.

Read the full article here

EU Parliament Risks ‘Forever Stalling’ Digital Innovation If It Accepts Environmental Scrutiny on Proof-of-Work Mining, Bitcoin, and the Crypto Economy

BRUSSELS, BE – The European Parliament’s Committee on Economic and Monetary Affairs will vote today on a comprehensive regulatory proposal called MiCA (Market in Crypto-Assets). This proposal has been in the works for months, however, last-minute several amendments have been added to the proposal, which if accepted could effectively ban Bitcoin and cryptocurrency mining in the European Union, pushing thousands of innovators out of Europe.

“By effectively prohibiting the issuance or offering for exchange of crypto-assets that rely on proof-of-work protocols under environmental, social, and governance guidelines, the European Union would make a disastrous move that would obliterate not just the nascent crypto industry but also hurt consumers and once again cede technological leadership in innovation to the United States,” said Aleksandar Kokotović, crypto fellow at Consumer Choice Center, a global consumer advocacy group.

“If these amendments are adopted, EU regulators will strike a devastating blow to the crypto industry in member states. Not only will Bitcoin mining face immediate scrutiny, but the entire Defi space based on Ethereum, the rising NFT industry, and hundreds of companies will be forced to close, move or ban EU citizens from using their services. By not letting individuals and companies choose technologies they prefer, EU regulators are going against the principles of technological neutrality and are setting a very dangerous and harmful precedent.

“If the EU wants to completely stifle innovation and financial sovereignty of its citizens, this is the way to go. If it wants to lose millions of jobs, talent, and value that come with innovation, then this is a good plan for that. Otherwise, these amendments must not pass,” said Kokotović.

Yaël Ossowski, deputy director of the Consumer Choice Center, said such a vote risks “forever stalling” digital innovation in the bloc on flawed environmental goals, especially in light of the war in Ukraine.

“The Russian war in Ukraine has demonstrated that Europe has been too comfortable in using lofty environmental goals and ideology to mollify its energy policy and risk its security. By using similar environmental metrics based on ESG to halt innovation for Bitcoin and cryptocurrency mining, the European Union risks forever stalling digital innovation and pushing billions in assets and entrepreneurship off the continent,” said Ossowski.

“Pushing the cryptocurrency industry outside of the EU will encourage citizens to circumvent the law and use more loosely regulated platforms and services, all the while depriving Europeans of their consumer choice.

“Bitcoin and other proof-of-work cryptocurrencies represent a revolution in digital money, especially because proof-of-work is a uniquely strong and fair way to settle the creation of digital property when compared to our fiat money system. The incentives to seek cleaner and greener energy exist because of Bitcoin and cryptocurrencies, not in spite of them,” added Ossowski.

“We hope EU parliamentarians recognize the significant folly they’re due to introduce if they deny the voices of consumers and vote for amendments ALT A and ALT G to the Markets in Crypto Assets Proposal that would effectively kneecap proof-of-work currencies in the EU,” said Ossowski.

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The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Washington, Ottawa, Brussels, Geneva, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

Biden’s Digital Assets Executive Order Gets It ‘Mostly Right’ on Protecting Consumers and Innovation in Crypto

Washington, D.C. – Today, President Biden signed an executive order on digital assets, the first major federal executive action relating to cryptocurrencies in the United States.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, praised the order for getting smart cryptocurrency regulation “mostly right”.

“President Biden’s statements demonstrate the federal government’s acknowledgment that Bitcoin and cryptocurrencies will play a positive role in our nation’s future, and offers some key guidance on ensuring the entire crypto economy remains competitive, transparent, and innovative for consumers,” said Ossowski.

“Protecting consumers from scams, giving legal certainty, and allowing for innovation to create new standards for cryptocurrency rules is a responsible and legitimate role for government when it comes to digital assets. We must recognize that the nascent crypto finance space is ever-changing and rapidly evolving and that overzealous regulation could cripple future potential.

“Biden echoed concerns about Bitcoin and cryptocurrency mining, but we believe the environmental benefits from accepting mining will far outweigh any negative repercussions. Crypto mining is an innovative field that strengthens networks and creates incentives for clean energy,” said Ossowski.

“Last year, my colleagues and I at the Consumer Choice Center released our Principles for Smart Crypto Regulation, underscoring the need for preventing fraud, pursuing technological neutrality, reasonably low taxation, and legal certainty and transparency.

“However, considering the toll of inflation on ordinary Americans and the civil liberties concerns related to consumers’ financial privacy, the plans to research a Central Bank Digital Currency are concerning and will need much more scrutiny in the months to come.

“Overall, we praise the administration’s efforts on keeping cryptocurrency legitimate and accessible and hope any legislation to come will follow these bedrock principles. We’re all going to make it,” concluded Ossowski.

Congress wants to sneak in an effective ban on synthetic nicotine vaping that would harm consumers

WASHINGTON, D.C. – This week, it was revealed that several congressmen and US senators have added a provision in the upcoming emergency government funding bill that would relegate tobacco-free synthetic nicotine to the regulatory authority of the Food and Drug Administration and its premarket tobacco application process.

This would give vaping firms less than two months to file a lengthy and convoluted Premarket Tobacco Application (PMTA), which will ultimately lead to most small vaping firms and shops going out of business.

Yaël Ossowski, deputy director of the Consumer Choice Center, said this will actively harm adults who want to quit smoking.

“The byzantine process of asking permission to sell harm reducing vaping products in the 21st century is asinine in itself. But using sleight of hand during an emergency government funding bill to castigate millions of vapers and the entrepreneurs who make and sell the products they rely on is the definition of active harm,” said Ossowski.

“Only the largest and most powerful vaping and tobacco companies can afford the lawyers and the time necessary to complete the paperwork necessary to pass the FDA’s process, meaning thousands of hard-working American business owners will now be forced to close, depriving millions of adult consumers of harm reducing options. Many will be forced back to cigarettes.

“Synthetic nicotine is an innovative method of providing nicotine independent of tobacco, and millions of American adults now use these products as a less harmful method of consuming nicotine. A back door bureaucratic power move like this represents a sledgehammer to the men and women of our country who have sought out vaping devices to kick their cigarette habit,” added Ossowski.

“The method of fattening up continuing resolution bills with laws that benefit special interests, without broader democratic debate or analysis of the costs and benefits, is shameful in our modern American Republic.

“We hope our elected representatives reject this particular provision on synthetic nicotine and go back to the drawing board to offer a more permanent, sane, and smart policy on the next generation of vaping products,” said Ossowski.

41% of European consumers agree that sharing economy apps make life easier

The Consumer Choice Center commissioned the market research company Savanta to survey European consumers on four different EU policy-making areas: Consumer Choice and Government; Innovation & Sharing Economy; Agriculture & Food; and Science & Energy.

In February 2022, 500 people were surveyed in Belgium on their views on innovation, nuclear energy, agriculture, sharing economy, and government intervention in the economy.

Maria Chaplia, the Research Manager at the Consumer Choice Center, said: “The polling results are encouraging. European consumers overwhelmingly appreciate consumer choice. A wide array of agricultural regulations put forward by the EU and member states are at odds with what European consumers want.”

Key findings:

  • 69% of European consumers agree that the government should not restrict their freedom to choose.
  • 73% of European consumers think that the European Union should be more open to innovative solutions.
  • Two times more European consumers (41% agree and 22% disagree) agree that sharing economy apps makes their lives easier.
  • 69% of European consumers interviewed agree that innovation plays an important role in making their lives better.

“Innovation has made millions of European consumers better off. Thanks to platform economy apps such as Uber, Deliveroo, and many others, consumers can now choose between various delivery and transportation options. No wonder European consumers value the sharing economy apps so much,” said Chaplia.

“Platform economy apps have boosted consumer choice and given many Europeans the opportunity to work independently. Gig work provides flexibility which increases its attractiveness to many Europeans. However, in December 2021, the European Commission presented plans to regulate gig workers’ work conditions, which will essentially diminish the self-employment model. The overregulation of platforms will have spillover effects on consumer choice, and the EU should abstain from such moves,” concluded Chaplia.

Banning Flavored Vaping Products Will Do More Harm Than Good in Maine

This year, state lawmakers introduced two bills that would outlaw flavors for liquids used in nicotine vaping devices. The bills, LB 1550 and LB 1693, would ultimately harm adult users of these products, likely driving them back to using tobacco. These bills are currently being reviewed by the joint committees and will soon go to a vote.

Yaël Ossowski, deputy director at the D.C.-based Consumer Choice Center, said “enacting a flavor ban for vaping products will do more harm than good as it will push adult consumers to switch back to smoking combustible tobacco. Considering that studies have shown vaping to be 95% less harmful than smoking, ensuring that adult consumers have access to the vaping products they prefer will ultimately lead to fewer cigarette smoking-related deaths within the state.

“More than 4.1% of Maine’s adult population uses vaping products, accounting for over 54,000 consumers within the state who have switched to a healthier alternative to combustible tobacco. Banning flavored vaping products will encourage these former smokers to switch back to smoking cigarettes and will ultimately lead to increases in smoking-related healthcare costs, which are already costing (state) taxpayers over $262.6 million annually,” said Ossowski.

“If a flavor ban is enacted, then consumers will likely look towards the black market in order to get access to their preferred flavored vaping products. This presents serious concerns for public health as vapers will be purchasing unregulated products that could be extremely dangerous to their wellbeing.

“In addition to endangering public health, pushing consumers to the black market through a flavor ban will also be to the detriment of many vape shops throughout the state as many of their products will no longer be available. After already suffering through the economic hardships of the pandemic, this bill could effectively kill many of these small businesses already struggling to stay afloat. 

“Instead of implementing misguided flavor bans, lawmakers should embrace vaping products in order to protect public health, small businesses, and consumer choice throughout the state,” said Ossowski.

European consumers agree that the EU is too cautious about GMOs

The Consumer Choice Center commissioned the market research company Savanta to survey European consumers on four different EU policy-making areas: Consumer Choice and Government; Innovation & Sharing Economy; Agriculture & Food; and Science & Energy.

In February 2022, 500 people were surveyed in Belgium on their views on innovation, nuclear energy, agriculture, sharing economy, and government intervention in the economy.

Maria Chaplia, the Research Manager at the Consumer Choice Center, said: “The polling results are encouraging. European consumers overwhelmingly appreciate consumer choice. A wide array of agricultural regulations put forward by the EU and member states are at odds with what European consumers want.”

Key findings:

  • 67% of European consumers would like the European Union to embrace technologies that make food more affordable.
  • 59% of European consumers trusted farmers to use crop protection products adequately to make safe food.
  • 33% of European consumers agree that the EU is too cautious about genetically modified organisms.
  • 59% of consumers interviewed agree that the European Union often over regulates at the expense of European Consumers.
  • 73% of consumers think that the European Union should be more open to innovative solutions.

“The EU shouldn’t restrict farmers’ freedom to use the preferred crop protection tools to avoid these unintended consequences. Alternatively, the EU should consider legalizing genetic modification. European consumers trust farmers to choose crop protection tools to make food safe. Despite popular rhetoric, there is no substantial scientific evidence of the health and environmental risks ascribed to GM products,” said Chaplia.

“The war in Ukraine, one of the largest wheat exporters in the world, threatens European and global food security. At such a challenging time, the EU cannot simply afford to pursue expensive organic ambitions. Now is the time to embrace innovation over unjustified precaution,” concluded Chaplia.

Ontario makes cannabis delivery and curbside pickup permanent

Ontario retailers were granted a temporary permit to offer cannabis delivery and pick-up services during the pandemic when alcohol and cannabis retail were deemed essential businesses.

Our Northern American Affairs Manager David Clement went a step further and argued in favor of making cannabis delivery permanent. According to him “It would significantly benefit retailers. But more importantly, it would benefit consumers by expanding and enhancing their options.”

We are happy to hear that the “provincial government has permanently green-lit the ability of cannabis retailers to offer delivery and curbside pickup services”. 

This is a step taken in the right direction but more needs to be done for making the cannabis delivery process smoother. There are a strict set of rules that need to be followed to comply with approved delivery or curbside pickup, and for now, third-party delivery is not permitted. 

Delivery can only be done by a retail store authorization holder or its employees, which makes it hard to keep up with the rising demand. Retailers aren’t equipped with the capital nor the expertise to operate a fleet of vehicles. The Ontario government should allow the use of third-party services to deliver, which we already permit for alcohol. Having a chance to outsource delivery to a third-party service, like delivery apps, gives legal retailers a leg up on the black market, which is still very prevalent.

February 2022

The world is in turmoil right now, but the Consumer Choice Center team is trying to stay positive and productive. Here’s what we have been up to this February.

Something’s holding back the Electric Vehicle Revolution..

David joined the video crew at Learn Liberty to try to answer some of the important questions about what is deterring mass adoption of electric vehicles. Make sure to watch the whole video, but here’s a little spoiler for you – dealer-franchise laws and higher registration fees than those on gasoline-powered vehicles. Government intervention, who would have thought?
 
WATCH HERE

Catch up with Consumer Choice Radio

This month, we have had some great episodes on Consumer Choice Radio. But I want to draw your attention to this particular one. In the first part, David and Yael discuss Freedom Convoy and the Canadian Conservative leadership race. Then, they’re joined by Joseph Annotti who reveals science on PFAS and argues that regulators should slow down their efforts to ban some of these vital products. 
LISTEN HERE

Colombia is giving Uber a hard time

Colombia and Uber have had turbulent relationship for the past 9 years. Just like in other parts of the world, Uber has seen great resistance from local taxi companies and drivers. This sharing economy platform remains illegal and passengers have to take a front seat to avoid unnecessary attention from police, which can result in fines and/or confiscation of the vehicle. Read our blogpost below to find out how these restrictions suppress entrepreneurial spirit and limit consumer choice.
READ MORE

75% vape tax? No, we didn’t miss the period

Alaska is proposing a 75% vape tax. Liz testified at the Alaska State Legislature’s Senate Finance Committee and on proposed tax and how that would be harmful to public health and consumer choice. She made sure the voice of consumers, who rely on vape products in their attempt to give up smoking, was heard. 
 
WATCH HERE

Let’s not go back to what farming once was!

Did you know that without pesticides, crop losses would be between 50 and 80%, which in turn would lead to higher food prices, and shortages leading to queues in front of supermarkets the likes of which we only experience in times of crisis. No one wants that right? Bill argues that rejecting the notion of using pesticides altogether and going “back to basics” will not only reduce the availability of products, but also fail to guarantee the safety of food.
READ HERE

Vape Flavours matter and CCC keeps fighting against their bans!

Vape flavours are the main draw for people looking to quit smoking, this is a fact and we’re here to fight against proposed bans whenever that might be. Yaël testified at the Maine State Legislature’s Joint Standing Committee on Health and Human Services on a proposed bill that would outlaw the sale of flavored vaping products, depriving adult smokers of less harmful options.
 
WATCH HERE
Thanks for sticking with us! As you can see it’s been quite a productive month! We have a lot of projects in progress, so make sure to follow our social media to be the first to know about them!

The keys to smart crypto regulation

Freedom convoy aside, regulators can’t only view Bitcoin and other cryptocurrencies through a nefarious lens, David Clement and Yaël Ossowski write

Following the federal government’s invoking of the Emergencies Act, Deputy Prime Minister Chrystia Freeland outlined the temporary regulations on financial institutions that would require surveillance of all blockade-related “forms of transactions, including digital assets such as cryptocurrencies.” The focus on cryptocurrencies was likely sparked by the success of the Honkhonk Hodl Bitcoin fundraising campaign for the Freedom Convoy. Whatever you may think of the convoy, this development has proven that Canadians are paying attention to cryptocurrencies. And now, so is Ottawa.

Freedom convoy aside, regulators can’t only view Bitcoin and other cryptocurrencies through a nefarious lens. These events prove why we need smart regulation of cryptocurrencies, so that we can keep this sector competitive, free, and legitimate.

This month Conservative MP Michelle Rempel Garner tabled a bill to open Canada’s institutions to cryptocurrencies. The bill would require the government to co-ordinate with industry experts to write a framework to help grow the sector in Canada. Since the arrival of Bitcoin in 2008, digital assets have been catapulted to a highly dynamic sector worth $2 trillion. Whether it is exchanges, decentralized finance, or lightning payments, there is no doubt that Bitcoin and other cryptocurrencies represent a new paradigm and opportunity.

Legislation like Rempel Garner’s could ensure that the ecosystem for the sector is protected from overzealous regulation, but only if we enact smart, focused and targeted regulations that do not destroy the industry altogether.

Any institution touching digital assets should have clear guardrails that provide legal certainty. That means no additional red tape when it comes to crypto companies opening bank accounts and insurance policies. We also need assurances that federal agencies will not penalize actors or subject them to costly and burdensome enforcement actions just because cryptocurrencies are involved.

Failing to take these steps risks pushing crypto activity to the black market or seedy jurisdictions, where no rules or regulations will be followed. The history of Prohibition or the Global War on Drugs, which have ballooned criminal and black market activity, provides us an example.

Technological neutrality should be a core tenet of any legislation, meaning that governments should not declare winners or losers. Just like the vinyl record was replaced by the CD-ROM and then the MP3, governments should not choose a preferred crypto technology and instead allow innovation, competition, and consumer choice to make that determination. 

Whether it is algorithmic mining (Proof of Work), interest-bearing accounts, or easy payments, users and entrepreneurs are testing and adopting best practices for the crypto future. If the government endorses one method or outlaws another, because of environmental, financial, or legal concerns, it risks backing the wrong horse and stifling innovation.

Another important aspect of future regulation is moderate taxation. In Estonia, for example, cryptocurrencies are considered property assets but are not subject to Value Added Tax (VAT). Capital gains are taxed accordingly but kept low to ensure investment and innovation while ensuring fairness.

Overall, regulators must not pigeonhole cryptocurrencies only as investments fit for taxing. These are technological tools that empower consumers and foster innovation. A unique crypto asset class, separate from traditional securities, could also help users benefit from the decentralization and encryption that these projects offer while ensuring broader financial adoption.

Rempel Garner’s bill is a step in the right direction, but it is important that what comes of this focuses on these core aspects. Failing to do so will leave Canada, Canadian consumers, and domestic entrepreneurs out in the cold.

Originally published here

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