Top Takeaways:
- Cigar industry plaintiffs have amended their federal lawsuit challenging California’s Unflavored Tobacco List (UTL), adding new claims tied to retailer harm.
- The UTL will determine which unflavored cigars and vaping products can be legally sold in the state beginning in 2026.
- Plaintiffs argue the process is burdensome, costly, and will reduce product variety for premium cigar retailers, driving consumers to online sellers.
Attorneys representing cigar-industry groups have filed an updated complaint in their federal lawsuit challenging California’s Unflavored Tobacco List (UTL), broadening their arguments against the state’s implementation process and introducing new claims about potential financial harm to brick-and-mortar premium-cigar retailers.
The UTL originates from two state laws—one enacted in 2020 and another in 2024—that prohibit most flavored tobacco and vaping products in California. Under the newer law, the state attorney general is required to keep a list of unflavored tobacco and vapor products that are legal to sell starting next year. Any product not on this list, or otherwise exempt, will essentially be banned from sale.
Before the first list’s publication, scheduled before the end of 2025, manufacturers must submit products for inclusion by October 9. This includes certification paperwork, a physical sample, and a $300 registration fee per product. The attorney general’s office has noted that updates to the list may take up to 90 days to process.
One week before the submission deadline, the Cigar Rights of America (CRA), along with seven CRA board-member companies and the Premium Cigar Association, filed lawsuits in both federal and state courts seeking an emergency temporary restraining order (TRO) to block the requirements for premium cigars. The TRO was denied.
Last week’s amended complaint removes claims related to the California Administrative Procedures Act after a federal judge ruled that those arguments must be addressed in state court. The update also adds three new paragraphs emphasizing retailer-specific challenges, highlighting the importance of product variety for small specialty tobacconists and warning that the UTL process will result in fewer offerings in California.
According to the new filing, premium cigars “are most often sold in specialty, corner-store tobacconists,” which depend on a steady flow of new blends and harvest releases to draw in customers. Plaintiffs contend that the cost and speed of the UTL submission process will force manufacturers to limit the number of products they submit, reducing variety and hurting retailers.
The complaint also mentions penalties for possessing prohibited products under California law, noting that wholesalers face $50 fines per package—potentially “$50 per cigar”—and the seizure of inventory. The filing argues that this risk, combined with the cost of compliance, will drive consumers toward online retailers and result in “substantial reductions in California retail store revenue.”
The amended complaint does not address the attorney general’s earlier arguments opposing the TRO; those responses will be submitted later in the case. No schedule has been established for the next round of proceedings.
