Earlier today, Enrique Sánchez Icaza, CEO & Founder of Global Premium Cigars, announced that the company filed a lawsuit against the US Food and Drug Administration (FDA) for the unlawful deeming cigar regulations' effect on small businesses.
"When I joined this beautiful industry, I promised myself that I would do what ever was necessary to make the cigar industry better, and leave a legacy for my kids to carry on in life. Today, that dream is in jeopardy due to the FDA's Deeming Regulations, and I feel I have the obligation to protect our industry, lifestyle, consumers, clients, friends, and our family from these terrible threats.
"It's time for action! Talking belongs in the past..."
In the email statement from Sánchez Icaza, "Island Jim" Robinson of Leaf by Oscar and Luis Falto of Falto Cigars have joined the initiative; however, much greater support has been garnered as more companies have pledged their support via social media.
The lawsuit claims several violations of First and Fifth Amendment rights and several acts by the FDA, including:
Regulatory Flexibility Act (RFA) - The RFA requires federal agencies to consider the impact of their regulatory proposals on small entities, and to analyze effective alternatives that minimize small entity impacts.
Administrative Procedure Act (APA) - The APA states that agency action is unlawful if the agency failed to articulate a rational connection between the facts found and the choice made, failed to consider an important aspect of the problem, or offered an explanation for its decision that runs counter to the evidence (action considered arbitrary, capricious, and an abuse of discretion). In addition, the agency's deeming rule’s cost-benefit analysis is in violation of the APA, as it concludes that the benefits of the rule outweigh the costs, which is based on faulty reasoning and overestimating the benefits of the rule.