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No. 98-1152
In the Supreme Court of the United States
FOOD AND DRUG ADMINISTRATION, ET AL., PETITIONERS
v.
BROWN AND WILLIAMSON TOBACCO CORP., ET AL.
ON WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
BRIEF FOR THE PETITIONERS
SETH P. WAXMAN
Solicitor General
Counsel of Record
DAVID W. OGDEN
Acting Assistant Attorney
General
EDWIN S. KNEEDLER
Deputy Solicitor General
WILLIAM B. SCHULTZ
Deputy Assistant Attorney
General
IRVING L. GORNSTEIN
Assistant to the Solicitor
General
EUGENE THIROLF
DOUGLAS LETTER
GERALD C. KELL
SCOTT R. MCINTOSH
CHRISTINE N. KOHL
Attorneys
Department of Justice
Washington, D.C. 20530-0001
(202) 514-2217
MARGARET JANE PORTER
Chief Counsel
KAREN E. SCHIFTER
PATRICIA J. KAEDING
Associate Chief Counsel
Food and Drug
Administration
Rockville, MD. 20857
QUESTION PRESENTED
The Federal Food, Drug, and Cosmetic Act authorizes the Food and Drug Administration
(FDA) to regulate products as "drugs" or "devices" when
they are "intended to affect the structure or any function of the body."
21 U.S.C. 321(g)(1)(C) and (h)(3). FDA has found that the nicotine in tobacco
products is intended by tobacco manufacturers to cause and sustain a user's
addiction to nicotine and to act as a sedative, stimulant, and appetite
suppressant. The question presented is whether, given that finding, tobacco
products are subject to regulation under the Act as "drugs" and
"devices."
PARTIES TO THE PROCEEDING
The petitioners are: Food and Drug Administration, and Jane E. Henney, Commissioner
of Food and Drugs.
The respondents are: Brown and Williamson Tobacco Corp.; Lorillard Tobacco
Company; Philip Morris, Incorporated; RJ Reynolds Tobacco Company; Coyne
Beahm, Incorporated; National Association of Convenience Stores; ACME Retail,
Incorporated; United States Tobacco Company; Conwood Company, LP; National
Tobacco Company, LP; Pinkerton Tobacco Company; Swisher International, Incorporated;
Central Carolina Grocers, Incorporated; J.T. Davenport, Incorporated; North
Carolina Tobacco Distributors Committee, Incorporated; The American Advertising
Federation; American Association of Advertising Agencies; Association of
National Advertisers, Incorporated; Magazine Publishers of America; the
Outdoor Advertising Association of America, Incorporated; and Point of Purchase
Advertising Institute.
In the Supreme Court of the United States
No. 98-1152
FOOD AND DRUG ADMINISTRATION, ET AL., PETITIONERS
v.
BROWN AND WILLIAMSON TOBACCO CORP., ET AL.
ON WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
BRIEF FOR THE PETITIONERS
OPINIONS BELOW
The opinion of the court of appeals (Pet. App. 1a-75a) is reported at 153
F.3d 155. The opinion of the district court (Pet. App. 76a-136a) is reported
at 966 F. Supp. 1374. The Food and Drug Administration's jurisdictional
determination and final rule concerning tobacco products are published at
61 Fed. Reg. 44,396 (1996), and 61 Fed. Reg. 44,619 (1996).1
JURISDICTION
The judgment of the court of appeals was entered on August 14, 1998. A petition
for rehearing was denied on November 10, 1998. Pet. App. 137a-146a. The
petition for a writ of certiorari was filed on January 19, 1999, and was
granted on April 26, 1999. The jurisdiction of this Court rests on 28 U.S.C.
1254(1).
STATUTORY AND REGULATORY PROVISIONS INVOLVED
The relevant provisions of the Federal Food, Drug, and Cosmetic Act appear
in an appendix to this brief. The tobacco product regulations appear in
the appendix to the petition for a writ of certiorari.
STATEMENT
1. The Federal Food, Drug, and Cosmetic Act (Act), ch. 675, 52 Stat. 1040,
21 U.S.C. 301 et seq., confers authority on the Secretary of Health and
Human Services, through the Food and Drug Administration (FDA), to regulate
"drugs" and "devices" for the purpose of protecting
the public health. See 21 U.S.C. 393(b)(1), (2)(B) and (C). The Act defines
"drug" as, inter alia, "articles (other than food) intended
to affect the structure or any function of the body of man or other animal."
21 U.S.C. 321(g)(1). The Act similarly defines "device" as, inter
alia, "an instrument, apparatus, * * * contrivance, * * * or other
similar or related article, including any component, part, or accessory,
* * * intended to affect the structure or any function of the body of man
or other animals, and which does not achieve its primary intended purposes
through chemical action within or on the body * * * and which is not dependent
upon being metabolized for the achievement of its primary intended purposes."
21 U.S.C. 321(h)(3).
The Act recognizes that certain products may constitute a combination of
a drug and a device. 21 U.S.C. 353(g)(1). FDA may regulate drug/device combination
products by using its authority to regulate drugs, its authority to regulate
devices, or both. 61 Fed. Reg. 44,400-44,403 (1996). One provision relating
to devices authorizes FDA, by regulation, to "require that a device
be restricted to sale, distribution, or use * * * upon such * * * conditions
as [FDA] may prescribe in such regulation, if, because of its potentiality
for harmful effect or the collateral measures necessary to its use, [FDA]
determines that there cannot otherwise be reasonable assurance of its safety
and effectiveness." 21 U.S.C. 360j(e)(1).
2. In response to petitions requesting that FDA regulate tobacco products,
FDA conducted an extensive investigation, issued a proposed rule and "jurisdictional"
analysis, and invited public comment. 60 Fed. Reg. 41,314 (1995). In August
1996, FDA determined that tobacco products constitute a combination of a
"drug" and a "device" and issued regulations directed
to those products. 61 Fed. Reg. at 44,396; id. at 44,619.
FDA based its determination that tobacco products are "drugs"
and "devices" on two key findings: (a) extensive scientific documentation
establishes that the nicotine in tobacco products "affects the structure
or any function of the body" because it causes and sustains addiction,
and acts as a sedative, stimulant, and appetite suppressant, 61 Fed. Reg.
at 44,630, 44,664-44,685; and (b) those effects are "intended"
by the manufacturers of tobacco products. Id. at 44,630, 44,686-45,204.
a. In finding that the nicotine in tobacco products affects the structure
and function of the body, FDA relied on scientific evidence that nicotine
directly affects a part of the brain known as the mesolimbic system, which
rewards the repeated consumption of certain pleasurable substances. By increasing
the activity of dopamine within that system, nicotine causes the compulsive
drug-seeking behavior of drug addiction. 61 Fed. Reg. at 44,700, 44,721.
In some circumstances, and in some doses, nicotine in tobacco products acts
as a sedative, while in other circumstances and doses, it acts as a stimulant.
Id. at 44,666. Studies also show that nicotine can cause weight loss. Ibid.
FDA found that those effects on the structure and function of the body are
quintessentially drug-like, identical to those FDA has found in numerous
other products that it regulates under the Act, including stimulants, tranquilizers,
appetite suppressants, nicotine replacement products, and narcotics used
to treat addiction. Id. at 44,632, 44,666-44,670.
b. In finding that the effects of tobacco products on the structure and
function of the body are "intended," FDA drew on three categories
of evidence.
First, FDA found that nicotine's widely recognized addictive properties
make it foreseeable to any reasonable manufacturer that a substantial proportion
of users of tobacco products will consume them to satisfy their addiction.
61 Fed. Reg. at 44,701-44,739. FDA also found that nicotine's mood-altering
effects and its effects on weight are so well established that a reasonable
manufacturer would foresee that tobacco products would be used by a substantial
proportion of consumers for those purposes as well. Id. at 44,634-44,635,
44,698-44,701, 44,739-44,744. Those findings, FDA determined, are sufficient
in themselves to meet the statutory standard of "intended" effects,
because "[i]t is a widely accepted legal principle that persons can
be held to 'intend' the reasonably foreseeable consequences of their actions."
Id. at 44,691 (citing, inter alia, Agnew v. United States, 165 U.S. 36,
53 (1897) ("The law presumes that every man intends the legitimate
consequence[s] of his own acts.")).
Second, FDA found that consumers do in fact use tobacco products predominantly
for pharmacological purposes. 61 Fed. Reg. at 44,635-44,636, 44,807-44,846.
As many as 92% of all cigarette smokers and 75% of all young persons who
regularly use smokeless tobacco consume those products because they are
addicted to the nicotine in them. Id. at 44,635-44,636. Indeed, the percentage
of smokers addicted to nicotine is higher than the percentage of heroin
and cocaine users addicted to those drugs. Id. at 44,812-44,813. More than
70% of young daily smokers and 50% of young daily smokeless tobacco users
consume tobacco products to obtain their mood-altering effects. Id. at 44,636.
As many as one-half of young persons who smoke do so to control their weight.
Ibid. Although some people also use tobacco products for their taste or
because they like the ritual, those purposes are clearly secondary. Id.
at 44,807, 44,826-44,827. FDA determined that, "[w]here consumers use
a product predominantly or nearly exclusively to obtain any of the effects
on the structure or function of the body produced by a substance, such evidence
would alone be sufficient to establish manufacturer intent." Id. at
44,807 (citing Action on Smoking & Health v. Harris, 655 F.2d 236, 239-240
(D.C. Cir. 1980)).
Third, FDA relied on statements, research, and actions of the manufacturers
themselves, which showed that the manufacturers intend their products to
affect the structure and function of the body. 61 Fed. Reg. at 44,847-45,097.
That extensive evidence, FDA concluded, satisfies the standard dictionary
definitions of "intend," because it shows that manufacturers "have
in mind" the pharmacological effects and uses of their tobacco products
and "design" them to enhance those effects and uses. Id. at 44,851
& n.413 (quoting, inter alia, The American Heritage Dictionary of the
English Language 668 (2d ed. 1991)).
FDA cited recently discovered evidence that the leading tobacco manufacturers
have long known that consumers use tobacco products to obtain the pharmacological
effects of nicotine. 61 Fed. Reg. at 44,636-44,640, 44,854-44,915. For example,
as early as 1969, the vice president for research and development for Philip
Morris informed the board of directors that "the ultimate explanation
for the perpetuated cigaret habit resides in the pharmacological effect
of smoke upon the body of the smoker." Id. at 44,855. In the ensuing
decades, Philip Morris researchers described a cigarette as "a dispenser
for a dose unit of nicotine," id. at 44,856, observed that cigarettes
serve as "a narcotic, tranquilizer, or sedative," id. at 44,857,
characterized nicotine as "a powerful pharmacological agent with multiple
sites of action," ibid., and reported that "it is well recognized
within the cigarette industry that there is one principal reason why people
smoke -to experience the effects of nicotine, a known pharmacologically
active constituent in tobacco," id. at 44,858.
Similarly, a memorandum from the early 1970s shows that R.J. Reynolds (RJR)
scientists regarded nicotine as a "potent" and "habit-forming"
drug, considered cigarettes to be "a vehicle for delivery of nicotine,"
and conceived of the tobacco industry itself as "a specialized, highly
ritualized and stylized segment of the pharmaceutical industry." 61
Fed. Reg. at 44,867. The memorandum also stated that "the confirmed
user of tobacco products is primarily seeking the physiological 'satisfaction'
derived from nicotine," and that "what we are really selling [is]
nicotine satisfaction." Id. at 44,868. RJR researchers later reiterated
that "[w]ithout any question, the desire to smoke is based on the effect
of nicotine on the body," that "a confirmed smoker attempts to
get a certain desired level of nicotine," and that "[t]he nicotine
in the blood acts upon the central nervous system and produces in the average
smoker a sensation one could describe as either stimulating or relaxing."
Id. at 44,871.
In the 1960s, a senior advisor to the board of British American Tobacco
Company (BATCO), the parent company of Brown & Williamson, stated that
"smoking is a habit of addiction," and that "nicotine is
a very remarkable beneficent drug that both helps the body to resist external
stress and also can as a result show a pronounced tranquillising effect."
61 Fed. Reg. at 44,882. During the same period, Brown & Williamson's
general counsel stated that "nicotine is addictive" and that "[w]e
are, then, in the business of selling nicotine, an addictive drug."
Id. at 44,884. BATCO researchers also stated that "puffing behaviour
is the means of providing nicotine dose in a metered fashion." Id.
at 44,890.
FDA further found that cigarette manufacturers acted on the basis of their
statements and research concerning the pharmacological effects of tobacco
products. In particular, FDA found that "[m]anufacturers of commercially
marketed cigarettes commonly manipulate nicotine deliveries to provide remarkably
precise, pharmacologically active doses of nicotine to consumers."
61 Fed. Reg. at 44,951. Such manipulation is especially evident in low-tar
cigarettes, which make up 80% of the cigarette market. Id. at 44,951-44,952.
As tar levels are reduced, nicotine levels naturally fall. Id. at 44,976.
To counteract that effect and to provide an active dose of nicotine in low-tar
cigarettes, manufacturers use tobacco blends with higher nicotine content,
id. at 44,954-44,957, ventilation systems that remove more tar than nicotine
from smoke, id. at 44,963-44,967, and chemical additives that increase the
amount of pharmacologically active nicotine in the smoke, id. at 44,970-44,971.
FDA likewise found evidence that manufacturers of smokeless tobacco manipulate
nicotine deliveries. They market "starter" brands that have a
low level of nicotine, so that new users may develop a tolerance for nicotine
without experiencing nausea or vomiting. 61 Fed. Reg. at 44,643. They also
market regular brands to experienced users that are engineered to deliver
the level of nicotine necessary to sustain addiction. Ibid. Through marketing
and advertising, manufacturers encourage those who have developed a tolerance
for starter brands to graduate to regular brands. Id. at 45,120.2
Finally, although FDA concluded that each of the three categories of evidence
just discussed independently supports its determination that manufacturers
intend the pharmacological effects and uses of their tobacco products, the
cumulative effect and convergence of the evidence "convincingly establishes
that cigarettes and smokeless tobacco are 'intended' to affect the structure
and function of the body within the meaning of the Act." 61 Fed. Reg.
at 45,203-45,204.
c. Having concluded that tobacco products fall squarely within the "drug"
and "device" definitions, FDA next examined the structure of the
Act as a whole, prior agency statements concerning its authority to regulate
tobacco products, Congress's failure to pass legislation that would have
expressly authorized FDA to regulate tobacco products, and Congress's enactment
of certain tobacco-specific statutes. After carefully evaluating each of
those considerations, FDA concluded that none of them detracts from the
conclusion that tobacco products are "drugs" and "devices"
under the Act. See, e.g., 61 Fed. Reg. at 44,412-44,413 (structure of the
Act); id. at 45,219-45,252 (prior statements); id. at 45,255-45,259 (unenacted
legislation); id. at 44,544-44,548, 45,261-45,265 (tobacco-specific statutes).
d. In sum, FDA concluded that the nicotine in tobacco products is a "drug,"
61 Fed. Reg. at 45,207, that tobacco products contain "device components"
for the delivery of that drug, and that cigarettes and smokeless tobacco
therefore are "combination products" under the Act. Id. at 45,208-45,216.
3. a. FDA next determined that tobacco use is the largest cause of preventable
death in the United States. 61 Fed. Reg. at 44,398. Tobacco kills more Americans
annually than AIDS, car accidents, alcohol, homicides, illegal drugs, suicides,
and fires combined. Ibid. FDA also found that tobacco use is a "pediatric
disease," id. at 44,421, because most people who use tobacco as adults
began smoking regularly during childhood. If adolescents can be kept tobacco-free,
most will never start using tobacco as adults. Id. at 44,399. Efforts to
prevent childhood tobacco use, however, have not been successful thus far.
Approximately one million children begin to smoke every year. Id. at 44,568.
One of every three young people who become regular smokers will die prematurely
from a tobacco-related disease. Id. at 44,399.
b. Because most tobacco-related addiction begins in childhood, FDA issued
regulations aimed at reducing the use of tobacco products by young people.
It adopted access restrictions that, inter alia: (1) prohibit the sale of
tobacco products to persons under age 18; (2) require retailers to check
the identification of persons under age 27; and (3) prohibit vending machine
sales and self-service displays of tobacco products except in adult-only
locations. 61 Fed. Reg. at 44,616-44,617. FDA also issued regulations requiring
tobacco product labeling to bear the established name of the product (e.g.,
"cigarettes") and the statement, "Nicotine-Delivery Device
for Persons 18 or Older." Id. at 44,617.
Based on evidence that "advertising plays a material role in the decision
of children * * * to engage in tobacco use," 61 Fed. Reg. at 44,489,
and internal company documents showing the industry's concerted efforts
"to attract young smokers" and "presmokers" through
advertising, id. at 44,480, FDA concluded that restrictions on the forms
of advertising that are most effective in attracting young smokers are necessary
to complement the access restrictions. Id. at 44,406-44,407. FDA's advertising
and promotion restrictions include: (1) a requirement that advertisements
appear in black-and-white, text-only format, except in adult publications
and adult-only facilities; (2) a ban on outdoor advertising within 1000
feet of schools and public playgrounds; (3) a prohibition on the sale or
distribution of hats, t-shirts, and other similar promotional products that
bear a tobacco product brand name or logo; and (4) a prohibition on sponsorship
of athletic, cultural, or other events in a tobacco brand name. Id. at 44,617-44,618.
In adopting its access, labeling, and advertising restrictions, FDA invoked
its authority under 21 U.S.C. 360j(e)(1) to place conditions on the sale,
distribution, and use of a device if FDA determines that "there cannot
otherwise be reasonable assurance of its safety and effectiveness."
4. Respondents (tobacco companies, advertisers, and retailers) brought suit
in the United States District Court for the Middle District of North Carolina,
challenging the validity of FDA's tobacco product regulations. Respondents
moved for summary judgment, arguing that: (1) FDA lacks statutory authority
to regulate tobacco products that are marketed without claims of therapeutic
value; (2) FDA lacks statutory authority to regulate advertising of tobacco
products; and (3) FDA's advertising restrictions violate the First Amendment.
For purposes of their summary judgment motion, respondents accepted as true
the facts found by FDA concerning the effects of tobacco products on the
human body, and the intent of the manufacturers to cause those effects.
Pet. App. 77a-78a n.1.
The district court granted in part and denied in part respondents' motion
for summary judgment. Pet. App. 76a-134a. The district court first held
that FDA had lawfully concluded that tobacco products are subject to regulation
as "drugs" and "devices." Id. at 80a-126a. The court
reasoned that, given FDA's finding that tobacco products are intended to
cause and sustain addiction and to act as a stimulant, sedative, and weight
regulator, tobacco products fit squarely within the Act's definitions of
"drug" and "device." Id. at 81a, 104a-116a. The court
concluded that FDA's previous statements concerning its authority to regulate
tobacco products, Congress's failure to enact bills that would have expressly
authorized FDA to regulate tobacco products, and the tobacco-specific statutes
enacted after 1938 do not detract from the reasonableness of FDA's conclusion
that tobacco products are drugs and devices under the Act. Id. at 84a-101a.
The district court upheld FDA's restrictions on minors' access to tobacco
products as a valid exercise of FDA's authority under 21 U.S.C. 360j(e)(1)
to impose conditions on the "sale, distribution, or use" of "devices."
Pet. App. 133a. It also upheld FDA's labeling requirements. Id. at 134a.
The court concluded, however, that FDA's advertising and promotion restrictions
are not authorized by Section 360j(e). Id. at 127a-133a. The district court
certified all of its rulings for interlocutory appeal, id. at 135a, and
the court of appeals accepted that certification, id. at 11a.
5. a. In a 2-1 decision, a panel of the Fourth Circuit reversed, Pet. App.
1a-75a, holding that "FDA lacks jurisdiction to regulate tobacco products,"
and that "all of the FDA's August 28, 1996 regulations * * * are thus
invalid," id. at 11a-12a. The majority acknowledged that the plain
meaning of the drug and device provisions "may appear to support the
government's position that tobacco products fit within the Act's definitions
of drugs or devices." Id. at 19a. The majority determined, however,
that FDA could not rely on the definitional provisions, because, in its
view, tobacco products do not fit into the Act's overall regulatory scheme.
Id. at 20a-30a.
The majority concluded that, under 21 U.S.C. 360j(e), FDA has a responsibility
to determine that there is a reasonable assurance of safety of a product
that it declines to ban completely from the market. Pet. App. 21a-22a. Because
FDA found tobacco products to be dangerous, the majority concluded, FDA's
failure to prohibit the sale of such products does not "comply with
the terms of the very statutory provision it has chosen as its basis for
regulation." Id. at 23a. The majority further concluded that, given
FDA's finding that tobacco products are not safe, several other provisions
of the Act would require FDA to ban the sale of tobacco products, a result
the majority found to be in conflict with what it perceived to be Congress's
intent. Id. at 23a-30a. The majority concluded that "FDA's need to
maneuver around the obstacles created by the operative provisions of the
Act reflects congressional intent not to include tobacco products within
the scope of the FDA's authority." Id. at 29a-30a. The majority also
concluded that FDA's previous statements concerning the circumstances in
which it would regulate tobacco products, Congress's failure to enact bills
that would have expressly authorized FDA to regulate tobacco products, and
the tobacco-specific statutes enacted since 1938 all corroborate that Congress
did not intend the original grant of authority to FDA to include regulation
of tobacco products. Id. at 31a-52a.
b. Judge Hall dissented. Pet. App. 55a-75a. Observing that the "record
contains voluminous evidence of the pharmacological effects of nicotine,"
id. at 57a, and that such effects are "intended" by tobacco manufacturers,
id. at 57a-59a, he concluded that "[t]obacco products fit comfortably
into the [Act's] definitions of 'drug' and 'device,'" id. at 55a. Judge
Hall rejected the majority's view that FDA's failure to prohibit the sale
of tobacco products, despite finding them to be dangerous, demonstrates
that tobacco products are not covered by the Act. Id. at 60a-61a. He reasoned
that "[h]ow the FDA has chosen to regulate tobacco has no bearing on
the question of whether the agency has the authority to regulate it at all."
Ibid. Judge Hall similarly disagreed with the majority's reliance on FDA's
prior decisions and statements regarding its authority to regulate tobacco
products. Id. at 63a-65a. He pointed out that "an agency can change
its view of what action is possible or necessary, particularly when new
facts come to light." Id. at 64a. Here, he explained, FDA had a strong
basis for changing its position because of new evidence that "nicotine
is extremely addictive and that a large majority of tobacco users use the
product to satisfy that addiction," and, even more important, because
of new evidence that "manufacturers design their products to sustain
such addiction." Id. at 65a. Judge Hall also disagreed with the majority's
reliance on unenacted bills, concluding that any inference that could be
drawn from that experience was offset by Congress's inaction following FDA's
announcement of its proposed rule to regulate tobacco products. Id. at 61a
n.1. Finally, Judge Hall concluded that the "tobacco-specific"
statutes cited by the majority address narrow subjects and fall far short
of showing that Congress intended to prevent FDA from exercising regulatory
authority over tobacco products. Id. at 65a-70a.
SUMMARY OF ARGUMENT
The Food and Drug Administration reasonably concluded that tobacco products
are drugs and devices subject to regulation under the Act. Under Chevron
U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984),
FDA's conclusion is entitled to controlling weight.
A. The Federal Food, Drug, and Cosmetic Act defines "drug" and
"device" to include products "intended to affect the structure
or any function of the body," 21 U.S.C. 321(g)(1)(C) and (h)(3), and
it does not exempt tobacco products from those definitions. Given FDA's
finding that the nicotine in tobacco products is intended by manufacturers
to sustain addiction and to act as a sedative, stimulant, and appetite suppressant,
tobacco products plainly qualify as drugs and devices under the Act.
B. Tobacco products also have the classic characteristics of drugs and devices
subject to regulation under the Act: They are taken within the human body,
they deliver a pharmacologically active substance to the bloodstream, and
they have potentially dangerous effects. Moreover, the intended pharmacological
effects of tobacco products mirror those of numerous other products that
FDA regulates, including tranquilizers, stimulants, weight-loss products,
nicotine replacement products, and narcotics used to treat addiction.
Respondents' argument that tobacco products cannot be drugs or devices unless
they are accompanied by express claims of therapeutic value is without merit.
The text of the Act makes "intended" effects, not "market
claims," the decisive factor. When, as here, consumers use a product
predominantly for its pharmacological effects, manufacturers know that is
why consumers use their products, and manufacturers manipulate the content
of the product in order to promote those uses, an intent to affect the structure
or function of the body is clearly established. FDA has regulated other
products intended to affect the structure or function of the body, despite
the absence of explicit market claims, and there is no principled basis
for treating tobacco products differently.
C. The court of appeals' view that tobacco products cannot be drugs or devices,
because if they were, they would have to be banned, is incorrect. The Act
authorizes FDA to permit the continued marketing of drugs and devices, subject
to regulation, when it finds that the dangers of banning the product outweigh
the benefits. FDA reasonably determined that, with respect to adults, the
dangers of banning tobacco from the market outweigh the benefits, because
a ban would leave many users with untreatable symptoms of withdrawal, and
would predictably lead to the use of more dangerous black market products.
If the Court were to overturn FDA's judgment concerning the risks and benefits
of leaving tobacco products on the market, however, that would simply mean
that the Act, as presently written, requires tobacco products to be banned.
That consequence would in no way undermine FDA's conclusion that tobacco
products are intended to affect the structure or function of the body and
are therefore drugs and devices subject to regulation under the Act.
D. Until FDA issued the regulations at issue here, the only instances in
which it had found that tobacco products were intended to affect the structure
or function of the body involved cases in which there were express market
claims of therapeutic value. An agency is always free to change its position
on an issue, however, as long as it provides a reasoned explanation justifying
the change, and FDA provided such a reasoned explanation here. FDA's conclusion
that tobacco products are intended to affect the structure or function of
the body, regardless of whether manufacturers make express claims of therapeutic
value, is based on overwhelming new evidence that nicotine is addictive,
that consumers use tobacco products primarily to satisfy addiction and for
its mood-altering effects, that manufacturers know that consumers use their
products primarily for those purposes, and that manufacturers have engineered
their products to deliver pharmacologically active doses of nicotine.
Nor is it significant that Congress has failed to enact bills that would
have expressly authorized FDA to regulate tobacco products. The Constitution
requires Congress to express its will through enacted legislation, not unenacted
bills. Congress's failure to enact bills that would have expressly authorized
FDA to regulate tobacco products therefore has no more bearing on the question
presented in this case than does Congress's failure to enact other bills
that would have excluded tobacco products from the reach of the Act.
Finally, the tobacco-specific statutes enacted long after 1938 do not affect
the question presented here. Those statutes address narrow issues, such
as what warning labels should be placed on cigarette packages. None of those
statutes exempts tobacco products from the reach of the Federal Food, Drug,
and Cosmetic Act, and none of them remotely implies that FDA altogether
lacks authority to regulate tobacco products.
ARGUMENT
THE FOOD AND DRUG ADMINISTRATION VALIDLY DETERMINED THAT TOBACCO PRODUCTS
ARE "DRUGS" AND "DEVICES" WITHIN THE MEANING OF THE
ACT
After the most extensive rulemaking hearing in its history, the Food and
Drug Administration determined that the nicotine in tobacco products is
intended by tobacco manufacturers to cause and sustain addiction and to
act as a stimulant, sedative, and appetite suppressant. The sole question
presented in this case is whether, given that finding, FDA validly determined
that tobacco products are subject to regulation as "drugs" and
"devices" under the Act.
Because Congress has conferred on FDA the authority to administer the Act,
21 U.S.C. 393(d)(2) (1994 & Supp. III 1997), and to issue regulations
to carry out its purposes, 21 U.S.C. 371(a), FDA's conclusion that tobacco
products are drugs and devices is subject to review under the standard set
forth in Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
467 U.S. 837 (1984). Under Chevron, unless Congress has "unambiguously
expressed [its] intent" and "directly addressed the precise question
at issue," the question for a court is whether the agency's view is
based on a "permissible construction" of the Act. Id. at 843.
That means that "a court may not substitute its own construction of
a statutory provision for a reasonable interpretation made by the administrator
of an agency." Id. at 844. Rather, when the agency "fills a gap
or defines a term in a way that is reasonable in light of the legislature's
revealed design," a court must give the agency's view "controlling
weight." Ibid. As we now demonstrate, FDA reasonably concluded that
tobacco products are subject to regulation under the Act as "drugs"
and "devices." The Court should therefore give FDA's interpretation
controlling weight.3
A. FDA's Interpretation Is Supported By The Plain Language, Structure, And
Drafting History Of The Drug And Device Definitions
1. Rather than identifying specific products that FDA may regulate as "drugs"
and "devices," Congress enacted comprehensive definitions of those
terms. Products that fall within those definitions, unless expressly exempted,
are subject to the Act's regulatory regime. The Act defines "drug"
as:
(A) articles recognized in the official United States Pharmacopoeia, official
Homeopathic Pharmacopoeia of the United States, or official National Formulary,
or any supplement to any of them; and (B) articles intended for use in the
diagnosis, cure, mitigation, treatment, or prevention of disease in man
or other animals; and (C) articles (other than food) intended to affect
the structure or any function of the body of man or other animals; and (D)
articles intended for use as a component of any article specified in clauses
(A), (B), or (C) of this paragraph.
21 U.S.C. 321(g)(1) (emphasis added). The Act similarly defines "device"
as, inter alia, "an instrument, apparatus, * * * contrivance, * * *
or other similar or related article, including any component, part, or accessory,
* * * intended to affect the structure or any function of the body of man
or other animal, and which does not achieve its primary intended purposes
through chemical action within or on the body and which is not dependent
upon being metabolized for the achievement of its primary intended purposes."
21 U.S.C. 321(h)(3).
Significantly, the Act does not exempt tobacco from the drug and device
definitions. In contrast, the Act does specifically exclude "food"
from the very "structure-function" definition of "drug"
at issue here, 21 U.S.C. 321(g)(1)(C), and exempts "tobacco" itself
from the definition of "dietary supplement," 21 U.S.C. 321(ff)(1).
See also 21 U.S.C. 321(i) (exempting "soap" from the definition
of "cosmetic"; 21 U.S.C. 321(s) (1994 & Supp. III 1997) (exempting
"pesticides" in certain circumstances from the definition of "food
additive"). Congress has also specifically exempted tobacco products
from many other laws, including the Federal Hazardous Substances Act, 15
U.S.C. 1261(f)(2), the Fair Packaging and Labeling Act, 15 U.S.C. 1459(a)(1),
the Consumer Products Safety Act, 15 U.S.C. 2052(a)(1)(B), the Toxic Substances
Control Act, 15 U.S.C. 2602(2)(B)(iii), and the Controlled Substances Act,
21 U.S.C. 802(6). Accordingly, the overwhelming implication from the text
and structure of the "drug" and "device" definitions
is that tobacco products, like all other products not specifically exempted,
are subject to regulation as "drugs" and "devices" if
they are "intended to affect the structure or any function of the body."
21 U.S.C. 321(g)(1)(C) and (h)(3).
2. Given the extensive evidence before FDA, and FDA's findings based on
that evidence, tobacco products plainly qualify as "drugs" and
"devices" under that statutory standard. The evidence established
that: (1) nicotine in tobacco products causes and sustains addiction and
acts as a sedative, stimulant, and appetite suppressant; (2) most persons
who use tobacco products do so in order to obtain those effects; (3) tobacco
manufacturers know that most consumers use their products for those purposes;
(4) tobacco manufacturers themselves characterize nicotine as a powerful
drug and cigarettes as a vehicle for delivering nicotine; (5) the manufacturers
design their products to deliver pharmacologically active doses of nicotine;
and (6) the manufacturers market their products with claims that they will
provide "satisfaction," a "code-word" for the pharmacological
effects of nicotine. See pp. 3-8, supra. Based on that compelling evidence,
FDA found that the nicotine in tobacco products is intended by manufacturers
to cause and sustain addiction, and to act as a sedative, stimulant, and
appetite suppressant. In light of that critical finding, tobacco products
fit squarely within the "drug" and "device" definitions-they
are, without question, "intended to affect the structure or any function
of the body." 21 U.S.C. 321(g)(1)(C) and (h)(3). Thus, the plain language
of the Act, which is the starting point in resolving any question of statutory
construction, United States v. Ron Pair Enters., Inc., 489 U.S. 235, 241
(1989), provides powerful support for FDA's conclusion that tobacco products
are "drugs" and "devices" under the Act.
3. The history of the Act provides additional support for FDA's conclusion.
Before the Act was passed in 1938, the Pure Food and Drugs Act defined "drug"
to include "articles recognized in the official United States Pharmacopoeia,
official Homeopathic Pharmacopoeia of the United States, or official National
Formulary, or any supplement to any of them," and "any substance
or mixture of substances intended to be used for the cure, mitigation, or
prevention of disease of either man or other animals." Pure Food and
Drugs Act of 1906, ch. 3915, § 6, 34 Stat. 769. In the 1938 Act, Congress
expanded the definition of "drug" to include "articles (other
than food) intended to affect the structure or any function of the body
of man or other animals." § 201, 52 Stat. 1041. The new Act also
added a parallel definition of "device." Ibid. Congress enacted
the new definitions because existing law "contain[ed] serious loopholes"
and was "not sufficiently broad in its scope to meet the requirements
of consumer protection under modern conditions." H.R. Rep. No. 2139,
75th Cong., 3d Sess. 1 (1938). Congress was particularly concerned about
dangerous and ineffective weight-loss products that had escaped regulation
under the old drug definition. S. Rep. No. 361, 74th Cong., 1st Sess. Pt.
1, at 239 (1935). Congress understood, however, that the Act would reach
well beyond weight-loss products and cover other products intended to affect
the structure or function of the body. See H.R. Rep. No. 2139, supra, at
2 ("Drugs intended for diagnosing illness or for remedying underweight
or overweight or for otherwise affecting bodily structure or function are
subjected to regulation.").
The drafting history of the drug and device definitions provides compelling
evidence that the definitions were intended to have a scope that is as broad
as their language prescribes. Early versions of the bill had included "devices
intended to affect the structure or function of the body" within the
definition of "drug." S. Rep. No. 493, 73d Cong. 2d Sess. 2 (1934).
In hearings on one of those bills, a Member of Congress asked the FDA Administrator
whether the drug definition would include "ultraviolet lights and various
instruments of that sort." Charles W. Dunn, Federal Food, Drug, and
Cosmetic Act, App. B at 1053 (1938). The Administrator responded that it
would, because the portion of the "drug" definition that encompassed
"devices" was "admittedly an inclusive, * * * wide definition."
Ibid. The Administrator added that the definition would also encompass belts
used for therapeutic purposes, explaining that "[t]his definition of
'drugs' is all-inclusive." Id. App. C at 1126-1127. Members of Congress
later expressed concern that the device portion of the drug definition was
so broad as to reach shoulder braces, radium belts, electrical devices,
bathroom weight scales, hospital air conditioners, and crutches. United
States v. Bacto-Unidisk, 394 U.S. 784, 795-796 (1969) (citing relevant debates).
The members did not object to the regulation of such products under the
Act; instead, they objected to the characterization of such products as
drugs. Id. at 796-797. In response to that narrow concern, the bill was
amended to remove devices from the drug definition and to create a separate
definition of "device" that paralleled the new definition of drug.
Ibid. That solution eliminated the awkwardness of referring to electric
belts and therapeutic lamps as drugs, while preserving the bill's broad
scope. Ibid.
The statutory background and drafting history of the Act show that Congress
understood that the definitions of "drug" and "device"
would determine what products would be subject to regulation under the Act,
and that the scope of those definitions was intended to be coextensive with
their plain language, reaching many products that had not been subject to
regulation before. Accordingly, they firmly support FDA's reliance on the
plain language of the "drug" and "device" definitions
in concluding that, given their intended pharmacological effects, tobacco
products are subject to regulation under the Act.4
4. This Court's decision in Bacto-Unidisk also provides significant support
for FDA's analysis. The question in that case was whether an antibiotic
sensitivity disc used to determine which antibiotic should be used in treatment
of a particular patient was a "drug" under the Act. 394 U.S. at
784. The disc satisfied the literal definition of "drug," because
it was intended for use in the cure, mitigation, or treatment of disease.
Id. at 792. The lower courts had held, however, that the drug definition
should be construed to reach only those products that satisfy the medical
definition of a drug. Ibid. This Court squarely rejected that interpretation
and held that the disc was a "drug" within the meaning of the
Act. Relying on the text of the Act and the drafting history discussed above,
the Court concluded that "the word 'drug' is a term of art for purposes
of the Act, encompassing far more than the strict medical definition of
that word." Id. at 793. The Court further explained that "[t]he
historical expansion of the definition of drug, and the creation of a parallel
concept of devices, clearly show * * * that Congress fully intended that
the Act's coverage be as broad as its literal language indicates-and equally
clearly broader than any strict medical definition might otherwise allow."
Id. at 798. Bacto-Unidisk therefore fully supports FDA's reliance on the
plain language of the drug and device definitions for its conclusion that,
in light of their intended pharmacological effects, tobacco products are
drugs and devices under the Act.
B. FDA's Interpretation Is Also Supported By FDA's Prior Regulatory Practice
And The Public Health Purposes Of The Act
1. FDA's conclusion that tobacco products are subject to regulation as drugs
and devices is also supported by FDA's prior regulatory practice and the
public health purposes of the Act. As FDA has explained, the intended pharmacological
effects of tobacco products mirror those of numerous other products that
FDA regulates, including tranquilizers, stimulants, weight-loss products,
and narcotics used to treat addiction. See 61 Fed. Reg. at 44,632, 44,667-44,678.
FDA also regulates the sale of other products containing nicotine, such
as nicotine patches, nicotine chewing gum, and nicotine nasal spray, and
the pharmacological effects of nicotine in tobacco products are far more
powerful than those in the other nicotine-containing products. Id. at 44,665.
Significantly, moreover, tobacco products have the classic characteristics
of drugs and devices subject to regulation under the Act: Tobacco products
are taken within the human body, they deliver a pharmacologically active
substance to the bloodstream, and they have potentially dangerous effects.
61 Fed. Reg. at 44,628. The resemblance of tobacco products to other products
regulated as drugs and devices by the FDA has not escaped the attention
of tobacco manufacturers. In their own research, market planning, and deliberations,
the manufacturers have referred to the nicotine in tobacco as a drug, to
cigarettes as a vehicle for the delivery of nicotine, and to the tobacco
industry as a segment of the pharmaceutical industry. See pp. 5-7, supra.
Because of the similarity between tobacco products and other products regulated
by FDA, it is not surprising that FDA has previously regulated tobacco products
when it has found sufficient evidence that they were intended to affect
the structure or any function of the body, see United States v. 354 Bulk
Cartons * * * Trim Reducing-Aid Cigarettes, 178 F. Supp. 847, 851 (D.N.J.
1959), or that they were intended to treat or prevent disease, see United
States v. 46 Cartons, More or Less, Containing Fairfax Cigarettes, 113 F.
Supp. 336, 338-339 (D.N.J. 1953).
2. Respondents have sought to distinguish the products regulated by FDA
that have pharmacological effects similar to those of tobacco products on
the ground that those products are sold with express therapeutic claims.
That distinction, in respondents' view, also explains why it was appropriate
for FDA to regulate tobacco products in the two cigarette cases cited above.
Under respondents' theory, tobacco products would be subject to FDA regulation
only if tobacco manufacturers suddenly decided on a policy of full public
disclosure and made express representations that their products cause and
satisfy addiction and are intended to be used as a sedative, stimulant,
and appetite suppressant. But as long as they refrain from making such claims,
respondents argue, tobacco products are not subject to the Act. That remains
true, under respondents' theory, even when, as here, there is overwhelming
evidence that consumers use tobacco products as sedatives, stimulants, and
appetite suppressants and to maintain addiction; that those characteristics
of tobacco products are so well known as to render them unquestionably foreseeable
to the manufacturers of the products; and that the manufacturers of the
products in fact act keenly aware of those effects and uses and manipulate
the nicotine content of their products to promote them.
In these circumstances, the pervasive knowledge and conduct on the part
of both manufacturers and consumers serve the same function as labeling
or other express representations by the manufacturers in identifying the
intended effects and uses of the product, thereby rendering any such representations
unnecessary. It would be ironic indeed, and contrary to the fundamental
public health purposes of the Act, to conclude that a product is altogether
excluded from regulation under the comprehensive terms of the Act precisely
because its basic drug-like qualities are so well documented, widely known,
and thoroughly embedded in the behavior of consumers and manufacturers as
to render express claims to that effect superfluous. And, not surprisingly,
respondents' view that FDA must blind itself to compelling evidence that
a product is intended to affect the structure or function of the body simply
because a manufacturer has not made any express claims of therapeutic value
is at odds with the text of the Act, longstanding FDA regulations, the legislative
history of the Medical Devise Amendments of 1976, lower court decisions,
and FDA's regulatory practice.
The text of the Act makes "intended" effects, not "market
claims," the decisive factor. 21 U.S.C. 321(g)(1)(C) and (h)(3). While
market claims are one important way in which a product's intended effects
may be established, they are not the only way. As the present case so clearly
shows, other circumstances can establish that a product is intended to affect
the structure or function of the body. Nothing in the text of the operative
definitions bars FDA from relying on such evidence. Moreover, if Congress
had wished to establish the statutory standard respondents propose, it could
have used terms such as "promoted to," "labeled to,"
"advertised to," or "represented to" instead of "intended
to." Congress used such terms in other provisions of the Act. 21 U.S.C.
321(n) (misbranding may result from "representations" made in
"labeling or advertising"); 21 U.S.C. 352(a) (a drug is misbranded
if its "labeling" is false or misleading); 21 U.S.C. 352(c) (a
drug is misbranded unless its "advertisements and other descriptive
printed matter" contain certain true statements). Congress's failure
to use those terms in the drug and device definitions is therefore significant:
It shows that Congress understood the difference between intended effects
and claimed effects, and that it deliberately chose the more comprehensive
"intended to affect" formulation to define the products subject
to coverage under the Act. See 61 Fed. Reg. at 45,154-45,155.
Consistent with that understanding, FDA regulations that have been in effect
for more than four decades provide that "intended use" (or words
to that effect) refer to "the objective intent of the persons legally
responsible for labeling," and may be determined not only by "labeling
claims" and "advertising matter," but also by (1) other "oral
or written statements" made by persons legally responsible for the
labeling; (2) "the circumstances surrounding the distribution of the
article"; (3) "the circumstances that the article is, with the
knowledge of [the responsible persons], * * * offered and used for a purpose
for which it is neither labeled nor advertised"; and (4) evidence that
"a manufacturer knows, or has knowledge of facts that would give him
notice" that a drug or device "is to be used" for purposes
other than those for which the manufacturer offered the products. 21 C.F.R.
201.128 (drug); 21 C.F.R. 801.4 (device).5 FDA has further explained that
its "objective intent" standard means that FDA will consider all
relevant evidence of intent from the perspective of a reasonable fact-finder,
and that it is not bound by the intent a manufacturer claims to have. 61
Fed. Reg. at 45,153, 45,184 n.1133. Compare Posters 'N' Things v. United
States, 511 U.S. 513, 519-522 (1994) (holding that the phrase "primarily
intended for use [with illegal drugs]," which is the definition of
"drug paraphernalia" in 21 U.S.C. 857(d), "is to be understood
objectively and refers generally to the item's likely use").
The legislative history of the Medical Device Amendments of 1976, Pub. L.
No. 94-295, 90 Stat. 539, in which Congress revised and reenacted the definition
of "device" in its current form, see § 3(a)(i)(A), 90 Stat.
575, confirms the soundness of FDA's interpretation of that definition (and
the parallel definition of "drug") as not limiting the "intended"
effects of a product to those the manufacturer expressly claims. The House
Report stated that, although the major new authorities to be conferred on
FDA should be limited to devices intended for human use,
[t]his is not to say * * * that a manufacturer of a device that is banned
by the Secretary [for human use] can escape the ban by labeling the device
for veterinary use. The Secretary may consider the ultimate destination
of a product in determining whether or not it is for human use, just as
he may consider actual use of a product in determining whether or not it
is a device.
H.R. Rep. No. 853, 94th Cong., 2d Sess. 14 (1976) (emphasis added).
Lower courts likewise have agreed that a manufacturer's intent with respect
to effects or use may be determined on the basis of all relevant circumstances,
including consumer use, not simply a manufacturer's market claims. National
Nutritional Foods Ass'n v. Mathews, 557 F.2d 325, 334 (2d Cir. 1977) (intent
may be determined from any relevant source, including consumer use); United
States v. An Article * * * Consisting of * * * 216 Cartoned Bottles, 409
F.2d 734, 739, 742 (2d Cir. 1969) (the intended use of a product may be
determined from its label, accompanying labeling, promotional material,
advertising and any other relevant source, including consumer use); United
States v. Storage Spaces Designated Nos. "8" & "49",
777 F.2d 1363, 1366 (9th Cir. 1985), (manufacturer intent may be derived
from any relevant source), cert. denied, 479 U.S. 1086 (1987); Action on
Smoking & Health v. Harris, 655 F.2d 236, 239-240 (D.C. Cir. 1980) (ASH)
(consumer use can be relevant in determining manufacturer intent); see also
United States v. 789 Cases * * * of Latex Surgeons' Gloves, 799 F. Supp.
1275, 1285, 1294-1295 (D.P.R. 1992); United States v. An Article of Device
* * * "Cameron Spitler Amblyo-Syntonizer", 261 F. Supp. 243, 245
(D. Neb. 1966). From a public health perspective, no other result could
be justified. The risks to the public health and the appropriateness of
regulation under the Act exist regardless of whether intended effects are
established through market claims or by other evidence. See Bacto-Unidisk,
394 U.S. at 798 (the Act is to be given a construction "consistent
with the Act's overriding purpose to protect the public health").
Finally, in its administration of the Act, FDA has treated products intended
to affect the structure or function of the body as drugs or devices, despite
the absence of express market claims of therapeutic value. For example,
FDA took enforcement action against "caine," a product that contained
anesthetic powders and that was often marketed as incense. FDA found that
"caine" was intended to be used as a drug, based on a laboratory
analysis of its ingredients, its sale in "head shops," and "street"
information that it provided a "cheap high." 61 Fed. Reg. at 45,167.
Similarly, FDA took enforcement action against "khat," a shrub
whose leaves act as a stimulant when chewed or used as tea, even though
its vendors did not make any market claims. FDA determined that "khat"
was intended for use as a drug based on its actual effects and widely known
uses. Ibid.
FDA has also treated other products as drugs or devices, despite the absence
of explicit market claims. Among other products, FDA has treated as drugs
or devices: (1) cosmetics containing hormones based on the absence of any
legitimate cosmetic purpose for the hormones; (2) toothpaste containing
fluoride because fluoride is widely accepted as an anti-cavity agent and
affects the structure of the tooth; (3) thyroid-containing food supplements
based on the recognized physiological effects of thyroid products; (4) interferon
based on media coverage touting it as a possible miracle cure; (5) novelty
condoms based on their likely use as prophylactics; (6) noncorrective tinted
contact lenses based on their effects on the eye; (7) sunscreen products
based on consumer expectations that they will provide protection against
the sun; and (8) tanning booths based on the known effects of ultraviolet
rays. 60 Fed. Reg. at 41,528-41,531. In each of the above cases, FDA found
that the product was intended for use as a drug or a device based on the
inherent nature of the product, its predominant use or effects, or both.
Id. at 41,527. There is no principled basis for treating tobacco products
differently, especially in light of the compelling evidence that tobacco
manufacturers have known for decades that nicotine is addictive and has
mood-altering effects and that those are the main reasons that people use
tobacco products. Tobacco products should not escape regulation for the
protection of the public health simply because tobacco manufacturers rerain
from making express claims about the pharmacological effects and uses they
so clearly intend and from which they so clearly profit.
C. FDA's Interpretation Is Consistent With The Structure Of The Act As A
Whole
The court of appeals rejected FDA's conclusion that tobacco products are
drugs and devices in large part because it believed that regulation of tobacco
products is inconsistent with the structure of the Act as a whole. The court
essentially reasoned as follows: (1) If tobacco products are drugs or devices
within the meaning of the Act, the regulatory provisions of the Act would
require them to be banned; (2) Congress did not intend for tobacco products
to be banned; therefore (3) tobacco products are not drugs and devices.
See generally Pet. App. 18a-30a. That analysis is seriously flawed. FDA
reasonably concluded that the operative regulatory provisions of the Act
do not require a ban of tobacco products. Even if the operative provisions
of the Act were to require a ban, however, that would not detract from the
reasonableness of FDA's conclusion that tobacco products are drugs and devices.
1. In concluding that tobacco products would have to be banned if they are
drugs and devices, the court of appeals cited provisions of the Act that
either directly prohibit the marketing of drugs and devices that FDA has
found not to be sufficiently "safe," or contemplate that FDA will
prevent or otherwise regulate the marketing of such products.6 Because FDA
determined that tobacco products are dangerous, the court reasoned, those
provisions would require tobacco products to be banned if they were "drugs"
and "devices." See generally Pet. App. 18a-30a.
In deciding whether a drug or device is sufficiently "safe" within
the meaning of the provisions cited by the court of appeals, however, FDA's
role is not confined to determining whether the product is unsafe as that
term is most commonly used. FDA also generally weighs the risk presented
by a product against countervailing health benefits. That balancing of risks
and benefits is expressly required when FDA classifies devices into regulatory
categories. 21 U.S.C. 360c(a)(2)(C) ("the safety and effectiveness
of a device are to be determined by weighing any probable benefit to health
from the use of the device against any probable risk of injury or illness
from such use"). FDA also follows the same general balancing approach
in applying and enforcing other provisions of the Act. See United States
v. Rutherford, 442 U.S. 544, 555 (1979). For example, as FDA has explained,
several products used in the treatment of cancer are highly toxic and therefore
are not "safe" as that term is most commonly understood. 61 Fed.
Reg. at 44,413. FDA has nonetheless approved such products for use in cancer
treatment after finding that the danger of not treating the cancer outweighs
the risks of the drugs. Ibid.
FDA applied a similar analysis here. It found that, while "tobacco
products are unsafe as that term is conventionally understood," the
Act contemplates "consideration of not only the risks presented by
a product but also any of the countervailing effects of use of that product,
including the consequences of not permitting the product to be marketed."
61 Fed. Reg. at 44,412-44,413. After undertaking that balancing process,
FDA concluded that, with respect to adults, "the sudden withdrawal
from the market of products to which so many millions of people are addicted
would be dangerous" for several reasons. Id. at 44,413. First, as a
result of withdrawal symptoms, "[t]here could be significant health
risks to many of these individuals." Ibid. Second, the health care
system could be "overwhelmed by the treatment demands that these people
would create, and it is unlikely that the pharmaceuticals available could
successfully treat the withdrawal symptoms of many tobacco users."
Ibid. Finally, because of the strength of the addiction and the difficulty
of quitting, "a black market and smuggling would develop to supply
smokers with these products," and the black market products would likely
"be even more dangerous than those currently marketed, in that they
could contain even higher levels of tar, nicotine, and toxic additives."
Ibid. FDA therefore reasonably concluded that, "on balance, an approach
that prohibits the sale and promotion of cigarettes and smokeless tobacco
to children and adolescents, while permitting the sale to adults seems most
appropriate, * * * is consistent with the statutory standard of reasonable
assurance of safety[,] and is more effective in achieving public health
goals than a ban on all tobacco products." Ibid.
The Fourth Circuit rejected FDA's analysis on the ground that FDA had applied
the wrong legal standard for determining the safety of a product. In the
court's view, the Act requires FDA "to strike a balance between the
risks and benefits of the use of a product, not to weigh the risks of leaving
a product on the market against the risks of taking a product off the market."
Pet. App. 21a. The statutory text, however, does not impose any such limitation
on the agency's discretion. The "benefit to health from the use"
of a product, 21 U.S.C. 360c(a)(2)(C), readily encompasses the prevention
of the harmful health consequences that would ensue if a product were removed
from the market. Tobacco products thus "benefit" the "health"
of many users because they relieve otherwise untreatable symptoms of nicotine
withdrawal, and because they are safer than black market products that would
predictably be used for that purpose if tobacco products could no longer
be lawfully marketed to adults.
FDA's interpretation, moreover, best comports with the public health purposes
of the Act. From a public health perspective, it would make no sense to
require removal of a product from the market when that would cause more
harmful health consequences than leaving the product on the market. This
Court's decision in Rutherford also supports FDA's interpretation. There,
the Court affirmed FDA's conclusion that laetrile, while inherently harmless,
was unsafe within the meaning of the Act and should be removed from the
market, because its availability could lead persons to reject more beneficial
conventional treatments. 442 U.S. at 556. FDA's conclusion here-that the
continued marketing of tobacco products to adults should be allowed because
their removal could leave those users without treatment alternatives for
their addiction and lead them to use more dangerous products-is the mirror
image of the analysis approved in Rutherford. Thus, FDA's conclusion that
the Act does not require tobacco products to be banned is based on a reasonable
construction of the Act. Under Chevron, the court of appeals should have
deferred to it. The court of appeals, however, did not even advert to the
question of Chevron deference when it rejected FDA's conclusion that the
Act does not require it to impose a complete ban on tobacco products. See
Pet. App. 20a-30a.
2. Even assuming the regulatory provisions of the Act would require tobacco
products to be banned, however, that would not affect the reasonableness
of FDA's conclusion that tobacco products are drugs and devices within the
meaning of the Act. As Judge Hall stated in his dissent in this case, "[h]ow
the FDA has chosen to regulate tobacco has no bearing on the question of
whether that agency has the authority to regulate it at all." Pet.
App. 60a-61a. See also Bacto-Unidisk, 394 U.S. at 792 (while the parties
have debated the wisdom of subjecting antibiotic sensitivity disks to premarket
review, the only relevant inquiry "is whether the statute's definition
of 'drug' authorizes the disc regulations contested here").
The court of appeals' contrary conclusion rests on the premise that a ban
on tobacco products would be a consequence that the enacting Congress did
not contemplate and that therefore would conflict with Congress's intent,
so that, if the regulatory provisions of the Act would require tobacco products
to be banned, they cannot be drugs or devices. No provision of the Act as
passed in 1938, however, suggests that a ban on the sale of tobacco products,
or indeed any other products-based on powerful evidence that might later
came to light establishing the addictive and other intended pharmacological
effects of such products-would conflict with congressional intent. Nor is
there any other sound basis for reaching that conclusion.
Congress expresses its operative intent in the text of the laws it enacts,
see Oncale, 523 U.S. at 79-80; H.J. Inc., 492 U.S. at 248, and that intent
is not difficult to discern here: When FDA finds that a product is "intended
to affect the structure or any function of the body", 21 U.S.C. 321(g)(1)(C)
and (h)(3), and that the product is not sufficiently, "safe,"
21 U.S.C. 393(b)(2)(B) and (C)-i.e., the risks of the product outweigh its
benefits-Congress intended for the product not to be marketed.7
If this Court were to overturn FDA's judgment that the risks of tobacco
products are outweighed by the countervailing benefits of continued marketing
to adults, that would simply mean that the Act, as presently written, requires
tobacco products to be banned. That consequence, however, would in no way
undermine FDA's conclusion that tobacco products are intended to affect
the structure or function of the body and are therefore drugs and devices
subject to regulation under the Act. In those circumstances, then, it would
properly be for Congress, after weighing the competing considerations, to
decide whether the ban that was (by hypothesis) required by the Act in its
current form should remain in effect, or whether the Act should be amended
to permit the continued marketing of cigarettes and other tobacco products,
under whatever conditions Congress might then prescribe. That result would
not be at all anomalous in the working of a comprehensive, prophylactic
statute designed to protect the public health and safety. It is, for example,
the way in which the Food, Drug, and Cosmetic Act itself operated and Congress
responded after FDA concluded that saccharin is an animal carcinogen, the
continued sale of which as a food additive would be unlawful under the Act,
a conclusion that was dictated by the Delaney Clause, 21 U.S.C. 348(c)(3).
Congress enacted legislation that imposed an 18-month moratorium on FDA's
proposed rule. Saccharin Study and Labeling Act, Pub. L. No. 95-203, 91
Stat. 1451.8 That moratorium has been extended repeatedly, and it remains
in effect today. See Pub. L. No. 104-180, § 602, 110 Stat. 1594; 21
U.S.C. 348 note.9
D. FDA's Prior Statements, Unenacted Tobacco Bills, And Certain Tobacco-Specific
Statutes Enacted Long After 1938 Do Not Detract From The Reasonableness
Of FDA's Interpretation
In rejecting FDA's conclusion that tobacco products are drugs and devices,
the court of appeals also relied on FDA's prior statements concerning its
authority to regulate tobacco products, unenacted bills that would have
specifically authorized FDA to regulate tobacco products, and certain tobacco-specific
statutes enacted long after the Federal Food, Drug, and Cosmetic Act was
passed. FDA carefully examined each of those sources and reasonably determined
that they do not detract from the conclusion that tobacco products are drugs
and devices under the Act.
1. Until FDA issued the regulations at issue here, the only instances in
which the agency had found that tobacco products were drugs involved cases
in which there were express market claims of therapeutic value. FDA's prior
position on the subject was authoritatively expressed in decisions in 1977
and 1980 rejecting petitions filed by Action on Smoking in Health (ASH)
to regulate cigarettes as drugs or devices. See J.A. 44-49 (Letter from
FDA Commissioner Kennedy to ASH Executive Director Banzhaf (Dec. 5, 1977));
J.A. 50-68 (Letter from FDA Commissioner Goyan to ASH Executive Director
Banzhaf (Nov. 25, 1980)). Focusing on those decisions, and some earlier
statements made by FDA officials, the court of appeals treated FDA's current
position as not warranting deference. Pet. App. 31a-37a. The court of appeals
erred both in its understanding of FDA's prior position and in its approach
to reviewing FDA's current regulation of tobacco products.
An agency's position on any given issue is not "carved in stone."
Chevron, 467 U.S. at 863. To fulfill its assigned responsibilities, an agency
"must be given ample latitude to 'adapt [its] rules and policies to
the demands of changing circumstances,'" Motor Vehicle Mfrs. Ass'n
v. State Farm Mut., 463 U.S. 29, 42 (1983), and "must consider varying
interpretations and the wisdom of its policy on a continuing basis."
Chevron, 467 U.S. at 863-864. For those reasons, and because "the whole
point of Chevron is to leave the discretion provided by the ambiguities
of a statute with the implementing agency," Smiley v. Citibank (South
Dakota), N.A., 517 U.S. 735, 742 (1996), an agency is always free to change
its position on an issue or its interpretation of a statute, as long as
it offers a "reasoned analysis" that justifies the change. Rust
v. Sullivan, 500 U.S. 173, 187 (1991); Chevron, 467 U.S. at 863-864; Motor
Vehicle Mfrs. Ass'n, 463 U.S. at 42.
FDA provided such a "reasoned analysis" here. Specifically, FDA
explained that three key developments led to its change in position. First,
while no major health organization had determined that nicotine was an addictive
drug before 1980, by 1994, every leading scientific panel or organization
had concluded that nicotine is addictive. 61 Fed. Reg. at 45,228. Second,
since 1980, scientific evidence has shown that an overwhelming percentage
of users of tobacco products do so to satisfy their addiction and to obtain
nicotine's mood-altering effects. Id. at 45,233-45,234. In contrast, before
1980, there was no evidence regarding the proportion of users who were addicted,
and the evidence was insufficient to conclude that tobacco products were
consumed primarily for their pharmacological effects. Id. at 45,234-45,235.
Third, recently released internal industry documents show that tobacco manufacturers
have long known that consumers use tobacco products to sustain addiction
and for other pharmacological effects, and that manufacturers have deliberately
engineered their products to deliver active doses of nicotine. Id. at 45,235-
45,236. Almost none of that evidence was publicly available in 1980. Id.
at 45,237. FDA's finding that tobacco products are intended to affect the
structure and function of the body, regardless of whether they are accompanied
by express market claims of therapeutic value, is therefore "based
on an overwhelming body of new evidence that ha[d] become available since
FDA last considered this issue." Id. at 45,237. Because FDA provided
a reasoned explanation for its change in position, that position is entitled
to full Chevron deference. Rust, 500 U.S. at 186-187; Motor Vehicle Mfrs.
Ass'n, 463 U.S. at 42; see also Smiley, 517 U.S. at 742.
The court of appeals concluded that FDA's prior decisions not to regulate
tobacco products were based on a categorical view that tobacco products
cannot be subject to regulation under the Act absent specific health claims,
rather than the absence of the kind of evidence of intended effects discussed
above. Pet. App. 36a. The court's understanding of the ASH decisions is
incorrect. In the 1977 decision, FDA rejected ASH's assertion that cigarettes
could be regulated as drugs because consumers use them for their effects
on the body, on the ground that ASH's evidence was not sufficient to establish
such an intent by the manufacturers or vendors of cigarettes. J.A. 48-49.
The government's brief defending FDA's decision in the court of appeals
explained that FDA had concluded that cigarettes could not be regulated
as drugs "in the absence of health claims by the manufacturers or vendors
or other evidence of the manufacturers' or vendors' intent to affect the
bodily structure or functions." Gov't Br. at 14, Action on Smoking
& Health v. Harris, 655 F.2d 236 (D.C. Cir. 1980) (emphasis added).
In affirming FDA's decision, the D.C. Circuit stated that "we do not
read [FDA's decision] to mean either that the Commissioner will never consider
evidence of consumer intent on this question or that he simply ignored the
evidence presented to him in this petition." ASH, 655 F.2d at 239.
Instead, the petition failed because ASH had failed to "meet the high
standard established in cases where the statutory 'intent' is derived from
consumer use alone." Ibid.
In the 1980 "device" decision, FDA stated that the relevant inquiry
under the Act is whether there "is objective evidence that the manufacturer
or vendor intends that the article is to affect the structure or a function
of the body." J.A. 56. FDA further explained that a finding of such
an intent could be based not only on a manufacturer's market claims, but
also on "the circumstances surrounding [a product's] distribution,"
and the "consumer intent in using a product." Ibid. FDA determined,
however, that ASH's evidence, including ASH's evidence of consumer use,
"fails to establish that cigarettes are intended 'to affect the structure
or any function of the body.'" J.A. 57; accord J.A. 61-63. FDA's prior
rulings on formal petitions to regulate tobacco products therefore rested
on the absence of sufficient evidence at the time that such products were
intended to affect the structure or function of the body-not on a categorical
view that tobacco products can satisfy the drug and device definitions only
if manufacturers make express market claims of therapeutic value.10
Even if FDA's prior decisions not to regulate tobacco products could be
understood as resting on such a categorical view, however, that would not
affect the validity of FDA's present determination that tobacco products
are drugs and devices under the Act. An agency is not only free to alter
its view of the underlying facts; it is also free to change its view of
the appropriate legal standard for evaluating the facts. See Rust, 500 U.S.
at 186-187. Regardless of whatever uncertainty there might have been about
FDA's position in the past, FDA has now unambiguously concluded that the
drug and device definitions encompass products that are intended by manufacturers
to affect the structure or function of the body, irrespective of whether
the manufacturer makes express claims of therapeutic value. FDA has also
concluded that there is no basis for creating an exception to that legal
standard for tobacco products. Because that interpretation of the Act is
supported by a "reasoned analysis," it is entitled to full Chevron
deference. Ibid.
2. Over the years, Congress has failed to enact bills that would have expressly
authorized FDA to regulate tobacco products. The court of appeals viewed
such congressional inaction as strong evidence that FDA lacks authority
to regulate tobacco products under the Act. Pet. App. 37a-39a. Failed legislative
proposals, however, do not furnish a sound basis for determining the meaning
of a prior statute. See, e.g., United States v. Estate of Romani, 523 U.S.
517, 533-535 (1998); Central Bank v. First Interstate Bank, 511 U.S. 164,
187 (1994). The Constitution requires Congress to express its will through
enacted legislation, not unenacted bills. INS v. Chadha, 462 U.S. 919, 945-959
(1983). Congressional inaction also "lacks persuasive significance
because several equally tenable inferences may be drawn from such inaction,
including the inference that the existing legislation already incorporated
the offered change." Central Bank, 511 U.S. at 187 (quoting Pension
Benefit Guar. Corp. v. LTV Corp., 496 U.S. 633, 650 (1990)). For those reasons,
Congress's failure to enact bills that would have expressly authorized FDA
to regulate tobacco products has no more bearing on the question presented
in this case than does Congress's failure to enact bills that would have
excluded tobacco products from the reach of the Act, e.g., S. Rep. No. 1295,
104th Cong., 1st Sess. (1995); H.R. Rep. No. 2283, 104th Cong., 1st Sess.
(1995), or Congress's failure during the past three years to overturn FDA's
decision to regulate tobacco products.
The court of appeals' reason for attributing significance to the legislative
inaction at issue here is particularly unconvincing. In the court's view,
such inaction amounted to congressional "ratification" of FDA's
prior statements and decisions that tobacco products are not subject to
regulation under the Act. Pet. App. 37a. As we have explained, however,
FDA's prior position was based on the absence of sufficient evidence showing
that tobacco products were intended by manufacturers to affect the structure
or any function of the body. Ratification of that position would not reflect
any congressional view on whether tobacco products would be covered by the
Act if new evidence established that they are intended by manufacturers
to be used for sustaining addiction and for sedation, stimulation, and weight
control.
More fundamentally, congressional inaction can never affect the authority
of an agency under Chevron to alter its position on an issue. Motor Vehicle
Manufacturers Ass'n, supra, is controlling on that point. In that case,
the Court held that Congress's failure to overturn an agency regulation
did not affect the scope of the agency's authority to rescind the regulation.
463 U.S. at 44-45. The Court explained that the standard for reviewing agency
action is not "enlarged or diminished by subsequent congressional action,"
and that "even an unequivocal ratification-short of statutory incorporation-
* * * would not connote approval or disapproval of an agency's later decision
to rescind the regulation." Id. at 45. Under the analysis in Motor
Vehicle Manufacturers Ass'n, Congress's failure to overturn FDA's prior
position has no bearing on the validity of FDA's present position that tobacco
products are drugs or devices under the Act.
3. Since the Surgeon General issued his well-known report in 1964, Congress
has enacted several statutes that deal with tobacco products in certain
specific respects. See Pet. App. 39a-42a. None of the statutes, however,
expressly exempts tobacco products from the reach of the Act. Nor is there
any irreconcilable conflict between the subsequent statutes and the conclusion
that tobacco products fall within the reach of the Act. TVA, 437 U.S. at
189-190 (implied repeal occurs only when there is an irreconcilable conflict
between the old and the new laws). Those statutes therefore do not affect
the reasonableness of FDA's conclusion that tobacco products are drugs and
devices under the Act.
a. The Federal Cigarette Labeling and Advertising Act (FCLAA), 15 U.S.C.
1331 et seq., requires cigarette packaging and advertising to bear specific
warnings from the Surgeon General concerning the adverse health effects
of smoking. 15 U.S.C. 1333. FCLAA also contains a specific preemption section
that provides that "[n]o statement relating to smoking and health,
other than the statement required by section 1333 * * *, shall be required
on any cigarette package." 15 U.S.C. 1334(a). That statutory text makes
clear that FDA may not require warning labels on cigarettes that are different
from those required by FCCLA. The text of FCCLA does not remotely suggest,
however, that it altogether deprives FDA of any authority to regulate tobacco
products. As this Court explained in Cipollone v. Liggett Group, Inc., 505
U.S. 504, 518 (1992), FCLAA "merely prohibit[s] state and federal rulemaking
bodies from mandating particular cautionary statements on cigarette labels."
The court of appeals derived a broader preemptive scope from FCLAA's statement
of policy, which is, inter alia, "to establish a comprehensive Federal
program to deal with cigarette labeling and advertising with respect to
any relationship between smoking and health, whereby * * * commerce and
the national economy may be protected to the maximum extent consistent with
this declared policy and * * * not impeded by diverse, nonuniform, and confusing
cigarette labeling and advertising regulations with respect to any relationship
between smoking and health." 15 U.S.C. 1331. From that statement, the
court concluded that Congress had a broad purpose to protect the national
economy by allowing the continued marketing of cigarettes if the packages
bear sufficient warning labels-a goal the court believed would be undermined
if tobacco products were "drugs" and "devices" subject
to regulation under the Act. Pet. App. 43a-44a.
As we have already explained, however, treatment of tobacco products as
drugs or devices does not lead to the conclusion that such products must
be banned, and the regulations at issue here permit the continued sale of
tobacco products to adults. In any event, FCLAA does not seek to protect
the national economy by shielding tobacco products from laws that would
restrict their marketing. Instead, as the text of FCLAA's policy statement
makes clear, and as its narrow preemption provision confirms, Congress's
goal was far more limited: It wanted to "protect[] the national economy
from the burden imposed by diverse, nonuniform, and confusing cigarette
labeling and advertising regulations." Cipollone, 505 U.S. at 514;
see Banzhaf v. FCC, 405 F.2d 1082, 1089 (D.C. Cir. 1968) ("[n]othing
in the [FCLAA] Act indicates that Congress had any intent at all with respect
to other types of regulation by other agencies-much less that it specifically
meant to foreclose all such regulation"), cert. denied, 396 U.S. 842
(1969). FCLAA does not limit the authority of FDA to ban the sale of tobacco
products, any more than it limits the authority of a State to do so (as
indeed all States have done with respect to sales to minors, 61 Fed. Reg.
at 44,441). The enactment of FCLAA therefore does not affect the validity
of FDA's conclusion that tobacco products are drugs and devices under the
Act.
b. The Comprehensive Smokeless Tobacco Health Education Act of 1986 (Smokeless
Tobacco Act), 15 U.S.C. 4401 et seq., requires warnings on smokeless tobacco
packages that are similar to the warnings required on cigarette packages.
15 U.S.C. 4402(a) and (b). It also contains a similar express preemption
provision, which states: "No statement relating to the use of smokeless
tobacco products and health, other than the statements required by section
4402 of this title, shall be required by any Federal agency to appear on
any package or in any advertisement." 15 U.S.C. 4406(a). Like FCCLA,
the Smokeless Tobacco Act simply requires certain warning labels on packages
and precludes federal agencies, including FDA, from requiring different
ones. Like FCCLA, the Smokeless Tobacco Act does not in any way suggest
that tobacco products cannot be drugs or devices under the Act.
c. The Alcohol and Drug Abuse Amendments of 1983, Pub. L. No. 98-24, 97
Stat. 178, 42 U.S.C. 290aa et seq., direct the Secretary of Health and Human
Services to report to Congress every three years on "the health consequences
* * * of drug abuse in the United States [and] * * * current research findings
made with respect to drug abuse, including current findings on * * * the
addictive property of tobacco," and to include the Secretary's recommendations
for "legislation and administrative action as the Secretary may deem
appropriate." 42 U.S.C. 290aa-2(b). Those reporting requirements do
not conflict with FDA's conclusion that tobacco products are drugs and devices
under the Federal Food, Drug, and Cosmetic Act. As Judge Hall explained,
the reporting obligations do no more than acknowledge the important role
that the Secretary has in determining policy in the complex field of drug
abuse, and require the Secretary "to ask Congress for any additional
tools * * * needed to * * * perform that role effectively." Pet. App.
69a.
d. The Alcohol, Drug Abuse, and Mental Health Administration Reorganization
Act (ADAMHA), Pub. L. No. 102-321, 106 Stat. 394, created separate block
grants for state mental health services and drug and alcohol abuse programs.
One condition for receiving a block grant is that a State must have in effect
a law making it illegal to sell or distribute tobacco products to children
under age 18. 42 U.S.C. 300x-26(a). Neither the ADAMHA as a whole nor that
specific requirement implies that FDA has no authority to regulate tobacco
products as a drug or a device.
The court of appeals concluded that, if tobacco products are "drugs"
or "devices" subject to regulations under the Federal Food, Drug,
and Cosmetic Act, then one provision of that Act, 21 U.S.C. 360k(a) "would
prohibit States from addressing the problem of youth access," in conflict
with the congressional intent evident in ADAMHA. Pet. App. 51a. Under Section
360k(a), a State may not establish "any requirement" with respect
to devices that is "different from, or in addition to, any requirement
applicable under" the Act. 21 U.S.C. 360k(a)(1). Section 360k(a), however,
"does not preempt State or local requirements that are equal to, or
substantially identical to, requirements imposed by or under the act."
Medtronic, Inc. v. Lohr, 518 U.S. 470, 496-497 (1996) (quoting 21 C.F.R.
808.1(d)(2)). Since ADAMHA's "age 18" restriction is the same
as the access restriction imposed by FDA's regulations, the regulations
will not prevent States from complying with their block grant obligations
under ADAMHA. In fact, by providing an additional level of enforcement against
the sale of tobacco products to children, the regulations will "facilitate
the end result that Congress sought" in ADAMHA. 61 Fed. Reg. at 44,547.
FDA's regulations could potentially preempt state regulations that impose
stricter conditions on the sale of tobacco products than those set forth
in the regulations. But that result does not suggest that there is any inherent
or irreconcilable conflict between ADAMHA and FDA's conclusion that tobacco
products are covered under the Federal Food, Drug, and Cosmetic Act. ADAMHA
does not provide a protective shield for all state regulations of tobacco.
It simply establishes one condition for receiving a block grant, and, as
noted above, FDA's regulations do not prevent States from complying with
that condition. In any event, under 21 U.S.C. 360k(b), States may apply
for an exemption from the preemptive force of the Act, and FDA has substantial
discretion to grant such an exemption. See 61 Fed. Reg. at 44,550; Medtronic,
518 U.S. at 482 n.5, 496. Thus, like the other later-enacted statutes, ADAMHA
does not impose any impediment to FDA's thoroughly documented and reasoned
conclusion that tobacco products are "drugs" and "devices"
within the meaning of the Federal Food, Drug, and Cosmetic Act.
CONCLUSION
The judgment of the court of appeals should be reversed.
Respectfully submitted.
SETH P. WAXMAN
Solicitor General
DAVID W. OGDEN
Acting Assistant Attorney
General
EDWIN S. KNEEDLER
Deputy Solicitor General
WILLIAM B. SCHULTZ
Deputy Assistant Attorney
General
IRVING L. GORNSTEIN
Assistant to the Solicitor
General
EUGENE THIROLF
DOUGLAS LETTER
GERALD C. KELL
SCOTT R. MCINTOSH
CHRISTINE N. KOHL
Attorneys
MARGARET JANE PORTER
Chief Counsel
KAREN E. SCHIFTER
PATRICIA J. KAEDING
Associate Chief Counsel
Food and Drug
Administration
JULY 1999
1 Copies of the Federal Register notices containing the final rule and jurisdictional
determination have been lodged with the Court.
2 FDA also relied on evidence that tobacco manufacturers advertise that
tobacco products will provide "satisfaction." 61 Fed. Reg. at
45,172-45,178. FDA found that, to the users of tobacco products, the "promise
of 'satisfaction' implies that the product will fulfill their craving for
the pharmacological effects of nicotine-satisfying their addiction and providing
the sought after mood-altering effects of nicotine." Id. at 45,175.
In effect, "manufacturers use 'satisfaction' as a code-word for the
pharmacological effects of nicotine." Id. at 45,178.
3 The court of appeals appeared to question the applicability of Chevron
for two reasons. First, the court noted (Pet. App. 16a) that, under Adams
Fruit Co. v. Barrett, 494 U.S. 638, 649 (1990), "[a] precondition to
deference under Chevron is a congressional delegation of administrative
authority," suggesting that the court believed that such a delegation
is absent here. Adams Fruit holds that an agency is not entitled to deference
when it does not have authority to enforce the statutory provision at issue.
Ibid. Because Congress has conferred authority on FDA to regulate drugs
and devices, Adams Fruit is inapplicable here. Second, the Fourth Circuit
suggested (Pet. App. 16a) that an agency is entitled to diminished deference
when it attempts "to expand the scope of its jurisdiction." As
long as an agency is reasonably interpreting a statutory provision it enforces,
however, Chevron deference applies. It is not relevant whether the agency's
proposed interpretation can be said to affect its jurisdiction. Chevron,
467 U.S. at 844 (an agency is entitled to deference on the "reach of
a statute" it is authorized to enforce). See Commodity Futures Trading
Comm'n v. Schor, 478 U.S. 833, 844-845 (1986); NLRB v. City Disposal Sys.,
Inc., 465 U.S. 822, 830 n.7 (1984); see also Mississippi Power & Light
Co. v. Mississippi ex rel. Moore, 487 U.S. 354, 380-382 (1988) (Scalia,
J., concurring) (collecting cases).
4 As the court of appeals noted (Pet. App. 32a), there is no discussion
in the legislative history of the 1938 Act concerning whether tobacco products
would or would not be covered as drugs or devices. But that is hardly surprising.
At the time, there was not public evidence that the nicotine in tobacco
products was intended by manufacturers to cause and sustain addiction and
to act as a sedative, stimulant, and appetite suppressant. Moreover, as
the discussion in the text demonstrates, Congress deliberately drafted comprehensive
definitions of drug and device, and it is that intent, rather than Congress's
understanding of the specific products that would be encompassed by those
definitions, that is controlling. See Oncale v. Sundowner Offshore Servs.,
Inc., 523 U.S. 75, 79 (1998) (Since "it is ultimately the provisions
of our laws rather than the principal concerns of our legislators by which
we are governed," it is irrelevant whether the members of Congress
who enacted Title VII would have regarded male-on-male sexual harassment
as a form of discrimination prohibited by Title VII.); H.J. Inc. v. Northwestern
Bell Tel. Co., 492 U.S. 229, 248 (1989) (While "[t]he occasion for"
the enactment of the RICO statute was "the perceived need to combat
organized crime," Congress "chose to enact a more general statute.").
See also note 7, infra.
5 The regulatory definitions quoted in the text, which were first promulgated
in 1952 (see 17 Fed. Reg. 6818 (1952)), define "intended use"
for purposes of FDA's labeling regulations. The product labeling regulations
require adequate labeling for all "intended uses" of a drug or
device. See 21 C.F.R. 201.5 (drugs), 801.5 (devices). As FDA explained in
its jurisdictional determination concerning tobacco products (61 Fed. Reg.
at 44,693 n.23, 45,157), however, it regularly uses the definitions in the
product-labeling regulations not only to identify the intended uses of products
that are already classified as drugs or devices, but also to determine whether
products should be classified as drugs or devices in the first place.
6 See 21 U.S.C. 393(b)(2)(B) and (C) (Supp. III 1997) (FDA shall protect
the public health by ensuring that "drugs are safe and effective,"
and that "there is a reasonable assurance of the safety and effectiveness
of devices."); 21 U.S.C. 360j(e)(1) (FDA "may by regulation require
that a device be restricted to sale, distribution, or use * * * upon such
* * * conditions as [FDA] may prescribe by regulation, if, because of its
potentiality for harmful effect * * *, [FDA] determines that there cannot
otherwise be reasonable assurance of its safety and effectiveness.");
21 U.S.C. 355(a) and (d) (No person may introduce any "new drug"
absent FDA approval, and, if FDA finds that the drug "is unsafe for
use," it "shall issue an order refusing to approve the application.");
21 U.S.C. 331(a), 352(j) (The introduction of a "misbranded" drug
or device is prohibited, and a drug or device is "misbranded"
when "it is dangerous to health when used in the dosage or manner,
or with the frequency or duration prescribed, recommended, or suggested
in the labeling."); 21 U.S.C. 360c (FDA must classify devices into
one of three categories based on what controls are necessary to provide
a reasonable assurance of the safety and effectiveness of the device.);
21 U.S.C. 360h(e)(1) (If FDA "finds that there is a reasonable probability
that a device * * * would cause serious, adverse health consequences or
death," FDA "shall issue an order requiring the appropriate person
* * * to immediately cease distribution of such device.").
7 What is dispositive for purposes of statutory construction is the statute
itself, not whether the Congress that enacted the statute could have anticipated
a specific application of the general standards that it prescribed, or whether
that Congress would have desired the particular consequences of one such
natural application. "It is not for us to speculate, much less act,
on whether Congress would have altered its stance had the specific events
of this case been anticipated." TVA v. Hill, 437 U.S. 153, 185 (1978);
accord Busic v. United States, 446 U.S. 398, 404-405 (1980).
8 The court of appeals concluded that FDA's regulatory scheme does not comport
with three other provisions of the Act. Those additional criticisms are
also misguided. FDA's determination that the "primary mode" of
tobacco products is that of a "drug" does not mean that FDA must
regulate tobacco products as drugs rather than devices. Pet. App. 24a. A
finding concerning the primary mode of a combination product only determines
which component of FDA will have principal responsibility to conduct premarket
review. See 21 U.S.C. 353(g)(1). Regardless of which component has that
responsibility, FDA may regulate a combination product by using its authority
to regulate drugs, its authority to regulate devices, or both. 61 Fed. Reg.
at 44,400-44,403. Nor does 21 U.S.C. 352(f)(1) automatically require tobacco
manufacturers to include directions for use on their product labels. Pet.
App. 25a-26a. FDA may grant an exemption from that requirement when the
information is "not necessary for the protection of public health."
21 U.S.C. 352(f)(1). Because the way in which tobacco products are used
is common knowledge, FDA reasonably determined that an exemption was appropriate.
61 Fed. Reg. at 44,465. Finally, 21 U.S.C. 352(f)(2) does not require tobacco
manufacturers to include additional warnings for children on the labels
of tobacco products. Pet. App. 26a-27a. FDA reasonably concluded that the
familiar Surgeon General's warnings required by other federal statutes are
sufficient to satisfy that provision's requirement that a label bear adequate
warnings against use by children. 61 Fed. Reg. at 44,465. In any event,
as discussed above, the sole question presented here is whether tobacco
products are drugs and devices within the meaning of the Act. Whether FDA
is required to take further steps, in addition to the regulations it has
prescribed, does not have any bearing on the resolution of that question.
9 Congress responded in a similar manner to the holding in TVA v. Hill,
437 U.S. 153 (1978), that the Endangered Species Act of 1973 (ESA), 16 U.S.C.
1531 et seq., prohibited the completion of the Tellico Dam because the project
would destroy the snail darter, by directing the completion of the dam,
"notwithstanding" the ESA. See Energy and Water Development Appropriation
Act, Pub. L. No. 96-69, 93 Stat. 449. See also County of Oneida v. Oneida
Indian Nation, 470 U.S. 226, 253 (1985).
10 The court of appeals also relied upon a 1914 opinion letter by FDA's
predecessor agency. Pet. App. 32a. That letter, however, supports the proposition
that labeling claims are not dispositive and that consumer use is relevant
to the question of "intent":
Under the Food and Drugs Act, a drug is defined as any substance, or mixture
of substances, intended to be used for the cure, mitigation, or prevention
of disease of either man or other animals. It, therefore, follows that tobacco
and its preparations, when labeled in such a manner as to indicate their
use for the cure, mitigation, or prevention of disease, are drugs within
the meaning of the act, and, as such, are subject to the provisions thereof.
On the other hand, tobacco and its preparations which are not so labeled
and are used for smoking or chewing or as snuff and not for medicinal purposes
are not subject to the provisions of the act.
USDA Bureau of Chemistry, 13 Service and Regulatory Announcements 24 (Apr.
1914) (Feb. 1914 Announcements ¶ 13, Opinion of Chief of Bureau C.L.
Alsberg). As the letter makes clear, labeling can be sufficient to establish
the requisite intent. But if the absence of labeling were sufficient to
negate intent, the italicized ("and are used") clause would have
been superfluous. The final sentence of the opinion simply states that tobacco
products could escape regulation under the 1906 Act as drugs if they were
not labeled to indicate their use for the cure, mitigation, or prevention
of disease and they were not used for such purposes. See 61 Fed. Reg. at
45,222 n.1160.
The court of appeals also relied on letters or statements by FDA officials
to Members of Congress during hearings at various times after the Act was
passed in 1938, to the effect that FDA did not have authority to regulate
tobacco products as customarily marketed. See, e.g., Pet. App. 32a-34a.
Those statements are best understood as reflecting FDA's view on those occasions
that there was insufficient evidence that tobacco products as customarily
marketed were intended to affect the structure or any function of the body.
APPENDIX
1. 21 U.S.C. 321(g)(1) provides as follows:
(g)(1) The term "drug" means (A) articles recognized in the official
United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United
States, or official National Formulary, or any supplement to any of them;
and (B) articles intended for use in the diagnosis, cure, mitigation, treatment,
or prevention of disease in man or other animals; and (C) articles (other
than food) intended to affect the structure or any function of the body
of man or other animals; and (D) articles intended for use as a component
of any article specified in clause (A), (B), or (C). A food or dietary supplement
for which a claim, subject to sections 343(r)(1)(B) and 343(r)(3) of this
title or sections 343(r)(1)(B) and 343(r)(5)(D) of this title, is made in
accordance with the requirements of section 343(r) of this title is not
a drug solely because the label or the labeling contains such a claim. A
food, dietary ingredient, or dietary supplement for which a truthful and
not misleading statement is made in accordance with section 343(r)(6) of
this title is not a drug under clause (C) solely because the label or the
labeling contains such a statement.
2. 21 U.S.C. 321(h) provides as follows:
(h) The term "device" (except when used in paragraph (n) of this
section and in sections 331(i), 343(f), 352(c), and 362(c) of this title)
means an instrument, apparatus, implement, machine, contrivance, implant,
in vitro reagent, or other similar or related article, including any component,
part, or accessory, which is-
(1) recognized in the official National Formulary, or the United States
Pharmacopeia, or any supplement to them,
(2) intended for use in the diagnosis of disease or other conditions, or
in the cure, mitigation, treatment, or prevention of disease, in man or
other animals, or
(3) intended to affect the structure or any function of the body of man
or other animals, and
which does not achieve its primary intended purposes through chemical action
within or on the body of man or other animals and which is not dependent
upon being metabolized for the achievement of its primary intended purposes.
3. 21 U.S.C. 352(f) and 352(j) provide as follows:
§ 352. Misbranded drugs and devices.
A drug or device shall be deemed to be misbranded-
* * * * *
(f) Directions for use and warnings on label
Unless its labeling bears (1) adequate directions for use; and (2) such
adequate warnings against use in those pathological conditions or by children
where its use may be dangerous to health, or against unsafe dosage or methods
or duration of administration or application, in such manner and form, as
are necessary for the protection of users, except that where any requirement
of clause (1) of this paragraph, as applied to any drug or device, is not
necessary for the protection of the public health, the Secretary shall promulgate
regulations exempting such drug or device from such requirement.
* * * * *
(j) Health-endangering when used as prescribed
If it is dangerous to health when used in the dosage or manner, or with
the frequency or duration prescribed, recommended, or suggested in the labeling
thereof.
4. 21 U.S.C. 353(g) provides as follows:
(g) Regulation of combination products
(1) The Secretary shall designate a component of the Food and Drug Administration
to regulate products that constitute a combination of a drug, device, or
biological product. The Secretary shall determine the primary mode of action
of the combination product. If the Secretary determines that the primary
mode of action is that of-
(A) a drug (other than a biological product), the persons charged with premarket
review of drugs shall have primary jurisdiction,
(B) a device, the persons charged with premarket review of devices shall
have primary jurisdiction, or
(C) a biological product, the persons charged with premarket review of biological
products shall have primary jurisdiction.
5. 21 U.S.C. 355(a) provides as follows:
(a) Necessity of effective approval of application
No person shall introduce or deliver for introduction into interstate commerce
any new drug, unless an approval of an application filed pursuant to subsection
(b) or (j) of this section is effective with respect to such drug.
6. 21 U.S.C. 355(d) provides in relevant part as follows:
(d) Grounds for refusing application; approval of application; "substantial
evidence" defined
If the Secretary finds, after due notice to the applicant in accordance
with subsection (c) of this section and giving him an opportunity for a
hearing, in accordance with said subsection, that (1) the investigations,
reports of which are required to be submitted to the Secretary pursuant
to subsection (b) of this section, do not include adequate tests by all
methods reasonably applicable to show whether or not such drug is safe for
use under the conditions prescribed, recommended, or suggested in the proposed
labeling thereof; (2) the results of such tests show that such drug is unsafe
for use under such conditions or do not show that such drug is safe for
use under such conditions; * * * (4) upon the basis of the information submitted
to him as part of the application, or upon the basis of any other information
before him with respect to such drug, he has insufficient information to
determine whether such drug is safe for use under such conditions; * * *
he shall issue an order refusing to approve the application. * * *
7. 21 U.S.C. 360c(a) provides as follows:
§ 360c. Classification of devices intended for human use
(a) Classes of devices
(1) There are established the following classes of devices intended for
human use:
(A) Class I, GENERAL CONTROLS.-
(i) A device for which the controls authorized by or under section 351,
352, 360, 360f, 360h, 360i, or 360j of this title or any combination of
such sections are sufficient to provide reasonable assurance of the safety
and effectiveness of the device.
(ii) A device for which insufficient information exists to determine that
the controls referred to in clause (i) are sufficient to provide reasonable
assurance of the safety and effectiveness of the device or to establish
special controls to provide such assurance, but because it-
(I) is not purported or represented to be for a use in supporting or sustaining
human life or for a use which is of substantial importance in preventing
impairment of human health, and
(II) does not present a potential unreasonable risk of illness or injury,
is to be regulated by the controls referred to in clause (i).
(B) Class II, SPECIAL CONTROLS.-A device which cannot be classified as a
class I device because the general controls by themselves are insufficient
to provide reasonable assurance of the safety and effectiveness of the device,
and for which there is sufficient information to establish special controls
to provide such assurance, including the promulgation of performance standards,
postmarket surveillance, patient registries, development and dissemination
of guidelines (including guidelines for the submission of clinical data
in premarket notification submissions in accordance with section 360(k)
of this title), recommendations, and other appropriate actions as the Secretary
deems necessary to provide such assurance. For a device that is purported
or represented to be for a use in supporting or sustaining human life, the
Secretary shall examine and identify the special controls, if any, that
are necessary to provide adequate assurance of safety and effectiveness
and describe how such controls provide such assurance.
(C) Class III, PREMARKET APPROVAL.-A device which because-
(i) it (I) cannot be classified as a class I device because insufficient
information exists to determine that the application of general controls
are sufficient to provide reasonable assurance of the safety and effectiveness
of the device, and (II) cannot be classified as a class II device because
insufficient information exists to determine that the special controls described
in subparagraph (B) would provide reasonable assurance of its safety and
effectiveness, and
(ii)(I) is purported or represented to be for a use in supporting or sustaining
human life or for a use which is of substantial importance in preventing
impairment of human health, or
(II) presents a potential unreasonable risk of illness or injury,
is to be subject, in accordance with section 360e of this title, to premarket
approval to provide reasonable assurance of its safety and effectiveness.
If there is not sufficient information to establish a performance standard
for a device to provide reasonable assurance of its safety and effectiveness,
the Secretary may conduct such activities as may be necessary to develop
or obtain such information.
(2) For purposes of this section and sections 360d and 360e of this title,
the safety and effectiveness of a device are to be determined-
(A) with respect to the persons for whose use the device is represented
or intended,
(B) with respect to the conditions of use prescribed, recommended, or suggested
in the labeling of the device, and
(C) weighing any probable benefit to health from the use of the device against
any probable risk of injury or illness from such use.
8. 21 U.S.C. 360c(d)(1) provides as follows:
(d) Panel recommendation; publication; priorities
(1) Upon receipt of a recommendation from a panel respecting a device, the
Secretary shall publish in the Federal Register the panel's recommendation
and a proposed regulation classifying such device and shall provide interested
persons an opportunity to submit comments on such recommendation and the
proposed regulation. After reviewing such comments, the Secretary shall,
subject to paragraph (2), by regulation classify such device.
9. 21 U.S.C. 360f(a) provides as follows:
§ 360f. Banned devices
(a) General rule
Whenever the Secretary finds, on the basis of all available data and information
that-
(1) a device intended for human use presents substantial deception or an
unreasonable and substantial risk of illness or injury; and
(2) in the case of substantial deception or an unreasonable and substantial
risk of illness or injury which the Secretary determined could be corrected
or eliminated by labeling or change in labeling and with respect to which
the Secretary provided written notice to the manufacturer specifying the
deception or risk of illness or injury, the labeling or change in labeling
to correct the deception or eliminate or reduce such risk, and the period
within which such labeling or change in labeling was to be done, such labeling
or change in labeling was not done within such period;
he may initiate a proceeding to promulgate a regulation to make such device
a banned device.
10. 21 U.S.C. 360h(e)(1) provides as follows:
(e) Recall authority
(1) If the Secretary finds that there is a reasonable probability that a
device intended for human use would cause serious, adverse health consequences
or death, the Secretary shall issue an order requiring the appropriate person
(including the manufacturers, importers, distributors, or retailers of the
device)-
(A) to immediately cease distribution of such device, and
(B) to immediately notify health professionals and device user facilities
of the order and to instruct such professionals and facilities to cease
use of such device.
* * * * *
11. 21 U.S.C. 360j(e) provides as follows:
(e) Restricted devices
(1) The Secretary may by regulation require that a device be restricted
to sale, distribution, or use-
(A) only upon the written or oral authorization of a practitioner licensed
by law to administer or use such device, or
(B) upon such other conditions as the Secretary may prescribe in such regulation,
if, because of its potentiality for harmful effect or the collateral measures
necessary to its use, the Secretary determines that there cannot otherwise
be reasonable assurance of its safety and effectiveness. No condition prescribed
under subparagraph (B) may restrict the use of a device to persons with
specific training or experience in its use or to persons for use in certain
facilities unless the Secretary determines that such a restriction is required
for the safe and effective use of the device. No such condition may exclude
a person from using a device solely because the person does not have the
training or experience to make him eligible for certification by a certifying
board recognized by the American Board of Medical Specialties or has not
been certified by such a Board. A device subject to a regulation under this
subsection is a restricted device.
(2) The label of a restricted device shall bear such appropriate statements
of the restrictions required by a regulation under paragraph (1) as the
Secretary may in such regulation prescribe.
12. 21 U.S.C. 360k provides as follows:
§ 360k. State and local requirements respecting devices
(a) General rule
Except as provided in subsection (b) of this section, no State or political
subdivision of a State may establish or continue in effect with respect
to a device intended for human use any requirement-
(1) which is different from, or in addition to, any requirement applicable
under this chapter to the device, and
(2) which relates to the safety or effectiveness of the device or to any
other matter included in a requirement applicable to the device under this
chapter.
(b) Exempt requirements
Upon application of a State or a political subdivision thereof, the Secretary
may, by regulation promulgated after notice and opportunity for an oral
hearing, exempt from subsection (a) of this section, under such conditions
as may be prescribed in such regulation, a requirement of such State or
political subdivision applicable to a device intended for human use if-
(1) the requirement is more stringent than a requirement under this chapter
which would be applicable to the device if an exemption were not in effect
under this subsection; or
(2) the requirement-
(A) is required by compelling local conditions, and
(B) compliance with the requirement would not cause the device to be in
violation of any applicable requirement under this chapter.
13. 21 U.S.C. 371(a) provides as follows:
§ 371. Regulations and hearings
(a) Authority to promulgate regulations
The authority to promulgate regulations for the efficient enforcement of
this chapter, except as otherwise provided in this section, is vested in
the Secretary.
14. 21 U.S.C. 393(a) & (b) provide as follows:
§ 393. Food and Drug Administration
(a) In general
There is established in the Department of Health and Human Services the
Food and Drug Administration (hereinafter in this section referred to as
the "Administration").
(b) Mission
The Administration shall-
(1) promote the public health by promptly and efficiently reviewing clinical
research and taking appropriate action on the marketing of regulated products
in a timely manner;
(2) with respect to such products, protect the public health by ensuring
that-
* * * * *
(B) human and veterinary drugs are safe and effective;
(C) there is reasonable assurance of the safety and effectiveness of devices
intended for human use * * *.
13a
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