The Legal Battle To Protect Premium Cigars

After years of litigation, multiple court decisions have firmly rebuked FDA's regulation of premium cigars, and as CRA has long argued: the FDA failed to follow the law when it chose to regulate premium cigars.

This case began after the FDA finalized its Deeming Rule, sweeping premium cigars into a regulatory framework intended for fundamentally different products. CRA, alongside other industry allies, challenged the rule in federal court, arguing that the agency misrepresented data, ignored relevant evidence, and failed to properly consider “Option 2,” which would have exempted premium cigars from the rule altogether. These actions, we argued, violated the Administrative Procedure Act.

The courts agreed. On July 5, 2022, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled that the FDA’s decision was arbitrary and capricious. On August 9, 2023, Judge Mehta issued a final order vacating the FDA’s regulatory authority over premium cigars. FDA appealed that decision, and that ruling was upheld by the U.S. Court of Appeals on January 24, 2025, marking a major legal victory for the premium cigar industry and for the principle of evidence-based regulation.

Importantly, the appeals court also recognized the need for clarity on a definition of premium cigar. As a result, the case has now been remanded back to Judge Mehta to resolve the precise definition of “premium cigars” to which the court’s ruling applies. This process will determine the legal boundaries of the exemption and has important implications for future regulatory actions.

CRA remains actively engaged in this final phase of litigation and will continue to defend the rights of premium cigar manufacturers, retailers, and adult consumers. The outcome of the remand will help ensure that any future regulatory actions respects the distinct nature of premium cigars.