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March 13, 2023

LETTER OF CONCERN FROM HUNDREDS OF RETAIL ESTABLISHMENTS,


WHOLESALE, AND COMMUNITY ORGANIZATIONS OVER
EMERGENCY ORDINANCE NUMBER 184-2023

Councilman Kevin Conwell


Cleveland City Council - Ward 9
kconwell@clevelandcitycouncil.org
Office: (216) 664-4252

Councilman Blaine A. Griffin


Cleveland City Council - Council President / Ward 6
bgriffin@clevelandcitycouncil.org
Office: 216.664.4234

Dr. David Margolius


Director of Public Health - City of Cleveland
DMargolius@clevelandohio.gov
(216) 664-2000

Cc: Cleveland City Council Members


City of Cleveland - Mayor Justin M. Bibb

Re: Deep Concerns that Emergency Ordinance in its Current Form Would Have a
Devastating Economic Impact on Both the Local Small Business Ecosystem and
the City of Cleveland’s Economy

The undersigned retail establishments, wholesale, and community organizations write to


express strong opposition to Emergency Ordinance No.184-2023,1 which seeks to: (1) restrict
the sale of flavored tobacco products and vapor products; (2) increase additional stringent and
burdensome compliance and enforcement measures onto small retail establishments; and (3)
impose stricter violations and penalties.

While we understand the concerns that have led to this proposed ordinance, we
collectively believe that a blanket ban is not the most effective means through which the City
can achieve its important public health objective. By the same token, we strongly support the
City's continued effort in pursuit of harm reduction policies through emphasizing education for
1
City Record - 2-10-23rev.pdf (clevelandcitycouncil.org)

1
adults and minors, encouraging the cessation of smoking, and funding healthcare facilities for
communities of color, etc. Measures that disincentivize and dissuade tobacco use are proven to
be successful at curbing tobacco use and nicotine dependency without the corresponding effect
of financially straining small businesses and guaranteeing their inevitable closure.

For the reasons set forth below, these proposed measures are not only ineffective and
extreme but will also have profound, unanticipated consequences that will disrupt years of
economic growth.

Emergency Ordinance Number 184-2023 will have a Negative Economic and Safety
Impact on the Local Community

1. Sales Decline. The ban will cause a significant, negative economic impact on local
businesses, including convenience stores and tobacco shops. Impacted businesses will
suffer a devastating loss of sales revenue and potential customers will shop elsewhere
for banned products. This places local small businesses at a competitive disadvantage
compared to businesses that are unaffected by the ordinance a short distance away in
the surrounding suburbs.

2. Incidental Sales Decline. If traditional flavored tobacco products are not removed from
the proposed sales ban, law-abiding adult customers will be forced to drive outside of the
City to the surrounding suburbs to buy their preferred products. A loss of foot-traffic
ensures a loss of customers that also purchase gasoline, grocery items, beverages, and
other products incidental to their tobacco purchase. It is unmistakable that these mom
and pop businesses have borne the burden of declined gasoline use and the strain of
competition with big-box chains that are able to absorb such regulatory constraints. The
overwhelming loss of incidental sales will render these small businesses as a relic of the
past.

3. Job Losses. When businesses lose their competitive advantage, their revenue will
decrease thereby abridging the businesses’ workforce. Indeed, employee employment,
retention and promotion depend on a business’ revenue. The ban will deplete jobs in
retail establishments, wholesale, tobacco industry, and related businesses.

4. Customer Loyalty / Promotions. As alluded, the businesses will shed many of their
loyal legal-aged customers because of the ban. Customer loyalty is founded on the
familiar and consistent provisions of products to customers by a business. There will be
a loss of customer loyalty, as loyal customers will be forced to shop elsewhere.

5. Business Valuation. This proposed ordinance will severely diminish the value of
operable businesses.

6. Real Estate Diminution. This proposed ordinance will certainly cause businesses—
especially smaller retail and boutique establishments—to shutter due to the impact of the

2
ban. Many of these businesses may be abandoned and not maintained. Small business
owners who have been lifelong community members will become prey to predatory
offers for under their current market value.

7. Outside Investors / Regulatory Risk. The increased regulatory risk and


precedent-setting of blanket industry wide bans is dissuading potential investors from
investing in Cleveland's retail infrastructure.

8. Community Reinvestment. The closure of small businesses and mom and pop shops
will have a ripple socio-economic effect on the community in which these businesses are
located. True enough, small businesses support community schools and centers, local
athletic fundraisers, religious institutions, youth engagement efforts, and homeless
shelters.

9. Tax Revenue. Local and state taxes, including county sin taxes paid per pack of these
tobacco products, help fund local police, firefighters, neighborhood parks, and sports
stadiums.

10. Black market. Banning flavored tobacco products will have the unintended
consequence of creating black-market demand for these products. Because such
markets are unregulated, the circulation of such products in the market creates
precarious health and safety aftereffects. To be sure, black market transactions will open
the doors wide open to increased risks for consumers—especially vulnerable minors
using products deceptively marketed as flavored tobacco but containing alternative,
more harmful ingredients than regulated products.2

11. Age Verification / Control. Currently, the most effective means by which the vendors
can verify a customer’s age is at the point of sale at the retail establishments. Banning
the sale of flavored traditional tobacco products could shift sales of these products from
law-abiding retailers to illicit and illegal sources, which will not employ ID verification
methods.

12. Public Safety / Law Enforcement Resources. This proposed action will certainly
cause an increase in loitering, especially in the cases of the unlawful sale of these
products. Such illicit sales will, in turn, cause an increase in law enforcement interactions
with consumers and illicit sellers.3 Increased tobacco-related interactions will certainly
deplete law enforcement resources desperately needed to address crime in the City.

13. Tobacco Use Among Youth. Survey data from the latest National Institutes of Health
(NIH) Monitoring the Future report shows that usage rates of traditional tobacco products
are at historic lows, and further studies suggest that banning flavored tobacco products
leads to an increase in cigarette smoking by underage individuals and young adults.

2
Report Shows Negative Results of Massachusetts Flavored Tobacco Ban | NACS (convenience.org)
3
ACLU Statement on FDA Menthol Cigarette Ban | American Civil Liberties Union

3
14. Compliance / Enforcement. Impacted businesses will have to make costly
expenditures, such as those associated with the licensing fee, to ensure their
compliance with the ban. There will be increased paperwork requirements for retailers in
order to comply with licensing and inspections. There is a fear that excessive fines or
penalties will be imposed onto retail establishments for non-compliance despite the fact
that there is no evidence to show an increase of violations among retail establishments,
namely related to age verification. The proposed action has the duplicative effect of
prohibiting more activity and increasing the fines with the associated activity—in effect
guaranteeing the imposition of excessive fines and penalties.

Emergency Ordinance Number 184-2023 is Ineffective and Less Restrictive Means Exist
for Achieving the Desired Objective

1. Emergency Status. It is important to carefully consider the proposed emergency


ordinance and whether it truly constitutes an emergency before passing it as such, as
rushing to declare an ordinance as an emergency can have unintended consequences
and may not be necessary in this case.

2. Lack of Evidence to Support Effectiveness. No evidence exists to substantiate the


notion that the ban’s extreme measures will effectively combat this public health matter.
In fact, the National Association of Convenience Stores (NACS), the leading global trade
association dedicated to advancing convenience and fuel retailing, released an article4
on March 7, 2023 reporting that the State of Massachusetts issued an Illegal Tobacco
Task Force Annual Report 2023 5 evidencing the negative results of a statewide ban.
The action caused the creation of a black market and cost the state a considerable
amount of tax revenue.

3. Education Campaigns. Instead of banning products, more resources could be


dedicated towards education and awareness campaigns to promote safe and
responsible tobacco use, cessation and prevention.

4. Less Restrictive Means. There are certainly less restrictive means available to
accomplish this objective, such as awareness and educational campaigns, which have
been proven effective in combating other public health concerns. For example:
● A study published in the Journal of Environmental Psychology found that an
awareness campaign on energy conservation in households was effective in
reducing energy consumption by up to 10%. The campaign used social norms and
personalized feedback to encourage households to reduce their energy use.
● In a study published in the Journal of Environmental Management, an educational
campaign on recycling and waste reduction was found to be effective in increasing

4
Report Shows Negative Results of Massachusetts Flavored Tobacco Ban | NACS (convenience.org)
5
Illegal Tobacco Task Force Annual Report 2023 (mass.gov)

4
recycling rates in a university setting. The campaign used educational materials,
social media, and a competition among dormitories to promote recycling.
● According to a survey by the National Campaign to Prevent Teen and Unplanned
Pregnancy, teens who received comprehensive sex education were 60% less likely
to become pregnant or to impregnate someone than those who received
abstinence-only education.
● A study published in the Journal of Community Health found that an educational
campaign on HIV prevention was effective in increasing knowledge and awareness
of HIV and promoting condom use among young adults in Nigeria.

Again, the small businesses in the City of Cleveland proudly and vehemently support the
City's effort in continuing the implementation of harm reduction policies. These businesses
believe that education and awareness campaigns are more effective in addressing this issue.
Banning flavored tobacco products will not prevent young people from accessing tobacco
products; instead, it will harm our businesses and our ability to serve our adult customers.

The retail establishments are not the root cause of underage tobacco usage as the
proposed ordinance purportedly suggests, and, in fact, we are the first line of defense. THE
RETAIL ESTABLISHMENTS ARE A PARTNER IN THE FIGHT AGAINST UNDERAGE USE
OF TOBACCO AND VAPOR PRODUCTS.

It is also very important to note that this letter is strictly proffered from a retail
establishment perspective. Aside from the economic impact, there are critical social elements
attendant to this matter that are not discussed. The American Civil Liberties Union (ACLU) has
previously taken a position on this issue. In 2021, the Food and Drug Administration moved
forward with a plan to ban menthol cigarettes; the ACLU highlighted serious concerns that a ban
on menthol cigarettes will disproportionately impact Black and Brown communities.6

The undersigned retail establishments, wholesale, and community organizations respectfully


request the following:
1. We strongly urge Cleveland City Council to reconsider this extreme measure and
express our strong opposition to the proposed Emergency Ordinance No.184-2023 in its
current form.
2. Please provide an anticipated timeline, and the dates and times of any opportunity for
public comment on proposed Emergency Ordinance No.184-2023.
3. We request an open dialogue between the sponsors of proposed Emergency Ordinance
No.184-2023 and the Director of Public Health, to be joined by a small representative
contingency of participants that comprise this grassroots effort.

Thank you for your attention to these critical concerns. For more information or to coordinate a
meeting, please contact Mohammad A. Faraj (m.faraj@gmail.com).

Respectfully Submitted,
6
ACLU Statement on FDA Menthol Cigarette Ban | American Civil Liberties Union

5
LETTER SIGNATORIES WARD

Harvard Convenient 1

Kemos Gas INC 1

Mount Pleasant Beverage 1

One Stop Liquor 1

Quick Lee LLC 1

Race Fuel 1

Shreeji One LLC 1

Super One Market 1

3510 Gas INC 2

Chillies 2 2

Chillies Food Mart 2

Frank's Express Stop 2

Habibi INC 2

Hargur INC 2

Miles Supermarket 2

Speedy Gas Northfield 2

Turney Deli 2

Union Drive Thru 2

Union Petro 2

United Food & Gas LLC 2

6
Zone 2

Ashes Vapes & Glass Accessories 3

Blue Erie 3

Brooklein Books & News 3

Cle Smokin Vapes 3

Collinwood Beverage 3

Downtown Liquor 3

G Vape & Smoke 3

Hype 3

Ohio City Gas 3

One Wireless 3

Rite Shop 73 3

RNR Solon INC 3

St Clair Sunoco 3

Sun Valley Beverage 3

The Smoke Shop Plus 3

Trippies 3

A1 Liquor & Beverage LLC 4

American Food 4

Chillies 4

Genes 113th 4

Hanini Express Newbury 4

7
Kinsman Market 116 4

Moe's Center 4

One Stop Liquor Buckeye 4

Sabah Hanini INC 4

Wikk Corner Store 4

1900 Food & Beverage 5

BBW2 Smoke Shop 5

Carnegie BP 5

East 40th 5

Garden Valley Shop Express 5

M&A Elder Distributor LLC 5

McLain's Market 5

Metro by T mobile 5

Midview Smoke 5

Paul Rite 5

Quincy Gas 5

Seaway Wholesale 5

Speedy Gas Broadway 5

Warrensville Marathon 5

Woodland Supermarket 5

Abes Market 6

American Food Market 6

8
Carnegie Gas INC 6

Cedar Finest 6

Genes89 6

Hu&Na LLC 6

Sadeen Gas INC 6

Shaker Gas 6

Shell Sadeen Gas 6

Sunoco 93rd 6

Tala Gas INC 6

Yash Food & Beverage 6

C Town Beverage 7

Cleveland Wholesale 7

Magic Flash 7

Mr. C's II 7

Rapid Stop 7

Simply Food 7

Speedy Gas #6 7

Superior Food 7

AJD Gas 7

1201 OIL INC 8

Mobil 8

Sunoco 8

9
Waterloo Gas N Go 8

BP Gas 8

Al's Deli 9

Circle Convenience 9

Savvy Smokes 9

USA Foodmart 9

A&F Beverage INC 10

A&S Distributors 10

AM FoodMart 10

F&A Beverage INC 10

Omar's Beauty Plus Discount 10

Quick N Easy 10

St. Clair Shell 10

Stay Lit Smokeshop & Wireless 10

3945 W130th Gas INC 11

Beit Hanina Community Center 11

BP W117th 11

Dairy Mart 11

Express Food Mart 11

Gas USA 11

Jabco Petroleum 11

Khalaf Star 11

10
Mega Mart 11

Shell Gabriels 11

Smoke FX LLC 11

Smoke Shop 216 11

Sky Fuel 11

Low Cost Gas 11

Zt Gabriel INC 11

Convenient Retailer & Food 12

Denley Market 12

Family Bizness & Consulting 12

Fleet Gas Deli 12

Marathon Food Center 12

Open Pantry 12

Quick Shop 12

Slavic Village Market 12

Substation 12

Sunoco 71st Fleet 12

All Puffs 13

Broadview Gas Mart 13

Old Brooklyn Food Market 13

Adam Corp 14

Clark Smoke & Vape 14

11
Dalal INC 14

Fli High Smoke Shop 14

Fulton Beverage 14

Ignite Smoke Shop 14

Layannoor INC 14

Metro Food Mart 14

Midnight Smoke Shop 14

Royal Gas 14

Shop Express 14

Smokology 14

Suleymans Market 14

The Corner Store 14

Tom's Food Market 14

Tony’s Market 14

Westside Shop Express 14

Aa 1385 INC 15

Elky Mobile Wireless 15

HP Gas 15

Ohio City Deli 15

Smart Vending TEC 15

Smoke Factory 15

Up In Smoke Vape Shop 15

12
OTG Distributors 16

Smoke City Tobacco Accessories 16

Sunoco 3954 W130th 16

Supreme Smoke Shop 16

Supreme Wireless 16

Airport Convenient Food Mart 17

Engle Smoke 17

EZ Mart Food Store 17

Grayton Smoke & Cigar 17

Speedy Gas 17

Warren Beverage 17

Zack Candy LLC 17

10 Northfield Business LLC

137 Superior INC

14460 Euclid Avenue LLC

33 Building Blocks

4 The Culture

7102 Enterprises INC

Adan Food Town

Altria Group

AZ Jordan LLC

Big Bs Beverage

13
BP Shop

BP Union Mart

Broadway Marathon

Chardon Gas Mart

Cleveland American Middle Eastern


Organization (CAMEO)

Convenience Food Mart

Convenient Mart

D & J'S Food & Beverage

Daze N Nite W117th

Daze N Nite Fairview

East 49 Gas

Eco Smoke

Euclid Convenience Express

Euclid Shaw Sunoco

Exoctic Smoke & More

Ez Go Food Mart

Falcone’s Convenient Mart

Food Plus

FTR Wireless

Gas N Go

Gas USA E131st

Guruhari Swami LLC

14
Harvard Gas INC

Heights Beverage

Hippie Hut Smoke

Hookah Tales

J’S Hadchiti INC

Jass Gill INC

Jays Tire INC

Marathon Lee Rd (Binyemin)

Marcs

Mid City Valero

Noble Food Deal

Northfield Sunoco

Pia Krish INC

Quick Shop Food Mart

Quick Stop State

Realty Express INC

Riyadiya INC

Ross Beverage

RSM Wholesale

Sami's Deli Hayden

Shaker Quality Foods

Shore Sunoco

15
SkyStone Fuel

Smokerz Drip

Snappys

Speedy Broadway

Speedy Elyria

Speedy Garfield

Speedy Gas #2

Speedy Harvard

Speedy Lakewood

Speedy Lorain

Speedy Middleburgh

Speedy Northfield

Speedy Parma Heights

Speedy Puritas

Speedy Rocky River

Speedy St. Clair

Speedy Wickliffe

Sun Lakewood LLC

Sunoco Bedford

Sunoco Gas

Sunoco Puritas

Super Genie

16
The Valley Smoke Shop Kent

Twisted Heads

Twisted Headz Tallmadge

Twisted Headz Emery

Twisted Headz Mentor

Twisted Minds

Vape Escape

Westpark Shell

Willo Food Mart

Zkpk INC

East Ave Convenient

Parmahts Smoke Shop

17

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