News

On Feb. 2, 2026, the Federal District Court for the Northern District of Texas issued a decision ruling that the U.S. Food and Drug Administration's (FDA) authority to impose civil money penalties (i.e., fines) for tobacco regulation violations is unconstitutional. Specifically, the court held that the civil money penalties violate the U.S. Constitution’s Seventh Amendment, which guarantees the right to a trial by jury. The pending lawsuit was brought by Vaping Dragon LLC against the FDA.

The FDA has the authority to impose civil money penalties on companies, including manufacturers, distributors and retailers, that violate federal tobacco regulations under the Family Smoking Prevention and Tobacco Control Act. This includes selling unauthorized tobacco products or failing to comply with premarket review requirements. The current maximum civil money penalty amount for a single violation relating to tobacco products is $19,192. However, for retailers, the FDA can seek fines of $20,678 for selling unauthorized e-cigarettes. Read more here.

A group of Senate Republicans have alerted the Trump administration that large volumes of illicit Chinese e-cigarettes entering the U.S. pose national security and criminal risks. In a letter sent to Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on Feb. 3, 2026, lawmakers said profits from illegal vape products benefit Chinese state-linked entities and could potentially fund military or technological efforts against U.S. interests. They raised concerns that some “smart vapes” can connect to smartphones and may collect data or enable spying. Additionally, the letter noted FinCEN findings linking illicit e-cigarette trade to Mexican cartels using it for trade-based money laundering tied to fentanyl proceeds. While praising Trump-era enforcement actions, the senators urged a broader, coordinated strategy to combat the threat. Read more here.

Congress passed a bipartisan appropriations spending package on Feb. 3, 2026, that funds most federal agencies through the end of the fiscal year in September, ending a partial shutdown that began Jan. 31, 2026. Funding for the Department of Homeland Security (DHS), however, was extended only through next week, with a deadline of Feb. 13, 2026, to reach an agreement. Without a deal on immigration enforcement changes, DHS faces another potential funding lapse. Read more here.

The Cross-Industry Compensation & Benefits Report is a comprehensive study of compensation and benefits programs at wholesale distribution companies across the U.S. It provides information about executive and employee compensation including salaries, bonuses and commissions, and fringe benefits such as health insurance, retirement programs and time off.

Participate today to gain valuable insights to help strengthen your organization’s compensation practices – the survey is open until March 16.

Participating distributor companies will receive:

• An industry comparison report with results from 1,000+ distributors
• A personalized, company-specific benchmarking report
• Downloadable excel data tables & online access to searchable results
• An executive-ready infographic & on-demand results presentation

Click here for more details or contact Lauren Herbert with any questions.

Join your fellow CDA Distributor members and CDA Staff as we engage with federal officials in Washington, DC for our annual Day on the Hill on May 12-13, 2026.

Distributors will participate in policy briefings, hear from knowledgeable speakers, enjoy networking and have interactive meetings with Members of Congress and their staff who represent their businesses. CDA provides training, materials and support to make the most of all the meetings. View the video to learn more about the program.

Please visit the CDA website to learn more and register by March 31, 2026. Participation is limited; register* today to secure your spot.

For questions, please contact Kathee Facchiano at KFacchiano@capitoldecisions.com.

*Attendees must be 21 or older. Up to two attendees per company; additional as space allows.

On Jan. 22, 2026, the U.S. Food and Drug Administration's (FDA) Tobacco Product Scientific Advisory Committee (TPSAC) held a day-long public hearing to consider whether Philip Morris International would be allowed to advertise its Swedish Match Zyn nicotine pouches as a less-harmful alternative for adults who currently smoke cigarettes. The TPSAC is comprised of independent health experts and tobacco industry representatives.

The hearing was held in response to a Modified Risk Tobacco Product (MRTP) application that Swedish Match USA Inc. filed with the FDA for the company’s 20 ZYN nicotine pouch products. The MRTP application seeks FDA authorization to market the ZYN products with the following modified risk claim: “Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”

Several days prior to the public hearing, the FDA’s Center for Tobacco Products (CTP), Office of Science, published a briefing document which included background on the ZYN MRTP application, the relative health benefits and risks of the Zyn products, and the consumer understanding of the product’s health benefits and risks.

In this briefing document, the CTP concluded the following: “FDA’s preliminary evaluation of the totality of the evidence described above suggests that the proposed modified risk claim ‘Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis’ is scientifically accurate.”

The TPSAC did not vote at the conclusion of the public hearing on whether to recommend that the FDA approve the ZYN MRTP application. The TPSAC is still expected to submit a report and final recommendation to the CTP regarding the ZYN MRTP application. If the FDA approves the ZYN MRTP application, then Philip Morris International would be permitted to use the modified risk claim in ZYN advertisements. Read more here.

On Jan. 23, 2026, the U.S. Food and Drug Administration's (FDA) Human Foods Program (HFP) released its priority deliverables for 2026, as part of its Make America Healthy Again agenda. While ensuring the safety of the foods they produce is the responsibility of industry, FDA oversees microbiological food safety efforts and strives to ensure that foodborne illness is prevented in the first place. In 2026, HFP will further that goal by prioritizing the following key deliverables related to food traceability and food code and retail program standards:

“Food Traceability: FDA will engage quarterly with stakeholders, and educate covered entities (including farms, restaurants, retail establishments, and warehouses distributing to retail food establishments and restaurants) to ensure that such entities can comply with the Food Traceability Rule by the compliance date. Additionally, HFP will facilitate a tabletop exercise (involving producers, processors, distributors, retailers, and technology partners) to test traceability readiness and will educate stakeholders, including small retailers and restaurants by, among other activities, providing explanatory Q&As to help industry implement traceability measures. Implementation of the Food Traceability Rule will enable FDA and industry to identify and remove contaminated food from the marketplace more quickly.”

“Food Code and Retail Program Standards: The FDA will release an updated Food Code in 2026, providing all levels of government with a scientifically sound technical and legal basis for regulating the retail and food service industries. Local, state, territorial, and tribal regulators use the FDA Food Code as a model to update their own food safety rules and to provide national consistency in food regulatory policy. The forthcoming Food Code update will reflect the latest updates to retail food science, best practices, and current data on retail foodborne outbreaks. In 2026, HFP will also develop a companion Retail Program Standards manual, which is considered the standard in retail food safety program management to help state, local, territorial, and tribal agencies improve their food safety programs.” Read more here.

Marketplace 2026: Spotlight on Education

Protecting Your Warehouse: Physical Security & Safety
Wednesday, February 18, 2026 | 9:30 am – 10:45 am CT

Learn from your industry peers about their experiences with real-world challenges and best practices to safeguard your warehouse. In this session moderated by CDA’s President & CEO Richard Owen, distributor panelists Ross Haynes, Susie Munson and Chris Smythers will highlight practical strategies you can bring back to your business to strengthen physical security, prevent theft, and protect your operations from common vulnerabilities. See what else Marketplace Education has to offer in this short video!

Register now! The deadline is fast approaching! (January 30)
Note: The trade show is sold out.
For 2027 exhibiting opportunities, contact eventsupport@cdaweb.net.

Questions? Reach out to eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration
Schedule | Education | Hotel and Travel

By attending Marketplace 2026, you agree to the CDA Notices & Disclaimers.

Congress could face a partial government shutdown at the end of the week due to a dispute over funding for the Department of Homeland Security (DHS), which is jeopardizing a broader bipartisan spending agreement.

About half of federal agencies are funded only through Jan. 30, 2026, and while the House passed a package to fund them through September, its prospects in the Senate are uncertain. Democrats withdrew support for the appropriations package after the fatal shooting of Alex Pretti over the weekend by Immigration and Customs Enforcement (ICE) agents and are seeking to separate DHS funding from the rest of the package for further negotiation. The overall bill would fund several major departments, including Defense, Health and Human Services, Transportation, State, and Treasury, in addition to DHS. Democrats argue the DHS funding does not sufficiently limit ICE activities, despite provisions cutting border funding, reducing detention capacity, and adding money for body cameras and de-escalation training. Senate Republicans have begun procedural steps toward a vote later this week and oppose splitting the bill, warning that further delays could trigger a shutdown. The White House has expressed support for the negotiated package and urged Congress to pass it as agreed. Read more here.

CDA's Richard Owen, president & CEO, and Jenn Finn, senior director of member engagement, marketing and sales, were hosted last week at JUUL Labs, Inc.'s Washington, D.C. office. The meeting included discussions on issues that are challenging the industry and opportunities for continued engagement and collaboration in 2026.

Thank you to JUUL for hosting and for their time and commitment to the industry!

To the right (l-r) are Jenn Finn, CDA; Mary-Sumpter Lapinski, head of U.S. government affairs, Patricia Barry, VP of strategic distribution, JUUL; Richard Owen, CDA; Gregg Augustine, SVP and general manager, and K.C. Crosthwaite, chairman and CEO, JUUL.

CDA is excited to share the dates for CDBX 2028 and CDBX 2029:

Previously Announced Events:

• Marketplace 2026: Feb. 16–18, Loews Arlington Hotel, Arlington, TX
• CDBX 2026: Sept. 14–17, JW Marriott Miami Turnberry Resort & Spa, Aventura, FL
• Marketplace 2027: Feb. 22–24, Loews Arlington Hotel, Arlington, TX
• CDBX 2027: Sept. 13-16, Omni Fort Worth Hotel, Fort Worth, TX
• Marketplace 2028: February 28 - March 1, The Woodlands Waterway Marriot Hotel & Convention Center, The Woodlands, TX

Visit the CDA Events page for more details on all CDA events.

• Registered for Marketplace but haven’t secured your hotel? Make your reservation today – as the hotel block closes tomorrow, Friday Jan 23.
• Distributors not yet registered can still join us - register now to attend timely sessions with expert insights, connect with top suppliers and solution providers and network with fellow attendees.
• Add additional company personnel – Bringing your team ensures you maximize the value of Marketplace and take full advantage of the trade show, networking and education offered.
• Get Ready for the Distributor Showcase at Marketplace - read the FAQs for an overview of what to expect and tips for success.

Questions? Reach out to eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration
Schedule | Education | Hotel and Travel

By attending Marketplace 2026, you agree to the CDA Notices & Disclaimers.

Congressional negotiators released the text of the remaining FY 26 spending bills on Jan. 20, 2026, in a package that includes the Labor-HHS-Education spending bill along with the Defense, Transportation-HUD, and Homeland Security spending bills. The House is expected to vote on the package this week and, assuming passage, the Senate will vote next week ahead of the Jan. 30, 2026, deadline when the current Continuing Resolution (CR) funding the federal government expires.

Overall, appropriators rebuked the steep spending cuts and agency reorganizations proposed by the White House. Summary materials prepared by the Senate Appropriations Committee majority staff are available here. Summary materials prepared by the House Appropriations Committee minority staff are available here.

In addition to the FY 26 spending bills, the package includes a health title that contains extensions of expiring health provisions such as the Medicare telehealth flexibilities, pharmacy benefit manager (PBM) reforms and a provision requiring Medicare Advantage plans to have accurate provider network directories. The bill does not extend the ACA subsidies for individuals purchasing their insurance on the exchanges. Regarding Department of Labor (DOL) apprenticeship program funding, the agreement directs DOL to make available to States grant funding at no less FY 2025 level. Read more here.

Are you looking to unlock leadership potential? The CDA Leadership Institute, in partnership with GRITT Business Coaching, offers a transformative hybrid program combining expert coaching, collaborative learning, and real-world applications.

Formerly known as the CDA Leadership Academy, the CDA Leadership Institute will help participants learn to communicate effectively, improve team dynamics, and cultivate a strategic mindset, all while connecting with like-minded individuals. Attendees will immerse themselves within the curriculum by navigating challenges with confidence and building a strong leadership presence.

The CDA Leadership Institute is designed specifically for the convenience distribution industry and CDA members. It is ideal for high-potential employees, new managers and anyone on your team looking to broaden their communications, managerial, financial and leadership skills.

To learn more and reserve a spot, click here or reach out to Lauren Herbert. Don’t miss the opportunity for you or a member of your team to join CDA’s third cohort and take a leadership journey to the next level.

You won't want to miss the Marketplace Grand Prize: a three-night stay for two at Secrets Vallarta Bay located on the golden sand beaches of Banderas Bay, plus roundtrip airfare for two, generously provided by Galactic Performance Solutions. Secrets Vallarta Bay provides 24/7access to amazing nightlife, non-stop entertainment, and unlimited luxury. This all-suite, all-inclusive resort provides guests with a wealth of amenities on and off property including Mexican colonial architecture backdropped by jade covered hills, lush jungles, and secluded nature preserves, providing just the right amount of relaxation, adventure, and everything in between. For an added touch of luxury, the prize also includes a spa treatment for both the winner and their guest.

The grand prize drawing will take place at the trade show on Tuesday, Feb. 17, 2026, at 1:45 PM CT. Distributor member attendees at Marketplace are eligible and must be present at the trade show to win.

For more information, watch this video or visit the Marketplace Grand Prize page. Not yet registered? Don’t miss your change to win – register now.

Sens. Dick Durbin (D-IL) and Thom Tillis (R-NC), along with Reps. Herb Conaway Jr. (D-NJ-03) and Celeste Maloy (R-UT-02), have introduced legislation to crack down on illicit vape products. The Strengthening Task Force Operations to Prevent Illicit Vaping Act (S.T.O.P. Illicit Vaping Act) would bolster a federal multi-agency task force, led by the Department of Justice (DOJ) and the U.S. Food and Drug Administration (FDA), to coordinate enforcement, information sharing and strategy to combat the illicit importation, distribution and sale of unauthorized e-cigarettes.

CDA submitted letters of support to all four of the S.T.O.P. Illicit Vaping Act co-sponsors expressing the association’s gratitude for the introduction of the legislation and expressing CDA’s willingness to work with them and the multi-agency task force to continue to combat the illicit e-cigarette market. Read the letters here.

In 2024, the DOJ and FDA established a task force to crack down on illicit vapor products, including the utilization of criminal and civil tools to bear against the illicit manufacture, importation, distribution and sale of e-cigarettes from China and other foreign countries.

The S.T.O.P. Illicit Vaping Act would formally codify the existing multi-agency task force and direct the group to develop and implement a comprehensive strategy for reducing the number of unauthorized e-cigarettes on the market. The task force would be comprised of the Attorney General and the Secretary of Health and Human Services (HHS), as well as representatives from FDA; DOJ; Customs and Border Protection (CBP); the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); U.S. Marshals Service; U.S. Postal Inspection Service (USPS); Federal Trade Commission (FTC); the Department of Homeland Security (DHS); and other federal agencies as appropriate.

The task force would be directed to meet on an annual basis and submit a report to Congress detailing authorities, actions taken and recommendations for additional criminal or civil authorities needed to address the public health threat of the illicit importation, distribution and sale of e-cigarettes.

CDA previously reported that the FDA has set up an online portal and an email address for the public to report suspected violations of federal tobacco regulations. Information about a potential violation, including the sale of illicit vapor products, can be provided to the FDA’s Center for Tobacco Products (CTP) through the online portal. Also, a potential violation can be reported to the FDA via email at CTPCompliance@FDA.hhs.gov.

Congress returned from recess and began work on extending Affordable Care Act (ACA) subsidies and the nine appropriations bills funded under a continuing resolution (CR) expiring Jan. 30, 2026. Three appropriations bills were enacted in November: Agriculture, Military Construction-VA and Legislative Branch.

The House passed legislation on Jan. 8, 2026, to extend ACA premium tax credits for three years, with 17 Republicans joining Democrats, following the Dec. 31, 2025, expiration of the enhanced subsidies. Senate action is uncertain, though bipartisan talks continue on a shorter extension with added safeguards. The House also passed a bipartisan minibus funding Commerce-Justice-Science, Energy-Water and Interior-EPA on Jan. 8, 2026; the Senate is expected to consider that minibus package this week.

Six FY26 bills remain, including Labor-HHS. Negotiations continue on additional minibuses, though unresolved issues could result in some bills being funded through a longer-term CR. Read more here.

February 4, 2026 at 1:00 pm ET

Register now for an informative webinar offering valuable insights into the convenience distribution channel, featuring Tom Baldwin and Mike Farrah of Management Science Associates (MSA). Tom and Mike will provide a convenience channel performance review of warehouse delivered products across key categories such as cigarettes, OTP, candy and snacks, and more.

Can’t attend the webinar on Feb. 4? Still register to attend and you’ll receive a recording of the webinar directly to your inbox on Feb. 5. Contact Lauren Herbert with any questions or visit the CDA website.

• Read the FAQs for an overview of what to expect and tips for success.
• Designed to help you connect and maximize networking opportunities.
• The Distributor Showcase is for registered CDA member distributors only and exhibitors.
• Participation is required for CDA member distributors.

With nearly 100 of your top trading partners, curated education sessions, opportunities to win prizes and unique events like Marketplace Gives Back and the Hall of Fame Dinner, Marketplace 2026 is the must-attend industry event.

And don’t forget to make your hotel reservations. The hotel group rate ends, Friday, January 23.

Questions? Reach out to eventsupport@cdaweb.net.

Marketplace Website | Distributor Registration
Schedule | Education | Hotel and Travel

By attending Marketplace 2026, you agree to the CDA Notices & Disclaimers.