Underage Access Prevention

Retailer compliance with the new federal minimum age law is critically important in preventing anyone under 21 from accessing tobacco, including e-vapor products.

Our tobacco companies sell their products to wholesalers, who in turn, sell to retailers and other wholesalers. Altria Group Distribution Company (AGDC) provides the sales and distribution services for our tobacco companies. Wholesalers and retailers, also known as our "trade partners," play critical roles in our product distribution network. AGDC supports more than 211,000 retailers across the country, representing approximately 92 percent of tobacco industry volume sold in retail stores.

Our goal is to enhance trade partner participation in underage access prevention programs to establish retail and future sales channels as the most trusted place to responsibly sell and distribute tobacco products. AGDC works with our trade partners to execute our companies' retail trade programs, which are built on effective category management principles, and help retailers responsibly manage their tobacco category.

Our companies' retail trade programs include features that help prevent underage access to tobacco products, such as store clerk training and underage access prevention signage. In addition, we've developed rigorous compliance and training systems to govern retail marketing materials. In some tobacco categories, we also offer financial incentives to retailers who refrain from placing any tobacco products on top of or below the front of the selling counter.

Combatting Illicit Markets Through Effective Enforcement

Thriving illicit markets threaten our progress with preventing underage use.

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Age Validation Technology

In 2019, AGDC implemented a retailer incentive program to further encourage responsible retailing through age validation technology at the point of purchase.

To participate in the incentive program, retailers must implement a technological solution that prompts an electronic scan of a consumer’s government-issued identification (e.g., driver’s license) to purchase any tobacco product.

In 2024, the program was validated in approximately 151,000 stores, representing 85 percent of Philip Morris USA volume.

Currently, more than 182,000 stores – 86 percent of the retailers supported by AGDC – are contractually obligated to have signage posted as part of one or more of our companies' retail trade programs. In addition to We Card ^TMsignage requirements in our retail contracts, we're founding sponsors of the We Card organization, which provides retailer training and resources to help prevent underage access. Retailers participating in our trade programs and their employees can access free We Card training through our retail trade website. With our support, We Card has trained hundreds of thousands of retail employees and distributed millions of education and training materials.

Under 21 No Tobacco We card sign in yellow, red, black and white to the left of a “Thank you for not buying tobacco or vapor products” for people under-21 poster in two shades of blue

Retail Compliance

FDA’s retail compliance check inspections monitor retail stores for violations of tobacco regulations and minimum age requirements. If violations are found, the FDA issues increasing levels of monetary penalties, up to and including termination of a retailer’s ability to sell tobacco products – a "No Tobacco Sale Order" (NTSO). AGDC monitors the FDA’s reporting on a weekly basis, and if a Philip Morris USA, John Middleton, U.S. Smokeless Tobacco Company or Helix Innovations contracted store receives an NTSO, we suspend select retail program incentives. In alignment with the FDA penalization process, if a store receives a third NTSO, PM USA, Middleton, USSTC or Helix may terminate the retailer’s contract.

NTSO	First Violation	Second Violation	Third Violation
Penalty	Suspend Merchandising Payment for 1 Quarter	Suspend Merchandising Payment for 2 Quarters	Retail Contract Termination
No. Issued in 2024	2	0	0

Youth Cigarette Smoking Rates Hit Historic Lows

POLITICO Focus connected with Jennifer Hunter, SVP Corporate Citizenship, ALCS and Dave Dobbins, Principal Consultant at Dobbins Consulting, to reflect on 25 years of underage tobacco prevention.

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Public Policy Positions

Combatting Illicit Markets Through Effective Enforcement

We believe the best way to avert the threat of illicit markets is with harm reduction policies that satisfy adult tobacco consumer demand within the regulated system.

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